by Pim Kneepkens | Mar 13, 2023 | Price Promotions, Revenue Growth Management, RGM Bites
Price Promotion Mechanics Matter Anchors in Price Promotions Check out our latest insight! In our previous post, we highlighted how adding super-premium options to the shopper choice set can boost willingness to pay. But did you know the same anchoring effect also...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Anchors Can Increase Willingness to Pay Anchors Increase Willingness to Pay Adding a high priced super-premium product to an existing assortment will increase consumer’s overall willingness to pay as the super-premium item(s) will make the regular and premium priced...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Consumer Response to Downsizing Pack Price Versus Pack Size Pack size elasticity is about 1/4th the pack price elasticity. Furthermore consumers consistently under-estimate pack size changes, especially if it involves changes in all three dimensions (width, height and...
by Pim Kneepkens | Mar 12, 2023 | Pricing, Revenue Growth Management, RGM Bites
Price is The Key Driver of Profitability Price Key Driver of Profitability Price has the most immediate impact on top- and bottom-line growth. In fact, research has shown that a 1.0% increase in price leads to a 11.0% increase in profits (ceteris paribus). With...
by Pim Kneepkens | Mar 12, 2023 | Branding, Revenue Growth Management, RGM Bites
The Importance of Advertisement in Downturns The Importance of Advertisement Most firms tend to cut cost during a recession to protect cash flow. However, empirical research has shown that an increase in advertisement spend during a recession leads to higher market...
by Pim Kneepkens | Mar 12, 2023 | Branding, Revenue Growth Management, RGM Bites
The Effect of Brand Recall on Market Share Brand Recall Drives Value Share Brand recall is positively correlated with market share. The inclusion of the brand in the consumer’s choice set is generally accepted as the underlying causal mechanism driving this effect....
