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 items appear cheaper. This effect is known as anchoring.
This means if retailers want to grow their price it could make sense to stock a super-premium brand across stores as that will most likely: (i) grow the sales of the existing above average priced items and (ii) soften the impact of an increase in retail selling prices.
Author
Pim is the co-founder of RGM Consulting and a core member of the global executive leadership team. In the leadership team he oversees: sales, research & knowledge development, marketing, and delivery.
Pim has extensive experience supporting leaderships teams across the globe, having worked on projects in Europe, Latin America, and Africa. Through his work, Pim has developed expertise in revenue growth management, business turnarounds, innovation management and marketing. Furthermore, he has deep expertise in the consumer goods industry.
Expertise
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- Revenue Growth Management
- Business Strategy & Transformation
- Business Turnaround
- Innovation Management
Education
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- Master of Philosopy in Business Research (graduated cum laude)
- Master in Business Administration (graduated cum laude)
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