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 applies to price promotions?
Adding an anchor in the price promotion mechanic (think 2 for €5.00) can increase volume uplift by a whopping 32% compared to single unit price offs (1 for 2.49).
This means if retailers and / or consumer packaged goods companies want to drive volume, it makes more sense to deploy multi-buys (2 for 1, buy 3 get 1 for free) compared to temporary price discounts on single products.
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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