Our pricing expert Maureen Arink was asked to write an article on pricing for Professional Pricing Society, based on learnings from our pricing research database. It got published as lead article in their September 2012 newsletter.
In the article, Maureen addresses several assumptions related to price sensitivity and elasticity in consumer goods industries, and provides data from recent analysis that either confirms or debunks these beliefs.
Four things you think you know about pricing
When time is tight marketers sometimes need to rely on their ‘common sense’ when it comes to setting the right price. However, after running a meta-analysis on all data in our pricing database, at SKIM we know that there is a danger in using unproven assumptions when developing pricing strategies as common pricing beliefs are not always true.
SKIM’s pricing database currently includes more than 200 pricing studies conducted in 18 countries in 45 product categories, yielding price elasticity information on more than 7,000 individual products.