What it does for you
The impact of price changes on buying behavior is oftentimes captured by scanner data, where price changes are monitored over time and the influence on volume changes is measured. Even though real purchase data is used, scanner data measures always include external factors, which cannot be taken out of the equation. For example, when multiple products change in price simultaneously or competition is running a promotion. This influences buying behavior and makes it impossible to find the optimal price and/or features for each product of your portfolio separately.
Helping you answer questions like
- What should be the price of our brands and products to maximize portfolio profitability: market share by value, or market share by volume?
- Are there clear price barriers for each of my brands/SKUs?
- How price sensitive are consumers towards each of my brands?
- What is the optimal price architecture for my entire portfolio/category (e.g. positioning by brand, size, format etc.)?
How it works
SKIM’s decision behavior platform builds on over 30 years of experience in practicing and advancing choice modeling techniques. We provide an adaptive approach to each project with the appropriate blend of methodologies to fit the project and market needs. Our approach is based on survey testing with the relevant customer base away from your store or website.
Through “virtual shopping trips” we can replicate store shelves or websites and include the offering of competition, which enables us to identify the optimal product (features) and price for each of your products or propositions within your portfolio. SKIM uses conjoint methodologies to test new market scenarios in a survey environment providing all the required insights. Choice-based conjoint allows you to test different feature/price bundles as concrete products and test which product mix works best to maximize share and revenue.