Testing the Impact of Promotional Price Points

The Challenge

A manufacturer wanted to make price changes for a promotion on a particular product. They needed to test the impact of multiple promotional price points for that product to understand what optimizes category sales and their key brands.

The Method

They reached out to InContext Solutions to leverage virtual testing before trying anything out in the physical store. A shopper test was conducted using virtual simulations to understand how shoppers behaved when shown four different promotional price offers.

The shoppers were also asked questions about their perception of the brand for the promoted products, which they could answer directly after their shopping mission.

The Results

The shopper test provided sales data that shoppers purchased the most units with a 2/$3 promotion, but a 3/$7 promotion optimized category sales for its key brand.

The manufacturer was then able to recommend and activate a new pricing strategy with their retailer partners.

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