MEASURING THE EFFECT OF PRICE ON PRODUCT ROTATION.
• How do you determine optimal pricing, from which the entire category can benefit?
• Our customer wanted to gain insight into the effect on product rotation when prices at two Dutch retailers were adjusted to new price levels.
Multidisciplinary kick-off session with project team to align objectives and formalize hypotheses.
Fieldwork in 20 stores (10 Albert Heijn and 10 Jumbo) for 6 weeks.
Respondents chosen based on their actual shopping and purchasing behavior.
In total 240 * data points 120 back data points.
Back data of products and corresponding private label articles.
* Note: for solid assumptions, the minimum requirement is at least 60 data points. The number of data points can differ per project and depends on the depth of the research.
THE RESULTS HAVE JUSTIFIED THE PRICE ADJUSTMENTS.
Validation of hypothesis: confirmed or rejected.
The results showed a clear impact (increase) on product rotation, justifying the price adjustments.
Concrete conclusions about shelf worth.
The results have been used as input to build an internal business case, including price advice to retailers.