Price & Line Strategy
Price and product line-up decisions have a sharp impact on the bottom line. However they pose the most difficult research challenge.
Price & Line Strategy Simulator
Researchers have struggled trying to understand the consumer decision process regarding pricing and product switching. Only sophisticated mathematical models operating on observed behaviour data can decode the consumer mind.
This is the approach of our Price & Line Strategy Simulator. We observe the consumer behaviour in a “simulated shopping” experience. A proprietary software application takes the consumer through several scenarios with different products, prices and promotions and lets her “buy” just like she does in reality. A true experiment, exploring the consumer decisions in system I mode.
Then our mathematicians, pretty much like artists, design the best discrete choice model to learn the consumer selection patterns.
A simulator is produced, capable of indicating the impact of any thinkable scenario on each brand in the study:
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Pricing
- Predict the impact of price moves.
- Anticipate and neutralize competitor moves.
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Innovation
- Market potential of each new product in the pipeline.
- Source of volume for each new product.
- Anticipate and neutralize competitor innovation.
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Line Optimization
- Volume leakage for a product delisting.
- Optimum product portfolio.
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Strategy
- Competitive sets based on behavioural information: who are we really competing with?
