REGION: EUROPE, ASIA, AFRICA
COOPERATION SINCE: 2018
WHAT IF, BY INCREASING THE PRICE BY ONLY 10%, IT AFFECTS THE VOLUME OF SALES AND REDUCES THE NUMBER OF CUSTOMERS?
What was the client objective?
The client approached us to help solve several problems:
– assessing their position and brand awareness in the market,
– testing the hypothesis that the change in the volume of purchases depends on the price in the context of specific goods categories.
- To analyze the popularity and frequency of attendance of shopping centers among families in cities where there are METRO stores.
- Analyze customer satisfaction with the following characteristics:
– customer satisfaction with the price of key products
– satisfaction with the range
– discounts and promotion
- To assess customer behavior in shopping centers, analyzing key products with either an increase or decrease in price by 10%.
What research have we conducted for the Client?
We have created a comprehensive project, in which we carried out the study, measuring the following categories:
- Consumer behavior in the supermarket
- Brand recognition
- Customer awareness of supermarkets by name
- Analyzed brand awareness and visit patterns.
- Analyzed brand awareness and METRO visits in the context of cities
- Formed a conversion model of supermarkets
- Created attraction and retention cards
- Determined the choice of a supermarket: causes and important factors
- Analyzed attitude towards prices
- Evaluated the impact of positive and negative pricing policies
On the basis of the research data obtained, we also determined the position of METRO by the parameters: knowledge and attendance, attraction to and indifference towards supermarkets, attendance and selection factors and satisfaction.
What value did the client get?
We have developed and conducted a comprehensive design of the study to solve the client’s problem.
- The threshold of price elasticity was defined.
- Provided specific recommendations for:
- Pricing and categories;
- The risks of customer turnover when the prices of specific goods change;
- Brand perception and customer base loyalty structure.
Additionally, hypotheses about the importance of price as a stimulating factor for different categories of customers were tested.
As a result, METRO received recommendations from us on retaining the customer base and key drivers for the growth of the base.