Price Image Analysis
Price Image is the consumer’s perception of a retailer’s overall price relative to their competition. Traditionally, simple price indices or customer surveys have been used to estimate this perception.
Engage3’s science-based measurement of Price Image is based on complex behavioral modeling – avoiding bias, time delays, and inaction – so you can make the right pricing decisions and accurately forecast demand.
Price Image Analysis (PIA) helps you understand your Price Image and where to target your pricing investments:
• What is my Price Image relative to my competitors?
• Where am I leading and where am I lagging?
• Where are the opportunities within my assortment?
• Which products should I invest in to improve my Price Image?
Data Science and Behavior Based Measurement
We determine Price Image by measuring consumers’ behavior instead of using traditional qualitative surveys. This approach provides 3 distinct benefits:
• Unbiased. We avoid the inherent bias and inaccuracy of qualitative research. Consumers have a strong incentive to tell you they strongly prefer healthy foods, but actually buy unhealthy alternatives.
• Timely. Surveys typically take months to conduct.
• Actionable. Since we measure the tangible metrics that drive behavior, we can accurately forecast and even manage those specific metrics that drive it.
Accurate Pricing Models
Our forecasting models can predict consumer behavior based on Price Image, the drivers of which include variables like price thresholds, price
gaps, elasticity, change in price, seasonality, and promotions. These models allow us to accurately forecast how a consumer will react to price changes, and more importantly, which items will have the greatest impact on Price Image while having the least impact on profit.
”With deep pricing–focused artificial intelligence and machine learning assets, Engage3 is focused on using science to maximize business outcomes constrained by shopper perception of pricing through predictive modeling of Price Image.Mark ThomasonResearch Director for Digital Business Models and Monetization, IDC
”Grocery stores with the best Pricing Perception will do best.Jon SpringerExecutive Editor, Winsight Grocery