However, as Petty pointed out, price sensitivity is not always all-encompassing, meaning that when brand marketers evaluate their consumer base for price-sensitivity, they need to pay attention to product-level preferences. The 19.1% uplift in sales for very-price sensitive shoppers represented broad-appeal products, such as a well-known soft drink from a major category supplier.
When it comes to convenience products, which represent more frequent purchases, there was a 23.3% sales uplift among least-price sensitive customers as opposed to the meager 1.5% uptick from very price-sensitive consumers.
“For a particular brand, it’s very important to understand, ‘Are my brand buyers price sensitive or not price sensitive?’ and of my loyal brand buyers, how do they look vs. my ‘switchers’ and what are the differences there?” Petty said. “I may be price sensitive in coffee and only buy what’s on sale in the coffee aisle, but when I go to macaroni and cheese, I may always buy Kraft.” If a brand consistently pushes value-based promotions to a brand-loyal consumer, it may have an adverse effect.
It’s also vital to incorporate a knowledge of the media mix into price-sensitivity intel. For instance, TV and in-store promotions used in conjunction with one another appealed more to the everyday shopper in search of value. The very price-sensitive consumers showed signs of responding more effectively to TV placements alone. Very price-sensitive shoppers also responded strongly to direct-response mailers.
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