In retail today, the right price is pivotal as it is one of the most important factors that determines a shopper’s decision on where to shop. It takes on an even more larger role with the current economic uncertainty, rampant unemployment, and the move to e-commerce that has increased pricing transparency.
“Pricing is the ultimate lever for driving sales, but price indexes offer no reliable way to truly measure how consumers perceive your prices,” Edris said. “In one example, we saw coconut water drove a disproportionate image of a grocery retailer’s prices throughout the store,” he added. “We saw that if we could price that item well, shoppers would be likely to buy other products.”
“COVID-19 has really changed perspectives on pricing,” said Jon Duke, vice president of research at IDC Retail Insights. “In the early days of the pandemic, pricing didn’t have much of a role other than to slow down on promotions to reduce store traffic. But now it is top-of-mind as grocery fights media conversation about price inflation and non-essential verticals such as fashion work to price unsold inventory without racing to the bottom.”
For the complete article, go to: https://www.businessinsider.com/companies-helping-retailers-stores-predictive-dynamic-pricing-2020-12