By Joe Sakach, Director of Next Generation Analytics & Practices, Campbell Soup
It’s safe to say most of us don’t give much weight to a statistic when we realize the study involved a small number of people from the same region and of the same age. Why? Because, we know that the data retrieved by a study like that is anecdotal at best. It’s not widespread enough to represent an accurate account of a real population.
This idea is no different when evaluating the price increases and decreases in the CPG and retail industries. Methods often employed by marketers only evaluate a short period of price impacts and changes. The issue with this model is that the statistics it returns may not present the complete picture; the evaluated sample is simply not broad enough to understand true trends and consumer reactions.
During the Summit 2011 breakout session, “Measuring the ‘Carryover’ Effects of Pricing Using Dynamic Demand Modeling,” I will join Joy Joseph from SymphonyIRI to further examine best practices in product research, and we will explain why it is imperative for CPG and retail companies to move away from the current short-term price evaluation strategy. In doing so, organizations will be able to gain a more thorough understanding of consumer reaction and habits.
Joe Sakach and Joy Joseph will be presenting their session on Wednesday, March 30 at 2 p.m. in Glimmer 2. Check out the calendar for this year so you can plan your time at Summit!
