Add two price questions to the brand tracker

Shoppers act on what they think the brand costs. Buyers argue from what they say shoppers think. This sheet puts two fixed questions in the brand tracker and asks your top five buyers the same two at each terms round. Both are kept as a series. It builds the Competent step of the check:

Shopper price perception and value for money for the brand are measured on a schedule, and the result is reported.

Step 1. The two questions

Keep the wording fixed. Change it and the series breaks.

For shoppers, in the brand tracker:

1. "Compared with other brands of [category] in the store, is [brand] much cheaper, a little cheaper, about the same, a little dearer, or much dearer?"
2. "For what you get, how good is [brand]'s value for money, from 1 (poor) to 5 (excellent)?"

For buyers, at each terms round:

1. "Against other brands in your range, do shoppers see [brand] as much cheaper, a little cheaper, about the same, a little dearer, or much dearer?"
2. "For what it brings to your category, how well is [brand] worth its price, from 1 (not at all) to 5 (completely)?"

Ask the buyers outside the negotiation itself, so the answer is not a bargaining position.

Step 2. Where they go

Step 3. Plot them against the real gap

Take the real gap from your competitor price record.

• Perception moves, the real gap does not: something shoppers notice has changed. Look at promotion depth and pack sizes.
• The real gap moves, perception does not: shoppers have not noticed yet. Decide whether you want them to.
• Buyers score you dearer than shoppers do: take the shopper series to the next terms round.

Step 4. Report it

Done when: shopper price perception and value for money for the brand are measured on schedule, and the result is reported each quarter.

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Adapted from our own pricing approach (PSP, 2007).