Challenge: In an effort to become more price competitive and motivate shoppers to increase their in-store purchases, a new pricing initiative was piloted, offering lower everyday pricing on thousands of items across the store, on both national and store brand products. The initiative was tested in a single store location, and then rolled out to a larger metro market on the East coast across 70+ store locations, for further testing prior to national launch.

Objective: To evaluate awareness and understanding of the retailer’s new lower prices, and impact on shopper attitudes and behavior. Other objectives included understanding the stopping power and clarity of the new lower pricing communications in-store as well as awareness of other pricing communications efforts.

Solution: The study consisted of three phases: in-store intercepts in the first single-store test of the initiative; in-store shop-alongs with pre-recruited shoppers representing a mix engagement with shoppers in three store locations; and online focus groups among shoppers across the full market area. In-store shop-alongs and intercepts provided the opportunity to gauge shopper knowledge, understanding, and reactions to the new pricing in a real-world setting.

Results: Based on all three phases, recommendations were made for how to most effectively convey the new pricing strategy, including optimal language/messaging to combat any skepticism and drive purchases, most impactful in-store vehicles (shelf tags, end caps, and signage) and other communications strategies.