15 Aug Pricing study investigates Penny’s “True Prices” campaign
Study results on the effectiveness of Penny’s “True Prices” campaign
eye square and Supra.tools investigates the recent campaign of the discounter Penny
A current study cooperation of eye square and the pricing tool specialist Supra.tools examines the pricing of Penny’s “True Prices” compensation concept. The initiative was launched to make consumers aware of the actual ecological and social impacts and environmental costs of the discounter’s selected products.
The setting of the study included 500 price tests conducted via online surveys. One finding shows that although a compensation label would increase consumers’ willingness to pay by 1.59 euros (+33 %) compared to the original price of 1.19 euros, the yogurt’s sales of 1.59 euros would still be significantly lower than the original price of 1.19 euros.
Targeting consumers willing to compensate indicates in this campaign that a corresponding sustainability label is not economically sustainable. As a subgroup, the survey also looked at customers who are willing to pay a higher price for compensation, similar to flight compensation fees.
In general, the prices set in the campaign are unfortunately not realistic on the market.
eye square applied a new market research method called “Implicit Price Intelligence” from the platform www.supra.tools to analyze the “True Prices” campaign. This involves neuroscientific methods and machine learning to uncover unconscious attitudes and takes into account psychological biases in survey responses.