Does price really matter?
Managing what customers think about price is more important than reality
Tuesday 01 January 2008Report
Retailers invest huge amounts of effort and money in price. Chinese consumers have a surprisingly poor knowledge of actual prices, but do know where to get the best deal. Managing the perception of price is critically important for all retailers, but in the grocery around China's Western brands are coming of badly and may be wasting margin. Targeted investment in perception-driving products and categories is one of the proven mechanisms to harness price as an effective competitive weapon.
In 2007 and 2008 the media was buzzing with reports on China’s dramatic food price inflation and its implications,. The food CPI eventually peaked at no less than 23% growth in February 2008 and since then has never looked back – indeed, in 2008, it is deflation that is making headlines. Sustained deflation is tough for retailers but not so bad for consumers.
Read PublicationSuggested Reading
Journeys to the west
The classic Ming Dynasty novel “Journey to the West” tells the tale of Xuanzang, a Chinese monk trekking to India to study Buddhist scriptures alongside a colourful collection of magical characters
Taking on the machines
The OC&C Proposition Index 2012 is the biggest and most comprehensive we have yet compiled
The big leagues
The OC&C Proposition Index is a major piece of consumer research conducted annually, measuring shopper perception of the strength of different retail propositions
Think global act focal
Global suppliers are focussing on their billionaire brands and reaping the rewards in spite of the economy
Would you trust a machine?
This is the fourth year of the OC&C Proposition Index, a major piece of consumer research into shopper attitudes towards the world’s leading retailers