In that context, understanding how consumers think, and especially how they build their price perception, becomes even more critical. Pricing is of course not only extremely important to consumers in their choice of store, but but changes in the pricing lever can be directly and immediately reflected in the bottom line. Making the right decisions on price investment has therefor tremendous potential for retailers.
Price is not only important – it is also complex. There are a series of issues that need to be addressed. How do consumers come to perceive a retailer as expensive or inexpensive? What is the relative importance of the main drivers? What is the role of promotions in driving value perception? Do all consumers think alike? Are all markets the same? With questions like these in mind, The Coca-Cola Retailing Research Council – Latin America commissioned McKinsley & Company, a leading international consulting firm, to try to understand how price perception is built within the region, and its implications for retailers.