Price Drivers

Price Drivers

The right price that perfectly matches consumers’ value perception of the product or service – not too high for what is on offer, not too low to appear unbelievably cheap

Distribution Drivers

Distribution Drivers

A measure of the availability of the product or service to be easily purchased, either through retail or other channels.

Media Weight Drivers

Media Weight Drivers

The relationship between the weight of media investment, in total and by media channel, and sales performance.

Promotional Drivers

Promotional Drivers

The impact that promotional programmes have on both short-term and long-term sales.

Perception Ratings

Perception Ratings

A measure of the strength of consumer affinity with our brand compared to competitors

Perceived Quality

Perceived Quality

The measure of the way in which consumers rate the ‘value’ of your product or service compared to your competitors.

The Loyalty Ladder

The Loyalty Ladder

Measuring the differences in conversion rates from awareness through trial, conversion and loyalty.

Share of Wallet vs Preference

Share of Wallet vs Preference

The relationship between the measure of consumers’ Effective Net Preference for your product or service and its resultant share of their category purchases.

The Brain and ENP

Traditional economists assume the customers are rational, value-maximising, cost-minimising and socially isolated individuals with stable preferences.

In reality, customer decisions are strongly influenced by context, their purchasing behaviour varying over time and subject to social influences and emotions. If we all bought cars on the basis of traditional economic theory, we would all be driving a Toyota Prius. But we don’t. We buy cars on the basis of “I want one”.

You are lost while driving and need to make a couple of quick-thinking decisions. Should you continue straight or pull over? Ask for directions or figure it out on your own? Your brain is running through all these options trying to determine what the best solution is. So, what part of the brain is in charge of that final decision?

The brain is split into two hemispheres – the right and the left, both having specific functions. The left-brain is responsible for rational thought processing, logical sequencing, and analytical considerations. The right brain helps out with creative thought, intuition, and looking at the big picture. Right brain left-brain functions work together to create a complete human brain, which plays a large role in the decision making process.

Psychologists have long known that emotional associations and evaluations guide our decisions. Emotions consciously and unconsciously reduce the complexity of decision making, creating automatic evaluations that help us towards a decision.

And if we feel positive about a brand, it is likely that we will be prepared to pay more for it than for a brand that we feel less well disposed towards.

All of us are aware from our personal experience that the way that we feel at any at any particular moment can cloud our judgment. Psychologists refer to these as ‘hot states’ – emotional states that increase our desire for instant gratification by making those thoughts that are associated with current needs over-ride all other thoughts that might restrain our behaviour. It is the reason why whenever we go into a supermarket feeling hungry, we end up buying food that wasn’t on our shopping list.

We tend to underestimate the effect that hot states have on our behaviour. Most people would predict that they will practice safe sex but this often doesn’t happen when we find ourselves in a hot state.

We are creatures that live very much for the present and often we lack self-control. Given a choice between instant and delayed reward, we are biased towards a decision that will benefit us now. We are hopeless at deciding on a course of action that will benefit us in the future if an alternative choice will benefit us immediately – even if this benefits us less.