Three-pronged research approach delivers insights to capitalize on evolving consumer perception
As competition in the value fashion market increases, consumer perception of “good value” is also changing. To better capitalize on this evolving perception, one women's clothing retail chain wanted to a) determine where to position itself in the minds of its customers, and b) improve gross margin dollars through pricing and promotions optimization.
To obtain insights in several different areas, RRD Marketing Solutions executed a three-pronged approach comprised of pricing competitor research, a consumer perception study, and promo pricing analysis.
Consumer perception study tested current customers, lapsed customers, and prospects in four markets. Sixteen participants (four per market) who had a planned shopping trip and need — and were within the target customer groups, product categories, and competitor set of interest — were recruited and tested in the client’s stores as well as competitor stores. To keep the experience as natural as possible, participants shopped these store in the order of their choice.
Each shop-along session observation lasted approximately a half-day. In-store eye tracking at the client’s stores was also included. Eye tracking on web, email and catalog stimuli was also conducted during an offsite debrief.
Pricing competitor research provided insights into not only the “reality” of how this retailer is priced per category, but also perceptions that may influence value and price based on best practices.
Overall, the consumer perception study, including focus group analysis as well as the shop-along research, uncovered significant findings aligned with the key areas of focus, but also provided additional insights due to the opportunity to observe natural store behaviors and the holistic customer experience.