Skip to main content

Unlocking the Secrets of Consumer Behaviour: The Hidden Insights Behind Price Elasticity

Wendy Janssen | Global Director and Head of SRM Analytics | Mars Snacking
This article investigates the intricate dynamics of price elasticity, exploring how consumer behaviour and market conditions influence a company's pricing power. Through Warren Buffet's lens of pricing power as a critical business metric, we examine the factors that shape price elasticity, including market leadership, relative price positioning, the availability of substitutes, and promotional and media strategies. The insights provided highlight how market leaders maintain lower price elasticity through strong brand loyalty and perceived value, the risks of misaligned premium pricing, and the impact of substitutes on consumer choices. Additionally, the article discusses how increased promotional activity can lead to higher price sensitivity and the crucial role of media support in shaping brand perception and reducing price elasticity. For pricing professionals, the analysis offers actionable strategies to optimize pricing, balance short-term promotional gains with long-term brand value, and leverage media to sustain competitive advantage.
Sign in and download this insight
Wendy is a seasoned leader in the field of business and analytics with over 20 years’ experience working in global roles within the CPG and Retail industry. She is an expert in Revenue Growth Management analytics and is passionate about making data-driven decisions. Currently Wendy is the Global Director for Strategic Revenue Management (SRM) Analytics at Mars, where she is leading the creation of a fully integrated and digitized SRM eco-system. Before Mars, Wendy worked at Kingfisher, as their Group Pricing Director, and Unilever, where she spent nearly 8 years as the Global Analytics & Pricing Director. She manages a team of product strategy leads, data scientists & data engineers and develops and implements numerous analytical solutions across the key RGM levers (strategic pricing, channel pack price architecture, mix, trade promotions, trade terms) to drive faster and more effective decision making.