Pricing Research Q&A with Catapult Insights’ Statistical Expert, Tom Rosholt

Sep 10, 2024

Pricing Research Q&A with Catapult Insights’ Statistical Expert, Tom Rosholt

Pricing research has always been a valuable tool in the market research toolkit, but it has become even more relevant and useful in the last couple of years with the changes to the US economy, inflation, and many brands bringing new, innovative products to market. While there are a set of tried and true techniques for pricing research and analysis, it can be challenging to figure out which one to use, how to use it, and when you need to think outside the box a bit. This is why Catapult brings our stellar statistician, Tom Rosholt, into the early stages of all pricing research to expertly guide the process. Tom Rosholt and I recently sat down to chat about pricing research and how to ensure the results impactful and relevant.

Jill: Tom! It’s great to be chatting with you about pricing research. I know it is one of your favorite topics because it presents so many unique challenges to work through, and you always love a challenge.

Tom: I do love a challenge! It keeps things interesting and I enjoy trying new techniques to help pull meaningful insights out of the data that our clients can actually use in the real world.

Jill: Why do you think pricing research is so important for brands?

Tom: There is a price at which anything of value will sell, from a matchbox to a mansion. Brands need to know as early as possible if the price people are willing to pay for an offering is within the pricing sweet spot, i.e., the range at which the maker of the product will realize sufficient profit, to reduce the risk of devoting time and resources to a non-viable proposition. Getting the price right is more important now than ever because competition is fierce and fast-paced, product development can be enormously expensive, and pricing information in the marketplace has been fully democratized. In addition, the era of making big (and even modest) business decisions without data is waning, making it nearly impossible to get an offering to market without research data, and that includes pricing.

Jill: Do you have a favorite pricing research methodology?

Tom: I actually don’t. I favor the technique that works best for the context. Here are things I think about when choosing a method:

1) How well-developed is the offering when consumers will be exposed to it?

2) Which is the greater risk, overstating or understating price sensitivity (i.e., the degree to which purchase willingness changes as price changes)?

3) The nature of the survey that includes the pricing inquiry.

4) The category, market maturity, market penetration, and realistic price range of the offering.

Jill: What was your favorite pricing research project and why?

Tom: We worked on the project together, Jill. This particular team collectively possesses an attribute that I believe is incredibly valuable in the research realm – curiosity. Their offering was tricky in that it is “familiar yet different,” so it was difficult to get a sense as to what people would pay for it. Research to the rescue! The client was willing to go at the pricing problem using two different research methods with differing biases. The results of the two methods told complementary stories, so the client got clear direction.

Jill: Have you had any opportunities to see the results from a pricing research program you worked be implemented in the real world? If so, how did that go?

Tom: We will soon find out when the product I just talked about hits wide distribution! .

Jill: Are there any potential landmines you see researchers or clients risk stepping into with pricing research?

Tom: It is crucial to see pricing research for what it is – guidance rather than some sort of final answer. The dynamics of having a product in the market are usually very complex, so it’s impossible to determine if the price is just right until the offering is on-shelf and consumers are required to part with their money. However, pricing research done right can get you close and let you know whether or not your offering is viable.

While pricing research can feel like an overwhelming endeavor, having an expert like Tom as your guide ensures you’re following the right path, with the right methodologies to help you to make data-driven decisions. Drop us a line if you want to learn more about how we approach pricing research and how we can help you navigate the challenging world of pricing your offerings right to drive purchase behavior and create loyalty.

Jill Miller

CO-FOUNDER
CATAPULT INSIGHTS

The Checkout Revolution is Here

Jul 18, 2024

The Checkout Revolution is Here

Checkout has long been the bane of in-store shopping experiences, marked by long lines and cumbersome processes that slow the shopper down. Many shoppers have learned to love aspects of the online shopping experience, particularly the purchase moment. Although complicated in its own right, the end of online purchases is often far faster and less rife with frustrations than in-store checkouts. But the vast majority of retail purchases in the US are made in-store, despite a fairly steady rise in eCommerce spending. This is why many retailers are reimagining the in-store experience and focusing on the checkout pain point.

Just Walk Out (JWO) is an Amazon technology which allows shoppers to authenticate through their Amazon account at store entry, thereafter automatically tracking and charging the account only for what each shopper carries out of the store. A system of cameras in the ceiling paired with strategically placed weigh sensors works extremely well – after 80 purchases in Go stores I have never had an incorrect charge. This technology has been licensed to other shops, like Hudson News at many airports, and seems like a natural fit for small-to-medium shopping trips like on-the-go meals and topping up on household staples.

Pop over to Amazon Fresh and the experience is focused on the Dash Cart, chosen because shoppers on grocery stock-up missions want to track purchases as they go. The cart automatically senses items that it’s carrying and uses the shopper’s Amazon account for secure payment. This technology brings the same speed and convenience benefits as JWO and is a more conducive fit considering the store format.

Sam’s Club has been using Scan & Go for some time, which allows shoppers to use the Sam’s app to scan barcodes as they shop, then produces a QR code for an attendant to scan on your way out. While this solution allowed shoppers to skip the checkout line, it still required active scanning by the shopper. However, the retailer just started rolling out an AI-powered solution that should eliminate receipt-checking when exiting the store.

This technology is still in its early days, and when I tried it for myself I was still stopped by an employee to scan my receipt. But the trajectory appears obvious that the retailer aims to one day eliminate that human touchpoint, which would bring their checkout and store-exit experience at parity with other retailers. Taken a step further, this technology could one day eliminate the need to scan product barcodes in the first place. This could mean a shopper would load their shopping cart and walk out of the store without scanning a single thing – much like customers are able to do today at Amazon stores.

Several Catapult clients are working on yet-to-be-announced technologies to make shopping and purchase experiences better for customers. We see a potential challenge in disparate experiences existing across retailers, making previously mundane tasks no longer feel like second nature to shoppers. This is why we’re working closely with our clients to devise optimal education and rollout strategies that balance new benefits with acceptable learning curves.

JUSTIN SUTTON

CO-FOUNDER
CATAPULT INSIGHTS

Catapult Moves to Seattle

Jul 8, 2024

Catapult Moves to Seattle

We are excited to announce the relocation of our headquarters from Las Vegas to Seattle! Our move is both strategic and personal. We are looking forward to being closer to some of our amazing client partners and the collaboration opportunities the close proximity will provide. And, our Co-Founder, Jill Miller, is looking forward to finally escaping the Las Vegas summer heat!

Please join us in celebrating this exciting news, and, if you’re in the Seattle area, let’s meet for coffee so you can share your best Seattle recommendations to help us get settled in.

THE CATAPULT TEAM

Celebrating Two Years of Catapult Insights

Jun 13, 2024

Celebrating Two Years of Catapult Insights

Year 2 of Catapult flew by and we’re taking a look back at some of the high points and surprises we experienced along the way. Read on to hear from the Catapult team as we reflect on another great year and plan for more adventures together.

What surprised you most in year 2?

Justin: Expansion! Most startups want to be profitable by the end of year 2, and we found ourselves already growing. It was a shocking place to be, and I can’t thank our clients like Amazon, Starbucks, and Delta Faucet enough for joining us on this adventure.

What do you tell your parents or friends about Catapult?

Justin: I tell them I feel like a champion because of my colleagues and the brainpower and grit they bring to our work. That’s the sort of thing that elevates my day-to-day experience and reinforces the meaningfulness of what we do. The Bulls in the 90s were great because they had great players, yes, but they were champions because they challenged each other to be even greater. That’s the Catapult vibe in year 2.

Andre, why did you decide to join Catapult in year 2?

Andre: I was at a crossroads in my career and employment and was thinking about what I wanted to do professionally that would both satisfy my desire to put my education and experience to good use and allow me the flexibility to make having time for my family a priority. I started thinking about staying on the research provider side of the business, which then led to thoughts of, “Well ok, but big, medium, small?” Then I considered hopping over to client-side but knew that I would have to trade-in the variety of work I have grown to love for something a bit more focused.

So, what to do? Well, the stars aligned with Jill and Justin having finished an amazing first year at getting Catapult up, running, and thriving to where they were looking for help to keep up with all the work that was coming in. Full transparency, I had worked for the better part of a decade with Jill and Justin at a prior research vendor, so I knew of their expertise, work ethic, and dedication to the research craft that aligned with my own. So, when they found out I was a free agent, they quickly got me on the phone and the rest is history. I’ve never been so sure of a decision in my life in both what was best for my family and career. Now I get to work every day with people I truly like (both professionally and personally), the work is thought provoking and forward-thinking, and I get to take lots of “peekaboo” breaks to play with my kids.

What has been the best part about working as Catapult?

Jill: Our team and our clients! Who I work with is really the biggest factor that impacts how happy and satisfied I am in my professional life. I couldn’t ask for a better team at Catapult. We collaborate and communicate well, and bring unique but complementary skill sets and points of view to our work together. Add to that a group of smart, motivated, and collaborative clients and it’s the perfect combination for success and happiness. We have a great mix of clients. While some come to us for the occasional project, the majority of our work is with our core set of repeat clients who have truly become our partners. We know their businesses well and are dedicated to making sure not only are their projects a success but that they are as well. Nothing makes me happier than finding out my clients got great compliments on the work we’ve done together or even promotions because they’ve made such an impact on the organization through their consumer insights work. I feel lucky to have found a great team and set of client-partners to work with every day.

What was your favorite project this year and why was it your favorite?

Jill: A Sporting Event qualitative project for a newer sports league that allowed us to experience the customer journey in a new way. We’ve done a ton of qual work interviewing consumers in situ, but this one felt different because we were up close and right in the action, experiencing it for the first time alongside new fans who had never been there before. Interviewing them in real time gave us great insight into their experiences and we felt like we were truly going through their journey with them as the event unfolded. Plus, our clients were eager to act on the insights we gathered to level-up their next event.

Andre: Helping a well-respected leader in the durable goods sector with new product development – for the better part of a year we supported them with multiple studies to ensure this product had no red flags at play and that it would be priced within consumer expectations, and ultimately ended with in-home tests where we got to see potential customers using the product. Very rarely do you get a front row seat to see a new product in the design phase slowly become a reality, even rarer is having enough proximity to impact and shape that product with the thoughts and words in my head. Incredibly satisfying.

Justin: One of our clients in the QSR space is working on an initiative that will make a huge splash in sustainability and waste-reduction. It’s a big idea that will change a lot about the way their customers interact with the brand while also evolving the design of a central brand symbol. Our work is helping them understand customer perceptions and acceptance to ensure a smooth transition. The public rollout will take a few years, so stay tuned to hear more about our work after it launches.

As we close the book on year 2 we’re looking on to the future feeling inspired and excited. Cheers to a fantastic year 2 and to the adventures year 3 will bring.

THE CATAPULT TEAM

NPD Success Culminates with Home Use Test

Jun 4, 2024

NPD Success Culminates with Home Use Test

For nearly two years, Catapult has partnered with Delta Faucet Company to better understand hair care needs, specifically for those with curly, textured hair in support of building a go-to-market strategy for an innovative new tool. After multiple initiatives to get it right, ranging from an Attitude & Usage study, qualitative research, message development and concept evaluations, and pricing studies, we partnered on what might be the final piece of pre-launch research: a Home Use Test (HUT).

The tool, known as VersaCurl^TM, is already turning heads and winning accolades after it was announced at KBIS. That industry show was happening right around the time we were wrapping up our 10-week HUT, which chronicled real-world experiences and perceptions of the tool.

This seemed like a good time to talk about a few tips to run a successful HUT, based on this and many other experiences we’ve had over the past decade.

Nail the Timing

There’s a lot that can be said under this marquee, so I’ll just hit one of the most important. Avoid incurring costs until prototypes are in-hand. Anything and everything is possible when fabricating something for the first time, and the last thing you want is to rack up recruiting costs and then have to delay or re-recruit because prototypes weren’t ready. Do what Delta did and allow time to receive and QC everything before marching forward.

Justin Sutton

CO-FOUNDER
CATAPULT INSIGHTS

On Careers…

Jun 1, 2024

On Careers…

I’ve had several people reach out recently to discuss their career paths. Each person was in such a different place, so it stands to reason the advice I had to share looked quite different. It made me think about the different moments in my career, advice I’ve been given, and what sage wisdom is worth sharing with the world. So, let’s take a look at a few scenarios and the considerations impacting each.

There seemed to be a common denominator in each of the situations: a slow grind. This is when you find yourself treading water for too long, not ascending and feeling restless. The fascinating thing about this is that it can happen across so many levels, and it can feel just as frustrating at each. For those early in their careers, it can seem as if you may never break through a middling level of success to a place where your work can stand out and you can feel seen. For those deeper into careers, this situation feels like a glass ceiling preventing you from maximizing your skillset and applying it to a strategic level in the organization.

Like most situations, how you handle it is highly dependent on the organization. Jill and I spoke with someone recently who was ready for a new challenge. This person had excelled within their current position and made a fantastic brand for themself, but they effectively outworked the position they were in. This is a tough spot to find yourself, and equally tough for an employer. On one hand, an org could create a position which maps to the individual’s skill set, which seems like a fantastic idea on the surface. But what happens when that individual eventually moves on, as people are apt to do? It leaves a void in the org that was so tailored to an individual that it becomes impossible to backfill, necessitating a reorg.

I found myself in a similar position after my first job after college: I had built a mountain of assets that outpaced the company’s sales trajectory, leaving me in an awkward place. Even when the org is a great place to work, if there’s not a clear path forward or your skills are outmatching your position, it can be time to move on. These situations often result in boomerang rehires, so remember not to close the door behind you.

I met another person who returned to work after spending a few years building a family. She was working for an organization that had a peculiar habit of not promoting people with less than 10 years of tenure, regardless of experience or performance. Pair this with the people who were ascending being ill-fitting for their leadership positions and it becomes an extremely frustrating situation. This is an immediate red flag, because any organization that will ignore, or worse, not recognize the capabilities of their people is not prepared to make good decisions for themselves or their people. This creates a terrible situation rife with mentally-challenging “am I good enough” moments. When this person’s boss departed and the org would not even consider her for the position, despite being the perfect match, I advised this person to move on. She is now thriving in a much healthier work environment.

Another person in a similar situation was feeling unsatisfied with their salary, feeling the slow slog was wasting their prime earning years. This is a very real feeling that I can empathize with. In my 20s I was frustrated by the feeling of putting in what seemed like more effort than my superiors and receiving far less compensation. In my 30s I made some career moves that aligned more with organizations that were structured differently and taking positions that had clearer sight-lines to revenue generation. I think when it comes to compensation concerns it’s important to step back and examine whether your position or the company’s structure is the right fit for your goals.

Consider the ownership structure, because that directs a lot of the financial goals of the org. Venture capital-owned companies are often in a cycle of shaving costs while driving growth, which can feel like a meat-grinder. I worked for a company in which I was being asked to train low-cost labor overseas to do the same work I did in preparation to sell the company. This didn’t sit well, and I ended up walking away from a promotion offer to start a new job elsewhere. In the following year the org I left went through several rounds of layoffs as they continued on their cost-cutting path.

Looking back, I’d say my career is spotted with as many fumbles as there were smart moves, but I really value and appreciate the mentors I had in my life who helped guide me when I felt lost. I love being able to share perspective with others almost as much as I enjoy learning from those who have come before me, and while I am no career guru, my door is always open.

Justin Sutton

CO-FOUNDER
CATAPULT INSIGHTS

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