Multifaceted Pricing Research – A Triangulation of Techniques

Multifaceted Pricing Research – A Triangulation of Techniques

Multifaceted Pricing Research – A Triangulation of Techniques

The Call

A major player in the durable goods category was developing a new, truly innovative product that launched their brand into a new-to-them category. As part of their Go to Market (GTM) planning, they wanted to make an informed decision about how to price this new product to ensure consumer adoption. In addition to being an innovative new product in a category they hadn’t played in before, they also anticipated launching it in retailers they had never sold in before. They were facing new territory on multiple fronts. They turned to Catapult to design and execute a study to inform their pricing strategy and ensure a successful launch.   

Our Response

This project was truly unique and gave us a rare opportunity to evaluate pricing for the new product in 2 completely different approaches. However, that wasn’t the plan from the start. First, we utilized insights from extensive qualitative research to refine a range of prices to test in a quantitative setting using a Gabor-Granger (GG) price laddering exercise. To reduce as much bias as possible, we carefully developed a price range and randomly varied the starting price for each survey respondent.

During our GG analysis we observed the presence of anchoring bias which isn’t uncommon for pricing research but was stronger in this particular study than we had observed in the past. We hypothesized the anchoring bias was due to the product being unlike anything else on the market and consumers not having any real frame of reference for the price. This bias, some observed patterns in the data, and the known fact that GG tends to overestimate price sensitivity led us to suggest to our client that we evaluate the pricing in a second way. For the next survey, we employed efficient monadic testing design where each respondent was randomly shown one price point from a set of further refined prices in our testing range. However, monadic designs aren’t without drawbacks – while they are less susceptible to anchoring bias, they tend to underestimate price sensitivity. 

New Product Development

 The Celebration

Using the results from the Gabor-Granger and Monadic Price Testing we were able to create a data-backed recommended price range for the new product that varied based on the retailer in which it is sold. Our client appreciated the additional confidence they had from the 2-pronged approach to the pricing strategy, especially since they were entering a new category with new retailers. Their senior leadership team was aligned with the newly developed pricing strategy, and they are moving forward with the recommended prices for an anticipated 2025 product launch. 

De-Risking Innovation with a Structured Approach

De-Risking Innovation with a Structured Approach

De-Risking Innovation with a Structured Approach

The Call

An online retail giant had successfully operated a series of brick-and-mortar stores for several years and was ready to revolutionize the shopper experience in version 2.0. Shopper data gave this client a firm grasp on the shopping behaviors of their target customers and the next step was to learn more about their lifestyle, motivations, and needs, take those learnings into ideation, and finally develop and test solutions. Catapult was brought in to design and support a comprehensive research and innovation program to guide a well-informed and de-risked path to their store of the future.

Our Response

Our design involved 3 phases, beginning with virtual ethnographic interviews delving into the daily lives of the client’s target customers. This uncovered aspirations and blockers that create issues in the lives of target customers as well as an in-depth understanding of how client and competitor stores are perceived to impact their goals. These insights allowed us to identify and develop an empathetic understanding of unmet needs, forming a well-defined set of opportunities for our client to develop solutions.

Our next step was an immersive workshop with client stakeholders to socialize what we learned about their customers’ lives and facilitate an ideation session to bridge the gap between customer needs and client capabilities. The session generated 100 ideas, which were prioritized and eventually culled into 2 dozen components, including offerings, services, and experiences, which we took into focus groups to test reactions to various combinations and design executions again with the target customer group.

 The Celebration

Our final work illuminated customer reactions and preferences that the store design and leadership teams used to set development strategies. These teams quickly launched from insights into action, devising plans to reimagine interior and exterior aesthetics, updating assortment, and weaving in a broader set of brand flywheel services that would resonate in a meaningful way in the lives of target customers. Store redesigns are underway and expected to rollout beginning later this year, at which point we will conduct further in-store research to understand the customer experience.

Examining Fan Journey to Inform Marketing Strategy

Examining Fan Journey to Inform Marketing Strategy

Examining Fan Journey to Inform Marketing Strategy

The Call

A recently formed Professional Golf League set out to modernize the sport by infusing new levels of excitement while building their league’s fandom. With a healthy number of tournaments in the current season, the league set out to better understand the fan journey to attendance in order to better inform marketing and fan engagement strategy for the next year. They partnered with Catapult to support overarching strategy development and identify market-specific considerations for a first-time tournament in a new city.   

Our Response

Catapult designed a qualitative program that included on-course intercepts across the 3-day tournament in the new city. Our research team conducted dozens of interviews with fans to hear their stories and understand the pathways and decision points that led to tournament attendance. Because it was important to get a mix of fan types, our team used observational techniques to identify locals vs. tourists as well as a variety of hospitality/experience levels.

After the tournament concluded, Catapult then conducted webcam interviews using the client’s CSAT survey as a recruiting channel. These post-tourney touchpoints allowed us to go deeper into the fan journey and provide a holistic, well-rounded look at fan experiences and drivers of decision making.

New Product Development

 The Celebration

We identified critical insights focused around themes of discoverability, drivers within the decision journey, and fan experience, producing six defining elements of the league’s tournament experience that our client should lean into. Our report outlined key moments and mindsets within fan journeys, specific benefits fans find alluring enough to buy tournament tickets, how the league currently conveys each benefit, and identified whitespace where the client could do more to showcase and enhance key attractants. The insights-to-action oriented client wasted no time socializing the findings with the marketing team, and mere months later their fan outreach efforts helped break attendance records at subsequent tournaments around the world.

Creating Strategies for Increasing Customer Loyalty and Engagement 

Creating Strategies for Increasing Customer Loyalty and Engagement 

Creating Strategies for Increasing Customer Loyalty and Engagement 

The Call

A major player in the retail space had been conducting their own post-purchase survey with customers, but felt they weren’t getting enough out of the data. While the survey gave them a solid understanding of how their brand performed on several key metrics, they were left wondering where they should focus their efforts to improve the overall customer experience and increase brand love and loyalty. With several months’ worth of data in hand, they approached the Catapult team with a key business question – Where should we put our efforts and money to have the biggest impact?      

Our Response

The Catapult team got to work exploring the data available through the survey and the potential transactional data that could be appended. Our statistical experts went into the analysis with a loose plan in mind to allow the data to guide the direction of the analysis—this would ensure we ended up with a solid, data-driven model that wasn’t shaped by too many preconceived notions. 

Through some exploratory statistical techniques, a small set of potential outcome variables were identified to model their overall retail satisfaction, rate of return, and other key metrics. With the exploratory analysis complete, we got to work conducting several different key drivers analyses (KDA) that included both behavioral and attitudinal drivers to ensure a robust and comprehensive model. 

New Product Development

 The Celebration

Through an iterative and collaborative process between Catapult and the client team, we landed on a final model that was not only statistically sound but also identified several key factors that predicted a customer’s likelihood to return to their retailer. While the model was solid, it relied heavily on transactional/behavioral variables which can be more challenging to influence with traditional market strategies. This led the Catapult and client team to agree that the existing survey was likely missing several important elements of the customer experience that could be key drivers of their likelihood to return. 

With this information in hand, the team set off on a complete audit of past customer experience research the client had conducted (with and without Catapult) over the past 2 years.  One of the main outcomes of that audit was an understanding of the dimensions of the customer experience the current survey failed to capture, which the team used to quickly update the post-purchase survey with those new dimensions. The new survey is back in field and performing well. The next step is for Catapult to partner with the client once there’s a solid amount data available to create a new KDA model to better predict customers’ likelihood to return using experiential measures they can create strategies to action against in the real world.   

Creating an Insights Roadmap via Research Audit

Creating an Insights Roadmap via Research Audit

Creating an Insights Roadmap via Research Audit

The Call

A longtime client in the technology and retail space had big plans for the upcoming year to be a year of change, evolving their brick-and-mortar stores to meet a variety of specific customer needs. Catapult has led over a dozen research projects for this brand, producing a wealth of data and insights amid strategic course-adjustments since 2022. With more substantial updates in sight, this client asked Catapult to audit the existing body of work to help create a CX-focused insights roadmap for the coming year and inform the evolution of their existing CX survey.   

Our Response

Catapult’s auditing team met regularly and cross-reviewed 36 report documents with the goal of identifying everything already known about the customer experience and what was left to learn. Our team assembled a data file identifying CX-related insights, categorizing them across 7 known dimensions already being measured in the clients existing CX survey. Each insight was categorized, summarized, and sourced for easy reference after the audit document was completed.

influencer profiling

The Celebration

Our audit identified a dozen new CX dimensions not yet in the existing client survey as well as over 100 CX knowledge gaps, which we organized into 9 themes. Catapult then facilitated a workshop at the client’s office to review the audit findings and devise a research roadmap to prioritize and backfill CX knowledge gaps, creating customized research approaches that would cover multiple insight needs in the most efficient manner. We aided the client’s survey update and are pleased to be moving forward with several projects to support this client’s goals of driving a year of change.

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