Every once in a while, we like to share what we’ve been up to, including how our research engagements have helped our clients achieve their business goals and some of the lessons learned. This case study highlights W5’s approach and the resulting deliverables for informing pricing strategies for a successful casual dining restaurant.
For this custom research initiative, we utilized choice-based conjoint to run price sensitivity analyses for client menus for two weekly promotional periods. The conjoint approach enabled in-depth and well-rounded analysis, and the overall study design ensured we could explore customer input for both promotions, as well as by customer segment.
“DEFINING PRICING STRATEGIES” CASE STUDY
A growing national casual dining restaurant chain sought to determine the price ceiling for a flagship food product, understand limits to promotional pricing, and assess their dining experience profile versus competitor brands.
W5 developed a complex and customized choice-based conjoint study to explore consumers’ price sensitivity and preferences for casual dining promotions and brands. Through application of a complex screening algorithm, W5 conducted this quantitative research with two key segments of the client’s consumer base.
W5 developed a customized market simulator, permitting exploration of everyday and promotional price sensitivity. W5 provided follow-up consultation to help our client understand the output of the conjoint research with strategic recommendations regarding optimal product pricing.
The results of this research allowed our client to understand consumers’ price sensitivity at several proposed price points for individual food items as well as for combinations. This research also illuminated consumers’ prioritization of food prices, dish options, proposed promotions, and brand. The client was able to refine promotions and define a validated price point for their primary food product.
Spotlight is a special feature of the W5 Blog showcasing W5 consultants’ approach to designing marketing research studies, creating engaging deliverables, and informing strategy. For more information on W5’s approach to qualitative or quantitative research contact: inquiry@W5insight.com.