Comparative Willingness-to-Pay Study for Consumer Goods

This case study presents a comparative willingness-to-pay (CWtP) analysis conducted for a major consumer brands company focused on sweet snacks. The objective was to assess consumer price sensitivity and willingness-to-pay for their brand and competitors across various product sizes and flavors. The study utilized PriceBeam’s Revenue Growth Management methodology, combining CWtP and Value Attribute studies to identify psychological price points and pricing thresholds. Results indicated that smaller product formats were generally inelastic to price increases up to 10%, while larger formats faced significant price caps. The analysis revealed opportunities for price increases between 6% and 15%, potentially generating up to $8.5 million in additional profit. Key findings included optimal price points and the impact of price increases on volume and profitability. The study concluded with recommendations for pricing strategies to enhance revenue while maintaining consumer demand.