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Persuading consumers to accept a price increase

The management of a company with 96% market share was considering its first price increase for four years. Implementation was planned for the run up to Christmas across a number of brands. No research had been carried out into the possible repercussions


The initial plan did not incorporate a full understanding of the implications of the price rise. The decision was taken to delay the price increase until January to fully clarify its impact and to gain a better understanding of the probable consumer reaction.


The research demonstrated that consumers thought there had been annual increases. So when the price changed, the brand communications emphasised the fact that this was the first increase in four years. Consumers were more accepting of the increase as a result.

Understand the market place before making pricing decisions: never assume you know what consumers are thinking