Study: Seven in 10 retailers share this pricing concern
A majority of retailers are worried about being outpriced by a familiar competitor.
According to results of the “Pricing Strategy Survey,” a poll of more than 500 senior pricing decision-makers and executives at retailers with at least 100 employees from data analytics platform provider ActiveViam, 71% of respondents said that they are concerned about being outpriced by Amazon. That figure includes 41% saying they are “very concerned.”
In addition, 49% of respondents were concerned about being outpriced by other brick-and-mortar retailers, while 42% said they were concerned about being outpriced by direct-to-consumer brands.
More than half (55%) of respondents said that they are concerned that their own internal pricing data, such as geo-pricing and price consistency data, is either inaccurate or incomplete. In addition, 54% of respondents said they are concerned that the external competitor pricing data they receive and factor into pricing models is either incomplete or inaccurate.
When asked what was their biggest challenge when it comes to managing their pricing strategy, 40% felt it was aligning pricing between online and in-store pricing. Other responses included lack of insight into competitor pricing (23%), a lack of proper tools to easily adjust pricing quickly (20%), and geo-based pricing (13%).
Moreover, a third of respondents said their company has no price optimization tools in place whatsoever. Six in 10 (61%) respondents said that they were concerned that their company was unable to optimize their prices quickly enough. Additionally, 52% of respondents are concerned about their company’s ability to maintain the proper “price image,” or that their organization’s prices are consistent with their overall brand image.
According to results of the “Pricing Strategy Survey,” a poll of more than 500 senior pricing decision-makers and executives at retailers with at least 100 employees from data analytics platform provider ActiveViam, 71% of respondents said that they are concerned about being outpriced by Amazon. That figure includes 41% saying they are “very concerned.”
In addition, 49% of respondents were concerned about being outpriced by other brick-and-mortar retailers, while 42% said they were concerned about being outpriced by direct-to-consumer brands.
More than half (55%) of respondents said that they are concerned that their own internal pricing data, such as geo-pricing and price consistency data, is either inaccurate or incomplete. In addition, 54% of respondents said they are concerned that the external competitor pricing data they receive and factor into pricing models is either incomplete or inaccurate.
When asked what was their biggest challenge when it comes to managing their pricing strategy, 40% felt it was aligning pricing between online and in-store pricing. Other responses included lack of insight into competitor pricing (23%), a lack of proper tools to easily adjust pricing quickly (20%), and geo-based pricing (13%).
Moreover, a third of respondents said their company has no price optimization tools in place whatsoever. Six in 10 (61%) respondents said that they were concerned that their company was unable to optimize their prices quickly enough. Additionally, 52% of respondents are concerned about their company’s ability to maintain the proper “price image,” or that their organization’s prices are consistent with their overall brand image.