Price factor

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1072 views

On a scale of 1-10 (1 being not often at all), how often do you think moms choose natural products over non-natural products if the price is more than 20% higher?

Price
Price Setting
Choice Theory
Cindy Bodach
74 months ago

3 answers

1

Cindy, this is indeed a tough one. I say that because the majority of moms in this country don’t have access to natural foods and if they do their household can’t afford such choices given the trade off of other necessities. So most often the average American Mom is not making this choice at all because she doesn’t have it. Price is her number one entry point Or barrier for goods. She is highly sensitive to price and will chose natural foods when the price is right. Because her economic status makes her more sensitive to price, Natural/Organic/ Unprocessed Foods etc. , unfortunately, fall lower on her list of priority. Even a +20% increase in her normal shopping list would rattle her budget and cause her to reassure less the brand and product, likely swapping for something lower priced. Not by choice, but rather necessary. Now in a perfect world all moms would have access to and the means to feed their families the highest quality foods and if that were the case this question would be easier to discern. Keep the major economic disparities in this country in mind when considering marketing to moms.

Now with that aside. Those moms who do have access and the means to buy natural foods don’t have to be concerned with price and will most likely look for value and have other entry points or barriers to purchasing goods such as health claims, brand name, quality, convenience, taste, health benefits, popularity, etc. The relationship this niche group of moms has with purchasing foods is the opposite or inverse of the majority Mom. Price is her lower on her list and she is likely not to be much affected by a 20% price increase.

My points above are broadly speaking with the understand that not all moms fit the mentioned averages. Happy to discuss. Thanks.

Jahnia Sandford
74 months ago
0

Hi Cindy, your question is challenging because it is not clear whether or not you are seeking the answers from Moms who make the purchase decisions for their young children, or if you want to elicit input from others as to their best guesses on this question.

As a father of 2 twenty-something children, I am not your target. However, I think the answer to your question will depend upon some important factors:

The absolute as well as relative price difference. For example, a 20% price difference may be perceived differently when comparing items selling for near $20 item instead $1.

The relative benefits and or perceived benefit differences between the two products. If Mom is deciding whether or not to buy 7th Generation detergent versus Tide, she will not only consider natural versus non-natural, but also the types of cleaning results she might receive with each.

Also, it will be important to consider the frequency with which she needs to purchase the products and the purpose that the product serves. For example, Mom's may buy processed cookies versus natural because her kids and their friends eat them as snacks every...single...day. If she bought natural cookies everyday and paid a significant price premium for these, she possibly couldn't afford to buy them.

Net, the answer to your question depends upon a number of factors beyond relative price alone.

Michael Fruhling
74 months ago
-2

Alan Nash
74 months ago

Have some input?