EAN: 9783954892327

PRODUCT PACKAGING AS TOOL TO DEMAND A PRICE PRE...

This study addresses the question of the impact of packaging to demand a price premium
leveraging the example of retailer brand premium products in the food segment in Germany.
Product tiering is a pricing structure that is commonly used by producers  in which consumers
are segmented by willingness to pay for specific (added) product benefits. This is a way of
maximizing utility for both consumers and producers  and is commonly already leveraged by
producers of branded products  but lately also by retailer brands  especially to enable growth
outside the value tier. This research uses a survey across grocery purchase decision makers in
Germany to identify the relationship of packaging and willingness to pay across a sample of
retailer brand Tier 1  Tier 2 and Tier 3 products as well as a branded product in four
different grocery categories. The intent is to answer whether i) packaging currently justifies
the premium price of retailer brand tier 1 products compared to other product tiers  ii)
packaging justifies the tier 1 retailer brand price premium  and iii) demographics influence
the willingness to pay a premium price.

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