Conducting a survey on the “new” real price increase
Pricing Studio Co., Ltd. Press release: September 26, 2024 Conducted a survey regarding the “new” real price increase Pricing Studio Co., Ltd. (Headquarters: Minato-ku, Tokyo, Representative Director: Yoshihiro Takahashi) conducted a survey on the “new” real price increase. Consumers’ tolerance remains almost the same, and we found that what is important is what benefits consumers will receive after a price increase and whether they are satisfied with the price increase.
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https://prcdn.freetls.fastly.net/release_image/56765/71/56765-71-b960f369ea2e98397b0454d38b7877c6-1280×720.png ▽“New” real price increase A new real price increase is an initiative in which a company simultaneously changes the “content” and “price” of a product. Normally, the content and price decrease at the same time, but because the unit price per volume (unit price per 100g, 100ml, etc.) increases, this is called a “new real price increase.” ▽Actual price increase Reducing the weight and volume of a product while keeping the price the same, effectively raising the price. ▽Stealth price increase Reducing the weight and volume of a product while keeping the price the same, effectively raising the price. Stealth price increases occur when customers are not properly notified of capacity changes. ▽Dynamic pricing This is a pricing method that changes prices according to supply and demand conditions, such as when hotel and rental car prices soar during the peak season of the year-end and New Year holidays. Background of the survey Due to the weak yen and soaring prices of raw materials, Japanese companies have begun to actively raise prices from around 2022. Among these, one method of raising prices that has been particularly unpopular with consumers is the “stealth price increase,” in which the product price remains the same but the content is reduced without notice. In a survey conducted by Pricing Studio in 2022, more than 60% of 26-35 year olds responded that they felt uncomfortable about “stealth price increases.” However, many companies have had to raise prices as raw material and labor costs have increased. Therefore, the method that Pricing Studio has proposed is a price increase method and concept called “new” real price increase, which is an initiative to
simultaneously change the content and price of a product. The “new” real price increase is a customer-first price increase that involves researching customer usage, reviewing product content and prices from the ground up according to customer usage, and then considering the optimal capacity and price for the customer. It’s a method. On the other hand, when the price of the main unit falls due to the “new” real price increase, the price of each gram or milliliter may rise, and this situation becomes a hot topic on the Internet as a company that cleverly deceives consumers. Sometimes it happened. In response to this situation, Pricing Studio conducted a survey to understand the actual situation regarding “consumers’ reactions to the “new” real price increase” and “when can price increases be tolerated?” Survey results summary Dynamic pricing is the most acceptable price increase method There is almost no difference in the tolerance for “new real price increase” and “real price increase” The most frequently cited conditions for accepting a price increase were “more features/better features”, “I feel satisfied with the price increase”, and “the value I get from the service increases” ◎Survey overview ・Survey target: Nationwide random ・Number of valid responses: 505 people ・Survey method: Online questionnaire survey Survey results
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https://prcdn.freetls.fastly.net/release_image/56765/71/56765-71-920c4feb07fdb9f77a6ba49ad31a0337-1280×720.png Consideration At a time when prices are changing for a variety of products and services, we investigated consumers’ awareness of the “new” real price increase, which occurs when a product’s “content” and “price” are changed at the same time. As a result of the survey, there was no significant difference in acceptance of the “new” real price increase and the “real price increase,” with approximately 60% of people answering that they were “unacceptable.” The most acceptable price increase method is “dynamic pricing,” with approximately 55% of respondents saying it is “acceptable.” The most common criteria for accepting a price increase were “features will increase/become better,” “I feel comfortable with the price increase,” and “The value I get from the service will increase.” It seems that price increases are more likely to be accepted if the customer experience remains the same or improves. Another possible reason why “dynamic pricing” is easily accepted is that the reason for the price increase is clear and there is little sense of unfairness. When companies decide to raise prices, negative feedback from customers often gets a lot of attention. This happens due to changes in the customer experience. Yamazaki Baking Co., Ltd.’s “Usuki Series” announced that the content would be changed from 5 pieces to 4 pieces starting from January 1, 2023, which caused some customers to express sadness. However, after changing the content, customers were happy to hear that the number of grams of red bean paste per piece had increased and that the skin had become even thinner. This is not a superficial price increase, but a substantial price increase due to a change in raw materials, but it is an example of a substantial price increase being accepted by customers as the benefits were conveyed to them. In this way, it can be inferred that if companies can clearly present benefits and improve or maintain customer experience, price increases will be more easily accepted. We will continue to contribute to the
development of society by communicating information related to pricing. ■Company information ・Company name: Pricing Studio Co., Ltd. ・Representative Director and CEO: Yoshihiro Takahashi ・Location: msbTamachi Tamachi Station Tower N22nd Floor, 3-1-1 Shibaura, Minato-ku, Tokyo ・Established: June 26, 2019 ・Business content: Pricing consulting, advisory, human resource development, SaaS business ・URL: https://pricing.co.jp Click here for inquiries regarding prices https://pricing.co.jp/contact/