Price promotions optimization by means of neuroscience


Boosting sales with the right price promotions

2 for 1 or 50% off – The surprising truth about which promotion works best

The Deloitte Neuroscience Institute helped a global FMCG client to increase margin and efficiency of price promotions by identifying most effective promotions and adjusting price tags based on customers’ implicit preferences.

The business issue of our client

The client is market leader in a segment, which shows only small growth in core markets. In addition, the client charges the highest price compared to competitors and therefore needs to provide additional value to customers. The client uses various kinds of price promotions for its products – however, detailed knowledge about the effectiveness of the price promotions regarding specific customer segments is limited.


Our delivered value

The Deloitte Neuroscience Institute identified most effective price promotions providing the best ratio between customer appeal and margin increase for our client. These insights significantly helped our client to understand consumer’s emotional responses as well as the impact of different promotion types on customers’ price perception. In consequence, an increase of revenue was achieved by developing a winning price promotion strategy.


Our approach

The Deloitte Neuroscience Institute designed an experiment showing 59 participants samples of different price promotions to measure both explicit and implicit motivation to buy. On the one hand, a standardized questionnaire assessed the impact of price promotions on consumer’s buying behavior and purchase decisions. On the other hand, an EEG measured participants’ brain activity to indicate whether participants feel motivated or demotivated by the promotion to buy the product. The analysis revealed that consumers are not as rational and promotion-sensitive as they see themselves. By contrast, the EEG data demonstrated that consumer’s implicit motivation to buy largely deviates from a rational purchase decision.