Multimedia

Busting the myths video series: has shoppers’ reaction to promotions increased?

Multimedia

Busting the myths video series: has shoppers’ reaction to promotions increased?


The third myth that we will delve into as part of our video series “Busting pricing and promotion myths” is related to promotions and shopper response to them. Do shoppers react more to promotions? How has promo activity and promotional elasticities changed recently? Find out below in our third video.


The savviness and price awareness of consumers is relatable, as regular and true shelf price increased for some key essentials and for indulgence products in the previous year. In the MEA region, more than half of  shoppers perceived prices to be higher.  This trend is owed partly to the promotional landscape, as we registered less promo availability at most markets.

In examining the promotions, we see that as restrictions on daily living have persisted, the prolonged promo pressure became significantly lower in Eastern Europe and the MEA markets as manufacturers eased on the depth of the offers. 

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When examining promotional elasticity, it can be said that these remain high, similar to the price elasticities in the aforementioned regions. Due to less shopping trips, out-of-stock incidence, reprioritized needs, and constrained budget, promotional elasticities during “pre-covid” markets versus “new stable” slightly declined or remained stable across most markets. 

Therefore, the myth that promotional price elasticities are increasing as consumers want to save more is busted.

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