Case Study
Cat Litter Price Sensitivity and Retailer Value Perception
overview
A leading cat litter brand experienced a decline in sales after a major retailer increased the price of one of its products.
The brand partnered with C+R Research to understand how shoppers perceived the increase, how it affected their purchasing decisions, and whether it was changing their relationship with the brand or the retailer
THE PROBLEM
Determining Whether Price Was Driving Shoppers Elsewhere
Because the retailer had long been known for competitive pricing, the brand needed to determine whether the cat litter price increase would cause shoppers to keep buying, switch brands, or purchase from another retailer instead.
The client also wanted authentic shopper feedback that could support a constructive conversation with the retailer about pricing, value, and the potential impact on store trips and basket spend.
OUR APPROACH
Capturing Real-Time Reactions Through Shop-Alongs
C+R conducted in-person shop-alongs in three geographically diverse markets among shoppers who had previously purchased the brand at the retailer but were now buying it elsewhere.
Our researchers conducted the shopalongs and accompanied participants through the pet aisle to observe their reactions to the shelf price and discuss how it compared with their expectations and prices at competing stores.
The conversations explored:
- Reactions to the price increase
- Price points that would cause shoppers to switch stores
- The effect of pricing on brand and retailer perceptions
- Changes in shopping trips and basket behavior
- Actions the retailer could take to restore value
The result
Showing That the Retailer, Not the Brand, Was Losing the Purchase
The research found that shoppers remained loyal to the cat litter brand but were unwilling to purchase it from the retailer at the higher price. Instead of switching brands, many shoppers moved the purchase, and often the rest of their shopping trip, to another store.
The findings demonstrated that the price increase created a retailer-specific value issue rather than a problem with the product itself. Shoppers continued to view the brand positively when it was offered at a price they considered fair.
Equipped with shopper testimonials, video footage, and a clear narrative about the impact on trips and basket spend, the client was able to bring credible, shopper-grounded evidence into its discussions with the retailer. The research also identified practical ways to regain shopper confidence.
proven experience
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