Price cuts are providing consumers with exceptional value, but they are showing up in the form of weakening or declining department, category and same-store store sales trends for many U.S. retailers.

Mark Laceky, Vice President, Price & Promotion Practice, North America, The Nielsen Company
The economic downturn continues to put stress on consumers, resulting in accelerating changes in basic purchasing patterns. An important part of the overall equation for consumers is the relationship between price and value. As consumers develop new value systems, how should manufacturers and retailers view and manage the other side of the equation-price?
If your business models and pricing strategies pre-date recent changes in the economy and consumer behavior, you could be headed for trouble. Perhaps now more than …

Household budgets are stretched. Consumers are nervous. When commodity costs are down and prices are still high, should the price increases taken in 2008 to be rolled back in 2009? Not necessarily.