The idea
A price change moves customers along the demand curve: same customers, same wants, a different price. Income, competitor prices, substitutes such as Wi-Fi or calling apps, complements such as cheaper smartphones, and brand building shift the whole curve. Before a report credits a campaign with higher sales, check whether the economy, a competitor or the calendar shifted demand in the same period.
Use it thoughtfully
- Separate price effects from demand shifts in every report.
- Check income, competitor and payday changes in the same month.
- Use brand building to shift demand, not only promotions.
An example
ILLUSTRATIVE EXAMPLE: Pack sales rose 12% with no price change. Before crediting the campaign, the team checks payday timing and a competitor's network outage that month.
A question to try
When sales last rose, could you show whether the price, the campaign or something outside your control caused it?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.