Understanding Consumers' Willingness to Pay for Driving Smarter RGM Decisions

In today's fast-evolving CPG landscape, brands face mounting pressure to make pricing decisions that protect margins while staying grounded in what consumers actually value. Inflation, private-label competition, and shifting consumer behavior have made pricing the most scrutinized lever within Revenue Growth Management (RGM) — and the one that matters most to the shopper. Getting it right starts with understanding consumers' true Willingness To Pay (WTP).

Infosys Equinox Revenue Growth Management helps CPG brands make pricing decisions that are consumer-informed, not just cost- or competitor-informed. At the core is the Pricing Power — a predictive analytics methodology that measures the gap between what consumers are willing to pay and what they're actually charged. This "headroom" tells brands where pricing power exists, where it doesn't, and where other levers — like brand equity or pack-price architecture — need to do the work instead.

Drawing on over 70 brand analyses across FMCG categories, this e-book shows how leading brands used WTP and Pricing Power to:

• Validate pricing power before raising prices — distinguishing real headroom from misread brand equity, so price increases don't backfire as unprofitable mistakes.
• Diagnose the real cause of share loss — telling apart declining brand equity from a pricing problem, so brands invest in the right fix instead of triggering a race-to-the-bottom.
• Rebuild the price ladder around real value perception — rationalizing variants and packs, avoiding cannibalization, and pricing according to what consumers actually perceive, not internal cost logic.
• Respond to shifting consumer preferences by channel and category — capturing extra headroom in convenience versus retail, or moving first when a whole category's demand curve shifts

These aren't theoretical models — they're simulations built on real point-of-sale data, validated against two to three purchase cycles of actual market behavior. Pricing questions rarely have simple answers, but grounding them in consumer understanding tells you where price can drive growth, and where it can't.

Download the e-book to see how consumer-led pricing strategy — powered by the Pricing Power — can help your brand navigate complexity, protect market share, and unlock long-term value.