With ISO 21041, consumers can now make better and easier buying decisions that allow them to compare the values of related products and decide accordingly which one to spend their valuable dollars on. Following ISO 21041 and its protocol is not only beneficial for the consumers but also for the retailers through unit pricing.
Did you know: ISO 21041 is the result of an international effort that was led by a team of experts from Australia?
What is ISO 21041?
ISO 21041:2018, namely, Guidance on unit pricing, sets down several prerequisites that will allow consumers to compare the prices of similar items to make more informed buying choices.
ISO 21041 guides store owners and retailers on an effective way to display unit pricing on all the products in their stores, regardless of whether they are on shelves or in packages, as well as in the advertisements for these products and demonstrates how important it is to educate and provide clarity to consumers to maintain transparency.
What is Unit Pricing?
Unit Pricing, also known as comparative pricing, is the way of pricing products or services such that the price displayed shows the price of one standard unit of measure. This way, consumers can easily determine which product provides more value.
For example, if one milk company offers milk in a liter pack and another company offers milk in a half liter pack, then unit pricing demands that the prices of both companies be displayed according to one liter. This way, consumers can easily decide which company to opt for instead of having to perform calculations.
Why is Unit Pricing Necessary?
Inconsistent pricing methods can lead to a confusing shopping experience for consumers, which can lead to purchase trade off, where a potential customer determines your product is less than a competitor based on value. Even worse, this confusion can increase their decision avoidance, where a purchase could have been made but was bypassed to avoid emotional costs of making the decision. – Source
This level of confusion leads to distrust among the consumers for the retailer. By opting for an easy to understand and evaluate method of pricing, retailers can demonstrate that they believe in transparency and aiding their consumers. This is because price transparency is one of the most effective ways to gain the trust of consumers as it makes it easier to make purchasing choices.
This relationship between consumer trust and pricing transparency was apparent in a study conducted by Australia’s Queensland University of Technology, where consumers remarked that unit pricing helped them make easier purchasing decisions so that they could shop with a higher confidence.
The research also showed that adopting unit pricing also led to a positive change in the attitudes of the consumers towards retailers.
Unit Pricing and Global Consumerism
Standardized unit pricing will also make it easier for consumers to make more informed buying decisions on a more global level.
By adopting ISO 21041 ambiguity and confusion around the pricing system can be nearly eliminated.
Summary
“ISO 21041 includes guidance on the provision of unit price, their units of measure used to express unit price including weight, length, volume, count, area and other forms of measure. ISO 21041 also highlights guidance on the display of unit price, and the implementation, communication and education of consumers.
ISO 21041 is applicable to any retailer, including supermarkets, hardware stores, pharmacies, convenience stores, automotive parts suppliers and pet product suppliers.
Note: ISO 21041 is applicable to packaged and non-packaged food and consumer products where the price is displayed, including
— at point of sale, including in-store and online, and
— when relevant communications about the product are released (including advertising by electronic and printed formats).
Note: ISO 21041 excludes services and merchandise, such as clothing and electronic goods sold as a single item.” – Source
In short, adopting ISO 21041 and standardized unit pricing not only helps the consumers make better choices but is also beneficial for the retailers as it promotes positive consumer attitudes and increases customers trust in your brand.
