Understanding Average Price in Marketing

Average Price

Average Price is what a shopper pays, on average.

Calculated as Total Dollars/Total Volume (or / Total Units).

Note that nobody really pays this price, since it is a blend of promoted and regular prices.

Best measure to use for the “regular” price a shopper pays when a product is not on sale.

Related terms

ACV (All Commodity Volume)

% ACV Distribution

IRC (Instantly Redeemable Coupon)

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Related resources

Featured resource

The Keen Marketing Insights Report

Definition

Seasonality

Definition

Hold Out Test

Definition

Impact Time

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