Product mix effect

What is Product mix effect?

Definition: Product mix effect measures the impact of changes in sales volume across differently priced products on a brand's overall pricing in the focus period opposed to the comparison period.

Context: This metric evaluates whether shifts towards more sales of lower-priced or higher-priced items have influenced the brand's average price.

Example: A -30% product mix effect (January to March) indicates that increased sales of lower-priced products have decreased the overall price level by 30 percentage points during the period.