What are KVIs?

Key Value Items (KVIs) are products that customers are highly price-aware of—meaning they notice and remember their prices. Shoppers often use these items as benchmarks to judge how affordable a store is overall. They’re usually everyday essentials like milk, eggs, detergent, or bananas.

Why KVIs matter

Because shoppers track these prices closely, KVIs have a big impact on how a store is perceived. Even small price changes on KVIs can shape whether a retailer feels affordable or overpriced. That’s why retailers often price KVIs competitively—to earn trust, attract foot traffic, and drive basket size—while keeping stronger margins on less price-sensitive items.

Retailers identify KVIs based on factors like high sales volume, frequent purchases, and customer sensitivity to price changes.

Example: KVI strategy in action

Let’s say a grocery store cuts the price of a popular milk brand by 10%. The profit margin on that product shrinks, but shoppers begin to see the whole store as better value. At the same time, items like premium snacks or artisanal cheese stay at regular prices—helping balance out overall profitability.

Strategically pricing KVIs helps retailers shape value perception, win shopper loyalty, and influence broader purchasing behavior.