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In a parago research study conducted in January 2014, we explored macro-economic sentiments about their current path-to-purchase behaviours. The survey was completed by more than 560 UK shoppers. Here’s what they told us: Price sensitivity is up 73%: Across all income levels, consumers are looking for the best value. The majority of shoppers are deal seekers: In fact, 90% look online for deals before they go shopping. Price is 5X more important than other factor: 65% of today’s consumers say price is the primary influencer on their purchasing decisions. Download the complete “Let’s Make a Deal: 2014 UK Shopper Behaviour Study” now.
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contentsfor what it’s worth 3methodology 4key findings 5shopping power 6purchase influencers 8desire for deals 11cashback rebate over instant discount 12attitude toward cashback rebates 13driving for deals 14shopping practices 16access to deals: social, mobile and online 17appendix: shopper research by income 18
let’s make a deal: 2014 shopper behaviour study by parago 2
for what it’s worth
let’s make a deal: 2014 shopper behaviour study by parago 3
Shopper price sensitivity is changing shopper behaviour. Consumers at all income levels are feeling the pinch of the lagging economy. Their long and worsening struggle has manifested itself in new deal-seeking activities that are laser-focused on paying only what it’s worth and not a penny more.
Across the board, shoppers now seek out the very best prices and are willing to go out of their way to save even a little bit.They research circulars, fliers and the internet before they head out to shop — if they don’t buy online. They drive out of their way to save.
Because they are focused on the very best price, the majority are finding that cashback rebates, above all other price promotions, deliver the greatest value and lift their personal spend budget.
They want cashback rebates in many shopping categories, including electronics, appliances, technology, furniture and housewares.
On the brighter side of heightened price sensitivity, they are still shopping regularly and feel emotionally rewarded when they find significant savings. This sense of reward is connecting them more closely to the shopping experience and the items they purchase than in years past.
We are happy to share our findings with you. Please reach out with questions to keep the discussion going. Good shopping!
Rodney Mason, CMO [email protected]
frugality rules!
This first shopper behaviour study was conducted via a national online survey during January 2014 with over 560 respondents representative of the UK (in terms of education, income and gender). They responded to a survey exploring their deal-seeking behaviour: how, why and where?
We explored macro-economic sentiments, influence of technology and consumer preference.
methodology
employment
32% employed full-time
19% employed part-time
17% unemployed
17% retired
9% student
6% homemaker
marital status
40% married
25% single
22% in relationship or living w/ partner
13% divorced/separated/widowed
annual household income
75% < £49,999
12% £50–99,999
1% £100–199,999
1% > £200,000
11% no report
age
22% 18–29
28% 30–45
18% 46–54
28% 55–70
4% > 71
gender
47% men 53% women
own a smartphone?
73% yes 27% no
living situation
53% own 47% rent
education
47% uni/college grad
32% GCSEs/O Levels
17% vocational/technical
3% no answer
2% did not finish school
household shopping responsibilities
61% primary shopper 34% share shopping duties 5% not really involved
let’s make a deal: 2014 shopper behaviour study by parago 4
key findings
81% of people will drive 5–10 minutes out of
their way for a £10 cashback rebate.
3 of 4 shoppers want cashback rebates on electronics & appliances.
64% of people would scan
a barcode for an exclusive rebate.
price sensitivity is up
73% across all income levels
5x more influential on purchase decision than any other criteria.
90% look online for deals before they go shopping.
79% think cashback rebates
are great savings opportunities.
price is Deal seekers
are the majority in all income levels
less than £100,000.
let’s make a deal: 2014 shopper behaviour study by parago 5
“How do you rate your price sensitivity over the past 12 months?”
more sensitive to price 73%
unchanged 22%
shopping power
Numbers may not sum to 100 due to rounding.
73% of shoppers reported being more sensitive to price.
less sensitive to price 4%
let’s make a deal: 2014 shopper behaviour study by parago 6
Purchasing power continues to see huge declines, leading to greater price sensitivity.
“How do you feel about your purchasing power over the last 12 months?”
decreased 44%
the same 35%
increased 17%
unsure 3%
44% feel their purchasing power decreased this past year.
shopping power
let’s make a deal: 2014 shopper behaviour study by parago 7
purchase influencers
Price is the primary influencer on purchase
decision.
loyalty
2%
price65%
store13%
quality12%
brand7%
Numbers may not sum to 100 due to rounding.
let’s make a deal: 2014 shopper behaviour study by parago 8
Numbers may not sum to 100 due to rounding.
annual household income
£50,000– £99,999
annual household income
< £49,999
price reigns
Deal seekers are the
majority in income
levels under
£100,000.
price 64% brand 3% store 12% quality 20% loyalty 0%
price 66% brand 8% store 14% quality 9% loyalty 3%
purchase influencers
let’s make a deal: 2014 shopper behaviour study by parago 9
And they are willing to take an extra step to get it.
Marketers can take advantage of cashback rebate redemption to drive higher-value promotions, capture data and gain customer interaction.
Consumers want the best deal.
let’s make a deal: 2014 shopper behaviour study by parago 10
desire for deals
3 out of 4 shoppers want cashback rebates on electronics & appliances.
Shoppers are particularly interested in cashback rebates for electronics, appliances, technology, furniture and housewares.
75% electronics/appliances
56% technology 51%
housewares/furniture
let’s make a deal: 2014 shopper behaviour study by parago 11
For the same cost as less attractive coupons or instant discounts, cashback rebates offer the deeper price discounts consumers prefer.
cashback rebate over instant discount
“Which would you choose?”
73% £100 rebate£75 instant discount 27%
73% £50 rebate£35 instant discount 27%
77% £30 rebate£18 instant discount 23%
76% £20 rebate£12 instant discount 24%
76% £10 rebate£5 instant discount 24%
76% £5 rebate£2 instant discount 24%
let’s make a deal: 2014 shopper behaviour study by parago 12
66% of shoppers will opt-in during the rebate process for more rebate offers.
attitude toward rebates
“I am interested in seeking out
cashback rebates.”
72%
“Cashback rebates are great savings
opportunities.”
79%
“When I see a £20 cashback rebate, it is
attractive to me.”
79%
“I will buy a product with a high-value cashback rebate.”
62%
let’s make a deal: 2014 shopper behaviour study by parago 13
More than 3 out of 4 shoppers would drive 5–10 minutes out of their way for a £10 discount on a £50 product.
driving for deals
annual household income
78%< £49,999
86%£50,000–£99,999
75%£100,000–£199,999
let’s make a deal: 2014 shopper behaviour study by parago 14
driving for deals
How far will a consumer go for savings?
would drive 5–10 minutes out of their
way for £10
81%
would drive 5–10 minutes out of their
way for £15
86%
would drive 5–10 minutes out of their
way for £20
93%
let’s make a deal: 2014 shopper behaviour study by parago 15
Most consumers will travel 10–20
minutes (round trip) to get discounts on a £50 product.
shopping practicesPeople want the best deal, not necessarily the cheapest option.
11% of UK
shoppers purchase on smartphones
while in a store.
“I shop…”
using my smartphone
28%
using my tablet
29%
on the computer
81%
in store
96%
“Before I go shopping, I…”
look for sales, deals, cashback rebates and best-advertised prices
89%
review circulars and print advertising
75%
check online for the best deals
90%
ask my personal network for advice
48%
let’s make a deal: 2014 shopper behaviour study by parago 16
access to deals: social, mobile & online“Where do you want to receive exclusive cashback rebate offers?”
cashback rebate website
47%Facebook
33%Google
32%Twitter
12%
retailer/manufacturer
website
53%LinkedIn
7%Pinterest
4%
Multiple answers allowed.
1 out of 3 of shoppers will participate in a social media contest to receive an exclusive rebate.
payments mobile app
17%
retailer mobile app
17%
let’s make a deal: 2014 shopper behaviour study by parago 17
appendix
shopper researchFor your use, more detailed information by annual household income is included on pages 19–21. Additional data about consumer preferences for cashback rebates by product category can be found on pages 22 and 23.
let’s make a deal: 2014 shopper behaviour study by parago 18
research for deals and best prices before shoppingalmost always 42% 37%
sometimes 47% 56%total 89% 93%
look for deals in circulars and print adsalmost always 21% 20%
sometimes 56% 66%total 77% 86%
search for deals online before going in-storealmost always 46% 49%
sometimes 44% 47%total 90% 96%
use smartphone to check prices while in store/shoppingalmost always 8% 12%
sometimes 20% 31%total 28% 43%
shop where I can gain loyalty and rewardsalmost always 42% 37%
sometimes 49% 59%total 91% 96%
behaviour by income
< £49,999£50,000–£99,999
let’s make a deal: 2014 shopper behaviour study by parago 19
cashback rebates are great savings opportunities 78% 78%
cashback rebates provide a larger cost savings than other promotions 48% 46%
cashback rebates make me feel like I caught an exclusive sale 54% 47%
cashback rebates are easy to redeem nowadays 52% 43%
when researching a product online, a cashback rebate is attractive to me 63% 68%
the ability to submit a cashback rebate on my smartphone is attractive to me 49% 51%
< £49,999£50,000–£99,999
cashback rebate preferences by income
let’s make a deal: 2014 shopper behaviour study by parago 20
< £49,999£50,000–£99,999
participate in social media contest to receive exclusive cashback rebate offer 39% 41%
opt-in during rebate cash back process for future relevant product marketing messages 54% 46%
interested in seeking out products that come with cashback rebates 73% 71%
I will buy a product with a high-value cashback rebate 63% 63%
I search out products with cashback rebates 37% 37%
cashback rebate preferences by income
let’s make a deal: 2014 shopper behaviour study by parago 21
category interest in cashback rebates“In which categories are you interested in cashback rebates?”
DIY products 34% 29%
clothing 50% 39%
consumer packaged goods 34% 31%
appliances & electronics 77% 76%
entertainment 39% 41%
< £49,999£50,000–£99,999
let’s make a deal: 2014 shopper behaviour study by parago 22
furniture/housewares 53% 49%
games 28% 29%
office supplies 17% 20%
travel 46% 51%
technology 57% 59%
< £49,999£50,000–£99,999
category interest in cashback rebates“In which categories are you interested in cashback rebates?”
let’s make a deal: 2014 shopper behaviour study by parago 23
www.parago.com
parago creates engaging solutions that inspire actions & impact resultsAs the world’s most comprehensive single-source provider for incentives and engagement, we deliver billions in rewards to millions
worldwide using our advanced technology. Our relentless focus on innovation drives better results, making us the smart choice.
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