Report: Consumer definition of value is changing

According to the shopper experience study underway by The Integer Group and M/A/R/C Research, electronics and department stores continue to see the largest loss of shoppers and have the worst conversion rate, with about half of shoppers leaving without making a purchase. Mass market retailers such as Walmart and Target are showing a five-point increase from previous months in shoppers who visit them more often — the best conversion rate being with nine out of 10 shoppers leaving the store with a purchase.

The study also shows that consumers are beginning to define value differently. More often consumers are attributing value to price, where the past couple months it was defined as an equal balance between quality and price. “Across all channels, shoppers continue to report buying cheaper items lately, compared to three months ago,” said Randy Wahl, executive vice president at M/A/R/C. “We believe it’s safe to predict this trend will continue through the holidays, as consumers are trading down, using purchasing tools like coupons and seeking out cheaper prices.”

“The findings suggest that consumers still seem to be buying their favorite brands, but are looking elsewhere for a better price,” said Craig Elston, senior vice president of The Integer Group. “For example, a consumer may not want to compromise on a trusted brand such as Nike, so they will decide to buy at Walmart instead of a department store in order to save money, allowing them the comfort of still being able to purchase what they believe to be their top value brand.”

ADG&G continues to advise its clients to introduce value pricing into their dispensaries.  Coupons, manager’s sales and package pricing have all proven successful.  It is also important that these new value propositions be clearly communicated to prospective customers.  E-mail blasts and direct mail are cost effective ways of doing so.

Source: Retail Customer Experience

1 Response to “Report: Consumer definition of value is changing”

  1. December 28, 2009 at 12:26 pm

    i always do that…
    i always search for cheapest rate provider for any of my needs…

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About Arthur De Gennaro

My friends call me Art. Welcome to my blog. In this space you’ll find information and comments on the ophthalmology world, the optical industry, the hearing industry and medical practice management. My intent is to provide information you can use to improve your business and your own performance. Please visit often and feel free to join the discussions by leaving comments.

You can learn more about me and my consulting company, Arthur De Gennaro & Associates, LLC by visiting my web site www.adegennaro.com

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