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Let's Make A Deal: 2014 UK Shopper Behaviour Study

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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 …

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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  • 1. 2014 UK shopper behaviour study deal a study by let’s make a
  • 2. contents for what it’s worth methodology key findings shopping power purchase influencers desire for deals cashback rebate over instant discount attitude toward cashback rebates driving for deals shopping practices access to deals: social, mobile and online appendix: shopper research by income 3 4 5 6 8 11 12 13 14 16 17 18 let’s make a deal: 2014 shopper behaviour study by parago 2
  • 3. for what it’s worth 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! frugality rules! Rodney Mason, CMO rodney.mason@parago.com let’s make a deal: 2014 shopper behaviour study by parago 3
  • 4. methodology own a smartphone? 73% yes 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. employment 32% employed full-time 19% employed part-time 17% unemployed 17% retired 9% student 6% homemaker annual household income 75% < £49,999 12% £50–99,999 1% £100–199,999 1% > £200,000 11% no report gender 27% no household shopping responsibilities 61% primary shopper 34% share shopping duties 5% not really involved education 47% uni/college grad 47% men 53% women 17% vocational/technical living situation 53% own 32% GCSEs/O Levels 3% no answer 47% rent marital status 40% married 25% single 22% in relationship or living w/ partner 13% divorced/separated/widowed 2% did not finish school age 22% 18–29 28% 30–45 18% 46–54 28% 55–70 4% > 71 let’s make a deal: 2014 shopper behaviour study by parago 4
  • 5. key findings price sensitivity is up 73% across all income levels 5x price is more influential on purchase decision than any other criteria. 3 of 4 shoppers want cashback rebates on electronics & appliances. 90% Deal seekers are the majority in all income levels less than £100,000. 64% of people would scan a barcode for an exclusive rebate. look online for deals before they go shopping. 81% of people will drive 5–10 minutes out of their way for a £10 cashback rebate. 79% think cashback rebates are great savings opportunities. let’s make a deal: 2014 shopper behaviour study by parago 5
  • 6. shopping power “How do you rate your price sensitivity over the past 12 months?” more sensitive 73% to price unchanged 22% less sensitive 4% to price Numbers may not sum to 100 due to rounding. 73% of shoppers reported being more sensitive to price. let’s make a deal: 2014 shopper behaviour study by parago 6
  • 7. shopping power “How do you feel about your purchasing power over the last 12 months?” decreased 44% Purchasing power continues to see huge declines, leading to greater price sensitivity. the same 35% increased 17% unsure 3% 44% feel their purchasing power decreased this past year. let’s make a deal: 2014 shopper behaviour study by parago 7
  • 8. purchase influencers store 13% brand 7% price 65% Price is the primary influencer on purchase decision. loyalty 2% quality 12% Numbers may not sum to 100 due to rounding. let’s make a deal: 2014 shopper behaviour study by parago 8
  • 9. purchase influencers price reigns annual household income annual household income < £49,999 £50,000– £99,999 price 66% brand 8% store 14% quality 9% loyalty 3% price 64% brand 3% store 12% quality 20% loyalty 0% Deal seekers are the majority in income levels under £100,000. Numbers may not sum to 100 due to rounding. let’s make a deal: 2014 shopper behaviour study by parago 9
  • 10. Consumers want the best deal. 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. let’s make a deal: 2014 shopper behaviour study by parago 10
  • 11. desire for deals Shoppers are particularly interested in cashback rebates for electronics, appliances, technology, furniture and housewares. 75% electronics/appliances 56% technology 51% housewares/furniture 3 out of 4 shoppers want cashback rebates on electronics & appliances. let’s make a deal: 2014 shopper behaviour study by parago 11
  • 12. cashback rebate over instant discount For the same cost as less attractive coupons or instant discounts, cashback rebates offer the deeper price discounts consumers prefer. “Which would you choose?” £75 instant discount 27% 73% £100 rebate £35 instant discount 27% 73% £50 rebate £18 instant discount 23% 77% £30 rebate £12 instant discount 24% 76% £20 rebate £5 instant discount 24% 76% £10 rebate £2 instant discount 24% 76% £5 rebate let’s make a deal: 2014 shopper behaviour study by parago 12
  • 13. attitude toward rebates “I am interested in seeking out cashback rebates.” “When I see a £20 cashback rebate, it is attractive to me.” “Cashback rebates are great savings opportunities.” “I will buy a product with a high-value cashback rebate.” 72% 79% 79% 62% 66% of shoppers will opt-in during the rebate process for more rebate offers. let’s make a deal: 2014 shopper behaviour study by parago 13
  • 14. driving for deals More than 3 out of 4 shoppers would drive 5–10 minutes out of their way for a £10 discount on a £50 product. annual household income < £49,999 78% £50,000–£99,999 £100,000–£199,999 86% 75% let’s make a deal: 2014 shopper behaviour study by parago 14
  • 15. 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% Most consumers will travel 10–20 minutes (round trip) to get discounts on a  £50 product. let’s make a deal: 2014 shopper behaviour study by parago 15
  • 16. shopping practices People want the best deal, not necessarily the cheapest option. “Before I go shopping, I…” 90% check online for the best deals 89% 75% 48% look for sales, deals, cashback rebates and best-advertised prices review circulars and print advertising ask my personal network for advice 96% 81% 29% 28% in store on the computer using my tablet 11% of UK shoppers purchase on smartphones while in a store. using my smartphone “I shop…” let’s make a deal: 2014 shopper behaviour study by parago 16
  • 17. access to deals: social, mobile & online “Where do you want to receive exclusive cashback rebate offers?” retailer/ manufacturer website cashback rebate website Facebook Google retailer mobile app payments mobile app Twitter LinkedIn Pinterest 53% 47% 33% 32% 17% 17% 12% 7% 4% Multiple answers allowed. 1 out of 3 of shoppers will participate in a social media contest to receive an exclusive rebate. let’s make a deal: 2014 shopper behaviour study by parago 17
  • 18. appendix shopper research For 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
  • 19. behaviour by income < £49,999 research for deals and best prices before shopping look for deals in circulars and print ads search for deals online before going in-store use smartphone to check prices while in store/shopping shop where I can gain loyalty and rewards almost always sometimes total almost always sometimes total almost always sometimes total almost always sometimes total almost always sometimes total £50,000– £99,999 42% 47% 89% 21% 56% 77% 46% 44% 90% 8% 20% 28% 42% 49% 91% 37% 56% 93% 20% 66% 86% 49% 47% 96% 12% 31% 43% 37% 59% 96% let’s make a deal: 2014 shopper behaviour study by parago 19
  • 20. cashback rebate preferences by income < £49,999 £50,000– £99,999 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% let’s make a deal: 2014 shopper behaviour study by parago 20
  • 21. cashback rebate preferences by income < £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% let’s make a deal: 2014 shopper behaviour study by parago 21
  • 22. category interest in cashback rebates “In which categories are you interested in cashback rebates?” < £49,999 £50,000– £99,999 DIY products 34% 29% clothing 50% 39% consumer packaged goods 34% 31% appliances & electronics 77% 76% entertainment 39% 41% let’s make a deal: 2014 shopper behaviour study by parago 22
  • 23. category interest in cashback rebates “In which categories are you interested in cashback rebates?” < £49,999 £50,000– £99,999 furniture/housewares 53% 49% games 28% 29% office supplies 17% 20% travel 46% 51% technology 57% 59% let’s make a deal: 2014 shopper behaviour study by parago 23
  • 24. parago creates engaging solutions that inspire actions & impact results As 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. consumer rebates & promotions | employee rewards & recognition | sales & channel management | energy rebates & incentives UK & EMEA +44 118 374 4500 uksales@parago.com USA +1 866.219.7533 sales@parago.com www.parago.com © 2014 parago, inc. All rights reserved.