Decision Making 2013
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Decision Making 2013

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We analyse the interaction of price, quality, health and brand as drivers of item choice. We examine how the importance of these factors varies depending on the channel. This report outlines what ...

We analyse the interaction of price, quality, health and brand as drivers of item choice. We examine how the importance of these factors varies depending on the channel. This report outlines what “best price” actually means to shoppers and we look at what shoppers look for when looking for quality. We also look at what shoppers look to when deciding if a product is healthy or not. We used nine proxy categories to help understand how and what shoppers’ trade-off depending on what category they are considering.

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    Decision Making 2013 Decision Making 2013 Presentation Transcript

    • Decision Making 2013: Price vs. Quality vs. Health vs. Brand Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com No part of this sample can be extracted and used elsewhere without written permission No part of this sample can be extracted and used elsewhere without written permission
    • • Evolution offer a range of products & services for clients in the field of shopper research:- • Off-the-shelf research – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs • Bespoke Consulting – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements. Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies. Further information is available at our website http://www.evolution- insights.com Visit and sign up for our free monthly Shopper Trend Report. About Evolution Insights As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight. Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase. We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques. No part of this sample can be extracted and used elsewhere without written permission
    • Contents Figures and Graphs 5 Price vs. Health 33 Introduction 34 Key findings and executive summary 7 Channels 35 What this report will do for you 8 Summary 36 Price, Quality, Health and Brand 9 Price vs. Quality vs. Health v. Brand 10 Price vs. Brand 37 Channels 11 Introduction 38 Categories 12 Channels 39 Summary 40 Decision Making: Introduction 13 Decision making process 14 Health vs. Taste/Quality 41 Price, Quality, Health and Brand 15 Introduction 42 Channels 43 Price: Introduction 16 Summary 44 What does ‘best price’ mean to shoppers 18 Summary 19 Brand vs. Quality 45 Introduction 46 Quality: Introduction 20 Channels 47 How shoppers decide what is good quality 22 Summary 48 Summary 23 Brand vs. Health 49 Health: Introduction 24 Introduction 50 What shoppers use to decide if a product is healthy or not 27 Channels 51 Summary 28 Summary 52 Price vs. Quality 29 Channels 53 Introduction 30 Introduction 54 Channels 31 Supermarket 55 Summary 32 Convenience store 56 Online 57 Summary 59 No part of this sample can be extracted and used elsewhere without written permission
    • Contents Categories 60 Introduction 61 Price 63 Quality 64 Health 65 Brand 66 Cheese 67 Cereal 68 Wine 69 Chocolate biscuits 70 Bread 71 Yoghurt 72 Toilet paper 73 Pet food 74 Laundry detergent 75 Summary 76 Methodology 77 Glossary 80 No part of this sample can be extracted and used elsewhere without written permission
    • Figures and graphs 14 Figure Decision making process 18 Graph What does ‘best price’ mean to shoppers 22 Graph How do shoppers decide what is good quality 27 Graph What shoppers use to decide if a product is healthy or not 31 Graph Price vs. Quality – Channels 35 Graph Price vs. Health – Channels 39 Graph Price vs. Brand - Channels 43 Graph Health vs. Taste/Quality – Channels 47 Graph Brand vs. Quality – Channels 51 Graph Brand vs. Health – Channels 55 Graph Channel – Supermarket 56 Graph Channel – Convenience Store 57 Graph Channel – Online 58 Graph Channel – Summary 63 Graph Categories – Price 64 Graph Categories – Quality 65 Graph Categories – Health 66 Graph Categories – Brand 67 Graph Cheese 68 Graph Cereal 69 Graph Wine 70 Graph Chocolate biscuits 71 Graph Bread 72 Graph Yoghurt 73 Graph Toilet paper 74 Graph Pet food 75 Graph Laundry detergent Page No part of this sample can be extracted and used elsewhere without written permission
    • ATL Stimulus Pre-Shop Information Search Evaluation at Point of Purchase Decision Post- Purchase Evaluation Decision Making: Introduction – Decision making process The decision making process is a cycle. At each point the shopper can be influenced by any number of factors, including brand, quality, health and price. The process a shopper goes through once they have received a stimulus to their final purchase decision is known as the path to purchase. No part of this sample can be extracted and used elsewhere without written permission
    • Decision Making: Introduction – Price, Quality, Health and Brand When a shopper is confronted by a number of products they have to make a decision based on a number of different criteria which they will choose on that particular occasion. In the main (and in the interests of simplicity) we can categorise these as Price, Quality, Health and Brand. As such, a shoppers decisions are a function of price, quality, health and brand. Every shopper will weight each of these criteria differently depending on their circumstances, demographics, income, what mission they’re on, what channel they’re using, time of day, transport etc. To add to this complexity, every category will have characteristics that are viewed in different ways by the same person. In this report we try to simplify this very complex process. fPrice, Quality, Health, Brand No part of this sample can be extracted and used elsewhere without written permission
    • Price: Introduction – Summary Best price does not simply mean the cheapest available. In fact, this is the least popular definition of best price amongst primary shoppers. Instead the most common definition of ‘best price’ is the best value per unit as shoppers use the unit price to decide what is the best price for them. Promotions don’t necessarily lead to the best price for shoppers even if the brands they usually buy are on offer. However, brand does appear to be important for at least a quarter of shoppers who look for the cheapest of the brands they usually buy or feel that the brand with the biggest saving gives the best price. For these shoppers, finding one of their favoured brands at a cheaper price is seen as excellent value. No part of this sample can be extracted and used elsewhere without written permission
    • Price vs. Quality – Introduction Although many shoppers are facing tough financial times, we found that 62% of shoppers are willing to pay more for food that is better quality. Understandably this is most likely among shoppers who have a household income of over £25,000 so are able to spend more on food and groceries. The relationship between price and quality is what leads to a shoppers perception of value. As the quality of an item increases these shoppers are willing to spend more as they feel they are still receiving good value. No part of this sample can be extracted and used elsewhere without written permission
    • Price vs. Brand – Channels 90 92 94 96 98 100 102 104 106 108 110 90 95 100 105 110 Price less important Price more important Brandmoreimportant Brandlessimportant Supermarket Convenience Online Price and brand both over index when shopping online whereas they both under index for convenience stores. Brand is less important than price when shopping in a supermarket. We asked 1000 primary shoppers to rate the importance of price and health when shopping across different channels. These ratings are then indexed against the average rating across channels. An index of 100 means the factor is as important for that channel as it is for all channels on average. An index over 100 means that it is more important. No part of this sample can be extracted and used elsewhere without written permission
    • Methodology 11No part of this sample can be extracted and used elsewhere without written permission
    • Secondary and desk research Preliminary quantitative survey Main quantitative surveyInsights • Evolution carried out a preliminary survey of around 100 shoppers to test questions for the main survey. • Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scope and examples within the research topic. • Initial insights gained are used to help further design the main survey. • A main survey was then completed by a further 1,102 UK adults who are the primary household shopper for food & grocery. • Comprehensive and detailed assessment of all the data received was then used to uncover insights. • Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. Methodology No part of this sample can be extracted and used elsewhere without written permission Evolution’s methodology
    • Methodology: quantitative research - survey No part of this sample can be extracted and used elsewhere without written permission Importance of drivers across categories Importance of drivers across channels Attitudes towards price, health, quality and brand Definition of quality Definition of health Definition of ‘Best price’ Demographic profiling Topics of questions in quantitative survey • Detailed shopper insights were gained from a survey of 1,202 primary shoppers. The samples were fully representative of the UK population. • The survey contained 16 questions relating to topics outlined to the left – in addition to standard demographic profiling questions • The questions were designed to give maximum insight into shopper’s motivation and behaviour • The survey was carried out during the week commencing 4th February
    • This presentation is a Sample Extract. Full Report 82 Pages. For Details on the full report please contact dale.henry@evolution- insights.com Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com Evolution Insights: Shopper Insight Series SAMPLE EXTRACT
    • Disclaimer No part of this sample can be extracted and used elsewhere without written permission Please note No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd. The content of this report is based on information gathered in good faith from both primary and secondary sources and is believed to be correct at the time of publication. © Evolution Insights Ltd 2013
    • Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6000 e-mail: craig.bradley@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom No part of this sample can be extracted and used elsewhere without written permission