2014 UK shopper behaviour study

deallet’s make a

a study by

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

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for what it’s worth

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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 rodney.mason@parago.com

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

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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.

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“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%

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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

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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.

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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

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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.

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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

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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%

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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%

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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

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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%

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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%

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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%

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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.

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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

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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

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< £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

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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

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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?”

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www.parago.com

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