Financial analysts say the economy is on an upswing, but consumers are still cautious about spending. According to a new study from Parago, American shoppers are routinely choosing price over brand and that could hurt small retailers on the web.
After long months of rampant unemployment, high gas prices, and a poor housing market, consumers are feeling hard pressed to keep up. 70% said they were more sensitive to price and 83% said they felt their purchase power was the same or less than it was a year ago.
Because of this, 66% of those surveyed said price was the primary factor in deciding what to purchase. This is up from 60% last year.
With price being such a key factor, more people than ever are reading circulars, looking for deals online and researching prices before buying. A full 95% of shoppers said that a good deal was more important than brand loyalty.
A year ago, only 59% of the respondents said they researched prices. That’s a big leap in a short time.
Advances in technology have made it easier to conduct price research while on the go, but that didn’t affect the folks in this survey. 73% of them said they’ve never used a mobile app for price comparisons.