Tuesday, July 12, 2016

Consumers want more than low prices from Retailers

Only about half (53%) of global respondents believe that retailers always or mostly understand their grocery requirements, meaning that nearly half of them feel somewhat underserved. A core element in increasing share of wallet is understanding and responding to local consumer needs. It makes sense then, that differentiation from your competition could be an important way to build a competitive advantage. So what are consumers looking for?

It’s no surprise that price is important; it always has been and always will be. In fact, for many consumers, deal seeking is the thrill of the chase. Globally, 59% of respondents say they enjoy taking the time to find bargains. This is a particularly strong motivator in North America (68%) and Latin America (64%).

But, as smart retailers have long known, price and value aren’t the same thing. When it comes to attributes that consumers say are influential to store selection, price-related attributes fall below several others that are geared toward assortment and convenience. High-quality produce (57%), convenient location (56%) and product availability (54%) are rated as highly influential in determining where to shop, while fewer say good value for money (52%), the lowest prices overall (48%), great sales or promotions (47%), and good sales or coupons in the weekly circular (37%) are highly influential. In fact, when global attributes are ranked, those related to price/value only made up three of the top 14 most frequently selected factors. Regionally, however, price-related attributes are more influential in Latin America and North America than the global averages.

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