Almost All Consumers Use the Web to Price Check: Commbank

Nine out of ten shoppers research prices online before opening their wallet or purse according to a new study by Commonwealth Bank.

The authors also said their research shows there's no one-size-fits all approach to enticing shoppers via price promotions, and some may even be turned off by discounting – depending on which consumer personality they are.

The report also found;

71 per cent of consumers plan purchases ahead of sales periods.

25 per cent of retailers are increasing the frequency of sales compared with 12 months ago.

59 per cent of retailers agreed that their category is price sensitive.

61 per cent of shoppers said price is the main influence on their buying decisions.

75 per cent of shoppers said brands do not lose their allure by offering discounts too often.

Most (81 per cent) 'bargain hunters' said price is the main influence when purchasing, whereas almost all 'connoisseurs' (95 per cent) said quality is more important than price.

The majority (84 per cent) of 'researchers' plan their purchases around sales. And half of all 'brand loyalists', the fourth shopper personality, said brands lose their allure by offering discounts too often.

Michael Cant, Executive General Manager, Corporate Financial Services, Commonwealth Bank said, "For shoppers, the price they pay for an item often reinforces their perception of themselves – whether as a savvy bargain hunter, or as a discerning consumer of quality goods whose buying decisions help them stand out from the crowd. The bottom line is, the lowest price is not always the most attractive."

According to Cant, understanding the broad types of consumer is an important starting point for price strategy. "Savvy retailers are very clear on the subtleties of their target market."

The research also shows while most shoppers (68 per cent) consider quality more important than price, they also believe it's easy to buy at a discount, with a significant minority (46 per cent) now unwilling to pay full price on any occasion.

More than three quarters of shoppers (77 per cent) also admitted to making impulse purchases, and a 25 per cent discount is the average trigger point to entice them to purchase.

Jerry Macey, National Manager Retail, Commonwealth Bank said, "It's interesting that consumers typically need a 25 per cent discount to make an unplanned purchase whereas retailers generally start their promotions at 20 per cent. It gives retailers room to move over time while using the initial discount as a form of advertising.

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"Pricing clearly plays an important role in both driving sales and prompting purchase, but its important retailers remember shopper behaviour can vary widely and consider the type of consumers they are seeking to attract," said Macey.

Source: Almost All Consumers Use the Web to Price Check: Commbank