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2014 parago Shopper Study: UK Consumers Are Now Habitual Deal Seekers


News provided by

parago

18 Feb, 2014, 09:00 GMT

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- parago issues comprehensive report on shopper price sensitivity and behaviour

READING, England, Feb. 18, 2014 /PRNewswire/ -- parago's second UK shopper study, "Let's Make a Deal," revealed that regardless of income, shoppers now seek out the very best prices and are willing to go out of their way to save even a small amount. Amidst the lagging economy, new deal-seeking activities are becoming the norm among UK consumers, with high-value cashback rebates programmes a top attractor.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/65799-parago-uk-shopper-study-2014-let-s-make-a-deal 

parago's study found that shoppers are using circulars, fliers and the internet to research deals before they shop. Finding the best value is a practice now cemented in consumers' path to purchase due to several factors: greater price sensitivity, reduced perceived purchasing power and easier access to deals on mobile phones, online and via social networks. The shopper survey was conducted by parago, a global incentives and engagement company.

"Consumers of all income levels are feeling the pinch of the lagging economy. As a result, deal seeking has become an engrained habit among UK shoppers," said Lindesay Brown, Managing Director, UK of parago. "Our research also revealed that because consumers are focused on the very best price, the majority are finding that cashback rebates deliver the greatest value, versus other promotions."

The "Let's Make a Deal" shopper study can be downloaded for free here.

Key findings from the research include:

  • Price sensitivity is up: Nearly 3 out of 4 shoppers are more sensitive to price this year due in part to 44% of those surveyed feeling their purchasing power has decreased.
  • Shoppers will got out of their way for discounts: More than 75% of consumers would drive 5-10 minutes out of their way for a £10 discount on a £50 product. A full 93% of shoppers would drive 5-10 minutes out of their way for a £20 cashback discount.
  • Price is the top purchase influencer: The large majority of shoppers (65%) report that price is the primary influencer on purchase decisions, above store (13%), quality (12%) and other factors.
  • Preference for cashback rebates is growing: When given the option of a lower-value instant discount or a cashback rebate, the majority of consumers prefer the rebate. This is a strong win for marketers, as the instant discount and cashback rebate have the same net promotional cost. Additionally, most shoppers are interested in seeking out rebates (72%) and feel they offer great savings opportunities (79%).
  • Deal-seeking behaviour is booming: Before shopping, 90% of consumers look online for the best deals and 89% look for sales, deals, cashback rebates and best advertised prices.  
  • Demand for deals in social networks: 1 out of 3 shoppers would participate in a social media contest to receive an exclusive cashback rebate.

The shopper behaviour study was conducted via a national online survey during January 2014 with more than 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?

about parago
As the world's most comprehensive, single-source provider for incentives and engagement, we deliver billions in rewards to millions of people worldwide using our advanced technology. Our relentless focus on innovation drives better results, making us the smart choice. 

  • consumer rebates & promotions
  • employee rewards & recognition
  • sales & channel management
  • energy rebates & incentives

parago is headquartered in London, UK and Dallas, TX. For more information, visit www.parago.com, the parago blog or Twitter. parago: the thought that counts.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/65799-parago-uk-shopper-study-2014-let-s-make-a-deal

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