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Study: Consumers Are Now Habitual Deal Seekers

Parago’s second 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 programs a top attractor.
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.Key findings from the “Let’s Make a Deal” shopper study 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.