Shoppers in the United Kingdom have reported being more sensitive to price now than they were a year ago, and many of them feel that their purchasing power has decreased, according to shopper research from retail incentives company Parago.
The study, entitled 'Let's Make a Deal', found 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. Amid a lagging economy, new deal-seeking activities are becoming the norm among UK consumers, with high-value cashback rebates programmes a top attractor.
The 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.
"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 for Parago in the UK. "The study also found that, because consumers are focused on the very best price, the majority are finding that cashback rebates deliver the greatest value, versus other promotions."
Among the study's key findings:
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