London - Affluent consumers are becoming increasingly price sensitive and more inclined to visit online discount retailers than before.
According to a survey by First Insight, a company offering retail solutions, shoppers with an income over 100,000 US dollars are as likely to do comparative shopping as those who are less wealthy, using mobile technology to compare prices.
The survey found 42 percent of affluent shoppers now frequently shop at discount retailers versus only 27 percent at full price retailers, with 36 percent saying their discount shopping has increased. Twenty-one percent of affluent respondents also reported they were more inclined to visit online discount retailers, compared to only 12 percent of overall respondents.
Results of the survey, which queried 1,000 participants in the U.S. on their shopping habits, purchase behavior and influences driving purchase decisions indicate that industry disruptors are impacting the behavior of affluent consumers and changing the way they make purchase decisions,“ said Greg Petro, CEO and founder of First Insight. “A growing number of affluent consumers shopping at discount retailers over full priced retailers is an important finding, as it indicates they have already become more price sensitive. It is more critical than ever that retailers and brands offer differentiated products at the right price in order to attract the informed, affluent shopper on the hunt for deals both in-store and online.”
Amazon is a benchmark for comparative shopping
According to the findings, a vast majority of affluent consumers (74 percent) check Amazon.com for products and pricing before looking elsewhere, versus 60 percent of overall consumers. This is likely driven by the affluent shopper’s view that product pricing online is better. Half of affluent respondents felt that prices of products in physical retail stores are increasing, while slightly less (46 percent) felt online retail stores’ pricing was increasing.
Of note, while 61 percent of affluent respondents said their number of Amazon purchases increased in the past year, 80 percent said they were unwilling to pay more for two-day shipping, underscoring growing sensitivity to prices.
Affluent shoppers are also much more likely to price compare using mobile devices while at full-priced retail stores. According to the study, 44 percent of affluent respondents (compared to 38 percent overall) are more likely to price compare at full priced retail stores, while only 19 percent are more likely to price compare at discount retailers (versus 15 percent overall).
Favorite discount retailers include TJ Maxx (30 percent), Marshalls (28 percent) and HomeGoods (23 percent).
39 percent of affluent shoppers are using their mobile devices to price compare while in-store, compared to only 26 percent overall, and the need is growing. The result of the study indicated that more than half (52 percent) of affluent respondents noted that their need to price compare while physically in-store is increasing, versus 46 percent overall.
While the affluent are price checking in-store, the survey found that the two most important factors that would make them want to shop in a physical store versus buying online are being able to see and touch the product (36 percent) and being able to take a product home (26 percent). Price promotions and coupon availability were important to only 10 percent of affluent respondents, and only 12 percent said they felt they’d find better prices in-store, compared to 17 percent overall.
First Insight’s findings are based on a targeted sample of 1,000 respondents. The survey was fielded in December of 2017, and was completed through proprietary sample sources amongst panels who participate in online surveys.
First Insight is a leading provider of solutions empowering retailers and brands to incorporate the voice of the consumer into the design and merchandising of new products.
Photo credit: First Insight