Retailers need to understand how their customers prefer to look for deals

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 25, 2019, 10:58 PM UTC

A new framework suggests shoppers can be divided into four distinct and identifiable groups.

Previous research into consumers’ approach to deals has mostly been confined to in-store offers and a fairly limited range of promotions. But the reality is that consumers now use a variety of channels to browse and compare offers, and the separation between online and offline retail is becoming eroded as a large proportion use mobile devices while shopping. This paper attempts to provide an updated way of thinking about deal-seeking behaviours.

It defines a shopper’s deal-seeking propensity as “an individual tendency to seek or look out for ‘good or fair deals’ in the marketplace” and proposes that behaviours can be split into four “dimensions”: “online deal seeking”, “store deal requesting”, “traditional” and “mobile” deal seeking. Using a questionnaire designed around these concepts, the researchers then asked people about their behaviours and preferences, and found that the responses grouped people into four “unique segments.” Significantly for retailers, the smallest segment were the “deal indifferent” shoppers who don’t really seek out offers, and were older, and tended to be male and less well-off.

So a clear majority of the consumers surveyed were interested in findings deal of some kind. The biggest group was the “technologically-oriented deal prone” and the others were the “omnichannel deal prone” and the “store-centric deal prone”. Each segment of behaviours was associated with a slightly different demographic with respect to age, gender and income. The authors conclude that marketers first need to understand how their customer base fits into these categories, then align their offerings to make sure there is something for everyone and to reduce brand switching.

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[45 minute read; article may be behind a paywall]