Price More Important Than Product Range For Aussie Shoppers
While other factors, such as range of products or brands, service and product knowledge are also important, shoppers are prepared to forgive shortcomings in these areas if the price is right.
According to Roy Morgan,72 per cent of Australians over the age of 14 named price as an important factor when visiting an electrical or department store in the year to June 2014, with range of products second at 60 per cent, followed by service (52 per cent), range of brands (50 per cent) and past experience of the store (44 per cent).
Factors such as club member offers (3 per cent) and rebates (5 per cent) were ranked comparatively low.
Price was the top priority across all generations, ranging from 78 per cent for Generation Y to 60 per cent for Pre-Boomers.
Baby Boomers have the highest expectations when shopping at electrical goods or department stores, being more likely than other generations to consider the range of products, service, range of brands and past experience with a store important.
“Nobody wants to pay too much for appliances, so it makes sense that Australians of all generations place top priority on price when visiting an electrical goods or department store,” commented Geoffrey Smith, Roy Morgan Research general manager – consumer products.
However, the proportions of each generation that consider price to be important do vary significantly, he added.
“The Boomer generations and Gen X are more likely than Gens Y and Z to value service; in fact, Gen Z don’t seem to be overly concerned about anything except price,” he stated. “Of course, at their young age, they wouldn’t have had cause to buy many appliances.
“Understanding the subtle variations in expectations from customers of different ages allows electrical appliance retailers to tailor their marketing, their retail offering and their customer service approach to attract exactly the kind of consumers they are aiming for.”