The State of Personal Commerce. Part Two: Price
The State of Personal Commerce
Personal Commerce is a new state of retail, defined by authentic, always-on experiences that meld to meet the shopper on their terms, turf and timeline. This new era of commerce has created a new generation of informed buyers whose expectations of the brands they shop from are shaped by their digital experiences.
To better understand the behavior of this new informed buyer, Bluecore surveyed 522 U.S. online shoppers over the course of a two week period in Q1 2021 on their preferences. You can view part one of this series on consumer trust here.
Part 2: Price
Below are our findings for Part 2 in this State of Personal Commerce series, which details how price impacts how shoppers perceive and engage with brands, across demographics. The findings reveal that while price has the greatest impact on shopper’s purchase decisions, not everyone is looking for a discount. Only 36% of shoppers say that discounts have the most impact on their purchase from a brand. Majority of shoppers, instead, are more heavily influenced by other factors: relevant product recommendations (30%), timing of communications (24%) and engaging content (10%).
Price has the greatest impact on shoppers’ purchase decisions.
- Price (57%) clearly has the most impact on purchase decisions.
- Brand (7%) has the least impact.
Recommendations have the most impact on Millennials’ purchase decisions.
- Price has the most impact on all age segments, particularly the Gen Z segment.
- Recommendations have more impact on Millennials than others.
- Gen X+Y are relatively more impacted by brand.
- Many more Boomers than those of other ages claim their purchase decisions are impacted by necessity.
Majority of shoppers are heavily influenced to make a purchase by factors other than discounts and promotions.
- Thirty-six percent (36%) of shoppers say that discounts have the more impact on their purchase from a brand.
- Sixty-four (64%) of shoppers are more heavily influenced to purchase from a brand by other factors: relevant product recommendations (30%), timing of communications (24%) and engaging content (10%).
- Engaging content or subject line is ranked lowest (64% rank #3 + #4).
Shoppers are more excited by getting good value than a good deal.
- Utility attributes (Price, Deal, Product, Certainty) generate more excitement than emotional attributes (Experience, Speed of Arrival, Status).
- The highest level of excitement stems from buying a product at a good price (30%); meaning the product was worth the value paid.
- Getting a good deal (25%) also generates excitement for many shoppers.
- See Appendix for full definition of each criteria.
Prices changes have the biggest impact on ending an existing brand relationship.
- Price changes (37%) would have the most impact on ending an existing brand relationship.
- Somewhat lower, but still substantial, are bad publicity (29%) and involvement in political/social issues (25%).
Gen Z is most impacted by timing of communication when engaging with a brand online.
- The most Gen Z shoppers rank the timing of a communication as having the most impact on brand engagement.
- The most Boomers rank a discount/enclose promotion as having the most impact on purchase or engagement decisions.
This data was collected through an online panel conducted by Dynata.
- The surveys were distributed over the course of a two-week period in Q1, 2021
- 522 US-based individuals age 18+ responded to the survey
- Respondents frequently or occasionally shopped online prior to COVID-19
- Price – thought the product was worth the value
- Deal – found a good discount/promotion on the product
- Product – item fulfilled a want or need
- Certainty – have purchased from the brand before and knew it would suit me well
- Experience – felt a connection with a brand via packaging, customer service, or another experience
- Speed of arrival – item arrived quickly and in good condition
- Status – excited to have an item from a brand with a certain reputation