Quality is becoming more important than price to most consumers, as 53 percent rate quality as the most important factor when making purchases compared to price (38 percent) according to a new report by First Insight, a technology company transforming how leading retailers make product investment and pricing decisions. The report also notes that consumer expectations for discounts are falling as an increasing proportion of consumers surveyed said department store discounts had no influence on expectations for discounts across other categories including vehicles, smartphones, furniture, home appliances and home electronics.
The survey queried 1000 participants in the U.S. on their shopping habits, purchase behavior and influences driving decisions, and tracked changes in consumer sentiment on the impact of widespread discounting by department stores and mass merchants from March 2017 to December 2017.
“For years, consumers have been trained by department stores and mass merchants to focus on finding deals, and many retailers have responded with deep discounts,” said Greg Petro, CEO and Founder of First Insight. “The results of this study indicate that we may be reaching a tipping point, as retailers who have been focused on providing consumers with the quality, differentiated products they want and the price they expect are gaining greater traction and changing the consumer mindset. As the pendulum swings away from discounts, retailers have an opportunity to capture greater sales through quality products in every category, from apparel to furniture and appliances.” Read More