The True Value of Discounts

The conventional wisdom in marketing (particularly retail) is that sales and discounts lead to more business and enough of it that it is work the financial hit a business may take on each sale. While this is sometimes the case, recent studies have shown that lowest prices aren’t necessarily the driving force in where consumers decide to shop. It turns out that the majority of customers value a store’s environment, the brands it carries, convenience and service above price alone. Additionally, almost 40% of those surveyed say that they are unlikely to change their minds based on a discount. These facts reveal that shoppers come in various shapes and sizes and the best way to use this information is to attempt different approaches to marketing directed at the different types of shoppers, who are broken down into 5 categories:

1) Offline Deal-Seekers

2) Deal Thrillers

3) Deal Takers

4) Deal Indifferents

5) Deal Rejectors

 

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