Disloyal consumers base purchase decision on competitive prices
Dublin, 29 March 2016. Price has increasingly become the deciding factor in a purchasing decision according to a new report, by e-commerce partner Webloyalty. The report entitled ‘The Unfaithful Consumer’ surveyed 1,496 Irish adults to decipher the issues affecting consumer brand loyalty and found that over half (57%) say they will shop around to get the best price.
When it comes to determining where to shop, a price sensitive 45% will seek out the retailers offering the best bargains. A savvy 51% will first visit a physical retailer and then search online to find a more competitive cost. When it comes to online shopping, high delivery costs are a big turn off for 15% of consumers who say it would make them defect from buying with that retailer.
Even if the price is right, retailers must be cognisant of the other factors affecting the decision making process and consumer loyalty. Price sensitivity has had a knock on effect, making Irish consumers increasingly disloyal. According to the Webloyalty report, 58% say that a price increases of more 10% would make them switch to another provider and rude staff would drive 57% to take their custom elsewhere. A dirty store is a point of contention for 41% and failing to have any online ordering facility was identified as an issue for 19% of respondents.
Modern consumers now also have a place to voice their concerns and can share details of their shopping experience through the increased use of reviews and recommendations. Over 3 in 4 (76%) shoppers admit they are influenced by reading website and social media reviews while over half (54%) will base their purchasing decisions on online customer reviews. Word of mouth is still a popular way to disseminate and gather brand information for 58% of consumers.
Commenting on the research Guy Chiswick, Managing Director of Webloyalty Northern Europe said, “This report is very telling of the consumer mind-set when deciding where, and from whom, to buy. Today we are really spoiled for choice and an all-round great shopping experience is key to maintaining and building a loyal customer base. Retailers must consider the whole shopping experience, from price to customer service to physical presence. Price may well be the ultimate deciding factor but the path to purchase is paved with lots of obstacles and the report clearly shows that poor customer service, high delivery costs or an unkempt store can quickly drive customers through competitor’s doors.”