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06/26/2018

Survey: Quality winning over price

Quality is becoming more important than price for consumers.

That’s according to a report by First Insight in which 53% of consumers rated quality as the most important factor when making purchases compared to price (38%).

The furniture and vehicle categories reflected the sharpest change in expectations, with the number of people saying discounts had no impact on purchases rising 98% and 74% respectively.

Home appliances (36%), home electronics (27%) and smartphones (26%) also saw significant increases in people who said that discounts had no impact on their purchase decisions in these categories.

“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.”

In other survey findings:

• The percentage of men and Baby Boomers who said discounts do not influence their purchase decisions more than doubled (111% and 128% increases, respectively) in the furniture category, with the percentage of Millennials nearly doubling (94% increase). The percentage among women and Generation X respondents also increased around 77% each.

• Fifty-four percent of men and 51% of women ranked quality as the most important factor when making a purchase. Similarly, more than half of Baby Boomers, Millennials and Generation Xers choose quality over price, with Xers the most influenced by price (41%) versus millennials and boomers, with 36% of both groups saying price was the most important factor.

• Sixty-two percent of affluent respondents (who make more than $100,000 per year) ranked quality as the most important, compared to 49% of those that made less, it was still significantly more important than price with both groups.