Study: Price losing ground when it comes to influencing purchase

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Study: Price losing ground when it comes to influencing purchase

By Deena M. Amato-McCoy - 03/23/2018
Other factors are starting to outshine price when it comes to influencing purchase decisions.

The importance of the shopping experience has doubled year-over-year. and the need for variety and speed of fulfillment options also grew, according to “2018 Consumer Trends Report — Engaging the Informed Consumer,” from Kibo.

According to the study, price is still the top factor influencing purchase decisions for 61% of survey participants, however that percentage is down by more than 12.8% compared to last year. Customers are looking for additional value, including extensive content on branded manufacturer websites, suggesting that product images, videos, reviews, detailed specifications, comparison guides, and other consideration tools are all apt investments.

Buy-online-pickup-in-store is now considered a mainstream offering, with 67% of survey participants having used it in the past six months. Furthermore, shoppers widely recognize that BOPIS offers not only free order fulfillment, but also a degree of flexibility and control not available via home delivery. The ability to inspect items in the store before taking them home was the BOPIS benefit whose importance grew the most year over year, suggesting that stores’ tactile experiences are important brand assets.

Shoppers are also more willing to engage store associates for assistance finding items, with 57% of respondents reporting they’ve done so — an 18.75% increase from 2017. More than two-thirds of respondents said they expected those associates to have access to their order histories, suggesting expectations are high for knowledgeable interactions that draw on shoppers’ past interactions across touchpoints.

Inventory access and availability also remain crucial, with more than half of survey participants reporting that they expect a manufacturer’s site to have items in-stock. Meanwhile, 45% believe they’ll find a greater variety of products available, and 40% believe manufacturers will have more items than retailers.

“As merchants struggle to thrive in the era of Amazon and increasingly look for ways to engage consumers, the key is to understand what factors influence a consumer’s buying behavior,” says Tushar Patel, CMO, Kibo. “It is increasingly clear that while having fair and consistent pricing on all channels is extremely important, merchants have an incredible opportunity to engage shoppers with seamless experiences that include, but are not limited to, flexible fulfillment options like buy online, pickup in store.”

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