Price and the Purchase Decision by Sandra Triana #ACEI_CO #InvestigAction2013 #MRX

… Live blogging from Bogota, Colombia, any errors are my own, any comments in [] are my own…

ACEI Bogoto Colombia

Para leer esto en español, por favor, copie pegarlo en Google. Una mala traducción es mejor que ninguna traducción.

  • [apologies, missed the first part of this session]
  • Pleasers: like our moms, want to please their kids. A mom might choose whatever cereal the child wants, and the child is choosing only based on the prize inside. Price is irrelevant. Takes a bit longer to make the purchase decision because they ask for opinions from the people they’re with. Price is only important in terms of knowing what the price is. Even if the price isn’t good, they will still purchase.
  • Indifferent purchases: just want the promotion, or whatever they see first. Maybe not a category they care about.
  • 38% are loyal customers, 18% are price hunters, 16% maximierzers need a reason to purchase within their decision, 15% explorers who are very important to marketers, 8% are pleasers, 5% are indifferent
  • Loyalty is category dependent but people generally fall into one type of shopper
  • Price roles 1) verify the price – loyal and pleasers 2) comparison – price hunters and maximizers
  • only 1 in 3 shoppers really use price as a comparison, price isn’t as important as we think
  • we only take 6 seconds to check the price and purchase something, the decision must be made before we go to the store
  • at home, we consider past experiences, upcoming events, what the family wants, much of the decision is made at home
  • there is no time to compare all the prices at the supermarket
  • study in 18 countries, variables studied included
    • process – the line, the displays, accessibility, distance from home
    • variety of brands available – everything they need in one store
    • price
    • service
  • do i trust the store to give me good prices, fair prices, good sales – you know whether you always trust your store to do their best
  • flyers are very important as well
  • international chains are known for good flyers and transparency in pricing – even if you don’t have time to check prices, you know the price will be fair
  • when a shopper feels secure, they no longer need to verify prices. that’s why many people just check the price instead of comparing prices
  • retailers need to create trust with their pricing models, if people don’t feel a price is fair their trust in the brand and the retailer decreases
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