Here’s a lesson in consumer loyalty boiled down to three words: Seven in 10.
This is the number of brand-loyal shoppers (69%) who would switch labels, while in the store, based on discounts received on their mobile device, according to new survey results by shopper marketing firm Valassis. Roughly 80% of those surveyed said a coupon would influence them to purchase a brand they typically would not buy.
Despite the growth of low-priced retailers such as Aldi, Trader Joe’s and others, the research confirms that coupons still heavily influence consumer purchase decisions. And this raises questions regarding the psychology behind consumer price perceptions and what exactly flips the “buy” switch.
Does the thrill of saving money through a coupon outshine the act of paying a lower, everyday price for the same item somewhere else? Evidence suggests it might, which can have daily (and pricey) implications for traditional and everyday-low-price merchants (EDLP), as well as product manufacturers.
Put another way, experience may be a bigger factor in effective discounting than savings. Before exposing what merchants and manufacturers can learn from the research, let’s explore the psychology behind discounts.
Coupons on the Brain
The mental rush associated with saving money is well established. However, some studies indicate the excitement of redeeming a coupon is greater than simply paying less for a product that is not discounted. It comes down to power.