Research Reveals Disconnect Between Retailers and Consumers on Pricing | WWD

Apparently, shoppers’ views of price points are completely different from those of the executive leaders behind the brands and products they buy.

Research released today at the WWD Apparel and Retail CEO Summit by technology solution provider First Insight Inc. reveals that there’s a “significant disconnect between senior retail executives and consumers” regarding low prices. Authors of the report said, as a result, retailers are underestimating the importance of in-store discounts and pricing strategies. The research also reveals insights into other consumer behavior preferences, such as the use of mobile devices.

First Insight surveyed shoppers and senior retail executives about the shopping habits of consumers as well as their purchasing behavior along with the influences driving their buying decisions. While the survey found that both groups “named quality as the most important factor in purchase decisions (roughly 50 percent of both sets of survey respondents), only 20 percent of senior retail executives felt low pricing ranked as most important, compared to nearly 40 percent of consumers.”

The company said the study also shows a “significant perception gap” between retailers and shoppers in regard to the “current pricing landscape.” The poll showed that while 20 percent of executives felt consumers “believed prices were increasing online,” more than half of the shoppers themselves felt that way.

“The same percentage [20 percent] of senior retail executives also felt consumers believed that prices were increasing in-store, compared to 60 percent of consumers,” the company noted.

Overall, the research puts a spotlight on the importance of pricing and price-point sensitivity with consumers. Greg Petro, chief executive officer and founder of First Insight, said while “everyone agrees that quality of products is the most important factor in purchase decisions right now, these data show consumers are more concerned with pricing than many senior decision makers in the retail industry suspect.”

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Research Reveals Disconnect Between Retailers and Consumers on Pricing – WWD.