In a parago research study conducted in January 2014, we explored macro-economic sentiments about their current path-to-purchase behaviours. The survey was completed by more than 560 UK shoppers. Here’s what they told us: Price sensitivity is up 73%: Across all income levels, consumers are looking for the best value. The majority of shoppers are deal seekers: In fact, 90% look online for deals before they go shopping. Price is 5X more important than other factor: 65% of today’s consumers say price is the primary influencer on their purchasing decisions. Download the complete “Let’s Make a Deal: 2014 UK Shopper Behaviour Study” now.

1. 2014 UK
shopper
behaviour
study
deal
a study by
let’s make a

2. contents
for what it’s worth
methodology
key findings
shopping power
purchase influencers
desire for deals
cashback rebate over instant discount
attitude toward cashback rebates
driving for deals
shopping practices
access to deals: social, mobile and online
appendix: shopper research by income
3
4
5
6
8
11
12
13
14
16
17
18
let’s make a deal: 2014 shopper behaviour study by parago
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3. for what it’s worth
Shopper price sensitivity is changing shopper behaviour. Consumers at all income levels are feeling the pinch of the
lagging economy. Their long and worsening struggle has manifested itself in new deal-seeking activities that are
laser-focused on paying only what it’s worth and not a penny more.
Across the board, shoppers now seek out the very best prices and are
willing to go out of their way to save even a little bit.
They research circulars, fliers and the internet before they head out to shop — if they don’t buy online. They drive
out of their way to save.
Because they are focused on the very best price, the majority are finding that cashback rebates, above all other
price promotions, deliver the greatest value and lift their personal spend budget.
They want cashback rebates in many shopping categories, including electronics,
appliances, technology, furniture and housewares.
On the brighter side of heightened price sensitivity, they are still shopping regularly
and feel emotionally rewarded when they find significant savings. This sense of
reward is connecting them more closely to the shopping experience and the items
they purchase than in years past.
We are happy to share our findings with you. Please reach out with questions to
keep the discussion going. Good shopping!
frugality
rules!
Rodney Mason, CMO
rodney.mason@parago.com
let’s make a deal: 2014 shopper behaviour study by parago
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4. methodology
own a smartphone?
73% yes
This first shopper behaviour study was conducted via a national online survey during January 2014
with over 560 respondents representative of the UK (in terms of education, income and gender). They
responded to a survey exploring their deal-seeking behaviour: how, why and where?
We explored macro-economic sentiments, influence of technology and consumer preference.
employment
32% employed full-time
19% employed part-time
17% unemployed
17% retired
9% student
6% homemaker
annual household income
75% £49,999
12% £50–99,999
1% £100–199,999
1% £200,000
11% no report
gender
27% no
household shopping responsibilities
61% primary shopper
34% share shopping duties
5% not really involved
education
47% uni/college grad
47% men
53% women
17% vocational/technical
living situation
53% own
32% GCSEs/O Levels
3% no answer
47% rent
marital status
40% married
25% single
22% in relationship or living w/ partner
13% divorced/separated/widowed
2% did not finish school
age
22% 18–29
28% 30–45
18% 46–54
28% 55–70
4% 71
let’s make a deal: 2014 shopper behaviour study by parago
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5. key findings
price sensitivity is up
73%
across all income levels
5x
price is
more influential on
purchase decision
than any other
criteria.
3 of 4
shoppers want cashback rebates
on electronics appliances.
90%
Deal seekers
are the majority
in all income levels
less than £100,000.
64%
of people would scan
a barcode for an
exclusive rebate.
look online for deals
before they go shopping.
81%
of people will drive 5–10 minutes out of
their way for a £10 cashback rebate.
79%
think cashback rebates
are great savings
opportunities.
let’s make a deal: 2014 shopper behaviour study by parago
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6. shopping power
“How do you rate your price sensitivity over the past 12 months?”
more sensitive 73%
to price
unchanged 22%
less sensitive 4%
to price
Numbers may not sum to 100 due to rounding.
73% of shoppers reported being more sensitive to price.
let’s make a deal: 2014 shopper behaviour study by parago
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7. shopping power
“How do you feel about your purchasing power over the last 12 months?”
decreased 44%
Purchasing power continues
to see huge declines, leading
to greater price sensitivity.
the same 35%
increased
17%
unsure
3%
44% feel their purchasing power decreased this past year.
let’s make a deal: 2014 shopper behaviour study by parago
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8. purchase influencers
store
13%
brand
7%
price
65%
Price is the primary
influencer on purchase
decision.
loyalty
2%
quality
12%
Numbers may not sum to 100 due to rounding.
let’s make a deal: 2014 shopper behaviour study by parago
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9. purchase influencers
price reigns
annual household income
annual household income
£49,999
£50,000–
£99,999
price
66%
brand
8%
store
14%
quality
9%
loyalty
3%
price
64%
brand
3%
store
12%
quality
20%
loyalty
0%
Deal
seekers
are the
majority
in income
levels
under
£100,000.
Numbers may not sum to 100 due to rounding.
let’s make a deal: 2014 shopper behaviour study by parago
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10. Consumers want
the best deal.
And they are willing to take an extra step to get it.
Marketers can take advantage of cashback rebate redemption to drive
higher-value promotions, capture data and gain customer interaction.
let’s make a deal: 2014 shopper behaviour study by parago
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11. desire for deals
Shoppers are particularly interested in cashback rebates for
electronics, appliances, technology, furniture and housewares.
75%
electronics/appliances
56%
technology
51%
housewares/furniture
3 out of 4 shoppers want cashback rebates on electronics appliances.
let’s make a deal: 2014 shopper behaviour study by parago
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12. cashback rebate over instant discount
For the same cost as less attractive coupons or instant discounts, cashback rebates
offer the deeper price discounts consumers prefer.
“Which would you choose?”
£75 instant discount 27%
73% £100 rebate
£35 instant discount 27%
73% £50 rebate
£18 instant discount 23%
77% £30 rebate
£12 instant discount 24%
76% £20 rebate
£5 instant discount 24%
76% £10 rebate
£2 instant discount 24%
76% £5 rebate
let’s make a deal: 2014 shopper behaviour study by parago
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13. attitude toward rebates
“I am interested in
seeking out
cashback rebates.”
“When I see a £20
cashback rebate, it is
attractive to me.”
“Cashback rebates
are great savings
opportunities.”
“I will buy a product
with a high-value
cashback rebate.”
72%
79%
79%
62%
66% of shoppers will opt-in during the rebate process for more rebate offers.
let’s make a deal: 2014 shopper behaviour study by parago
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14. driving for deals
More than 3 out of 4 shoppers
would drive 5–10 minutes out of their way for a £10 discount on a £50 product.
annual household income
£49,999
78%
£50,000–£99,999
£100,000–£199,999
86%
75%
let’s make a deal: 2014 shopper behaviour study by parago
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15. driving for deals
How far will a consumer go for savings?
would drive 5–10
minutes out of their
way for £10
81%
would drive 5–10
minutes out of their
way for £15
86%
would drive 5–10
minutes out of their
way for £20
93%
Most consumers
will travel 10–20
minutes (round trip)
to get discounts on a
£50 product.
let’s make a deal: 2014 shopper behaviour study by parago
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16. shopping practices
People want the best deal, not necessarily the cheapest option.
“Before I go shopping, I…”
90%
check online for
the best deals
89%
75%
48%
look for sales, deals,
cashback rebates and
best-advertised prices
review circulars
and print advertising
ask my personal
network for advice
96%
81%
29%
28%
in store
on the computer
using my tablet
11%
of UK
shoppers
purchase on
smartphones
while in
a store.
using my smartphone
“I shop…”
let’s make a deal: 2014 shopper behaviour study by parago
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17. access to deals: social, mobile online
“Where do you want to receive exclusive cashback rebate offers?”
retailer/
manufacturer
website
cashback
rebate website
Facebook
Google
retailer
mobile app
payments
mobile app
Twitter
LinkedIn
Pinterest
53%
47%
33%
32%
17%
17%
12%
7%
4%
Multiple answers allowed.
1 out of 3 of shoppers will participate in a social media
contest to receive an exclusive rebate.
let’s make a deal: 2014 shopper behaviour study by parago
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18. appendix
shopper research
For your use, more detailed information by
annual household income is included on
pages 19–21. Additional data about consumer
preferences for cashback rebates by product
category can be found on pages 22 and 23.
let’s make a deal: 2014 shopper behaviour study by parago
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19. behaviour by income
£49,999
research for deals and best prices before shopping
look for deals in circulars and print ads
search for deals online before going in-store
use smartphone to check prices while in store/shopping
shop where I can gain loyalty and rewards
almost always
sometimes
total
almost always
sometimes
total
almost always
sometimes
total
almost always
sometimes
total
almost always
sometimes
total
£50,000–
£99,999
42%
47%
89%
21%
56%
77%
46%
44%
90%
8%
20%
28%
42%
49%
91%
37%
56%
93%
20%
66%
86%
49%
47%
96%
12%
31%
43%
37%
59%
96%
let’s make a deal: 2014 shopper behaviour study by parago
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20. cashback rebate preferences by income
£49,999
£50,000–
£99,999
cashback rebates are great savings opportunities
78%
78%
cashback rebates provide a larger cost savings than other promotions
48%
46%
cashback rebates make me feel like I caught an exclusive sale
54%
47%
cashback rebates are easy to redeem nowadays
52%
43%
when researching a product online, a cashback rebate is attractive to me
63%
68%
the ability to submit a cashback rebate on my smartphone is attractive to me
49%
51%
let’s make a deal: 2014 shopper behaviour study by parago 20

21. cashback rebate preferences by income
£49,999
£50,000–
£99,999
participate in social media contest to receive exclusive cashback rebate offer
39%
41%
opt-in during rebate cash back process for future relevant product marketing messages
54%
46%
interested in seeking out products that come with cashback rebates
73%
71%
I will buy a product with a high-value cashback rebate
63%
63%
I search out products with cashback rebates
37%
37%
let’s make a deal: 2014 shopper behaviour study by parago
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22. category interest in cashback rebates
“In which categories are you interested in cashback rebates?”
£49,999
£50,000–
£99,999
DIY products
34%
29%
clothing
50%
39%
consumer packaged goods
34%
31%
appliances electronics
77%
76%
entertainment
39%
41%
let’s make a deal: 2014 shopper behaviour study by parago
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23. category interest in cashback rebates
“In which categories are you interested in cashback rebates?”
£49,999
£50,000–
£99,999
furniture/housewares
53%
49%
games
28%
29%
office supplies
17%
20%
travel
46%
51%
technology
57%
59%
let’s make a deal: 2014 shopper behaviour study by parago
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24. parago creates engaging solutions that inspire actions impact results
As the world’s most comprehensive single-source provider for incentives and engagement, we deliver billions in rewards to millions
worldwide using our advanced technology. Our relentless focus on innovation drives better results, making us the smart choice.
consumer rebates promotions | employee rewards recognition | sales channel management | energy rebates incentives
UK EMEA +44 118 374 4500
uksales@parago.com
USA +1 866.219.7533
sales@parago.com
www.parago.com
© 2014 parago, inc. All rights reserved.