Research discounts case for low pricing

02 May, 2008

Almost two-thirds of customers are not lured by promotions, reveals survey

Seventy-three per cent of off-licence customers who buy discounted products say they would have bought the drinks even if they had not been on promotion.

That was one finding in SOLTrack's latest consumer research, which monitored the behaviour of shoppers in Threshers, Bargain Booze and Wine Rack.

Eighteen per cent of those questioned in the exit interviews said they had switched from a similar product to take advantage of a deal, while 8% said they had no plans to buy the product until they saw the discount offer.

The research also found that:

– 65% of customers say they would not be tempted by any type of promotion.

– 49% of people buying promotional goods purchase wine, compared to 29% for lager.

Three-for-two, recently scrapped by Thresher as its principal promotional mechanic, is the most popular deal, favoured by 30% of shoppers who buy on promotion.

The survey raises questions about the way off-licences rely on promotions, particularly as the survey also found that shoppers generally think supermarket prices are higher.

Researchers said that 86% of the stores they visited advertised promotions outside the shop, though 50% of shoppers said they had not noticed these messages or did not know what the signs said.

Lloyd Stephens, trading director for Thresher Group, said: "We did an exit survey outside our stores last year and only 14% of people were fully aware that three-for-two was running on all wines and Champagne. It had been in situ since 2005, so it was quite a staggeringly low number."

Stephens expressed surprise at the high proportion of shoppers who said promotions were unimportant.

"Seventy-three per cent does sound high but very often the primary reason for visiting is convenience. If we don't have promotional activity that's competitive how are we driving product trial or providing excitement?"

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