Millennials and pensioners less price conscious, baby boomers most frugal
Tuesday, 28 November 2017
Millennials and pensioners are the shoppers least influenced by price, while affluent baby boomers are most likely to watch what they spend, according to research by Oxford Brookes University’s Professor Janine Dermody.
Webloyalty’s 5Ps of Shopper Motivation report was created in conjunction with Brookes. The report has identified five profiles of behaviour: Peer, Price, Practicality, Personalisation and Perk Motivated shoppers. The research provides retailers with information on each profile’s country of residence, age and occupation, guiding them on which groups of shoppers to nurture in order to help ensure brand loyalty and repeat business.
The survey was based on more than 5000 shoppers in 13 countries, found 51% of the people asked that Price motivated where people wanted to shop the most. The highest proportion that this affected were the baby boomers aged 55-64 (57%), compared to 44% of millennial (18-24-year-olds).
Socially-conscious young shoppers aged 18-34 are twice as likely as people aged 55+ to seek approval of their peers before deciding where to shop. They are also more likely to stay with the same brand and recommend to their friends, making them the most loyal and influential demographic.
Guy Chiswick, Managing Director of Webloyalty Northern Europe said: “Consumers are more demanding than ever, with their tastes and demands changing at an unprecedented rate. There is no longer such thing as the ‘typical’ consumer profile, instead there are multiple and their needs are complex. Our report reveals that there are trends that drive purchasing decisions across different generations, genders and geographies.
“Retailers are facing challenges as they struggle to remain profitable, but it is not just about cutting costs and reducing margins when it comes to survival. There’s no denying that price motivated customers are the most common profile and there is pressure on competitive pricing. However, there are other drivers and advocacy has, and always will be, important in the retail landscape. Keeping in mind the results of our research, retailers need to make sure make they are designing their offerings, stores and websites with the correct shopper profile in mind. Nurturing your Peer and Price Motivated shoppers can mean they become your biggest advocates; never underestimate the power of the customer marketer.”
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