AUSTIN, Texas, Oct. 2, 2013 /PRNewswire/ -- RetailMeNot (www.retailmenot.com), the largest digital coupon website in the United States, today released research indicating that consumers experience emotional turmoil when they realize they could have found a better deal on an item and paid less for it. In a special report, available here, RetailMeNot examines this widespread phenomenon and tackles the rise of this new retail psychological issue facing nearly 9 in 10 U.S. residents: Deal Envy.
"For the upcoming holiday shopping season, RetailMeNot is making it a priority to stop Deal Envy nationwide," said Jill Balis, senior vice president of marketing for RetailMeNot, Inc. "Our mission is to provide shoppers with the tools they need to find the best deals so they can buy all the gifts they want for the holidays—and even something for themselves—without blowing their budgets. The holidays should be fun and festive, not plagued by Deal Envy."
By the numbers: Anxious budget busters
In 2013, 90% of respondents indicated that they intend to shop for winter holiday gifts and plan to spend an average of $167 per person. The high cost spent per person on gifts is worrisome when you consider that more than a quarter (26%) of shoppers surveyed this year indicated last year that they set a budget and went over it. According to the report, exceeding a holiday budget sparks symptoms of Deal Envy, including guilt for more than a quarter (27%) of gift givers and anxiety for 1 in 5 (20%).
Even though consumers feel guilt and anxiety when breaking their budgets, nearly all (91%) winter holiday gift givers surveyed admitted to overspending on presents. Among those who said they have overspent on a winter holiday gift:
- 6 in 10 (60%) did so because they felt that giving a gift the person would love was worth the extra money.
- Men are more likely to overspend on winter holiday gifts for their significant other than women are (50% vs. 34%)
- Women are more likely than men to overspend on their children (32% vs. 22%)
- However, more than 1 in 10 (14%) winter holiday gift givers overspent because they waited until the last minute and had to pay extra.
- During the winter holiday season, family members are the most likely to be overspent on, including significant others (44%), children (29%) and mothers (26%), while bosses/co-workers (1%) are the least likely to be overspent on.
Wait, you paid how much?
For many consumers, the holiday shopping season can be taxing on the wallet, and in addition to the financial burden this creates, the report found that consumers experience guilt, anger and disappointment when they realize they could have spent less on purchases if they had searched for a discount.
- Nearly 9 in 10 (87%) winter holiday gift-givers have learned only after purchasing a gift that they could have paid less. This is a classic behavioral trigger for Deal Envy.
- In addition to symptoms of guilt (13%) and anxiety (25%), disappointment runs high when money is left on the table—more than 7 in 10 (72%) respondents reported feeling disappointed if they paid more than they should have on a purchase for themselves.
- During the winter holiday season, to avoid further Deal Envy symptoms, nearly 3 in 4 (74%) respondents pass up buying something for themselves at least sometimes because they might feel guilty about the purchase.
It's not just big discounts that provoke emotion. Nearly 9 in 10 (88%) winter holiday gift givers indicated that they would regret overpaying for a gift if they found out they had missed out on any kind of discount for the item, and more than 3 in 5 (63%) would feel regret over missing out on a discount of less than 25%!
RetailMeNot puts a stop to Deal Envy
This holiday shopping season RetailMeNot is on a mission to put an end to the negative emotions people experience when they realize they missed out on a deal. By arming consumers across the U.S. with the tools they need to save money, feel confident in their purchases and avoid Deal Envy, RetailMeNot aims to end it.
To that end, the report found that gift givers would likely feel satisfied (50%), happy (49%), proud (38%) or victorious (28%) if they found they had paid less for a gift than others did for the same item. To help ensure shoppers never miss out on a deal again, RetailMeNot has put together the following tool kit for consumers in order to prevent Deal Envy when shopping in-store and online:
- Visit RetailMeNot.com and download the RetailMeNot Coupons app for iPhone and Android to search for thousands of online and in-store coupons and discounts for your favorite stores.
- Subscribe to the Best of RetailMeNot email newsletter to get a roundup of the best deals across RetailMeNot every week or sign up for deal alerts for your favorite retailers. RetailMeNot will send you an email as new offers from that retailer become available, so you will never miss a discount.
- Check out our online lifestyle magazine, The Real Deal by RetailMeNot, for gift guides, holiday shopping advice, savings tips and best sales of the week.
It's RetailMeNot's goal to provide consumers with the tools they need to stop Deal Envy before Black Friday (Friday, November 29) this year, so be on the lookout for events at select shopping malls across the nation during the Stop Deal Envy Weekend, taking place November 23 and 24.
This report was conducted between August 29 and September 4, 2013, among 1,006 U.S. residents ages 18 and over, using an email invitation and an online report. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a report result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. The margin of error for any subgroups will be slightly higher.
RetailMeNot.com (www.retailmenot.com) is the largest digital coupon site in the United States. Our mission is to help consumers save money and enjoy a hassle-free discount shopping experience. Since November 2006, our users have shared hundreds of thousands of digital coupons from retailers. Digital coupons are rated and ranked by users, ensuring that quality deals rise to the top and expired coupons drop down the list. RetailMeNot.com is operated by RetailMeNot, Inc., the world's largest marketplace for digital coupons.
Shopping on the go? Download the RetailMeNot Coupons app for iPhone and Android phones to access Hot Deals, browse top coupons, popular stores and categories and get thousands of online and in-store coupons to shop when you want, where you want. Make sure to "like" RetailMeNot.com and authorize the RetailMeNot app on Facebook, follow the company via Twitter @retailmenot and add us on Google+. Consumers can sign up for RetailMeNot's Online and In-Store Coupons Newsletter by visiting: http://www.retailmenot.com/signup.
About RetailMeNot, Inc.
RetailMeNot, Inc. (www.retailmenot.com/corp/) operates the world's largest digital coupon marketplace. The company's websites enable consumers across the globe seeking to save money to find hundreds of thousands of digital coupons and offers from retailers and brands. RetailMeNot, Inc. experienced more than 500 million consumer visits to its websites in the last 12 months. The RetailMeNot, Inc. portfolio of coupon and deal websites includes www.RetailMeNot.com, the leading digital coupon site in the United States; www.RetailMeNot.ca in Canada; www.VoucherCodes.co.uk, the leading digital coupon site in the United Kingdom; www.Deals.com in Germany; www.Actiepagina.nl, a leading digital coupon site in the Netherlands; Bons-de-Reduction.com and www.Ma-Reduc.com, leading digital coupon sites in France; www.Poulpeo.com, a leading digital coupon site with cash back in France; and www.Deals2Buy.com, a leading discount offer site in North America. RetailMeNot, Inc. went public in July 2013 and is listed on the NASDAQ stock exchange under the ticker symbol "SALE." Investors interested in learning more about the company can visit: http://investor.retailmenot.com/.
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