LEWISVILLE, Texas, Dec. 5, 2013 /PRNewswire/ -- With holiday shopping in full swing and Black Friday sales falling short of last year's totals, retailers are scrambling to spur last minute spending. New shopper research from parago shows that the best way to do it is with promotions that offer the lowest prices to consumers.
A new national study asked over 1,400 consumers which of the top retail promotion strategies are most desirable. All of the offers tested — everyday low prices, coupons and rebates — yield the same net promotional cost to the marketer. The revelation: consumers want to ring in the holidays with deals. And the best price will win, no matter what it takes to get it.
Across all categories, shoppers prefer to purchase products with rebates, which offer the deepest discounts, versus using coupons or simply looking for everyday low prices. For example:
- Shoppers prefer buying with rebates to get the very best prices on big-ticket items. 62% of consumers shopping for a $499.99 laptop would prefer to buy it for $419.99 after rebate. The other options were $449.99 after a 10% off coupon or at an everyday low price of $479.99.
- Consumers favor rebates for clothing purchases, too. Shoppers would prefer to redeem a rebate to get a pair of $49.99 women's shoes for $39.99 instead of paying $42.49 with a coupon or paying a $44.99 everyday low price.
- Rebates are in high demand for home goods. Whether shopping for pots and pans, toasters or towels, the majority of shoppers prefer to buy home products at the very lowest price by using rebates.
"Rebates are a win-win for retailers this holiday season. They give consumers the lowest prices, and retail marketers get customer data and spendback," said Rodney Mason, CMO of parago, a global incentives and engagement company. "While customer service and the shopping experience still attract shoppers, deal finding is now an ingrained part of the consumer path to purchase. The retailers that can offer the lowest prices without eroding their margins using across-the-board discounts will come out on top."
The "Ring Up More Holiday Sales" infographic can be downloaded here for free. The survey was conducted in November 2013 via independent online delivery. More than 1,400 consumers, representative of the U.S. population by education, income and sex, responded to a survey that explored which retail deals they prefer.
parago creates engaging solutions that inspire actions and impact results, delivering $2 billion in rewards to 50 million people worldwide each year with advanced technology. A relentless focus on innovation (including three patents and 27 industry firsts) drives better results. That's why parago is the smart choice for leading Fortune 500 companies and some of the largest brands in the world. Number one in consumer rebates and incentives, a global provider of channel management, a top solution for employee rewards and recognition, parago is a top-ranked digital and promotion agency according to Advertising Age's 2013 agency rankings. For more information, visit www.parago.com, the parago blog or Twitter. parago: the thought that counts.