Consumers are still very price sensitive, and will drive at least five to 10 minutes out of their way to find a better deal, according to new shopper research from parago.
Over 80% said they’d be willing to make such a drive for a $10 rebate on a $50 item. Eighty-three percent of the 1,400 U.S. consumers surveyed said they find online and in-store rebates attractive, and 80% would like to use their smartphones to submit rebates, according to the report. Seventy-two percent said they found rebates easy to use.
“With the holidays fast approaching, retailers are looking for new ways to increase foot traffic and account for the shift to online retail. They know customers have high expectations for deals when they come in store, but what they may not know is that customers will drive a bit further to find those deals,” said Rodney Mason, CMO of parago, in a statement. “With rebates, retailers can offer these deal-hungry customers the very lowest price, but also protect margins, unlike across-the-board discounting or online price matching.”
Consumers aren’t afraid to work for a discount. Three in four of those surveyed said they felt rebates provide a larger cost savings than other promotions.
In the survey, parago asked respondents about a variety of products and whether respondents would prefer 10% off the manufacturer’s suggested retail price (MSRP) which would involve no extra work on their part, 15% off the MSRP if they had a coupon either printed or on their smartphone, or a 20% rebate they would have to submit. In every category, respondents opted for the rebate. The discounts, coupons and rebates tested all have the same net promotional cost.
For a copy of the report, click here.
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