Current Marketing Trend: Consumers Demanding Value

Annie DiMatteo - 11.8.2011 12:00 PM

Marketing trends occur as a result of consumer behavior, and with the new trend towards value, businesses are being forced to take notice and act accordingly.  Consumers are not just expecting affordable prices, they are demanding good quality at a good price.  The value of a product isn't just in its price.  While a low price is important, consumers expect the kind of quality they used to get in the pricier products, simply at a more attractive price.

As Americans are struggling to pull out of the recession, they have adopted a post-recession mentality.  In reaction to higher costs at the pump, higher food costs, and an unstable employment picture, consumers have become ultra-value conscious.  A fundamental shift in consumer behavior is occurring, with nearly 45% of consumers saying they have become "more practical and realistic in purchases", compared to only 43% in May 2010, and 37% five years ago.  Ten years ago, 22% of households reported using coupons, during the recent recession this number went to 35%, and is now currently even higher with 37% of consumers claiming they use coupons.

Value Conscious Becomes Trendy
With this new value-based mentality, it has actually become trendy to be conscious of where you shop, what you buy, and how good of a deal you got.  Bragging rights are now an added bonus to getting a good value; the more you save on a quality product (ie – the better "value" you perceive you're getting), the more you can brag to your friends and coworkers.  Savvy shoppers everywhere have made the hunt for great value a mainstream trend.  This new savvy shopper is more willing to switch stores and switch brands in order to get the best deal possible.  They are simply demanding maximum value.

Whether through online daily deal Websites, clipping coupons, searching online coupon Websites, using member discount cards, or reading store circulars for weekly sales, consumers are in the habit of shopping for deals and are expecting this savings with every transaction.  With mobile shopping on the rise, consumers now have tools literally at their fingertips to do instant price and product comparisons, allowing them to instantly find the best value.

The trend towards deal seeking is not limited to one income bracket; it seems everyone wants to get a deal, regardless of income or necessity.  In fact, searching for deals is now the most popular internet activity among today's consumers.  In a recent study, 74% of consumers strongly agreed they expect coupons and special deals will be much more important in deciding what to buy, and 51% actually feel slighted and/or annoyed when they have to pay full price for an item.

Companies are now faced with responding to this consumer trend, by providing high quality to the masses - good product at a good price.  Customers flat out expect it. 

How to use this Information
The challenge for any business in this situation is figuring out how to leverage your attractive promotions and strategy to appease these deal-demanding shoppers.  How do you turn them into loyal shoppers, and at the same time, how do you avoid becoming a commodity simply competing to be the cheapest?

What is your strategy for adapting to this new consumer trend?

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