PITTSBURGH, PA--(Marketwired - Nov 22, 2016) - As retailers continue to rely on discounts to drive traffic to stores, consumers have become increasingly sales savvy and less willing to pay full price for items. This trend is especially prevalent during the holiday season, as shoppers have been conditioned to be on the lookout for large markdowns around Thanksgiving and Christmas. A new survey from First Insight, the world's leading provider of technology solutions that empower retailers and manufacturers to introduce the right new products at the right price, sheds new light on when and where consumers plan to do their holiday shopping this year.
'Tis the Season to Cut the Price
During the season of giving, consumers are more likely to keep a close eye on price tags. Thirty-one percent of consumers look for discounts of 31-40 percent during the holidays, while 39 percent of respondents will enter a store for markdowns of 30 percent or less during other times of the year.
Just how far will consumers go for a savings of 50 percent? Fifty-five percent of respondents are willing to post a selfie in an ugly holiday sweater or costume on social media and 23 percent will travel more than 100 miles.
The Online vs. In-Store Battle Rages On
With the rise of online shopping, traditional retailers face extreme competition against e-commerce giants, particularly during the holidays. Sixty-one percent of respondents think they'll find the biggest holiday deals online, and 71 percent of consumers think Amazon is king of markdowns.
Retailers like Wal-Mart and Target may stand a chance against Amazon, though. When asked to pick the two places they plan to do the majority of their holiday shopping, 46 percent of consumers chose online retailers and 45 percent chose big box stores.
At the same time, consumers are still willing to brave the crowds for a good bargain, with 32 percent finding the best deals on Black Friday. Meanwhile, 22 percent think the best markdowns can be found the day after Christmas and 21 percent turn to Cyber Monday.
"Retailers feel the pressure during the holidays to provide the best deals to get shoppers through the doors, but this strategy can often do more harm than good," said Greg Petro, CEO of First Insight. "In order to stop the race to the bottom, it's more important than ever for retailers to listen to their customers before making key pricing decisions."
An infographic featuring these and other findings from First Insight's markdown consumer survey can be found here.
First Insight's consumer survey polled 1,303 consumers across America regarding their sentiment around retail markdowns during the holidays. The survey was conducted online between October 29 and November 3, 2016.
About First Insight, Inc.
First Insight is the world's leading provider of solutions that empower brands to incorporate the voice of the consumer into the design and merchandising of new products. Through the use of online consumer engagement, the First Insight solution gathers real-time consumer data and applies predictive analytic models to create actionable insights, which drive measurable value. Retailers, manufacturers and brands use the First Insight solution to design, select, price and market the most profitable new products for reduced markdown rates and improved sales, margins and inventory turnover. Customers include some of world's leading vertically integrated brands, sporting goods companies, department stores, mass merchant retailers and wholesalers. For further information, please visit www.firstinsight.com.