When it comes to buying home and kitchen appliances, British consumers admit that the right reward is just as important to them as quality of product, according to new research.
The independent study of 2,000 British adults, commissioned by 360 Insights, a global leader in ‘Software as a Service’ platforms for marketers, found that 17% of consumers said their purchase decision was driven by a promotion, the same amount that identified product quality as the reason for their purchase.
The only factor deemed more important to consumers was product price, with 23% of respondents pinpointing cost as the main factor. The report also found that the internet is the most common place for consumers to find out about promotions and incentive programmes attached to home and kitchen appliances. 55% of respondents said that they heard about promotions online, as oppose to only 29% that had discovered them instore.
John Bird, UK General Manager at 360insights, says: “This research shows that rewards programmes are at the forefront of a consumer’s mind when purchasing home and kitchen appliances. With customers willing to substitute product quality for a reward, brands not offering an incentive programme run a serious risk of losing customers to rival brands that do.”
Bird adds: “This is worrying for brands that are spending considerable budget getting a customer to the point of purchase, just for that customer to switch to a competitor offering a promotion or reward. The brand is, effectively, spending money in creating demand that a rival company ends up benefiting from.”
360 Insights argues that with UK consumers’ main consideration being price, then promotions, a good price point in the market combined with a well-thought-out reward programme really will influence the buying decision of the customer.
360 Insights is a global Cloud-based provider of channel management software, incentive and promotional analytics and insights. UK clients include Bosch, Siemens, Neff, Stoves, Belling, Zanussi, Electrolux and Dimplex.