Loyal Versus Price Sensitive: A Tale of Two Generations

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Loyal Versus Price Sensitive: A Tale of Two Generations

09/01/2015
Why do shoppers choose one retailer over another? A survey of more than 13,000 e-commerce shoppers by Bizrate Insights, a division of retail marketing solutions firm Connexity (formerly Shopzilla) found that Gen Y is by far the most price sensitive with low pricing driving their choice of retailer while Boomers and Seniors often choose brands that treated them well in the past. The study focused on shoppers who bought items that could be purchased from multiple retailers.

"When affordability is less of a factor, the lasting impression of having been treated well is the leading influencer of loyalty,” says Hayley Silver, vice president of Bizrate Insights. "True brand loyalty is generated by meeting and exceeding customers' expectations when the transaction is completely done."

"In data we collect every day in our standard buyer surveys, Bizrate Insights found that 'customer support' was the leading attribute of the customer experience that most heavily influences their recommendation of a retailer. Other highly influential attributes include 'product met expectations,' 'on-time delivery,' and 'design of site',” adds Silver.

Bizrate Insights utilizes correlations to determine the influence of attributes from the purchase and order fulfillment experiences over customers' likelihood to recommend.

*The Bizrate Insight Loyalty Study was offered at the point of sale to customers purchasing from a retailer in the Bizrate Network of over 5,000 e-commerce retailers in the United States and Canada. Data from this study was collected during Q3 2015, and garnered 13,031 responses.

Bizrate Insights' omni-device buyer and abandonment surveys enlighten 6,000+ retailers in North America and Europe about the consumer experience buying from their site and their competitors' sites. Bizrate Insights enables retailers of all sizes to collect consumer ratings and reviews for free, and offers paid subscriptions for customized surveys and advanced reporting.