Come up with some handy group buying solutions as mom is no more sending her lad to go and buy goods from roadside store. Now, she involves herself in scouting best deals of groceries out there—a kind of surgical buying in the words of Doug Conant, CEO Campbell’s Soup who was cited by ComScore as saying: “there is a palpable change in consumer buying behavior that is unlike anything we’ve experienced certainly for few decades. Mom is not sending the teenagers out to go pick up the groceries now. She is looking at where the best deal is, and sort of surgical buying.”
A perceptible change has been noticed in the buying behavior of consumers in the aftermath of economic recession that, according to national bureau of economic research, trimmed the mean US household income by 10 per cent in between December 2007 to June 2011.
Group buying sites are providing buyers with the relief in the wake of runaway price inflation. Offering hefty discounts of up to 90 per cent on a score of goods and services, the sites resuscitate the declining buying power of consumers across the world by promoting daily deals and brand equity of participating company/retailer gains weight consequently.
Daily deal industry is still young and there is therefore vast room for it to grow and magnify buying values.
Since the consumers have yet to recover from the effects of recession, they hanker for savings on what they buy. Personal computers, mobile applications, newspapers, and yellow pages, all in all, there are scads of outlets inflation-hit consumers resort to for hunting bargains in form of coupons/vouchers and promotional codes.
The premium brands are at the risk of losing their market shares because of consumer’s inflating tendency towards red tagged offers and low priced brands, according to a latest ComScore’s report titled “The Effects of the Recession on Brand Loyalty and Buy Down Behavior: 2011 Update”.
A series of info-seeking questions were put in the annual surveys conducted from 2008 throughout 2011.
A close-ended response “I buy the brand I want most” saw constant drop in selection: from 54 per cent to 43 per cent. That was so across select six market segments that included health and beauty aids, over the counter, apparel, food, household products, and housewares.
The brands can recoup the market shares by transforming threats into opportunities, the report suggests.
Leveraging the power of digital media is highlighted as one of the effective marketing strategies to capitalize on ‘buy down behavior’ of the buyers.
Group buying platforms can prove promising partners for the premium brands to make sale volume sustainable and even thriving.
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