Value Is in the Retailer
Wednesday, April 24th, 2013
While I was recently on shop-a-longs spanning different CPG categories with female shoppers, there was one universal finding: value was associated with the retailer more than with the actual product. In marketing, value is defined as what you get for what you pay. However, when shopping certain categories, such as diapers or laundry detergent, many shoppers didn’t want to sacrifice performance to pay less. In those instances, it was all about where they chose to shop. They shopped at Target to feel good about receiving a free $5 Gift Card, or went to Walmart believing they’d find good prices on the brands they love, or bought their diapers from www.diapers.com to receive free shipping and five percent back. Value for these women was a product of the store and, therefore, factored less into their brand decision. It’s important for us to understand how different shoppers define value so we can overcome purchase barriers and effectively close the sale.
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