Carefree shoppers most likely to receive retail discounts, study finds
Research involving Durham University Business School reveals how retailers target customers most likely to spend more. Shoppers who take a more carefree approach to spending are more likely to receive personalized discount codes from retailers, according to the research.
A recent study reveals that retailers are more likely to offer discounts to customers who adopt a carefree approach to spending. According to research from Durham University Business School, these shoppers tend to spend significantly more than the minimum amount required to unlock a discount. The study, published in the Journal of Business Research, was conducted by Dr. Arezou Ghiassaleh, Professor Amanda Jiang, and Ji Yan.
The researchers analyzed data from a major UK supermarket chain and identified two types of consumers: cautious shoppers and carefree shoppers. Cautious shoppers spend just a little above the threshold needed to qualify for a discount, while carefree shoppers spend much more than required. The findings suggest that carefree shoppers generate greater profits for retailers, as they continue spending well beyond the discount threshold.
The study also found that promotions, such as 3 for 2 deals or savings on reaching a certain dollar amount, have different impacts on consumer behavior depending on the type of product. For preventive products, like sunscreen or health supplements, these promotions have little effect on spending. However, for promotional products like cosmetics, soft drinks, and jewelry, carefree shoppers are much more likely to exceed spending thresholds.
The research suggests that businesses can improve their marketing strategies by tailoring promotions to customers most likely to increase their spending based on their behavior.
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