Affluent consumers are becoming more price sensitive as they embrace industry disruptors such as artificial intelligence (AI), Amazon and mobile technology to compare prices, according to the results of a new survey.
Defining affluent consumers as those making more than $100,000 annually, the research by First Insight found 42% of affluent shoppers now frequently shop at discount retailers versus only 27% at full price retailers. 36% say their discount shopping has increased.
Twenty-one percent of affluent respondents also reported they were more inclined to visit online discount retailers, compared to only 12% of overall respondents.
“The results of the survey indicate that industry disruptors are impacting the behaviour of affluent consumers and changing the way they make purchase decisions,” says Greg Petro, CEO and founder of First Insight.
“A growing number of affluent consumers shopping at discount retailers over full priced retailers is an important finding, as it indicates they have already become more price sensitive.
“It is more critical than ever that retailers and brands offer differentiated products at the right price in order to attract the informed, affluent shopper on the hunt for deals both in-store and online.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOther findings of the survey include the fact that affluent shoppers check Amazon before they look anywhere else – but won’t pay for two-day shipping.
They also use their smart speakers such as Amazon Alexa or Google Home to research pricing, with the most popular items being electronics (65%), apparel (48%) and shoes (42%).
Affluent shoppers are also much more likely to price compare using mobile devices while at full-priced retail stores rather than than discount retailers.
In addition, price promotions don’t bring affluent shoppers in-store. While the affluent are price checking in-store, the survey found that the two most important factors that would make them want to shop in a physical store versus buying online are being able to see and touch the product (36%) and being able to take a product home (26%).
