Cost Is King For U.S. Consumers, But Global Shoppers Disagree

By Pete Rizzo (@pete_rizzo_) 

One in five U.S. consumers have already begun shopping for the holidays, but when it comes to capturing this spend, Nielsen suggests merchants who keep a close eye on the pricing of their products may prevail.

A new Nielsen report highlights that 61 percent of North American consumers say they would switch brands, service providers or retailers if a competing outlet had a better price. The U.S led all other countries in its emphasis on pricing. By comparison, 41 percent of global shoppers prioritized price when shopping.

The data gains increased importance when paired with the consumer research organization’s more recent statements. On November 4, James Russo, Nielsen’s SVP of global consumer insights, announced his firm’s prediction that the upcoming U.S. holiday shopping season would only be “marginally stronger than last year’s.”

“There are still plenty of people feeling the effects of the Great Recession,” Russo said. “Twenty percent of [U.S.] consumers say they have no spare cash, and 68 percent say they still feel like they’re in a recession.”

Recessionary sentiment is not unique in the U.S. alone, however. Further Nielsen research has found that many global shoppers reported similarly pessimistic views about their economy. This data suggests there may be deeper consumer behavior shifts businesses serving both markets may want to note.

In this PYMNTS.com Interactive Infographic, you’ll find a comprehensive breakdown of the importance consumers in each region place on price, quality and selection.

Click the tabs to reveal new insights into consumer behavior. For example, by clicking our “Better Price” button, you can see that cost is not a substantial factor for Asia-Pacific buyers. There, just 28 percent of consumers say they would switch brands to purchase a product at a lower price.

Compare the charts to see how North American consumers were the least likely to view quality as a deciding factor during the buying process, and much more.

For more insight how global shoppers respond to merchants with better service agreements and better features, read Nielson’s “How Loyal Are Your Customers?” in full here.