Price is rarely the only consideration for US Consumers when choosing a product or service in any of these product categories; but the fact remains that it is a consideration. Having the right pricing strategies can help you sell more products.
Let’s look at how pricing strategies affect US consumer decisions across 12 product categories.
Price is rarely the only consideration for US Consumers when choosing a product or service; but the fact remains that it is a consideration. A recent Ispos MediaCT report notes the different level of importance placed by women vs. men on price when it comes to pricing strategies across twelve different categories.
You might also like: 10 Pricing Strategies that Can Positively Impact Sales
As one of the four pillars of traditional marketing (price is one of the 4 Ps of Marketing, which includes product, pricing, placement and promotion), pricing has and will continue to play a major role in the decision making process of US consumers. But just how large a role does price play in the consumer decision-making process, and is it more important to men or to women?
How Pricing Affects Men vs. Women in 12 Product Categories
That is one of the questions covered in a recent Ipsos MediaCT white paper titled, “Women, Power & Money,” a study co-developed with PR –Marketing firm FleishmanHiIllard and Hearst Magazines, one of the world’s largest magazine publishers, including several magazines geared toward the female audience.
This February, 2013 study of 1,008 US women and 503 US men indicates that price considerations are more important to women than men overall, but also points to some interesting differences in how men and women approach spending decisions; for instance:
- Women are more likely than men to prefer spending money on experiences, rather than things
- Women are more likely than men to wait for something they want to buy to go on sale
- Men are more likely to continue to buy brands they grew up with
- Men are more likely to prefer to buy luxury brands in many of the categories studied
So how important is price to US consumers, and when does price play a major role in purchase decision making?
When it comes to women, these are the product categories (in descending order of importance) where price plays a major role in the decision making process:
- Automobiles (68%)
- Household supplies (65%)
- Food and groceries (63%)
- Household appliances (60%)
- Personal care and toiletry items (60%)
- Vacations (56%)
- Fashion apparel and accessories (55%)
- Technology (54%)
- Watches or jewelry (52%)
- Household furnishings and décor (51%)
- Financial services or investments (51%)
- Beauty and personal grooming items (48%)
By comparison, here is the same list of product categories in descending order of importance when it came to the men in the study:
- Automobiles (66%)
- Financial services or investments (62%)
- Food and groceries (58%)
- Vacations (55%)
- Watches or jewelry (53%)
- Personal care and toiletry items (52%)
- Household supplies (51%)
- Technology (51%)
- Fashion apparel and accessories (49%)
- Household appliances (48%)
- Beauty and personal grooming items (45%)
- Household furnishings and décor (44%)
A final note: Regardless of product categories, price is always a consideration in purchasing. The challenge for marketers is proving that they provide the best consumer value (assuming consumers generally have enough money to purchase what they want in a given category).
If your business’ target audience has a mainly male make up, marketing messages noting that your products or services have the lowest price tag may not be effective to half – or more – of the target market. Conversely, making price comparisons where your product or service has comparable value but a lower price tag may be persuasive to a larger portion of your target market if its comprised of mostly female consumers.
You might also like: 6 Ways to Make Your Brand More Appealing to Women