Background
The value a product (or retailer) offers is judged on more than just price. For example, convenience, customer service, store environment, freshness, safety, choice, ease of use and availability are recognised as adding value to the shopping experience and the products shoppers buy.
The following diagram shows the shoppers value equation.
|
Value Definition
| Value = |
Benefits |
Must be recognised and considered important by the individual and also perceived to be relevant to the situation in which the product will be used. |
|
| Sacrifice |
Includes the money, time and effort the individual is prepared to spend seeking out the products that offer the benefits that the individual thinks are most important. |
| If Benefits > Sacrifice
= Good Value |
|
If Sacrifice > Benefits
= Poor Value | |
Source: IGD Consumer Research 2004
Factors required for value
Looking at all the factors which shoppers require from retailers to ensure they are getting value, the top three requirements are quality, lowest price and high standard of customer service. Other elements which shoppers want their retailer to provide include choice, brands they know, promotions, a nice shopping environment and good parking facilities.
Factors Retailers Need to Provide to Ensure Shoppers are Getting Value
Source: IGD Consumer Research 2004
