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Shoppers speak out in focus groups - discount store shoppers on economic aspects of shopping, personal finances and US economy



Not long ago, Discount Store News brought together discount store shoppers from around the country in a pair of focus groups designed to measure their attitudes about three topics: the economy, time pressures and how shopping could be improved.

The sessions, held just before the new year, were conducted by Leo J. Shapiro & Associates, a Chicago-based market research firm.


The focus groups were done through teleconferencing and were divided into two sessions. Group 1 consisted of women from the Eastern and Central time zones. Group 2 consisted of women from the Mountain and Pacific time zones. A full transcript of both focus groups will be available starting March 10 on Discount Store News Online at http://www.discount storenews.com.

The Economy

On the subject of the economy and their own finances, the attitudes expressed between the two groups were the most widely divergent of those expressed on any other topic in the sessions.

In general, women in the Eastern and Central time zones were far more pessimistic about the economy going into 1997 than were their western counterparts. Specifically, they cited higher costs for goods and basic services and said they have difficulty finding quality items at lower price points.

Donna from Evansville. Ind.:

I care for children in my home, and I am going to have to raise

the rates that I charge parents just to take care of the children

because the prices of everything for me has gone up.

The utility company in my area just notified us that we were

going to have a 60% increase. And you know, I can't buy that loaf

of bread for 99 cents any more, or that gallon of milk for, you know,

$1.89.

It's just a big circle thing. I was against minimum wage

increasing because I feel that if you just raise minimum wage

without taking care of some of the other things then all that does is

make the prices of all the products rise, and not everybody gets a

raise.

Donna from Sykesville, Pa.:

I really believe that if we're talking about the economy, I think

it's worse. I've raised a family--alone for a while--[and] I would

say it's gonna be harder for my children and my grandchildren. I

feel that the minimum wage has to be raised even more. I feel that

there has to be an incentive for people to work.

So I think that for the economy to improve, we have to take

pride in our country again and make products that are within the

range of people to buy. And also, keep them in the range of people

that are raising families.

Focus group participants from the Eastern and Central zones also said they find it very hard to put aside money for saving or investment, and on the whole plan to spend less than in the past on apparel and household items. In addition to shopping at discounters, they're also looking for these items in the "under market" (for example, yard sales, secondhand stores and hand-me-downs). To these women, gift-giving occasions such as holidays represent an opportunity to fulfill basic household needs. Rather than asking for "extras," they're using these occasions to justify the purchase of additional basics.

There were a few exceptions. Group 1 women, who feel more optimistic, tend to be in professional fields and have reached a life stage that frees up some of their personal finances.

By contrast, Group 2 women were more optimistic about the economy and spend more freely--largely without regard to their economic status. Whether it was the electronic technician making $50,000 to $60,000 annually who plans to add 650 sq. ft. to her house in 1997, or the $20,000-a-year cake decorator who put $2,000 into savings in 1996, most participants felt that they could afford to do some spending this year.

In general, they report more buying, significant household improvements and major purchasing. Few reported looking to the under market for apparel and household goods.

Moderator:

Compared to 1996, do you expect that you'll be spending more

or less on household goods, such as apparel, electronics, furniture

or in-home improvement?

Paula from Boise, Idaho:

More.

Sue from Loveland, Colo.:

More.

Jazmine from Buena Park. Calif.:

More.

Gretchen from Los Altos,Calif.:

More.

Carole from Fort Collins. Colo.:

More.

Paula from Boise, Idaho:

We have just redone a

bathroom and put a new

hardwood floor in our kitchen

and that type of thing. We

have an older home, and we've

just been doing a few things this

year to bring it up to what I

consider snuff. I think that

next year we probably will do

nothing other than start

saving for a car.

Sheri from Downey, Calif.:

I'm gonna be putting

carpeting in. I have hardwood

floors in my apartment.

May from Mesa, Ariz.:

I'm going to buy new

furniture. I have a dining room

set on layaway now. And I'm

going to get a dresser and

hopefully a new sofa.

Time issues

Wherever they live, the time pressures on these women's lives largely reflect their stage in the life cycle. Working women with young children feel the greatest pressure, while Empty Nesters and those in retirement feel they've been relieved of a good deal of obligation.

To alleviate pressure, most of the women tend to sort out the activities in their lives, attending to those with the highest priority. They also look to retailers to help them avoid some of that pressure.

To these women, convenience has multiple meanings. The quintessential meaning of convenience is the ability to quickly purchase everything they need in one store at a good price.

Some of the many definitions of, and suggestions about, what makes a store more convenient include:

* One-stop shopping: being able to buy everything in one store

* "Cart people" who help the shopper find a cart and get situated as they enter a store;

* Store directories, preferably located at a store entrance

* Well laid-out and clearly marked aisles to help shoppers quickly locate items they need

* Wider aisles to enable customers to move through the store quickly;

* Consistent in-stocks on basics and advertised items;

* Clearly presented pricing. Items clearly marked, advertised items noted and a scanner in the aisles to check prices

* Easy return policies

* Sufficient staffing by trained employees who can provide efficient help;

* Expanded or 24-hour store service

* Reducing the stress of shopping with children, including offering short-term child care and getting rid of items at checkout that create conflict between parent and child

* Efficient and centralized checkouts to move customers through lines more quickly.

Consumers want all of the above with the security of knowing that they are not paying for all this convenience in the way of higher prices.

Gretchen from Los Altos, Calif.

I think that's part of the

shopping thing. Like the one

lady was saying, her family

doesn't notice all that she

puts into her shopping. That

is true. But the

self-satisfaction is there. You

know that you've got the best

price on the brand name or

you got an okay deal when

you bought that sale item.

Donna from Sykesville, Pa.

One of the most convenient

things that I think you can

find in any store is that when

they have advertisements that

they don't have something in

small print [explaining] that

you're really not going to get

[the] bargain you went there

for in the first place.

Moderator

When they say "only in

selected locations" or

something like that?

Donna

Yes. It just kind of

aggravates you that there's

always a catch. And most

people don't have time. And

your time is money.

A message to the president

The women who participated in both focus groups shop at the full range of discount department stores, including Wal-Mart, Kmart and Target. They have positive things to say about all three stores, appreciating them for the price of their merchandise, the selection and the convenience of shopping at the store.

In addition to discount stores, most of the focus group participants also shop at Sears, JCPenney and other department stores. These stores are most often noted for the selection and quality of their apparel.

In both groups, participants unanimously agreed that discounters have been more responsive to their needs than department stores.

Sue from Loveland Colo.:

[Discounters] have

widened the aisles. At Sears.

you have the little narrow

aisles, and it's hard to get

through. Sometimes it's hard

to even find where the cash

register is because it's located

out in different departments.

At Kmart, they have labels

with hanging signs so you

can find right away where are

the boys' departments, the

girls' departments or

household. And they have

widened the aisles

significantly in Kmart.

Carole from Fort Collins, Colo.:

They've been more

aggressive in their advertisements.

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