Shop Talk

Retailers, consumers and prices

I know where I want to buy that toy

August 27, 2009

If you are one of those people who comes across a toy store and buys something on impulse, you are probably in the minority.INDIA

Seven out of ten toy purchases were planned, and the top decision made by consumers was where to shop, according to a “Toy Purchase Decisions” report by market research firm NPD Group. The survey was conducted online with 2,344 participants.

Even the most indulgent parents have pared back on buying toys for their kids in the economic slump, making careful plans and seeking low prices on the items they buy.

Their thrift has resulted in tough sales conditions for toy makers and retailers alike, who are now resetting their strategy as the 2009 holiday season nears.

The survey showed that more than 75 percent of toy buyers knew which store they wanted to target while 90 percent of these people ended up buying at that same store, according to their plan.

And shoppers seem to be intent on sticking to their plan. Only 40 percent of these consumers said they would go to a different store if they didn’t find what they wanted at the original shop, according to the survey.

But unplanned purchases do happen and nearly two-thirds of consumers were influenced by factors such as specific toy being requested by a child, attractive packaging and product display.  That is, of course, other than how important price is — two categories with the most unplanned purchases have the lowest average retail prices, the survey showed.

(Photo/Reuters)

Comments

I agree that most consumers would rather shop on the same store rather than moving to another one, in this case it will also help them stick to their planned purchases. However some may also be tempted to spend on unplanned purchases like items that goes on sale.

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •