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Holiday Shopping: Value Scores Improve More Than Purchase Consideration

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Mon, 24/11/2014 - 18:22
Ted Marzilli
Macy's Holiday Shopping

With Black Friday coming up, retailers have made better strides improving their value perception with consumers than boosting their purchase consideration, the latter of which is an indicator of potential revenue.

Most of the large holiday retailers are showing increases in ad awareness, which appears to helping improve the value perception among consumers, but having less impact on where shoppers are considering making their purchases.

Walmart increased its lead over the category in ad awareness, with 58% of consumers recalling seeing one of their ads over their past two weeks, three percentage points higher than two weeks ago. Target went from 45% to 49% over the same period.

Ebay has lost the most in both value perception and purchase consideration since our last report two weeks ago, pushing it out of the competitive tier it was in with Walmart, Target and Best Buy.

Since that report, Amazon remains locked in with its wide lead over all of them in both consumer value perception and purchase consideration.

However, Best Buy and Macy’s have made significant improvements to their value perception metrics, while the latter even raised its purchase consideration a couple of points. Best Buy’s ad awareness has increased from 37% of consumers aware of recent Best Buy advertising over the past two weeks to 42% currently. Macy’s went from 26% to 29% over the same time frame.

Purchase consideration – the percentage of consumers who would consider a particular store the next time they are shopping – has barely moved overall in the sector. Even though Macy’s made the biggest move in the category, going from 23% to 25%, it is still very much in YouGov BrandIndex’s Laggards tier: retailers which fall below the middle of the pack and have value and purchase consideration scores that are lower than most of their competitors.

On the other hand, Best Buy, Macy’s, Old Navy and Marshall’s moved the value perception needle significantly over the past two weeks. After being in a tie two weeks ago with Target in value perception, Best Buy has pulled ahead in this metric in a highly-placed group trying to gain any ground on Amazon.

As a matter of fact, eBay, which was part of that group which we dubbed Dual Contenders last week, has fallen back since November 9th because of its lower value and purchase consideration scores heading into Black Friday. It’s now moving closer to the third tier of retailers – the Value Contenders – which have better value scores than purchase consideration, such as Old Navy, Kohl’s and JC Penney.

YouGov BrandIndex measured 20 major holiday retailers. Each one is charted by combining two of YouGov BrandIndex’s most relevant scores: Purchase Consideration ("When you are in the market next to purchase office supplies, from which of the following brands would you consider purchasing?”) and Value (“Does it give good value for what you pay?"). The size of each bubble in the chart relates to their Ad Awareness score, which asks respondents: "Which of the following brands have you seen an advertisement for in the past two weeks?"

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