Consumers Likely To Encounter Sticker Shock
The American Customer Satisfaction Index’s (ACSI) November report shows evidence of increased sensitivity to pricing, which may put pressure on retailers to offer earlier and bigger discounts in order to boost sales this holiday season.
In a challenged economy where real income growth remains sluggish, consumers are more sensitive to price than in a booming economy. As a result, falling prices tend to have a stronger positive impact on customer satisfaction, while rising prices have the opposite effect.
The report includes the annual measure of the consumer non-durable industries: food manufacturing, apparel, athletic shoes and pet food. Each of these industries demonstrates customer satisfaction trends that show evidence of increased sensitivity to pricing. Marketing Daily – Read more…