"It is safe to say that retailers have cried wolf too often," Borna said. "Sales events are a very attractive way of getting consumers in the door.
"However, retailers have invented a sales event for every holiday and non-holiday to attract shoppers, leaving consumers unsure what is really on sale," he said. "With few exceptions, sales events do not conjure up a clear mental image in consumers’ minds."
The survey polled 286 Midwestern shoppers who were asked to rank their awareness of a particular sale when they shopped and the discount rates they expected for 30 shopping events.
According to the survey, about half the shoppers said they went to 10 sales events, with Christmas and grand opening sales attracting more than 80 percent of the respondents. "Boss-is-on-vacation" and St. Patrick’s Day had the lowest participation rates of five and seven percent, respectively.
Borna said respondents expected to receive between 20 to 24 percent discounts in 18 of the sales with business distress and grand openings having the highest expectations of price cuts. Shoppers thought they would find the lowest discounts during Super Bowl and Groundhog Day’s sales at 15 and 8 percent, respectively.
To retain and attract shoppers, Borna advises that retailers:
- Avoid inventing sales events.
- Offer items congruent with the public image of the event. For example, sell gardening tools during a spring sale.
- Avoid ambiguous events such as "boss-is-on-vacation" or Presidents’ Day sales because they have little or no meaning to shoppers.
- Base discounts on research about shoppers’ expectations in the area.
"Understanding consumers’ perceptions of sales and the anticipated levels of savings are important pieces of information in order to plan future events," Borna said. "My advice is to avoid sales events such as Groundhog’s Day or summer sales. Customers just think they are gimmicks and usually don’t shop in high numbers."
By Marc Ransford, Communications Manager
(NOTE TO EDITORS: For more information, contact Borna at (765) 285-5191.)



