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A new survey suggests 84% of consumers find that holiday promotions feel misleading or unclear at least some of the time, and only 32% feel confident that promotions offer real savings.
The survey of 1,051 U.S. consumers from Relex Solutions, a provider of supply chain and retail planning solutions, found:
- 65% say promotions feel dishonest when the original price isn’t shown.
- 58% feel misled when items aren’t actually available at the promoted price.
- 53% say unclear terms make deals confusing rather than compelling.
- 60% believe brands repeat the same deals over and over.
The survey found that when consumers lose trust in a retailer’s promotions, 45% reduce or stop shopping, 29% shop there less often, 28% avoid promoted items altogether, and 27% switch to another retailer.
Relex Solutions said the survey findings highlight the importance of having reliable inventory stocks and transparent pricing.
“Marketing teams can design compelling campaigns, but if supply chains can’t deliver inventory or pricing systems can’t clearly communicate savings, the promotion becomes a trust-breaking moment instead of a sales driver,” said Thom Iddon-Escalante, director of presales pricing and promotions for Relex Solutions.
Research from CI&T, a technology consulting firm, finds online banner ads often promise a flat discount across their site, but then individual products feature different numbers.
“Our data shows that time and time again, the No. 1 thing consumers want out of a retail experience is to be able to find what they’re looking for right away and at the best price,” Melissa Minkow, global director of retail strategy and insights at CI&T -- and a RetailWire BrainTrust panelist -- told CX Dive. “So if you’re making them jump through hoops for either or both of those things, it’s not good.”
Analysts Examine Potentially Misleading Retail Sale or Promotion Pricing Practices
The Washington Post’s Geoffrey A. Fowler compared the prices of 50 items he previously purchased on Amazon (like toys, printer toner, clothes, etc.) in the six months leading up to Prime Big Deal Days in October with their prices during the sale on Oct. 8. He found that if he had waited to buy those items during Prime Big Deal Days, he would have saved just 0.6%. Some items were even more expensive during the sale.
Researchers from Consumers’ Checkbook, a nonprofit consumer research organization, spent six months tracking prices at 25 major retailers. They found that the posted “regular” or “list” prices on hang tags are “rarely, if ever, what customers actually pay.”
Of the 25 retailers, 12 listed half of their items on sale for nearly 25 weeks straight.
Consumers’ Checkbook wrote, “Stores run those special-but-not-really-special discounts, holiday sales, and red-dot-spring/summer/whatever-event prices to manipulate you into buying items right away for fear that prices will soon go up. These fake sales also might dissuade you from shopping around for a better deal.”