Originally published August 19 2005
Consumers re-evaluate commonly purchased products
by Mike Adams, the Health Ranger, NaturalNews Editor
Many consumers are starting to analyze the cost of expensive products to determine their real value, such as cereals, cable service and magazines.
Prescription drugs, designer jeans, basic cable service, breakfast cereal and magazines.
According to a new report from New York-based marketing and retail consulting firm WSL Strategic Retail.
"It's about value perception and what's worth consumers' money and what isn't," said Wendy Liebmann, president of WSL Strategic Retail.
According to latest results from the "Pulse Report" -- the firm's bi-monthly national online survey of 1,107 consumers conducted between May 12-15, gasoline topped the "too expensive" list, followed by designer shoes, designer jeans and prescription medication.
Topping the list of product categories considered to be on the brink of being overpriced were basic cable service, cell phone plans and breakfast cereals, followed by greeting cards and over-the-counter medications.
Manufacturers and retailers, Liebmann said, need to pay attention.
When branded products lose their perceived value, shoppers will make a quick switch to another product or stop buying that brand product altogether.
One reason is that co-payments are climbing.
Another hypothesis, she said, would be that actual price increases coupled with bad press, as in the case of Vioxx, has eroded the perceived value of prescription drugs to consumers versus their price.
If 41 percent of consumers think branded cereals cost too much then maybe retailers can look into offering their shoppers lesser priced private label cereals."
Finally, the category voted the "best value" for the buck didn't necessarily feature the "cheapest" products.
For instance, consumers gave a thumbs up to hair color kits which typically can cost $10 or more.
"Even though hair color is much more expensive today than it used to be, it's still perceived to be great value because consumers know that they would be paying substantially more in a salon to color their hair," said Liebmann.
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