To thrive in your market it is important to understand the economy. If you’ve taken an economics course you should know that supply and demand is a force that determines economic outcome(s). Each individual’s decisions have weight in determining the current state of the economy.
Consumers are consciously and subconsciously influenced by factors that lead them to make purchases and stimulate the economy, that is why it is important to understand the demand side.
Why Consumers Shop
When looking at the demand side of the economy it is important to understand why consumers make the decisions that they make; the decisions that add up to determine the state of the economy.
Today we will be looking at the factors that cause consumers to shop at a certain retailer, make purchases, and why those factors should matter to businesses. In a survey conducted on millennials, surveyors deduced that these are the five main factors that influence consumers to make their decisions.
32% said they shop at a retailer because they trust their store or brand;
60% of those surveyed said they choose to shop at a store where they can get the best price;
32% said they shop at stores because they are the only retailer with certain items in stock;
25% said they shop at a retailer because they can’t find the desired product anywhere else; and
24% of those surveyed said they shop because the retailer has fast, reliable delivery.
Breaking down the data
In spite of the fact that trusted stores and brands have relatively small weight (32%) in the grand scheme of the economy, it is essential to carry high quality products and retain pleasurable employees that can interact with customers.
Prestige is becoming more important in todays industry due to the vast amount of businesses entering the cannabis industry daily. Being a trusted brand/store is essential in building a relationship with consumers. Consumers prefer to shop at retailers where they feel safe shopping and can expect to receive quality products and quality service.
A majority of consumers, 60% in this case, are looking for the best price they can get.
Consumers are always looking for products at the lowest price available. A low price for consumers means that they will have more purchasing power at the store or otherwise elsewhere. More purchasing power means that consumers have more money to spend, therefore they are able to purchase more and are left better off than they we’re with their previous amount of purchasing power—it is no surprise that consumers are looking to go easy on the wallet.
Even though carrying exclusive products and specific brand names makes up an even smaller percentage of the total population surveyed, 25% and 32% respectively, it gives businesses a definite edge in capturing consumers.
Although only a small percentage of those surveyed stated exclusive products or brands was the reason they shop, exclusive products and brands are a factor that can guarantee business from customers. If you carry a certain product or brand that no other store has, a consumer has no choice but to go to your retail store to purchase it.
24% said they shop because the store has a fast delivery service. If delivery is a service your retailer offers, it is important to have speedy deliver—nobody likes waiting.
Not all dispensaries offer a delivery option, but some patients are so sick that they’re medicine has to be delivered to their doorstep. It is critical to make sure medicine arrives at a consumer’s home shortly after it is ordered. This is their medicine we are talking about!
Albeit these are the five factors that influence the consumer’s decision of where to purchase their products, what is it that stops consumers from going to the retailer on the next block or around the corner? In places where cannabis is fully legalized, a large amount of dispensaries tend to flock to the legalized area. With more and more stores moving to an area and competing with each other, what is it that make’s a retailer a consumers go-to supplier?
Head over to Cannabusiness to find out
Image source: http://greenito.com/
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