Study: Is price really the number one purchase factor?

In partnership with Fevad, Converteo conducted a comprehensive study on the impact of the price factor in the purchasing act by BtoC consumers. Discover more with the interview of Emilie Gariel, Partner, and Sonia Requillart, Consulting Director at Converteo.

Why initiate this study on prices and their importance in the purchasing act?

Sonia Requillart: 5.2% in 2022, 4.9% in 2023, and 3.2% projected in 2024: since the end of COVID, the issue of inflation has occupied everyone’s minds. But it is beginning to decline: in this context, it seemed relevant to us to use the semantic AI technology from Synomia to see if price remains the primary decision factor in the minds of consumers. 

By launching this study, we essentially had three objectives: to identify the considerations surrounding the purchase, to clarify the differentiating factors between online and offline, and to understand the role of price in the purchasing process.

Emilie Gariel: Indeed, faced with inflation rates we haven’t seen in France for decades, consumers paid extreme attention to prices in 2022/2023. We have observed a slowdown in recent months, but we are not yet in deflation; it’s just a slowdown in the rise of prices… Hence the initial question: is price still as central in the minds of consumers, even if we are talking a bit less about inflation today?

To answer this question, what methodology did you apply?

To answer this question, what methodology did you apply?

Sonia Requillart: Our approach with Synomia by Converteo combines AI and HI—Human Intelligence—aimed at making data from social media and the web speak. The core of our expertise lies in our ability to transform spontaneously expressed textual data into insights and marketing intelligence through semantic analysis. This is what we did on the topic of price: we started with social media to analyze over 240,000 comments from internet users about consumption and the purchasing act over a period of 6 months, to have a corpus that is both fresh and substantial.

Emilie Gariel: This approach is particularly relevant for addressing a topic like pricing, where discrepancies between stated preferences and actual behavior are often significant. Traditionally, direct questionnaires focused on price yield fairly poor and non-exploitable results: when you ask someone the price they are willing to pay for a product, their responses are often far from reality.

Moreover, in classic studies, price always emerges as the number one or two factor in the purchasing act since no one is going to say that price doesn’t matter. But once we have this information, what do we do with it? In contrast, analyzing conversations allows us to be much closer to reality—since there is no predefined question—and to analyze the relationships that exist between different topics.

What are the insights you obtained from this semantic analysis?

Emilie Gariel: We had both confirmations and surprises.

On the surprise side, there is the notion of pleasure, particularly the pleasure directed towards others (giving, buying for a loved one), which is the main element of conversations around a purchase—slightly ahead of price!

Unsurprisingly, attention to price is stronger for in-store purchases than for online purchases. However, this does not mean that consumers view in-store prices negatively; it simply means that they talk more about price in their purchase conversations when it comes to offline purchases. Why? On one hand, there is less comparability possible, so the consumer is attentive, questions things, and seeks points of comparison with their peers. On the other hand, food purchases weigh heavily in offline shopping, and consumers are very attentive, even wary, about prices concerning these essential expenses.

Finally, the delivery experience stands out significantly in conversations about online purchases, often with a negative sentiment. Brands and retailers must therefore focus more on the delivery experience than on its cost alone.

The combination of these three elements offers an interesting perspective for both offline and online players: while it is essential to work on pricing, there are other very relevant levers for consumers to enhance the purchase experience, such as pleasure or services.

Sonia Requillart : Another important insight is the observation that the various items—quality, stock, pleasure, speed, returns, brand, customer service, local, etc.—are very interconnected in the shopping experiences: one cannot consider price in isolation.

This aligns with other studies we have recently conducted, particularly for pure players: online, there is indeed a requirement for price competitiveness, but it is not sufficient to generate customer satisfaction. As Emilie points out, this is particularly true for delivery: the question is not only about speed but also about the quality of service, adherence to promised deadlines, the friendliness of delivery personnel, packaging of parcels, etc.

It is also worth noting that two items to consider have emerged: second-hand purchases and responsible and local buying, which consumers are increasingly turning towards. Although these two factors are still relatively weak, they can increasingly make a difference, both in food and non-food sectors.

How can brands and retailers rely on your study to refine their strategies?

Sonia Requillart: This overall diagnosis can be complemented by a sectoral and competitive view. Just as there are differences in perception between online and offline, there are significant differences across sectors.

With our methodology, it is possible to compare the perception of one’s brand with that of competitors, for example, to identify strategic priorities and strengths to capitalize on and communicate. It is also a means to become aware of the conversations consumers face in their daily lives when it comes to a brand or retailer.

Unlike other methodological approaches, with the semantic analysis of conversations, there is no bias in the question since there is no question!

Emilie Gariel: By looking at it from a sector perspective, one can truly identify the most important topics for their customers. When we understand the pain points, we can deploy corresponding action plans. In the food sector, for example, the price factor is essential, but it then translates into promotional and loyalty strategies… The entire question is how to intelligently maximize the price image by leveraging the right levers at the right time and with the right intensity, without destroying the margin.

Above all, it is important to keep in mind that only 24% of conversations revolve around price: this is far from the majority. This means that while the topic is important—and even very important—it is not the only lever that brands and retailers can activate. Ultimately, price is only a quarter of consumer concern. There are other arguments to find, beyond just promoting the lowest price.