The perception war
Do consumers really choose the retailer they believe is the cheapest… or simply the one they perceive to be the cheapest?
I had the opportunity to welcome François Bernard from Carrefour Belgium on the French-language stream of The Retail Influencer podcast. Here are some of the key insights from our conversation.
In this new episode of The Retail Influencer by 20/CENT Retail, François Bernard (Carrefour Belgium) looks at a topic that has a major influence on retailers' strategies: the difference between actual prices and price perception.
Here are the key takeaways.
The price of only a handful of products really sticks in consumers' minds
Nobody memorises the price of the dozens of products in their shopping basket. Instead, consumers build their perception around around twenty highly familiar products (the famous Key Value Items), such as a baguette, a chocolate spread or toothpaste.
If these products appear affordable, consumers unconsciously extrapolate that impression to the entire store.
Price perception has become a genuine marketing tool
Today, the battle is no longer fought solely through shelf prices.
Comparative receipts, mascots, advertising campaigns, targeted price cuts, constant communication… retailers are investing heavily to influence consumer perception.
But this communication only works if it remains consistent with the experience at the checkout. Trust remains the real issue.
Why is perception often different from reality?
Several factors explain this gap:
- a retailer's historical image can remain deeply rooted for years, even when its prices change;
- the comfort and appearance of a store can unconsciously influence how consumers perceive its prices;
- spectacular promotions tend to leave a stronger impression than permanently low prices.
In other words, consumers don't shop with a calculator alone… but also with their memory and emotions.
Loyalty programmes also change price perception
Loyalty cards now play a major role in shaping price perception.
Why? Because receiving a discount, accumulating rewards or getting a voucher creates an immediate sense of reward, which is much more visible than a permanently low price.
The brain remembers what it "gains" more easily than what it quietly saves.
Hypermarkets sometimes suffer from a perception problem
Contrary to popular belief, a hypermarket is not necessarily more expensive.
Its huge assortment, the multiplication of promotions, loyalty discounts and volume offers, however, make prices much more complex for customers to interpret.
As a result, it becomes difficult to assess the real cost of a shopping basket and the actual savings achieved.
Price should not make us forget about value
Finally, the episode reminds us that an excessive focus on price can push other essential criteria into the background:
- product quality;
- origin;
- animal welfare;
- partnerships with producers;
- or innovations in sustainability;
- …
All of these elements also create value for consumers.
The takeaway
The battle between retailers is no longer solely about prices, but about how those prices are perceived. Between psychology, communication, loyalty and the in-store experience, building a credible price image has become a major strategic lever.
To hear all the explanations and concrete examples discussed by François Bernard, listen to the full original episode of The Retail Influencer by 20/CENT Retail on https://20100retail.be/fr/articles/995/la-guerre-des-perceptions (Content in French)