Americans reveal big secret: How big a discount they expect.

HIGH POINT, N.C.--(BUSINESS WIRE)--April 17, 1996--For the first time, Americans are telling how big a discount they need before they're ready to shop for everything from tires to TVs and from sporting goods to sofas.

The big secrets were revealed in a national survey by America's Research Group, completed in early April for this spring's big furniture market, which opened here today.

The poll showed significant variations between the discounts expected by shoppers in a wide range of shopping categories, indicating how carefully people are currently judging retail pricing structures these days.

"We wanted to learn what retailers in various product categories needed to do to attract more business, so we talked with 1000 consumers across the country and asked them about their definition of a real discount," according to Britt Beemer, chairman of America's Research Group.

"Jewelry purchasers told us they want to see a discount of at least 63.1 percent before they get motivated, while only 40.4 percent discounts are enough to get men's apparel customers breathing heavily," he said.

"Last fall, our annual pre-Christmas survey measured very high levels of consumer demand for big discounts in almost every gift category. That study told us that more shoppers than ever would hold out for 50 percent off before they were willing to spend their money, and now we know that's exactly what they did," he reported.

"This is a major consumer trend, which has witnessed a 15.9 percent rise in the level of discount consumers believe constitutes a real sale, from an average discount of 33.4 percent to 38.7 percent in just two years," he pointed out.

Beemer continued, "Generally consumers will require higher advertised discounts on items that they either feel have large retail markups, or are bigger ticket purchases.

"That's why jewelry leads the list. Shoppers have always felt jewelry stores enjoy the highest margins and therefore can afford higher discounts," he said.

"Toothpaste is an everyday necessity, so less discounting is needed, while furniture costs more. Would you drive across town to save 50 percent on an item costing $9.95 or $599.95," he asked.

Noting computers placed second highest on the expected discount list, Beemer continued: "With computers and other technologically-based products, you have a double hit because not only are they somewhat expensive to most consumers, but they become obsolete so quickly.

"How do you feel when you lay out $2500 for a home PC system, and less than a year later it's considered out of date? Clearly, shoppers require strong incentives in this area," he concluded.

America's Research Group conducts more than 200,000 consumer interviews annually for manufacturers, retailers, and financial institutions. Retail clients account for over $50 billion in annual sales.

This survey has a margin of error of +/-4.3 percent. -0-

Top 10 Products Requiring High Discounts

Q. Tell me which products must be discounted at 40%, 50%, or even 60% off regular prices before you would be motivated to shop for that product.

Percentage of respondents 

who answered Product Categories "Most Definitely" and "Definitely"

Jewelry 63.1%

Personal computers 60.1%

Sofa/Master Bedroom Furniture 59.0%

Mattress/Box Springs 58.7%

Refrigerator/Washer/Dryer 55.9%

TV/VCR 55.3%

Women's Apparel 42.3%

Tires 42.1%

Sporting Goods/Equipment 40.7%

Men's Apparel 40.4%

CONTACT: Britt Beemer, 803/571-0225 or

Norman Weissman, 212/508-3429