parago’s third annual shopper study, “Let’s Make a Deal,” reveals that deal seeking has grown significantly in the past year. It is now a behavior consistently seen in shoppers from all demographics. Deal seeking is no longer just trendy or born completely out of necessity. Shoppers continue to seek out the very best prices and are willing to go out of their way to save even a little bit. parago creates engaging solutions that inspire actions & impact results As the most comprehensive single-source provider of incentives and engagement, we deliver $2 billion in rewards to 50 million people worldwide each year using our advanced technology. Our relentless focus on innovation drives better results, making us the smart choice. • consumer rebates & promotions • employee rewards & recognition • sales & channel management • energy efficiency incentives

1. 2013
shopper
behavior
study
deal
a study by
let’s make a

2. contents
overview
methodology
key findings
shopping power
purchase influencers
preference: rebate over instant discount
attitude toward rebates
driving for deals
shopping practices
access to deals: social, mobile and online
appendix: shopper research by income
3
4
5
6
8
10
12
14
16
17
18
let’s make a deal: 2013 shopper behavior study by parago
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3. for what it’s worth
Shopper price sensitivity is up significantly over last year. Consumers at all income levels are feeling the
pinch of the lagging economy. Their long and worsening struggle has manifested itself in new deal-seeking
shopping behaviors that are laser-focused on paying only what it’s worth and not a penny more.
Across the board, shoppers now seek out the very best prices and are willing
to go out of their way to save even a little bit.
They research circulars, fliers, and the internet before they head out to shop — if they don’t buy online. They
drive out of their way to save and, in-store, they check prices again on their smartphones.
Because they are focused on the very best price, the majority are finding that rebates, above all other price
promotions, deliver the greatest value and lift to their personal spend budget.
They want rebates in all shopping categories, from office and building supplies to clothing and consumer
packaged goods.
On the brighter side of heightened price sensitivity, they are still shopping regularly and feel emotionally
rewarded when they find significant savings. This sense of reward is connecting them more closely to the
shopping experience and the items they purchase than in years past.
We are happy to share our findings with you, including a comprehensive
break out by income in many of the most intriguing categories.
We invite you to reach out with questions and keep the discussion going.
Good shopping!
Rodney Mason, CMO
rodney.mason@parago.com
972.538.7336
http://twitter.com/rodmoose
frugality
rules!
let’s make a deal: 2013 shopper behavior study by parago
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4. methodology
The third annual Shopper Behavior Study was conducted via a national online survey during March 2013 with
1,078 respondents representative of the US (in terms of education, income and gender). They responded to
a 50-question survey exploring their deal seeking behavior: how, why and where?
We explored macro-economic sentiments, influence of technology, and consumer preference.
gender
employment
living situation
51% employed full-time
16% retired
11% employed part-time
8% homemaker
48% men
52% women
5% unemployed/seeking employment
69% own their home
31% rent
5% other
annual household income
38% $49,999
37% $50–99,999
18% $100–199,999
3% $200,000
4% no report
4% student
generational split
marital status
58% married
20% single
12% divorced/separated/widowed
10% in a relationship or living w/ partner
age
17% 18–29
37% 30–48
37% 49–67
9% 67
let’s make a deal: 2013 shopper behavior study by parago
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5. key findings
price sensitivity is up
75%
across all income levels
3x
price is
46%
more influential
on purchase
decision than any
other criteria.
of people use their
smartphones to compare
prices while shopping.
58%
80%
will participate in a social
media contest to receive
exclusive rebates.
75%
of people would
scan a barcode for
an exclusive rebate.
look for deals
before they go
shopping.
81%
of people will drive 5–10 minutes
out of their way for a $10 rebate.
83%
want to find rebates
both when shopping
online and in-store.
let’s make a deal: 2013 shopper behavior study by parago
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6. shopping power
“How do you rate your price sensitivity?”
more sensitive to price
201375%
201270%
unchanged
201322%
201226%
less sensitive to price
20134%
20124%
numbers may not sum to 100 due to rounding
75% of shoppers reported being more sensitive to price.
let’s make a deal: 2013 shopper behavior study by parago
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7. shopping power
“How do you feel about your purchasing power over the last 12 months?”
decreased
201342%
201253%
the same
201328%
201229%
increased
201325%
Purchasing power continues
to see huge declines, leading
to greater price sensitivity.
201210%
unsure
20135%
20128%
42% feel their purchasing power decreased this past year.
let’s make a deal: 2013 shopper behavior study by parago
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8. purchase influencers
quality
17%
store
7%
price is king
price
56%
Price is the primary
influencer on
purchase decision.
loyalty
programs
3%
brand
17%
let’s make a deal: 2013 shopper behavior study by parago
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9. purchase influencers
annual household income
annual household income
annual household income
annual household income
$49,999
$50,000–
$99,999
$100,000–
$199,999
$200,000
price
70%
brand 9%
store 6%
quality
11%
loyalty 3%
rewards
price
53%
brand
14%
store
8%
quality
20%
loyalty 4%
rewards
price
39%
brand
31%
store 4%
quality
22%
loyalty 3%
rewards
price
17%
brand
38%
store
10%
quality
28%
loyalty 7%
rewards
Deal seekers are the majority in every income level under $200,000.
numbers may not sum to 100 due to rounding
let’s make a deal: 2013 shopper behavior study by parago
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10. Consumers want
the best deal.
And they are willing to take an extra step to get it.
Marketers can take advantage of rebate redemption to drive higher-value
promotions, capture data, and gain customer interaction.
let’s make a deal: 2013 shopper behavior study by parago
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11. preference: rebate over instant discount
For the same cost as less attractive coupons or instant discounts,
rebates offer the deeper price discounts consumers prefer.
“Which would you choose?”
$75 instant discount
35%
$35 instant discount
29%
$18 instant discount
26%
$12 instant discount
29%
$5 instant discount
33%
$2 instant discount
40%
65%
71%
74%
71%
67%
60%
$100 rebate
$50 rebate
$30 rebate
$20 rebate
$10 rebate
$5 rebate
71% of shoppers will opt-in during the rebate process for product marketing.
let’s make a deal: 2013 shopper behavior study by parago
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12. Consumers want
rebates.
Marketers can create compelling rebates that get
sales lift, data and high-value interaction.
let’s make a deal: 2013 shopper behavior study by parago
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13. attitude toward rebates
“When
shopping online,
a discount via
rebate is attractive”
“When shopping
in-store,
I like to find
rebates”
“The ability to
submit a rebate
via smartphone
is attractive”
“I want to
scan a barcode
in-store for rebates
on my phone”
“Rebates provide a
larger cost
savings than other
promotions”
“Rebates are
easy to
redeem
nowadays”
83%
83%
80%
75%
73%
72%
80% of shoppers will opt-in during the rebate process for more rebate offers.
let’s make a deal: 2013 shopper behavior study by parago
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14. driving for deals
More than 3 out of 4 shoppers
would drive 5-10 minutes out of their way for a $10 rebate on a $50 product.
annual household income
$49,999
$50,000–$99,999
77%
83%
$100,000–$199,999
86%
$200,000
86%
let’s make a deal: 2013 shopper behavior study by parago
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15. driving for deals
How far will a consumer go for savings?
93% would drive 5-10 minutes out of their way for $20.
86% would drive 5-10 minutes out of their way for $15.
81% would drive 5-10 minutes out of their way for $10.
Most consumers will travel 10–20 minutes
(round trip) to get rebates on a $50 product.
let’s make a deal: 2013 shopper behavior study by parago
15

16. shopping practices
Deal-seeking behavior is up across the board.
People want the best deal, not necessarily the cheapest option.
“I shop…”
2013 survey results
2012 survey results
Checking
prices on
smartphones
is up over
.
46%
11%
36%
where I can use my
smartphone to check prices
21%
for brand
over price
55%
40%
where I can gain value from
loyalty and rewards programs
“Before I go shopping, I…”
400%
80%
69%
look for deals, rebates and
best advertised prices
71%
61%
review circulars
and print advertisments
59%
38%
check online for
the best deals
33%
16%
ask my personal
network for deals
let’s make a deal: 2013 shopper behavior study by parago
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17. access to deals: social, mobile online
“Where do you want to receive exclusive rebate deals?”
Facebook
rebate website
Google
Twitter
LinkedIn
company blog
Pinterest
retailer
mobile app
53%
44%
39%
25%
19%
17%
17%
16%
57% of shoppers will participate in a social
media contest to receive an exclusive rebate.
multiple answers allowed
let’s make a deal: 2013 shopper behavior study by parago
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18. appendix
shopper research
For your use, more detailed information by
annual household income is included on
pages 19–21. Additional data about consumer
preferences for rebates by product category
can be found on pages 22 and 23.
let’s make a deal: 2013 shopper behavior study by parago
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19. behavior by income
$49,999
Researches for deals
and best prices
before shopping
Looks for deals in
circulars and print ads
Search for deals online
before going in-store
I use my smartphone
to check prices while in
store/shopping
I shop where I can gain
loyalty and rewards
Almost always
Sometimes
Total
Almost always
Sometimes
Total
Almost always
Sometimes
Total
Almost always
Sometimes
Total
Almost always
Sometimes
Total
$50,000–
$99,999
$100,000–
$199,999
$200,000
78%
19%
97%
66%
26%
92%
48%
38%
86%
13%
17%
30%
42%
12%
54%
81%
18%
99%
74%
20%
94%
67%
29%
96%
31%
20%
51%
59%
7%
66%
90%
9%
99%
83%
15%
98%
75%
21%
96%
53%
28%
81%
76%
2%
78%
69%
28%
97%
56%
34%
90%
69%
21%
90%
45%
31%
76%
66%
7%
73%
let’s make a deal: 2013 shopper behavior study by parago
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20. rebate preferences by income
$49,999
$50,000–
$99,999
$100,000–
$199,999
$200,000
Rebates are great savings opportunities
85%
92%
93%
90%
Rebates provide a larger cost savings
than other promotions
69%
75%
82%
75%
Rebates make me feel like I caught
an exclusive sale
64%
73%
80%
83%
Rebates are easy to redeem
66%
73%
84%
75%
When researching a product online,
a rebate is attractive to me
63%
82%
90%
86%
The ability to submit a rebate on my
smartphone is attractive to me
39%
57%
76%
89%
let’s make a deal: 2013 shopper behavior study by parago 20

21. rebate preferences by income
$49,999
$50,000–
$99,999
$100,000–
$199,999
$200,000
Participate in social media contest to
receive exclusive rebate offer
50%
60%
74%
62%
Opt-in during cash back process to
receive future rebate offers
78%
81%
89%
86%
Opt-in during rebate cash back process for
future relevant product marketing messages
66%
72%
85%
83%
Interested in seeking out products that
come with rebates offering deep discounts
85%
90%
93%
82%
I will buy a product with a high dollar rebate
74%
85%
90%
79%
I search out products with rebates
48%
60%
74%
56%
let’s make a deal: 2013 shopper behavior study by parago
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22. category interest in rebates cash back
“Which categories are you interested in rebates or cash back offers?”
building tools
and supplies
clothing
consumer
packaged goods
electronics
entertainment
37%
58%
52%
80%
48%
$50,000–
$99,999
43%
62%
58%
77%
58%
$100,000–
$199,999
46%
57%
61%
71%
63%
41%
28%
59%
76%
59%
annual household income
$49,999
$200,000
let’s make a deal: 2013 shopper behavior study by parago
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23. category interest in rebates cash back
“Which categories are you interested in rebates or cash back offers?”
furniture/
housewares
games
gifts
office
supplies
travel
technology
48%
32%
36%
43%
32%
58%
$50,000–
$99,999
58%
44%
48%
47%
44%
64%
$100,000–
$199,999
63%
46%
43%
61%
63%
77%
59%
38%
31%
55%
76%
76%
annual household income
$49,999
$200,000
let’s make a deal: 2013 shopper behavior study by parago
23

24. parago creates engaging solutions that inspire actions impact results
As the most comprehensive single-source provider for incentives and engagement,
we deliver $2 billion in rewards to 50 million people worldwide each year with advanced technology.
Our relentless focus on innovation drives better results, making us the smart choice.
consumer rebates promotions | employee rewards recognition | sales channel management
Rodney Mason
Chief Marketing Officer
972.538.7336
rodney.mason@parago.com
www.parago.com
© 2013 parago, inc. All rights reserved.