Dealer-Chic: Has the consumers perceptions and expectations on “deals” changed and where is this trend going?

Everyone loves a good deal yet some people are more willing to seek them out than others.  While I am not opposed to sales in general, I personally hate sales racks and very rarely seek out coupons. I dislike the search.  I automatically assume there is a reason it is on sale – ugly, out of season, damaged, and/or really ugly.

Am I an anomaly? Do most people enjoy the thrill of finding something great hidden under a disorganized chaotic mess of clothes?  The success of retailers like TJ Maxx, Ross’s, Nordstrom Rack, and outlet shopping malls seem to point to yes.  I am an anomaly. 

Either way, my preferences for “deals” are changing and I am fascinated by the reasons behind this change.  Social norms have changed.  It is “cool” to find deals and use them.  We share them with friends, family, and strangers via the web.  Why is getting a deal all the rage?  What need did this fill and how did this need come to exist?  How did technology, the financial crisis, and social media, among others, play a role?  Is it a need due to cost or a fundamental change in how we perceive the consumption experience to be?  How do expectations, options, and information play a role? For this paper, I want to understand the reasons behind this trend and understand how companies can leverage it in the future while maintaining brand reputation and profitability. 

While I am still trying to focus my exact topic, some questions I would like to research further include:

History:

Transition over last 10 years

How technology has played a role?

How did customer insights influence the transition?

            Demographics of users

            Technology being used

Reason behind the shift

Future State:

How will brands manage expectations and meet needs while staying competitive?

What type of role does social media play in influencing seeking and using deals?

How does a company create brand loyalty with these deals?

Are these sought out deals or reactionary/last minute decisions? Compulsive?

A few articles I’ve read discuss the use of flash sales – ''Selling a product at a discount everyday is not good for brands. If everything's 20% off everyday, then the right price is 20% off,'' said Hurley. ''Because it's limited time, because sometimes it sells out, it has the perception of scarcity.''

http://money.cnn.com/2011/05/26/smallbusiness/flash_sales_ideeli_hautelook_gilt/index.htm. 

A report from trendwatching.com discusses in detail the reasons why “dealer-chic” will grow substantially over the next few years.  These reasons include people wanting more for less, the medium and ease of accessing these deals, and access to information allowing consumers to know and want the best.

http://trendwatching.com/trends/dealerchic/

Research to continue....