The Farnsworth Group - Pricing Segmentation - September 2013_Page_1How much price weighs into the decision making process is what everyone wants to know. A recent research study performed by the Farnsworth Group looked at this very issue: Price Based Market Segmentation for Consumers and Professionals. The report provides information on the role of price in the marketplace.

425 online surveys were completed among consumers who are personally involved in the purchase of hardware and home improvement products for their household. 230 online surveys were completed among the following professional segments: 75 completes with builders; 79 completes with remodelers; and 76 completes with tradesman.

On the consumer side, the study shows females are more price-conscious than males with 50 percent of females looking for the lowest price as opposed to 40 percent of males. Also 68 percent of females are deal-oriented as opposed to 32 percent of males. But when it comes to convenience, 64 percent of males are looking for this factor as opposed to 36 percent of females.

The Farnsworth Group - Pricing Segmentation - September 2013_Page_2When breaking it down by age the group looking for the lowest price is the 25-34 set at 20 percent. The group looking for the best deal is 45 to 55 year olds at 27 percent.

When professionals were surveyed, they said they purchase from the following sources:

• Lumber/Building Materials Dealers: 38%

• Warehouse/Home Centers: 29%

• Specialty Wholesalers/ Distributors: 29%

• Direct from the manufacturer: 4%

The Farnsworth Group - Pricing Segmentation - September 2013_Page_3Following were the reasons given for using their top supplier:

• Have products in-stock: 67%

• One-stop shopping : 58%

• Good assortment of products: 54%

• Convenient location: 50%

• Offer quality products: 42%

• Good customer service: 38%

• Carry a brand I prefer: 38%

• Knowledgeable employees: 33%

• Has low everyday prices: 33%

• Easy to find merchandise : 33%

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