Price Is Not The Key Factor In Consumers' Interpretation Of Value For Money

With many households looking to hit the shops over this bank holiday weekend for items such as televisions and fridge freezers, new research from on-line electrical retailer value-direct.co.uk shows that 'no hidden costs' is as important as 'lowest price' in consumers' interpretation of value for money when buying electrical goods.

value-direct.co.uk, with a range of over 5,500 electrical appliances, is taking this bank holiday weekend as the opportunity to launch a crystal clear pricing campaign, calling for clarity and regulation of pricing information both on and off-line. value-direct.co.uk wants the retail industry to adopt clearer pricing strategies and is questioning how unclear pricing policies are in the public's interest.

To launch its campaign, value-direct.co.uk commissioned MORI Technology to research the issue of pricing in general together with some questions specifically about electrical goods. The results can be seen in a new report 'Clarity begins@home, a call for clarity of pricing on the high street and on the web'.

When questioned about value for money of electrical goods, lowest price was not consumers' key motive in interpreting value. 59% rated appliance performance as key in deciding if a product is good value for money, followed by after sales service at 47%. Lowest price was mentioned by 45%, virtually equal to no hidden costs at 42%.

Ian Bland, Joint Managing Director of value-direct.co.uk feels it is time to take a stand against unclear pricing of goods so consumers can instantly see they are getting value for money.

"Low pricing claims confuse and mislead the public. When it comes to making a purchase, 48% find it is annoying that delivery is extra on items that they cannot get home themselves with 57% saying prices quoted should always be inclusive of VAT."

"The high street and the Internet should be treated as one market. Making claims about 'unbeatable value' yet not including a delivery charge in the cost quoted and excluding the Internet from value claims is not in the consumers interest. Enough is enough, 43% of people told us they hope something is done to make sure traders are honest about pricing which is why we have started this campaign".

"40% of the public and 51% of Internet users questioned for value-direct.co.uk by MORI Technology say it is unfair for high street retailers to make price or special offer claims if in fact they sell the same item for less on their own web site. value-direct.co.uk sees this as an indication that in today's electronic age, the on and off-line market place should be treated as one and it is time to take a stand on overall regulation. 45% of those questioned said the government should play an active role in protecting consumers and stop the worst offenders through the legal system".

As part of its Crystal Clear Pricing Campaign, value-direct.co.uk will be presenting its research findings to government and is encouraging consumers who feel they have been misled on price by a high street or an on-line retailer to contact their local trading standards office. Alternatively, they can contact the Crystal Clear Pricing Campaign at P.O. Box 271, London, WC2B 5LS

• Consumers Urged To Know The Facts Before Deciding To Buy
• Retailers Told - Sort Out Your Pricing Claims

ABOUT value-direct.co.uk

value-direct.co.uk - winner of the 2000 Fast Track 100 Award for e-Business Achievement sponsored by IBM.

value-direct.co.uk was founded in 1995 with the combined savings of the two founders Ian Bland and Bart van Mourik. Sales grew from 163393,000 in 1995 to 1636.5m in 1999. It is the third fastest growing e-tailer in the Virgin Atlantic Fast Track 100 league table of Britain's 100 fastest growing unquoted companies. In March 2000, value-direct.co.uk was acquired by Internet investment and management company bizzbuild.com.

Technical details

MORI Omnibus. Nationally representative sample of British adults aged 15+, face-to-face interviews carried out between 6-11 July (2,001) and 3-7 August (2,254) 2000. Results are weighted to reflect national population profile.