Robust sales aside, brands are confronted with “discount temptation” during DSF. This is a condition where finding the best deal overrides all other factors that would normally be considered in a purchase decision. In this state, consumers are more likely to succumb to the temptation to stray by the myriad of cost-effective opportunities and deviate from developing and existing brand loyalties. Even in a market where nearly 40% of the surveyed consumers profess to have an intimate relationship with brands, a purely price-driven landscape hinders brands from forming an enduring engagement with consumers.
Experientially, brands also face spatial, logistical and operational complications during DSF. Most brands’ showrooms were never designed to accommodate the extra sales inventory or the ‘search and destroy’ consumer shopping behavior. The resulting in-store experience can be chaotic in nature, leaving behind a less-than-desirable brand impression with consumers.
Our extensive study examining the emotional bonds between brands and 6,000 consumers across the US, Mexico and the UAE have found that on average 36% of the most ‘brand intimate’ consumers were willing to pay 20% more for their brands . So beyond achieving sales targets during DSF, for brands to truly succeed, they need to begin an essential relationship with consumers and move them through the progressive stages of closeness.