While globally consumers are influenced by promotions and pricing discounts in selecting grocery stores, Indonesians are most likely to base their decision on a store's reputation for being cheaper, a survey shows.
The survey on customer preferences, released Wednesday by The Nielsen Company, states that 84 percent of respondents said they considered a store's reputation for being cheaper the most important factor in finding a place to buy goods. The result was followed by 78 percent who said friends' recommendations were most important in deciding where to get the best products with cheapest prices.
"A store's reputation for being cheaper than the rest is the most important consideration for consumers here, just like in some other Southeast Asian countries," Nielsen Indonesia retail service director Yongki Susilo said.
He said promotions and pricing discounts ranked third with 71 percent acknowledging their importance.
Word of mouth is indeed an effective promotion tool in modern marketing, Yongki said.
As many as 513 Indonesians and a total of 26,486 respondents worldwide participated in the survey, which was conducted online, he said.
Shoppers here also tend to research and compare prices between stores before making a purchase, and also rely on prices published in stores' leaflets and other promotional materials to make sure that they get the best value for money, he said.
"Besides wanting to get the best product at the cheapest price, customers in Indonesia also consider proximity and convenience, important," he said, citing that people prefer to go to the closest stores and choose the most convenient places, like those with easy access to parking.
Big retailers like Carrefour, Hypermart and Alfa are the most popular stores in Indonesia because they offer the best prices, locations and convenience for customers, Yongki said.
Besides competitive prices, the survey found that in some countries like Russia, India and China as well as the emerging Baltic markets of Latvia and Lithuania, consumers chose to go to stores that sell high quality brands and products.
"This is sending a clear message that retailers looking to enter these countries should know -- that local customers do not necessarily react to promotions and pricing discounts," he said, adding that brand reputation, quality and buying habits are more important.