Consumers 'prefer' small businesses

Consumers have shown a preference for buying from small businesses when given the choice.

Research conducted by AXA Business Insurance, revealed that consumers are happy to pay about five per cent more to buy a similar item from a small business. For more expensive items, people were prepared to pay slightly more with a six per cent margin identified.

It appears that customer service is seen as the main benefit of buying from a small business, with three quarters of consumers surveyed stating that they believe small companies do this better than bigger ones. Internet activity, special offers and recommendations from friends were also cited as motivators to buy from smaller companies.

The study could offer small business buyers reassurance in the face of economic change, particularly those looking for high street businesses where many smaller shops have been struggling in the face of rent and business rate increases.

Darrell Sansom, managing director at AXA commented: “While much of this may come as no surprise to SMEs, we do think that there are some real positives for small business that come out of this research and also some areas where many small businesses could make themselves more competitive.”

The study found that almost a fifth (18 per cent) of consumers have increased the amount of items they purchase from small businesses over the past year. However, 17 per cent have decreased the amount they buy over this period as people struggle to balance their own finances.



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laravel
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Illuminate
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REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"null"
REDIS_PORT
"6379"
MAIL_DRIVER
"smtp"
MAIL_HOST
"smtp.mailtrap.io"
MAIL_PORT
"2525"
MAIL_USERNAME
"null"
MAIL_PASSWORD
"null"
MAIL_ENCRYPTION
"null"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
EMAIL_TESTING
"true"
COMPANIESHOUSE_KEY
"u82ND42fnkdYxqCH945hvlmaflxDPIyT2sMcWLrj"
0. Whoops\Handler\PrettyPageHandler