Price More Important than Brand with Consumers
By George Anderson
Most consumers are willing to trade brands for the right price, according to results of a new survey from InsightExpress.
Nearly 80% of consumers switch brands because of a deal on a competing product. This trend, many believe, has increased as the economy has weakened, investments have lost value and savings have shrunk.
Of the categories surveyed, pet food had the highest brand loyalty while canned goods and baking products had the least.
of Loyal Shoppers
41% Condiments 33% Baby
Items & Food
& Breakfast Foods
(Cookies, Chips & Crackers)
16% Meats/Poultry 15% Canned
Source: InsightExpress, 10/07/02
Moderator’s Comment: Is the lack of consumer brand
loyalty a temporary condition related to the economy or is it a reflection of
a larger problem?
The preponderance of me-too items and promotional deals
has trained the consumer to comparison shop with price usually the deciding
factor. This is true not only in the aisle but between stores. Of course, we
have all known that for years. Still it is amazing how little progress the grocery
industry has made with all the bold writing on the wall. [George
Anderson – Moderator]
Loyalty is for the Birds…and Dogs, and Cats…Not Babies in the Grocery
Store – insightexpress.com