Price More Important than Brand with Consumers

Discussion
Oct 09, 2002
George Anderson

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.

Category

Percentage
of Loyal Shoppers

Pet
Food
53%
Soft
Drinks/Juices
41%
Condiments 33%
Baby
Items & Food
27%
Pasta
Sauce
26%
Cereal
& Breakfast Foods
24%
Ice
Cream/Novelties
19%
Cheese
and Dairy
19%
Household
Cleaners
19%
Snacks
(Cookies, Chips & Crackers)
19%
Frozen
Dinners/Pizza
18%
Milk
and Eggs
17%
Pasta
and Rice
16%
Meats/Poultry 15%
Canned
Goods
14%
Baking
Products
14%

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
]

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