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.
Source: InsightExpress, 10/07/02
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%
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]