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.
Category Percentage
of Loyal ShoppersPet
Food53% Soft
Drinks/Juices41% Condiments 33% Baby
Items & Food27% Pasta
Sauce26% Cereal
& Breakfast Foods24% Ice
Cream/Novelties19% Cheese
and Dairy19% Household
Cleaners19% Snacks
(Cookies, Chips & Crackers)19% Frozen
Dinners/Pizza18% Milk
and Eggs17% Pasta
and Rice16% Meats/Poultry 15% Canned
Goods14% Baking
Products14% 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]