Shoppers Choose Value Over Price
Earlier this year, research firm Brand Keys polled 26,000 consumers of 441 brands in 63 categories to gain insight into changing consumer purchase habits. The results showed consumers buy based on their subjective perception of value and not solely on price.
“Shopper consciousness has shifted from just trying to ferret out deals to looking for brands that provide value,” said Brand Keys President Robert Passikof.
In today’s economy, much has been made about the growth of private label and increased competition among brands. Savvy shoppers expect more value from brands they buy and remain loyal to those that deliver it. In fact, Brand Keys found the extent to which brand loyalty impacts purchase decisions varied among categories, with some categories attracting consumers who care little about price. Paper towels, moisturizers and allergy medicine are all examples of categories attracting super-loyal consumers. “Price is really not a factor,” said Passikof. “People are more concerned with feeling better and controlling the allergy versus saving 59 cents on the buy.”
For brands looking to build category share, as well as retailers looking to bolster private label sales, the value over price theory mandates increased branding efforts to convince consumers to buy. For brands looking to maintain share, brand loyalty requires constant communication and new innovations to strengthen perceived value.
Whether through rewards programs, quality ingredients, emotional connections, or more, brand value is in the eye of the beholder. Give your consumers something to behold.
Rachel
Tags: Brand Keys, Brand Loyalty, Consumer Packaged Goods, Shopper Habits
