A new study has found that 80% of shoppers are willing to trade brand for price. InsightExpress’ survey shows how far US shoppers are ready to sacrifice lifestyle for dollar savings. In an uncertain economic climate, companies cannot afford to ignore the purchasing power of ‘disloyal’ budget-conscious consumers. The best way to maintain share in the most vulnerable categories is through cheap, effective in-store promotions.
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InsightExpress, an online market research service, surveyed 500 US grocery shoppers in September 2002, and found low price and promotional offers compete head-to-head with product quality in luring consumers away from rival brands.
The survey also found wide variations in the degree of brand loyalty among different product categories. Respondents were most likely to stick with one brand when purchasing pet food (53%) and soft drinks (41%). Baking products (14%), canned goods (14%) and meat/poultry (15%) were among those commanding the least brand loyalty.
Surprisingly, frozen dinners/pizza, snacks, and baby items and food also received very low marks in brand loyalty – three in four shoppers of these products can be easily swayed to purchasing other brands.
Fortunately, all is not lost for product categories with little room for differentiation. To ensure that they do not lose ground to expanded more economical private label ranges, branded manufacturers need to divert funds away from above-the-line initiatives towards in-store promotions, couponing and sampling campaigns. Manufacturers must focus on winning over in-store shoppers, rather than just addressing potential consumers in their homes.
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By GlobalDataInsightExpress found that while 86% of Americans guide their shopping efforts using a grocery list, only 28% rigidly adhere to the list and are not swayed by in-store promotions. It’s hard to dispute the overall conclusion of the study: marketers’ biggest influence comes as they walk the aisles of their favorite grocery store. Customers spend almost an hour in the supermarket each time they visit, creating serious opportunities to sell new products.
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