Yesterday, Nielsen released the results of a new study that confirmed people still have a tendency to stick with familiar brands. The finding reveals that over 60 percent of consumers throughout the world (with Internet access) stated they would rather purchase a recognizable brand versus a new brand. The Nielsen Global Survey of New Product Purchase Sentiment surveyed over 29,000 people with Internet access from 58 countries. Ultimately, the study shows that brand loyalty goes a long way.
There is no question that brand familiarity is important to consumers. The study shows that 63 percent of consumers like when a specific company offers new product options. In addition, 60 percent of those respondents would wait for a new product to build a track record before purchasing. However, there are still consumers out there who are willing to try new products.
The analysis also presented that consumers in Middle East/Africa and North America (57 percent) were the most enthusiastic about trying a new brand. Following those areas, Europe (56 percent), Latin America (47 percent) and Asia-Pacific (45 percent) said they would be open for new products as well. The selling points for these consumers are value, variety and proof-of concept. When it comes to store brands, 64 percent responded that they would be open to purchasing if value option was there.
From all the respondents, 45 percent agreed that the tense economy has made them cautious about trying a new brand. As for price, only 39 percent (4 out of 10) said they would be willing to pay a premium for their favorite brands. Rob Wengel, Senior Vice President at Nielson Innovation Analytics said, “Marketers and retailers can deliver successful new products for existing brands by ensuring they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy.”
What do you think about the study? Do you find yourself shopping for more recognized brands? Tell us below in the comments.