A little brand loyalty goes a long way. More than half (60%) of consumers around the world with Internet access prefer to buy new products from a familiar brand than switch to a new brand, according to a new global study from Nielsen.
“Innovating products within established brands that consumers trust can be a powerful strategy,” said Rob Wengel, senior vice president, Nielsen Innovation Analytics. “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.”
The findings are from the Nielsen Global Survey of New Product Purchase Sentiment, which surveyed more than 29,000 respondents with Internet access from 58 countries.
Getting What You Pay For
While brand familiarity is important, half of global respondents say they’d be willing to try a new brand: consumers in the Middle East/Africa and North America were the most enthusiastic (57%), followed by Europe (56%), Latin America (47%) and Asia-Pacific (45%).
Value, variety and proof-of-concept resonate most with consumers worldwide when they consider buying new products. Sixty-three percent say they like when manufacturers offer new product options, but 60 percent wait for a product to build a track record before buying it. Brand isn’t everything, however, especially when a store brand or value option will deliver the same benefit for less money. Sixty-four percent of global respondents say they’d buy a store brand or value option, and 45 percent agree that a tight economy makes them cautious about trying a new product. Cost is less of a factor for some, however, as four out of 10 (39%) say they’re willing to pay a premium price to stay loyal to a favorite brand.
For more detail and insight, download Nielsen’s Global New Product Report.