Not only are the demographic shifting, but the number of new
products continues to increase. Understanding brand loyalty is
essential for producers and purveyors.
A Facebook IQ Study of 14,700 participants indicated that brand
loyalty still matters to 37 percent of the buying public and 40
percent could be classified as “repeat purchasers”. Brand loyalists
seek an emotional attachment to products with trust and
reliability. Repeat purchasers are motivated by price and
proximity. Loyal brand buyers are driven by value and locality
(think, buy local).
Millennials are just as likely as boomers to be brand loyalists,
but 1.75 times more likely to express that sentiment. In shopping
at grocery stores however, Millennials are very conscience of the
grocery store cleanliness, citing this 2.5 times more than
Value is always a driver for purchasers. Income levels also play
a part in development of brand loyalty. Those who make more than
$150,000 per year are more 32 percent more likely to be brand
loyal, than households with incomes below $50,000 per year.
Just how do consumers discover new products? A research paper
“Path to Purchase” by Nielsen, US published in August of 2015
focused on core consumer packaged goods (COG), pantry, medicinal
and cosmetic. They reported that 50 percent of consumers new about
products before shopping. Mobile and digital is becoming the lead
source of this discovery.
Millennials are 2.4 times more likely to seek information online
than boomers, but yet 57 percent still wander the aisles in stores
in search of new and interesting products. Additionally, 77 percent