When Switching Brands Means Something
Consumerist claims that a significant number downgrades in brands are now permanent based on a new survey. From the report:
Of the consumers who switched to cheaper products, 46 percent said they performed better than expected, and the large majority of these consumers said the performance of such products was much better than expected. As a result, 34 percent of the switchers said they no longer preferred higher-priced products, and an additional 41 percent said that while they preferred the premium brand, it “was not worth the money.”
Consumerist (Consumer Union’s blog, the people who are responsible for Consumer Reports) focuses on those last two numbers. But are they really signs that shoppers are settling for good? I don’t think so.
For the 34 percent who legitimately prefer the cheaper brands now, they may well be lost shoppers for premium brands. But the 41 percent who merely say the value of the higher priced brands wasn’t there, I don’t think they are at all lost shoppers for higher priced brands. First of all, they still clearly have a preference. Second, their hesitation in purchasing is based on value for their money. To me, that clearly indicates that as soon as they aren’t as concerned about value, there will be a change in purchasing habits.
Of course, we’re still only talking about less than a fifth of shoppers. Only 18 percent of shoppers in their survey said they made any switches to cheaper brands.
No obviously related posts.
For the record, I buy a mix of generics & name brands. If the generic is good enough, then I buy it. If I still prefer the name brand, I’ll spend a few extra pennies.