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    How the recession affects brand loyalty and 'buy down' behaviour

    RESTON, US: comScore, Inc has released the report The Effects of the Recession on Brand Loyalty and 'Buy Down' Behaviour: 2011 Update. The report analyses how the most recent US recession has impacted consumer purchasing behaviour within various product categories, leading to increased 'buy down' behaviour among consumers, or purchasing less expensive brands in order to save money.
    How the recession affects brand loyalty and 'buy down' behaviour

    The report also examines the different ways consumers seek out lower prices and outlines strategies for premium brands to combat these conditions in the current aftermath of the recession.

    "In the aftermath of the recession, and with unemployment remaining stubbornly high, US consumers have been feeling the pressure to spend less and save more, resulting in increased buy down behaviour for CPG and other product categories," said comScore director Doug Crang. "Our research shows that over the last four years, not only are more consumers switching from their preferred brand when others are on sale, but they are regularly buying less expensive brands in an effort to save money. These economic conditions pose a real threat to premium brand market share, as consumers view cheaper brands, often private label, as a more affordable and necessary option during these hard times."

    The report highlights the results from annual comScore studies conducted between 2008 and 2011 surveying the shopping habits and preferences of female shoppers in the household. The following 12 product categories were examined within six broader market segments:

    Buy Down Study Product Category Groupings 2008 - 2011 (Source: comScore, Inc)
    Market Segment Product Category
    Health & Beauty Aids Toothpaste
    Mouth Rinse
    Shampoo
    OTC Cough/Cold/Allergy
    Apparel Jeans
    Food Soup
    Pasta Sauce
    Fruit Juice
    Household Products Laundry Detergent
    Facial Tissue
    Paper Towels
    Housewares Small Appliances

    Participants were asked to indicate how they shop for each of the above product categories using one of four closed-ended responses: 1) "I buy the brand I want most," 2) "I sometimes buy a different brand if it is on sale," 3) "I buy less expensive brands to save money," and 4) "I do not buy products in this category". Below is a summary of the trended results for those choosing "I buy the brand I want most." The survey shows that as the economic downturn has continued, the percentage of shoppers who typically buy the brands they "want most" steadily declined across the categories examined. The 2011 survey results reveal 43% of shoppers claiming to buy the brand they want most, down 11 points since 2008.

    % of Respondents Choosing "I buy the brand I want most" 2008 - 2011 Survey Results US Female Shoppers (n=1000) (Source: comScore, Inc)
    Year of Survey % of Respondents
    2008 54%
    2009 50%
    2010 45%
    2011 43%

    Download a complimentary copy of the full report.

    Source: comScore

    comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and the preferred source of digital marketing intelligence.

    Go to: http://www.comscore.com
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