Study: Brand loyalty in decline during recession
To retain brand loyalty it is necessary to invest (John Burns)
Have You Looked After Your Brand Loyalty during the Recession?
Many brands have found their customer loyalty has taken a hit as a direct result of the economic climate, the results of a survey suggest.
Over the past two years, consumers have shown less of an allegiance to their favourite brands, noted comScore, mainly as they give greater consideration to price.
Chairman of comScore Gian Fulgoni said people are more willing to switch brands if they think it will save them money.
In March, 50 per cent of the consumers questioned said they purchase the brand they desire the most.
One of the areas to be most affected by changing attitudes is the clothing industry, the research discovered, as only 39 per cent of individuals will opt for the brand of jeans they want most, compared to 54 per cent two years ago.
Food industries, however, have seen less of an impact, with soup manufacturers only seeing a four per cent decline in loyalty since March 2008.
Mr Fulgoni commented: “Premium brands which invest in marketing and promotion activities aimed at maintaining buying at preferred levels are able to minimise short-term erosion of share to less expensive brands and position themselves for a bounce-back when the economy improves.”
This follows another recent study from comScore that found online video is becoming increasingly common as a marketing tool.