"Almost eight in 10 shoppers report seeking products on sale and comparing prices between brand name and store brands when buying groceries or household products," said Craig Elston, SVP, The Integer Group.
"With this many shoppers doing price-comparison, name brands need to act now in order to keep consumers - and beyond the recession, entice consumers to return."
Data indicates that only 37 percent of consumers surveyed say name brands are more reliable and 39 percent believe name brands are better quality products. According to 84 percent of consumers surveyed, brand names are believed to be more expensive. This data suggests that brand names must offer incentives to consumers or they risk losing them to private labels indefinitely.
"According to our survey, we see two ways brand names can keep consumers," said Randy Wahl, EVP, M/A/R/C.
"Consistently delivering on brand promises, and offering financial rewards such as coupons and discounting."
Although the study shows consumers are most concerned about price, there are some brands such as Kraft, Coca-Cola, and Tide that shoppers say they are least likely to trade for store brands. Consumers also consider Kroger, Walmart, and Target to be stores that carry the best private-label brands.
Data for The Checkout comes from a national survey conducted by Integer and M/A/R/C where consumers are asked about their shopping attitudes, shopping behaviors, and economic outlook. Topics range from criteria shoppers use to select retailers, to which in-store stimulus is most likely to drive purchase, to factors that might lead shoppers to leave an aisle empty-handed.
The Checkout is available for download at Integer's blog www.ShopperCulture.com or M/A/R/C's Web site.
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