In an age when brands hold increasingly less sway, what are the tactics that make branding stick?
“We know that doctors and pharmacists are much more likely to buy unbranded over-the-counter medicines, and chefs are much more likely to buy unbranded pantry staples. People ‘shop smart’ in areas where they have expertise. This raises the question: If you give people objective product information, will they switch?”
Jean-Pierre Dubé, a Senior Professor of Marketing at the Booth College of Business at the University of Chicago, reflects on consumer brand loyalty. Dube’s team conducted a taste test to explore consumer brand loyalty. Before the test, 44 percent of participants expected themselves to prefer the store brand. After tasting, 72 percent preferred the store brand, and 84 percent indicated likelihood to purchase it at their next shopping trip. Clearly, brand preference faces a threat when consumers evaluate on a more level playing field. Still, the store brand preference decreased over time and private label purchases increased by 16 percentage points a week after the test. But the effect decayed quickly over time, falling to only 2 percentage points six months later.
As marketers, the lesson we see here is that sustained brand promotion has a place–as a steady reminder of name and value proposition over time. Though a generic brand in a commodified marketplace can draw preference, there is an opportunity to retrieve that lost purchase by being available during the “decay period” where customers return to a branding-susceptible mindset.
In another study, Dube and UCLA researchers found that people are less loyal to big brands overall, especially since the Great Recession. “What this means for consumer goods companies: at very least, they can’t simply wait for recessions to blow over and bet that rising incomes will bring market share. From other work, we know that branding works and can establish early-mover advantages for a company.”
Our firm’s recent research project aimed at Millennial purchase preferences shines light on another factor: there is a rising skepticism of major brands’ promises and messaging. However, these younger decision makers are also more loyal to brands that speak to them, chiefly by personalized experiences and delivering on their core promises.
The true staying power of a brand lies in both awareness (customers’ top-of-mind recall of your brand) but also in the objective product merits. Over time, these bond together to build a stronger backbone of a brand-not only the name but delivering on the core value proposition. This two-pronged approach can give a name brand staying power. As always, a firm must go forward by keeping a finger on the pulse of how our brand is perceived in the world (what isn’t measured – isn’t managed). Brand audits provide this, with annual tracking to measure the ups and downs of your brand equity in the marketplace–and foresee any trends, threats and opportunities to act upon them intelligently.
Sasha Fainberg
Analyst, SMARI Research
The analytic team at SMARI uncovers emerging trends and brand truths through qualitative and quantitative research methods.