Brand Loyalty Suffers During Recession

RESTON, Va.Consumers allegiance to their favorite brands has declined during the past two years, according to comScore, Inc.s March 2010 study brand loyalty among consumer goods products. According to the findings, less than 50 percent of shoppers reported purchasing the brand they want most.

A decline in loyalty to consumer goods brands is typically one of the byproducts of a recession as consumers give greater consideration to price ... (our) research ... has quantified the impact of the trading down' effect... highlighting consumers' increasing willingness to switch brands in the face of pocketbook constraints," comScore Chairman Gian Fulgoni said,

In some categories, particularly CPG household products and housewares, consumers already were more likely to buy a brand they didn't "want most" at the start of the recession. Some categories (e.g., paper towels, facial tissue) have not seen increased trading down from a brand perspective, possibly because such categories have led the way in tiering, allowing consumers to stick with their preferred brand at a more attractive price-point.

As the economic downturn has persisted, this trading down behavior appears to be spreading to categories that were previously immune. The increases in trading down in these categories have largely occurred in the last year. Higher ticket items have seen large increases in trading down possibly due to larger absolute savings on a single purchase. For most categories, the drop in likelihood to shop for the brand wanted most is not restricted to buying other brands on sale. Rather, a sizeable percentage of the change in shopping approach is being driven by a decision to convert to less expensive brands to save money.