A recent study by IGD highlighted the fact that brands can, and do, justify a price premium. 26% of UK consumers surveyed believed that brands were worth paying a premium. This has risen from 20% when IGD produced the same study back in December 2010.
A recent study by IGD highlighted the fact that brands can, and do, justify a price premium. 26% of UK consumers surveyed believed that brands were worth paying a premium. This has risen from 20% when IGD produced the same study back in December 2010.
Those that are more willing to pay a premium include the younger consumers (36% of those aged 18 – 24 years) and those with teenage children (29% with children between 16 and 18 years).
In the same survey, the influence of brands as a driver of product choice has turned around also with over one third of shoppers (35%) saying that brands are a key consideration when choosing which products to buy.
The following are key brand attributes resonating with shoppers under 35: whether products are made from by a specialist company (74%), or made by a well know company (70%) or if they have grown up using a product (64%).
These findings are also in line with the recent Feeling the Pinch study where although the economic environment will continue to be challenging for consumers, opportunities were highlighted for brands to fill some of the void in consumers’ lives. If they can achieve this, brands are likely to be rewarded with loyalty and advocacy. The report identifies five Ps – Pride, Purpose, Protection, Practical, Permission – where opportunities lie.
Paula Donoghue, Insight & Brand Manager, Bord Bia – Irish Food Board
Source: Bord Bia – Influence of Brands with Consumers Highlighted
