Research shows that 87% consumers would switch brands for a BOGOF or price discount
The research analysed over 1,000 consumer buying habits as a result of the economic downturn, and looked at how this behaviour could be influenced by promotions.
Consumers were asked which types of promotions would most likely persuade them to change from their usual brand. 48% responded with BOGOF, 39% responded with price discount, 3% for free gift, and 1% for both prize draw and charity endorsement. The research also found that 60% of consumers think that an immediate reward is the most important aspect of a promotion.
Stephen Bentley, CEO of Granby Marketing Services said of the findings: “These results are really worrying. With the economy being as it is, it is difficult to compete with a brand that simply discounts. But what will happen to these brands once times start to look a bit brighter? The brands that have used short term, price led promotions over investing in a long term relationship with consumers will struggle to establish a connection that isn’t based on solely price…”
Calls from across the industry, spearheaded by the IPA, are encouraging brands to resist price-led promotions to prevent long term damage to their brand reputations.Bentley added: “For the industry to progress and start creating ‘brand loyalty’ again we need to increase data insight and consumer interaction, or we may as well just shut up shop.”
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