Study: Price more important than brand reputation among most consumers

Consumers may disagree with a brand’s action or political leanings, but that doesn’t necessarily mean they will take their business elsewhere.

Consumers are still willing to choose price over principle when purchasing from brands, with 56% saying they will shop with a brand that has contrary beliefs to get a better deal, according to a report from Clarus Commerce. At the same time, 52% of consumers said quality is a superseding factor while 37% believe convenience is most important.

Across generations, consumers have different preferences and take into account different factors when determining which brands they shop with. Most (72%) of shoppers over age 74 said they don’t know the values of their favorite brand, while only 38% of those under 24 said the same.

Clarus also found that influencers have a wavering pull on consumers. Forty-four percent of shoppers said paid endorsements influence their opinion or loyalty to a brand, much lower than the 76% that said family and friends’ opinions matter more. Fifty-six percent said that media coverage also swayed their opinions and decisions more.

 Other highlights from the report, entitled “What Are The True Drivers Of Loyalty In the Minds of Consumers,” are below.

• Shoppers are increasingly interested in community. Almost a quarter (22%) of consumers said that building a sense of community was the best way to attain their loyalty - more so than a brand’s social impact or overall convenience.
• Bringing customers together fuels loyalty. Many consumers believe a strong sense of community drives them to be loyal to their favorite brands. To establish this, 34% of shoppers said they would like to join online groups, 32% want to be invited to in-person events, and 18% want regular brand-related content.

“The past two years brought on challenges no brand could have anticipated, regardless of the space they’re in,” said Tom Caporaso, CEO of Clarus Commerce. “At the same time, it’s opened the door to several opportunities for brands to create more meaningful connections with their customers and to establish loyalty. Understanding what makes a customer loyal, however, is only half the battle. If retailers want to truly move the needle and drive their loyalty forward, they must act, leveraging these insights to improve elements throughout the shopping experience that customers value most.”

To download the full report, click here.