February 7, 2011
Study: Gens X, Y Rely On Research, Less On Loyalty
Here’s some advice to brands putting the onus on loyalty to drive sales: “Be afraid … be very afraid.” AMP Agency, a Boston-based branding firm, has just completed a study of consumers, “Inside the Buy,” that suggests that actually very few consumers between the ages of 25 and 49 are moved to purchase by habit, or sentimental considerations for a brand.
The study, based on a Fall 2010 poll of 865 Gen X and Y consumers, looks at what happens in the “consideration phase” of the purchase path, where the Web and what AMP found to be a “new/modern path” to purchase hold sway. The quantitative and qualitative study also addressed a changing view of brand loyalty. The firm found that just 3% of consumers say they are loyal to a particular brand and never buy anything else.
The study, which looks at five product categories — baby products, consumer electronics, food and beverage, health and beauty, and fashion — finds that the very idea of loyalty has changed for 97% of consumers. “New consumer behavior is redefining what we view as ‘contemporary loyalty’,” said Allison Marsh, VP, Consumer Insights at AMP Agency. “With more information, consumers have seized control and are more open to the wide choices in the marketplace.” Click here to continue reading.