Consumers say brand, not price, is most important buying factor
Brands are important to consumers. To find out how important, we analyzed almost 5,350 brands across 85 product categories in 32 countries. When making a purchase, brand was important to 86 percent of consumers, according to our BrandZ™ research. Over half of all consumers—56 percent—said that brand, not price, is the most important determinative factor when they make a purchase, and 30 percent said that they consider both brand and price.
To understand how brand and price influence brand value growth, we compared the 85 brands that appear both in the 2006 and 2017 BrandZ™ Global Top 100 rankings. We divided the brands into four quadrants based on whether consumers perceived the brands to be high- or low-priced, and whether consumers believed that the brand was worth more or less than they were paying for it.
The connection between the price of a brand and the consumer’s perception of what it is worth is crucial. Brands that got it right increased 182 percent in brand value over the past 12 years. In comparison, brands priced lower than the consumer perception of the brand’s worth increased only 128 percent in brand value.
Price is important, but it is subsidiary to brand. Brands should not underprice themselves. Brands that price below their perceived worth sacrifice potential profit and value growth. Brands that price below their perceived worth also signal that they may be low in quality.
Brands are important to consumers…
When making a purchase, brand was important to 86 percent of consumers.