In a recent BizReport article, Helen Leggatt writes about how brand now heavily outweighs price on the value scale.
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| Where do you fall on the value scale? |
The findings of a Millward Brown's Value-D study show that only 7% of respondents made purchases based on price (down from 20 percent ten years ago), while 81% made purchasing decisions based on the brand.
According to Peter Walshe, Global BrandZ Director for Millward Brown, "Too many brands fail to fully optimize their power and instead overemphasize price and downplay desire. The consumer usually desires a brand first and then considers the price to determine whether to purchase or not."
The article goes on to list the Global Top 10 Value-D brands:
2. Colgate
3. Nokia
4. Pampers
5. Visa
6. Coca-Cola
7. Microsoft
8. McDonald's
9. Nescafé
10. Lidl
To see the Top 100 Global Brands or top geographic rankings, view the BrandZ report.
While brand has always played a big part in the value equation, I'm surprised that it so heavily outweighs other purchase drivers such as price, location, convenience and habit, especially during the recent and sustained economic downturn. Though during tough times consumers often tend to take fewer risks, which means they are perhaps more likely to rely on brands they trust.
Do your purchasing habits match the Value-D study? Is the brand more important to you than the price? I'm going to have to do a little self-analysis to see where I tend to lean on the value scale.
