Brand Loyalty in a Recession

The panic around the recession may be diminishing, but another entity that is currently diminishing is brand loyalty. Despite the improved economic climate, consumers continue to be even more choosy about where they spend their dollars. A study by comScore shows that this trend isn’t limited to low-priced household goods, but also bigger ticket items. In fact, in the case of a lower dollar price, consumers will transmit their loyalty to a new brand.
However, Gian Fulgoni, co-founder of comScore is quoted with this advice: “Despite these shifting consumer dynamics, research has repeatedly shown that premium brands which invest in marketing and promotion activities aimed at maintaining buying at ‘preferred’ levels are able to minimize short-term erosion of share to less expensive brands and position themselves for a bounce-back when the economy improves.” Like many, Fulgoni feels that marketing through a recession can help preserve or enhance a brand’s standing.

About Vivek Bhaskaran

Vivek Bhaskaran is the President and CEO of Survey Analytics.

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