Consumers have global preference for international brands, Nielsen finds
Sixty percent of global consumers prefer to buy new products from a familiar brand rather than switch to a new brand, according to a new study from global research firm Nielsen.
The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than 29,000 Internet respondents in 58 countries and found that brand familiarity is one of several key characteristics that resonate strongly with consumers worldwide.
Rob Wengel, senior vice president Nielsen Innovation Analytics said that Nielsen found that two out of every three new products will not be on the market within three years.
“Consumers are enthusiastic about adopting new product innovations but somewhat apprehensive about embracing new brands,” Mr Wengel said.
“In order for consumers to adopt new brands, marketers need to launch very strong awareness supported by a positive product experience…because negative experiences can significantly diminish the likelihood of new product success.” Mr Wengel added.
Attributes of new product success
Fifty per cent of global respondents say they are generally willing to consider a new brand, with respondents in North America and the Middle East/Africa (57 per cent) being the most enthusiastic about making a switch.
Nielsen’s survey shows that value and proof-of-concept make a difference when purchasing, with 64 per cent of respondents stating they would consider value or store-brand options, and 60 per cent would wait until a new innovation has proven itself before making a purchase.
Economic factors also play a role in purchase decisions, as 45 per cent of global respondents report that challenging economic conditions make them less likely to try a new product. Four in 10 respondents indicate a willingness to pay a premium price for a new product.
Nielsen’s survey shows that distinctions exist with regard to preferences for local and global brands. Forty percent of global respondents say they are partial toward local options, with North Americans most in favor of local brands (47 per cent). Asia-Pacific respondents are less likely to make a local purchase – 26 per cent say they do not prefer to buy local brands over large global brands.
Nielsen’s review of 21 methods to reach consumers across various media and advertising platforms shows that a mix of word-of-mouth communication, traditional advertising, and Internet activity are the most persuasive ways to drive awareness.