Study discovers 30 per cent of shoppers make brand decisions in-store

Posted by Daniel Palmer on 7th November 2008

Almost one-third of global shoppers are content to make up their mind as to which brand they buy in-store, according to a study released by the Ogilvy Group.

The study, which highlights the potential of shopper marketing, was based on more than 14,000 shopper interviews conducted in 700 retail outlets across 24 markets worldwide. It covered pre- and post-purchase decision making in five retail channels across six product categories, to examine how shopper decisions differ across channels, product categories and brands.

Ogilvy Group noted in its report, “Shopper Decisions Made In-Store,” that the research went beyond the traditional adage that 70 per cent of purchase decisions are made in-store. They discovered that brand decisions were made in-store by 30 per cent of shoppers, suggesting brand loyalty remains strong amongst the majority but also indicating that a significant portion of the customer’s shopping dollar is up for grabs from the time they enter the store.

It was also established that about one in every ten consumers change their minds at the point of purchase and buy a different brand to the one they had planned to purchase. While one in five shoppers will buy from categories they had no intention of purchasing from before entering the store – a significant number of impulse purchases.

The research was carried out to arm brand marketers with the information they need to more effectively use the store environment to the benefit of their brand/s, according to Rick Roth, global CEO of OgilvyAction – Ogilvy Group’s global activation services company. “We all know the point of sale is the ultimate moment of truth for brands today,” he said. “Getting it right and improving ROI is something that keeps many of us awake at night.”