Australian shoppers’ brand loyalty tested by retail advertising campaigns

Posted by Daniel Palmer on 24th March 2009

New research has analysed the brand switching trends of Australian shoppers, with bread and pasta among the most prominent categories to have low brand loyalty.

The research was commissioned by outdoor advertising company oOh!media Group Ltd to offer insights into the attitudes of consumers while shopping in various categories.

Retail advertising campaigns were found to be persuasive while consumers were shopping, although brand loyalty remained strong for coffee, cereal, toothpaste and washing powder. In all, about four-fifths of shoppers are receptive to price discounts while shopping, but almost two-thirds said they would usually purchase their regular brands.

Private label, which is gaining market share in Australia as retailers increase their ranges, is the predominant choice in the milk, cheese, pasta, kitchen roll and fruit juice categories, according to the research. While the sectors where most sales appeared up for grabs were bread, toilet paper, crackers, frozen vegetables, and pasta, as consumers were less likely to have a brand preference.

Not surprisingly, the categories with the greatest private label share and least loyalty tend to be basic commodities as consumers are less likely to perceive any differences in such products.

Shopper’s attitudes were considered to be quite positive to retail advertising, as the survey established that more than 60 per cent of main grocery buyers and 91 per cent of teenagers took note of retail signage, with over three-fifths believing they provided useful information about a product or offer.