Study: Value Trumps Price Among Shoppers†

Brandweek, February 28, 2009 — Consumers are not buying based on price alone. Instead, they are relying more on their perception of value when deciding which brands to stay loyal to during the recession.

In fact, consumer expectations regarding brand value went up 20 percent, according to the 2009 Brand Keys Customer Loyalty Engagement Index. Those brands that aren’t perceived as being worth it will fall to the wayside, said Brand Keys president Robert Passikoff.

Brand Keys polled 26,000 consumers of 441 brands in 63 categories earlier this year. Among the brands that received the highest marks for meeting or exceeding consumer expectations, “there is a price-value formula consumers use to calculate brand differences and to decide which brands to buy,” said Passikoff. “Shopper consciousness has shifted from just trying to ferret out deals to looking for brands that provide value.”