Consumers No Longer Associating Name Brands With Higher Quality

September 24, 2013

This article is included in these additional categories:

Boomers & Older | Brand Loyalty & Purchase Habits | Store Brands | Youth & Gen X

IntegerGroupM:A:R:C-Name-Brands-Quality-Perceptions-Sept201383% of Americans are either buying as the same amount of (48%) or more (35%) private label brands than last year, a figure which has held steady over the past couple of years, per new data from The Integer Group and M/A/R/C Research. Part of the challenge for name brands is that perceived advantages in areas traditionally considered to be their strong suits – such as innovation and quality – have eroded.

This year, just 29% of respondents said they believe name brands are better quality products. That’s down from 36% last year and 43% the year before. Private label acceptance in this area is particularly significant, as 54% of respondents cited quality as their top priority when shopping for everyday products.

Moreover, this year only a minority 45% of respondents believe that brands names offer more new products, varieties and innovations compared to store or private label brands. In 2010, a majority 56% felt that way.

Last year, a study by Ipsos found 7 in 10 consumers agreeing that store brands were either better than or about the same as national brands in terms of offering high-quality products. Similarly, most respondents at the time said that store brands were on equal or better footing when it came to offering products they trust (78%) and offering innovative products (67%).

Other Findings:

  • The majority of shoppers today prioritize quality and spending as little money as possible when doing routine shopping, according to the M/A/R/C Research and Integer Group study.
  • Millennials (18-24) are 13% more likely than the general population to be increasing their private label brand purchases. Shoppers aged 65 and older are 33% more likely to be upping their private label purchases.
  • Two-thirds of shoppers said they are OK buying store or private label versions of over-the-counter medicines, though only 18% feel the same way about pet food.
  • 56% of shoppers believe that name brand packing is more attractive than private label packaging, with Millennials 22% more likely to hold this perception.

About the Data: The Checkout is based on a nationally representative survey of 1,200 US adults conducted monthly by M/A/R/C research.

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