CHICAGO — Across five different product or service attributes analyzed (i.e., price, service agreement, selection, feature or quality) in a Nielsen Global Survey of Loyalty Sentiment, "offering the best price" held the most persuasive power to motivate consumers to swap devotion to a brand, service provider or retailer, Nielsen reported on Monday.
“While a good price may initially offer consumers enough motivation to change allegiance to a new product, it won't keep consumers for long if the product doesn’t deliver on its promise,” said Julie Currie, SVP Global Loyalty, Nielsen. “Getting the price/value equation right, having products in stock and offering a satisfying shopping experience are vital ways to build long-lasting customer loyalty.”
Of the respondents who said they were not completely loyal, 41% said that getting a better price would encourage them to switch brands, service providers or retailers. While price was the major switch incentive for more than half of North Americans (61%) and Europeans (54%), price and quality held equal sway in Asia-Pacific and Middle East/Africa, with roughly one-third of respondents each in both countries. As many as 28% of Latin Americans, 22% of Europeans and 20% of North Americans also cited quality as a reason to change their allegiances.
Beyond price and quality, 19% of respondents from Asia-Pacific and 18% from Latin America looked for a better service agreement, exceeding the global average (15%). Range or assortment was also most influential in Asia-Pacific (13%), compared to respondents in Europe (8%), North America (7%), Latin America (7%) and Middle East/Africa (5%). Globally, respondents found improved features (8%) the least influential in driving them to betray a brand, service provider or retailer.
The Nielsen Global Survey of Loyalty Sentiment was conducted between Feb. 18 and March 8, 2013 and polled more than 29,000 online consumers in 58 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America.