This week the Harvard Business Review blog posted a story by contributor Eddie Yoon a Principal with The Cambridge Group. The post presents an interesting look at the traditional notion of price, value and private brand.
More and more, I hear different twists of the same question from clients: Can emotion still influence buying behavior in world where the mobile internet, with real-time access to product reviews and price comparisons, is training consumers to shop purely on rational facts?
On the surface, it looks like rational benefits are winning. According to Nielsen, in the last three years leading national brands in grocery stores, which probably command the lion’s share of traditional “emotive” advertising dollars, grew sales 0.7%. Meanwhile, private label, or store brands, grew 8.8%. That’s scary data, if you are one of the big brands who rely on emotion to drive the business
The core assumption here is that private label sales are only about price. To test this, we decided to take a look to see if private label superconsumers — consumers who buy a lot of private label and have strong emotions about private label — actually existed. It turned out they do exist, but they were different, more prevalent, and more important than what we expected.