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Filipino consumers more brand loyal than global peers, Nielsen study finds

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An estimated 80 percent of Net-savvy Filipino consumers would buy new products from familiar brands rather than switch to a new brand, according to a study recently released by market research firm Nielsen.

The trend reveals a higher level of brand loyalty among locals compared to the global trend which shows 60 percent of consumers around the world with Internet access prefer to buy new products from familiar brands.

“Introducing innovations on established brands that are already trusted by consumers can be a powerful strategy,” Nielsen Philippines managing director Stuart Jamieson says in a statement.

“Millions of dollars are being spent on new product innovation by manufacturers, yet two out of every three new products will not be on the market within three years,” he adds.

The results of the Nielsen Global Survey of New Product Purchase Sentiment were obtained from over 29,000 Internet respondents in 58 countries. It shows that brand familiarity is one of several key characteristics that resonate strongly with consumers worldwide.

“To deliver successful new products, marketers and retailers should ensure that they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy,” the local Nielsen chief says.

While 77 percent of Filipino respondents welcome new product options, Nielsen’s survey reveals that 74 percent of consumers prefer to wait until a new innovation has proven itself before making a purchase.

Another 70 percent of respondents say that they would consider store-brand options and 64 percent of respondents say they were “enthusiastic” about such brands.

The survey also shows that 74 percent of Filipino respondents like to tell others about new products that they purchased.

“Consumers are enthusiastic about adopting new product innovations but somewhat there’s trepidation about embracing new brands,” Jamieson says. “In order for consumers to adopt new brands, marketers need to launch very strong awareness and trial-building campaigns, supported by a positive product experience. It is vital that marketers generate positive word-of-mouth endorsements because negative experiences can significantly diminish the likelihood of new product success.”

Economic factors also play a role in purchase decisions with 60 percent of Filipino respondents reporting that challenging economic conditions make them less likely to try a new product.

However, when given a choice, 52 percent express willingness to pay a premium price for a new product.

Nielsen’s survey shows 53 percent of Filipino respondents say they are partial toward local options over global brands, compared to 26 percent of Asia-Pacific respondents who say they do not favor local brands.

Nielsen’s review of 21 methods to reach consumers across various media and advertising platforms shows that a mix of word-of-mouth communication, traditional advertising, and Internet activity are the most persuasive ways to drive awareness. However, potential reach and ease of execution varies substantially.

While 83 percent of Filipino respondents say word-of-mouth advice from family and friends and 82 percent advice from a professional or expert are the most persuasive source of new product information, receiving a free sample (75 percent), traditional television advertising (72 percent) and active Internet searching (69 percent) remain influential.


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Tags: brand , consumer , survey

  • malek_abdul

    This only shows that Filipinos are not risk takers. Not keen on trying and exploring new ones. Most Filipinos are stuck in the past where there are only a few brands to choose from. Siguro kung andiyan pa ang Purico o Baguio Oil iyan pa rin ang gamit ni lola sa pagluluto.

  • ThudOthwacker

    That’s true where in the world you will find Colgate is synonymous to toothpaste, picture taking to kodakan or photocopying to Xerox. We are the 10th biggest Nestle market worldwide and Coke top 10.

  • http://www.facebook.com/profile.php?id=100000405903680 Garo Ungaro

    That’s what we called ignorance,attachment,jealousy,greed. the pain and weakness of man.

  • http://pulse.yahoo.com/_BL2GYU35SO6HTJUEAUTXS3QFYM George Lapulapu

    Filipino consumers more brand loyal– meaning elitista at mayayabang. Most Filipinos will judge other people and themselves by the brand they wear!!!!

    Most, but not all. Try observe sa Domestic Airport and see mga demeanor ng mga passengers sa different gates na papunta sa probinsya and it will tell you what province ang may maporma and anong province ang simple lang pero rock!!!!

  • http://mikkieugenio.tumblr.com/ Paul Eugenio

    True. It’s like us calling Colgate to all brands of toothpastes. No wonder we have so many monopolies.

  • rjimenez1226

    Mga insecure kasi. madaling maloko.



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