High-income consumers display similar shopping behaviors to other income groups when it comes to choosing between store brands and national brand names before making a purchase. The groups only differ in that higher-income shoppers tend to be more skeptical of store brand products than income groups that make less.
Most shoppers across all income groups said they compare prices between private labels and national brands, according to an ongoing shopper behavior study by The Integer Group and M/A/R/C Research. Most shoppers also looked for sales and/or coupons before exploring private label options, suggesting that despite income, most shoppers weigh their saving options before making a larger investment in perceived quality.
The study broke down the shopping habits into specific categories and found similar preferences of brands versus private label products. Lower-income shoppers were more inclined to buy private label cereal, cleaning and laundry supplies while higher-income shoppers were less likely to buy store brand snacks, beverages and ice cream.
"Though one might think that shoppers with means aren't a flight risk for brands, or that lower-income shoppers don't have any other options but private-label, our findings suggest otherwise," said Craig Elston, senior VP of insight and strategy at The Integer Group. "This means every brand needs to persuade every shopper of its worth."
Similarities between income groups were so prominent that over-the-counter medications, paper and milk products topped the list of private label switches for each group.
It seems private store labels are also getting a boost from millennials. This thrifty generation is unwilling to spend on premium brands and are quickly becoming the driving force behind private label growth.
-See this Integer press release
-See Integer report
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