Brand loyalty mixed in Germany

07 April 2011

BERLIN: Consumers in Germany display extremely varied levels of brand loyalty, a factor particularly influenced by age, a new study has revealed.

Financial services provider Commerz Finanz surveyed 8,700 people across Europe, and broke out the results for Germany.

It reported that 21% of shoppers over 50 years of age know which consumer goods brand they want to buy before entering a store, standing at just 16% for their counterparts under 30 years old.

Overall, only 6% of younger Germans always acquire the same item, indicating the challenges facing CPG manufacturers.

"Often it is not dissatisfaction driving a change in brand, but pure curiosity," said Professor Hans Bauer, of the University of Mannheim.

Elsewhere, the study revealed 40% of Germans in the 50 years old-plus demographic plan to make purchases from a specific outlet, falling to 19% among those who have not yet reached 30 years old.

These figures hit 30% and 24% at the European level, suggesting German retailers have unique obstacles to face.

Most customers also conduct research, both online and offline, regarding prices, meaning individuals are increasingly knowledgeable about what they should expect to pay for an offering.

Some 44% of older Germans and 35% of the more youthful audience now look into this area prior to visiting stores.

Exactly 50% of the former group like to "hunt" for deals, playing a role in undermining loyalty.

"The consumer is exposed to a wide variety of products," said Dr Anja Welsch, of Commerz Finanz.

"Therefore, in addition to the quality, further evaluation criteria will be used at the point of sale."

Data sourced by Ad Hoc News; additional content by Warc staff