Online Branding and Consumers

Over 80 percent of US 'Brand Loyalists' think consumers generally get what they pay for, and almost 50 percent equate quality with price. These are some of the findings from recently released research in the 'Jupiter Consumer Survey Report: Consumer Packaged Goods'.

The research describes how consumer packaged goods (CPG) marketers can best use their digital marketing budgets and their websites to target their most loyal customers. This can be achieved by segmenting online adults through their attitudes toward brands, pricing and shopping.

In this sense, Jupiter analysts have distinguished the two most desirable segments: 'Brand Bonders' (25 percent of U.S. online adult population) who believe that the brands they use reflect their personality; and, 'Brand Loyalists' (21 percent) who are generally unwilling to try new brands once they have found the ones they like. Although both groups are relatively affluent, 'Brand Bonders' are mostly female (58 percent) and relatively young, while 'Brand Loyalists' tend to be older and male (60 percent).

According to the research, 'Brand Bonders' are very busy US consumers, and a relatively large number of them consider the Internet to be their favourite entertainment. The group includes the largest percentage (49 percent) who believe the Internet has made them more up to date on the news. CPG companies should note that these consumers use the Internet to gain knowledge and advantage. Websites that enable online bill payment might therefore be an efficient way to reach this group.

'Brand Loyalists', however, contain the highest proportion of men as a group. Almost two-thirds of these US consumers are over age 35, and 40 percent are over 45. They also comprise the most affluent segment: one-third have a household income over $75,000, and 18 percent have a household income over $100,000. Although they are hard to reach both online and off-line, this type are worth securing as they appear to be price insensitive. Websites that feature sports, online broking or adult content are effective ways to target this audience.

Commenting on the findings, David Card, Jupiter vice president, noted 'CPG manufacturers need to start thinking about the Internet as the channel to identify their best, most loyal customers. They can best use their own Web sites to segment customer sets, not for couponing or information dispersal.'

He added, 'When targeting the 'Brand Bonders' and 'Brand Loyalists,' CPG marketers should spend more of their Internet-focused dollars on direct marketing, advertising and sponsorship. While men appear to be slightly more driven to actively make purchases by online ads than women, an online ad has driven over one-third of online women to register at a website in exchange for a coupon or discount.'

The Jupiter CPG Consumer Survey was conducted In November 2001 on a panel of 2,054 online respondents.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.