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Brands, not prices, drive consumer choices: survey

06/08/2010 - 138 Lượt xem

Brand names, particularly for consumer goods, still play a decisive role, according to Vu Kim Hanh, chairwoman of the Club for Viet Nam-made High-quality Products.

Based on the club’s recent survey, 56 per cent of the reason why local consumers buy a particular product is based on the brand name. The figure is more than double last year’s 25 per cent.

The survey also showed that price is becoming less of a factor in the decision making process, but is a very close second. The index placed price at 54.6 per cent, a 4 percentage point drop from 2005.

Of course, income comes into play. People with higher incomes care less about price than those in lower brackets. The survey also revealed a similar relationship between a person’s income and their response to sales promotion programmes.

About 9.3 per cent of low income respondents cared about promotions, versus 7.2 per cent of higher income individuals.

Vietnamese consumers this year also care less about who distributes a product, ranking fourth overall on the survey’s index at 25 per cent.

The club took into account geographical considerations. Customers who live in northern provinces care most about price; 63.5 per cent of respondents decide to buy goods because they find the price reasonable. In comparison, customers in the central and southern provinces buy goods based firstly on brand name, secondly on price and thirdly on product design. Hanh argues the data clearly indicates that the southern provinces are where companies with good brand recognition should concentrate their marketing efforts.

Companies selling higher end products tend to concentrate on attracting customers who spend more than VND500,000 a month, which accounts for 85.9 per cent of the people polled in the survey

Source: VietnamNews