Wisdom from The Action Wisdom In Action

Brand Loyalty Isn't Cheap

From the Middletown Journal.

"Brand loyalty is the ultimate goal of most companies when they develop a product. According to a study by the Agricultural Marketing Resource Center at Iowa State University, brand loyalty can equate to higher sales and less spent on marketing for the product — on average it costs six times as much to advertise to a new customer than retain an old one.

While company success is certainly a good thing, as a consumer buying a product at the exclusion of all other, regardless of price, is not always the best decision for your budget."

...

"the difference between “hard-core loyals” and “shifting loyals” is your ability to switch to another product rather than spend more when it’s not on sale.

For example, I prefer Diet Coke. To keep myself supplied in my favorite carbonated beverage I make sure to stock up on coupons and load my cart full of cartons whenever I find a good sale. Occasionally, that stockpile will run low at a time when Diet Coke is not on sale. Rather than rush out and buy it at a higher price, I buy a different beverage on sale: Diet Sprite, Diet Dr Pepper, Fresca. By being flexible and sticking to a range of products I like, I’m not a slave to any particular brand when it is outside my price point."

...

"...A recent article by Consumer Reports comparing store brands to name brands showed quality in many cases were equal. In some cases it showed the store brands were actually better. And many products today offer a money-back guarantee if you don’t like it."

Most generics are made by the same company that makes the brand-name stuff--only the label's changed. In the case of zippy bags, the bags are the same, but the zippy part is clear instead of colored, and OH BOY, WHAT A DISCOUNT!

As for the drinking soda part, the author may not be a slave to soda brand, but I bet he's a slave to doctor and dentist visits.

These days, you shouldn't even be thinking brand name OR generic, but rather "How can I make this myself--what are the active ingredients?" and "How can I lay in a supply of the ingredients?"

Coupons and brand loyalty are for millionaires and empty-headed ditzes who regularly fall for marketing ploys (bring on the hate mail).

Posted by Cute at 8:17 PM

Labels: financial (non-tax), food purchases