New research has shown that Australians are more loyal to product brands than retailers.
In a study of more than 1,000 consumers across five categories, the research explored what has become known as “The Messy Middle” — the decision-making stage between a consumer’s first trigger to purchase, through to the purchase itself.
Conducted by Google Australia with The Behavioural Architects, the research found that people were more willing to change retailers than the products they want.
When presented with their preferred and second choice retailer, almost half of Australian consumers will switch to their second choice — yet only a quarter switch to their second choice product brand. Google Search insights also showed that 60 per cent of retail searches in Australia and New Zealand are looking for products or product brands, compared with retailers.
The report also found that the use of behavioural science principles that communicate value attributes beyond price can significantly influence purchase decisions and help consumers see value beyond discounting.
Behavioural science principles are concerned with what influences human decisions. The study considered five of these relevant to marketing strategies: reducing delivery friction, offering free ‘add-ons’, sharing positive customer reviews and experiences, reviews from product experts, and highlighting key product features in product listings.
It also showed that applying just two of these behavioural science principles — offering something free and reducing delivery friction — could be as compelling to consumers as offering a 10 per cent discount. Applying all five of these behavioural science principles could have as much impact as discounting by 15 per cent.
“This Messy Middle research gives us a unique insight into the brand versus retailer relationship, and what this means for purchase decisions. It’s clear that product has a powerful position in the minds of Australian consumers,” said Renee Gamble, managing director at Google Australia.
“With cost of living pressures in the background, people are re-evaluating not only the price tag, but also what value means to them more broadly.”
The report also suggested that retailers need to maximise the digital availability of their products and simply be present when consumers are exploring or looking to buy products. Marketers and retailers should consider how they can be compelling to anyone scanning past their product offer.
As brands make sure the breadth of products are available to show up for consumers when they’re searching, they need compelling ad creative – and AI-powered ad solutions to drive deep consumer connections at scale.
“Applying behavioural science principles can help consumers make better decisions, and have a strong impact on preference. Our research underscores how important it is that marketers understand these principles and know which will have the most impact on their customer’s shopping decisions,” Ms Gamble said.
