Study: Aussie Shoppers Still Buy On Price, But Emotion & Ethics Are Increasing Drivers

Study: Aussie Shoppers Still Buy On Price, But Emotion & Ethics Are Increasing Drivers
SHARE
THIS



Cost continues to hold considerable influence on brand loyalty, yet emotional connections and ethical values are also becoming key loyalty drivers, according to new consumer research commissioned by Emarsys.

Emarsys has launched its first annual Loyalty Index which seeks to understand whether ‘true’ loyalty still exists and what it looks like today. The company surveyed over 7,000 consumers across five countries, including around 1,000 Australians.

The research found that 65 per cent of Aussie consumers will typically switch products if a cheaper option is available. More than half of consumers (51 per cent) highlighted consistently low prices as a top reason for staying loyal to a particular retailer. However, surprisingly, the most popular reason for being loyal to a brand was having a wide range of products (60 per cent), followed by regular discounts, loyalty points and incentives, which sat on par with consistently low pricing as a top factor.

Commenting on the findings, Adam Ioakim, Managing Director, APAC at Emarsys said: “Incentivised Loyalty exists and can lead customers to shop regularly whilst also considering themselves brand advocates. Having a quality product or experience is no longer enough. Brands must also work hard to provide attractive prices and valuable offers.”

Emotional connections and ethics come into question

The research showed that having an emotional connection with a brand, as well as having strong social and ethical values are important. In fact, 23 percent and 21 percent of consumers respectively listed these as top reasons for remaining loyal to a brand.

Age was a determining factor influencing respondents’ decisions to list having personal, emotional connections as their top reason from brand loyalty. A third of respondents aged 16 to 24 claimed this as their top reason compared with just 15 percent of respondents aged 45 to 54.

“Compared to other generations, millennials and Generation Z as a cohort tend to be much more influenced by emotional drivers when it comes to loyalty. They favour a personalised, human connection and shared social values and hold these almost equal to experience when it comes to building loyalty,” said Ioakim.

At the same time, more than a quarter of consumers revealed that there are some brands they regularly buy from despite disagreeing with their ethics. This begs the question; is convenience and price more important than brand values?

This ‘Silent Loyalty’, a term coined by Emarsys as part of a wider dissection of consumer’s loyalty triggers, describes the trend of customers who show loyalty to brands by shopping with them regularly, but without advocacy.

“Consumers may be silently loyal due to competitive prices, next-day delivery or a wide range of products, without actually considering themselves to be a brand ambassador,” said Ioakim.

The five types of loyalty 

From the research, Emarsys has identified five categories of customer loyalty:

  • Incentivised: Loyalty won through discounts, incentives and rewards
  • Inherited: Loyalty built through association with other brands
  • Silent: Loyalty without advocacy, built through guilty pleasure
  • Ethical: Loyalty built through strong consumer values, ethics and emotions
  • True: Loyalty build through brand love, the most unshakable of advocates

Please login with linkedin to comment

Emarsys

Latest News

person using mobile application on smartphone, abstract close up of hands
  • Technology

Mobile Advertising Company Kargo Announces New Hires Following H1 Growth In APAC

Kargo has today announced several major growth milestones across the APAC region for the first half of 2021, more than doubling H1 revenue year-over-year with 115 per cent growth. Kargo also ran 41 per cent more campaigns in the region than in H1 2020 and the average campaign size increased by 32 per cent over […]

Hootsuite Acquires Conversational AI Platform Heyday
  • Technology

Hootsuite Acquires Conversational AI Platform Heyday

Hootsuite has today announced its acquisition of Heyday, a Montreal-based conversational AI platform that enables brands to deliver personalised customer experiences through 1:1 messaging conversations. Commerce is rapidly moving onto social and messaging platforms. Hootsuite, a pioneer in the social media management category, has the largest customer base in the industry and with this acquisition […]

Officeworks Partners With Canva
  • Campaigns

Officeworks Partners With Canva

B&T's a huge fan of the Officeworks shopping experience, but just throwing it out there about possible $1 hot dogs?

PRIA Announces National Conference
  • Marketing

PRIA Announces National Conference

Public Relations Institute announces national conference. Sadly, Roxy won't be speaking on unwanted doorstep excreta.

EATIVITY Founder Moira Geddes Becomes First-Ever Micro-Publisher To Take Part In IAB Mentorship Program
  • Technology

EATIVITY Founder Moira Geddes Becomes First-Ever Micro-Publisher To Take Part In IAB Mentorship Program

Moira Geddes, founder and director of independent food publication EATIVITY has been handpicked by IAB Australia to become the first ever micro-publisher to take part in its Mentorship Program, highlighting the important role that specialised custom digital sites play within the country’s media landscape. EATIVITY aims to keep consumers in the know and help small […]

Hivestack Appointments Ichiro Jinnai As President, Japan
  • Advertising

Hivestack Appointments Ichiro Jinnai As President, Japan

Hivestack, the global ad tech leader in programmatic digital out of home (DOOH) advertising, today announced the appointment of Ichiro Jinnai as president, Hivestack Japan. Jinnai will be responsible for driving the regional strategy, direction and expansion of the Hivestack platform in Japan. “I am beyond thrilled to welcome Ichiro Jinnai to the Hivestack family,” […]

LENS Technology & Analytics Appoints Nikhil Elayat As Business Director
  • Advertising

LENS Technology & Analytics Appoints Nikhil Elayat As Business Director

Audience measurement platform LENS Technology & Analytics has appointed Nikhil Elayat to Business Director to fast-track growth opportunities across Australia and New Zealand. Elayat (pictured) joins from New Zealand’s largest independent advertising agency, Stanley Street, where he was head of advertising technology. He played a pivotal role in building adtech functions within the performance team […]

Burnet Institute Launches How Science Matters Podcast
  • Media

Burnet Institute Launches How Science Matters Podcast

Australian medical research institute, The Burnet Institute has launched, How Science Matters podcast. The informative podcast will be co-hosted by former ABC Radio journalist Tracy Parish and Burnet institute director and CEO Professor Brendan Crabb AC. Crabb is also a microbiologist, malaria researcher and will share his knowledge on contagious diseases. How Science Matters was […]

D&AD & Google Launch Shift In Sydney
  • Advertising
  • Media

D&AD & Google Launch Shift In Sydney

This extols "turning your passion into your profession". Unless your passions are dancing dachshunds or roller limbo.