Philippine consumers most loyal in the world

Philippine Consumers Most Loyal In The World By: Oliver Bayani, Philippines Published: Jan 24, 2013 LOYALTY   WORD-OF-MOUTH  NIELSEN Philippines – Online consumers in the Philippines are among the world’s most loyal to brands familiar to them, with only two out of 10 willing to try new products from an alternative, according to a new survey from Nielsen. Eighty percent of online Filipino consumers prefer to buy new products from a familiar brand rather than switch to a new brand, figures from Nielsen’s Global Survey of New Product Purchase Sentiment suggests. Global consumers, in comparison, are more open to experiment, with 4 out of 10 respondents with internet access saying they are willing to buy new products from another brand. Globally, 60% of respondents were also reluctant to switch brands. ” Consumers are enthusiastic about adopting new product innovations but somewhat there’s trepidation about embracing new brands,” said Stuart Jamieson, managing director of Nielsen Philippines. Philippine-made Filipinos were also found to put more faith to local options than any another country in Asia Pacific, with 53% of respondents saying they are partial towards Philippine-made products over global brands. In contrast, only one-fourth (26%) of Asia Pacific respondents say they do not favor local brands. New products are welcome to most of Filipino respondents, with 77% saying they are open, but Nielsen found that proof-of-concept is also important to them. Around 74% said they are willing to wait until a new product has proven itself. Jamieson points out that innovations by trusted brands is a powerful strategy but might not yield rewards immediately. ” Introducing innovations on established brands that are already trusted by consumers can be a powerful strategy. Millions of dollars are being spent on new product innovation by manufacturers, yet two out of every three new products will not be on the market within three years.” What to do? ” Developing a compelling new product is just a part of the battle. Ensuring that the consumers are aware of the product and can find it on store shelves is just as critical as coming up with that winning new product idea,” Jamieson explains. After reviewing 21 methods on how to reach consumers, Nielsen found that word-of-mouth communication is among the most powerful means to influence the buying behavior of Filipinos. Around eight out of 10 respondents regard advice from family and friends and expert as the most persuasive source of new product information (83% and 82% respectively). As the self proclaimed social media capital of the world, Filipino’s are very inclined to buy products they read about on the internet. Nine out of 10 consult the web before buying electronics and appliances, 89% for healthcare products and food and beverages, 88% for hygiene products and 83% for hair-care products. Receiving a free sample (75%), traditional television advertising (72%) and active Internet searching (69%) were also found influential. ” To deliver successful new products, marketers and retailers should ensure that they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy,” Jamieson recommends, saying it ” creates the best opportunity to ensure their product delivers on core demand and is ultimately adopted by consumers.”