According to a recent Nielsen Global Survey of New Product Purchase Sentiment, around 60% of global consumers with Internet access prefer to buy new products from a familiar brand rather than switch to a new brand. The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than 29,000 Internet respondents in 58 countries about new product awareness.
The survey found that 50% of the global respondents are generally willing to consider a new product purchase, with respondents in North America and the Middle East/Africa (57%) being the most enthusiastic about making a switch. Nielsen’s survey also found that more than two-thirds (64%) of respondents would consider value or store-brand options, and two-thirds (60%) will wait until a new innovation has proven itself before making a purchase.
According to the survey, economic factors also play a key role in purchase decisions, as 45 percent of global respondents reported that challenging economic conditions make them less likely to try a new product. Four in 10 respondents (39%) indicated a willingness to pay a premium price for a new product.
The survey also revealed that 40% of global respondents are partial toward local options, with North Americans most in favor of local brands (47%). Asia-Pacific respondents are less likely to make a local purchase – more than one-quarter (26%) said they do not prefer to buy local brands over large global brands.
According to the survey word-of-mouth advice from family and friends is the most persuasive source of new product information for 77 percent of global respondents, followed by traditional television advertising (59%). Globally, respondents say the Internet is very or somewhat important when making a new product purchase decision for food and beverages (62%), personal hygiene categories (62%), personal health/over-the-counter medicines (61%), and hair care categories (60%).
The survey found that in-store discovery continues to be a huge driver of awareness with 72% becoming aware of new products due to in-store advertising and information. Freebies play a big part, too, with 70% discovering a new product via this route. Of other marketing channels TV is next with 59% followed by print ads with 54%.
“There is no one-size-fits-all approach to successfully developing and marketing a compelling new product,” said Wengel. “By focusing on unmet needs, creating a distinct solution, and developing a market-ready offer, marketers and manufacturers will create the best opportunity to ensure their product delivers on core demand insight and is ultimately adopted by consumers. However, ensuring 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.”