Brand trust surpasses price sensitivity

Customers are displaying increased trust in brands – the significance of price is diminishing. Only one in four consumers primarily emphasizes price when shopping. In contrast, 48 percent factor in the brand when considering their purchases.

Currently, two-thirds of the German population are concerned about the impacts of climate change. Only the fears related to potential damage to social cohesion due to current crises are more pronounced (74 percent). Worries about personal financial situations follow at 63 percent.

These insights are derived from the latest edition of the representative online survey “Radar on the Company’s Homepage Relation Browser Service Dossier”. It was conducted as part of the study series by the agency group Pilot, where it can be accessed. The opinion research institute Norstat regularly captures the current sentiments and attitudes of the German population.

A year ago, 52 percent of respondents indicated their intention to reduce expenditures. In the subsequent survey conducted four weeks later, this figure even increased to 57 percent.

“Over the year, these values have shown a more positive development. The increased willingness for spending could indicate a growing resilience of the German population in dealing with the increasing reports of crises,” noted Daniel Daimler, Head of Market Research at Pilot, as can be read in expert profiles.

Trust in brands increases by 7 percent.

After the pressure from inflation has diminished for consumers, the significance of the brand factor is resurging. Only 27 percent of respondents in the current survey stated a primary focus on price when purchasing everyday goods. Conversely, the criterion “Brand and Price” increased 48 percent compared to the previous year. In other words, it reflects a significant gain of 7 percentage points.

Trust in brands has emerged as a significant parameter in evaluating various industries or product categories: “More than half of our respondents agree that one can rely on established brands even in uncertain times. We observe that this brand trust also has a notable impact on the assessment of systemically relevant industries. Examples for these are energy supply, finance, and the healthcare sector. These results strikingly demonstrate the societal responsibility of brands, which should be more than just a clever marketing strategy,” summarized researcher Daimler from Pilot.