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response mechanism

Research Watch: Colloquy Gauges Global Outlook for Brand Loyalty

Posted by Barry Silverstein on November 4, 2011 11:01 AM

A new study from loyalty marketing company LoyaltyOne's Colloquy arm, sponsored by Epsilon, sheds light on current consumer attitudes toward brand loyalty in the context of current global economic challenges. The study looks at consumer attitudes in two sectors: emerging economies (Brazil, China and India) and developed economies (Australia, Canada and the U.S.). 

The study reveals how consumers in emerging markets respond differently to new brands and product opportunities than do their counterparts in developed nations. In emerging economies, 35 percent of shoppers welcome foreign brands, while only about 7 percent of consumers in developed countries felt that foreign competition was positive. In fact, 90 percent of Chinese consumers trust foreign brands over their own brands.

Consumers in Brazil and India were happier with their own domestic brands than the Chinese, but not nearly as much as consumers in developed economies. In Australia, Canada and the U.S., consumers are over twice as likely to trust their own brands versus ones from other countries.

Obviously, this presents an opportunity for well-established brands from developed nations to make significant inroads with consumers in emerging countries. This could explain why so many American brands, for example, have pursued an expansion strategy in such countries as Brazil, China and India, even as the same brands pull back and regroup in other sectors.Continue reading...

customer relationship management

Loyalty Has Its Rewards - If You Claim Them

Posted by Barry Silverstein on April 22, 2011 02:00 PM

These days, consumers can hardly make a purchase without being exposed to some kind of loyalty rewards or frequent buyer program.

They get cards punched when buying a cup of coffee or a bagel. They get "member discounts" at supermarkets. They get credits on merchandise from retailers. They accumulate points good towards free flights and hotel stays from airlines, hotels, and credit card companies.

So why aren't customers redeeming them?Continue reading...

brand strategy

Loyalty Program Helps UK Supermarket Chain Tesco Recover

Posted by Stephanie Startz on November 11, 2009 05:37 PM

British supermarket chain Tesco has been hard hit by the recession. After its October 2007 peak, the grocer suffered a swift descent as rivals capitalized on consumer demand for thrift.

But happy days are here again for Tesco, thanks to improved benefits offered by its Clubcard loyalty program. After doubling the points accrued by members, the chain watched its sales growth rate climb 4.7%, and their growth in market share increase by 4.4%.

The retooling of the Clubcard program doesn’t just benefit consumers; Tesco uses the program to collect detailed data about shopper’s habits and preferences. Tesco expects more rewards from the Clubcard program in the coming weeks, as shoppers receive vouchers in the mail in time for the holiday season.Continue reading...

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