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Amazon best for balancing desire and price - research

Categories: Market Research
Amazon best for balancing desire and price - research

As a brand, Amazon balances desire and price better than any other in the world, according to new research from WPP-owned Millward Brown.

The ‘Value-D: balancing Desire and Price for brand success' report, which was created in conjunction with The Futures Company, finds that the online retailer is balancing its brand perception with its pricing strategy effectively

The report, which uses shopper data from the BrandZ rankings, reveals that in this “post-recession world where cautious spending is the norm”, just 7pc of consumers buy on price alone, but 81pc regard brand as an important reason to purchase.

"In the current economic climate many brands worry about their prices being perceived as being too high, leading to lost business," said Peter Walshe, global BrandZ director, Millward Brown. “Others are concerned that prices are too low leading to profit loss. What is needed is a balance between the consumer’s desire for a brand and the price they are prepared to pay for it. This new report will help brands to see where there is a shortfall and how to increase sales potential.”

The Value-D research separates brands into cheaper ones or more expensive. According to Millward Brown, low-priced brands can still be perceived to be a "poor value" if they don’t create desire.  Conversely, even in price-sensitive categories, brands that generate strong desire are seen as "great value". More expensive brands, meanwhile, can justify their premium or simply be too expensive. The company said any score over 100 is considered to be strong as it indicates the optimum value mix of price and desire.

"Too many brands fail to fully optimise their power and instead overemphasise price and downplay desire," said Walshe. “The consumer usually desires a brand first and then considers the price to determine whether to purchase or not. has mastered the art of being a trusted brand that consumers want to buy goods from. Its pricing is perceived to be great value, but it is its brand power that attracts customers in the first place.”

Global top 10 Value-D brands

BrandValue-D scoreBrand Type
1. Amazon146Great Value
2. Colgate133Great Value
3. Nokia128Great Value
4. Pampers126Justified Premium
5. Visa125Great Value
6. Coca-Cola125Justified Premium
7. Microsoft125Justified Premium
8. McDonald's124Great Value
9. Nescaf120Great Value
10. Lidl118Great Value
Categories: Market Research

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