Brands are the backbone of every industry out there. While most brands are luxury and some of their items are not even worth the ginormous price tag, they depend on the rich consumers they get because of the status that their products provide. Now, this phenomenon of buying from a couple of specific stores only is called being a loyal customer, but in recent years, the amount of people now avoiding buying from the brands they used to buy from regularly has decreased, leading to a recession.
What is a recession you may ask; well, a recession is when the amount of something starts dropping by a considerable amount. In this case, many major brands have been facing a loyalty recession-a drop in the number of loyal consumers. While the professionals of the economy aka economists have not declared this as an official recession, the customers of America have done it themselves, an ongoing study being conducted by Brand Keys reveals.
The study says that almost 70 percent of buyers believe that a recession is already here despite what the experts might think. The study analyzed customer loyalty in 39 brand categories and some of the categories investigated were:- Airlines, Appliances, Beverages (non-alcoholic), Credit Cards, Electronics, Gasoline, Hotels, Insurance, Investments, Online, OTC, Pharmacy, Casual Dining, Retail, Streaming Video, Utilities
We know what must be going on in your mind, and that there are many factors such as Inflation, Supply, and demand that affect business; however, consumer loyalty is a very different thing and works very differently from the reasons mentioned above.
The study also says that brands from the United States might be advancing head first into a recession of loyalty towards specific brands or stores because of the way that their marketing department is dealing with the economic recession.
According to a chart made using data from the study, 38% of the categories that were examined have already begun to see that the loyalty of their consumers has been decreasing, while another 44% have been having their consumer loyalty increase. The 18% left are in the same state neither going up nor down.
H/T: MND
Read next: YouGov Conducted A Study To Gauge The Amount Of News And Current Affairs Consumption Via Social Media
What is a recession you may ask; well, a recession is when the amount of something starts dropping by a considerable amount. In this case, many major brands have been facing a loyalty recession-a drop in the number of loyal consumers. While the professionals of the economy aka economists have not declared this as an official recession, the customers of America have done it themselves, an ongoing study being conducted by Brand Keys reveals.
The study says that almost 70 percent of buyers believe that a recession is already here despite what the experts might think. The study analyzed customer loyalty in 39 brand categories and some of the categories investigated were:- Airlines, Appliances, Beverages (non-alcoholic), Credit Cards, Electronics, Gasoline, Hotels, Insurance, Investments, Online, OTC, Pharmacy, Casual Dining, Retail, Streaming Video, Utilities
We know what must be going on in your mind, and that there are many factors such as Inflation, Supply, and demand that affect business; however, consumer loyalty is a very different thing and works very differently from the reasons mentioned above.
The study also says that brands from the United States might be advancing head first into a recession of loyalty towards specific brands or stores because of the way that their marketing department is dealing with the economic recession.
According to a chart made using data from the study, 38% of the categories that were examined have already begun to see that the loyalty of their consumers has been decreasing, while another 44% have been having their consumer loyalty increase. The 18% left are in the same state neither going up nor down.
H/T: MND
Read next: YouGov Conducted A Study To Gauge The Amount Of News And Current Affairs Consumption Via Social Media
