Study finds income does not determine shoppers' private-label preference

- Only 5 percent of respondents said they don't buy store brands at all -

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Jul 24, 2014, 12:27 ET

DENVER, July 24, 2014 /PRNewswire/ -- An ongoing shopper behavior study conducted by The Integer Group^® and M/A/R/C Research shows that while income groups differ a bit on their perception about private label (highest-income shoppers are more skeptical about the quality of store brand products), their reported behaviors are very similar. Most shoppers across income groups say they regularly compare prices between private label and national brands, and most shoppers indicate they look for sales and/or coupons before exploring private-label options. This suggests that despite income, all shoppers believe in weighing their various savings options to inform their final assessment of quality over price.

When it comes to specific categories, income groups have fairly similar preferences of brands versus private-label products. The slight differences are that lower-income shoppers are more inclined toward private label in cereal, cleaning, and laundry care, and highest-income shoppers are less inclined toward store brand snacks, beverages, and ice cream. Other than a tendency toward brand-name treats in high-income households, the consistency between the lowest and highest income levels is notable.

"Though one might think that shoppers with means aren't a flight risk for brands, or that lower-income shoppers don't have any other options but private-label, our findings suggest otherwise. This means every brand needs to persuade every shopper of its worth," said Craig Elston, SVP of Insight & Strategy at The Integer Group.

For more information on private-label purchase behaviors by income and generation, download the full report of The Checkout: Private Label.

About The Integer Group
The Integer Group (www.integer.com) is one of the world's largest promotional, retail, and shopper marketing agencies, and a key member of Omnicom Group Inc. Integer lives at the Intersection of Branding and Selling^®and creates strategic marketing solutions for clients in categories that include retail, beverage, packaged goods, telecommunications, home and shelter, automotive aftermarket, and power sports. Integer has more than 1,200 employees working in U.S. locations as well as international offices in Africa, Asia, Australia, Europe, the Middle East, North and South America. Join the conversation on shopping culture and brand strategy at www.shopperculture.com.

About Omnicom
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and other specialty communications services to over 5,000 clients in more than 100 countries.

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SOURCE The Integer Group