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Friday, September 07, 2018

Consumer Loyalty and Amazon Dominance

Hmm, quote something to worry about for big CPG.    All that money they have spent over the years in establishing loyalty can be overridden, depending on product category?  Meaning of band equity?

How Amazon’s dominance in consumer packaged goods can help score brand loyalty  By Tomi Kilgore in MarketWatch

Consumers are most loyal about laundry and diaper brands, least loyal about trash bags and paper towels  ...  

Amazon.com Inc.’s dominance in the consumer packaged goods space can teach Wall Street a lot about brand loyalty in a e-commerce world, with search trends suggesting consumers tend to stick with their favorite laundry, diapers and adult continence brands, according to AllianceBernstein.

Where consumers are least loyal, is when they look to buy trash bags, paper towels and cat litter.
Amazon’s AMZN, -0.05% retail platform in the U.S. is estimated to have driven about 80% of online consumer packaged goods growth. With that in mind, analyst Ali Dibadj said Bernstein firm developed a way, using some outside sources -- “and an excellent millennial summer associate” -- to track search volume of keywords and brands. A “Relative Search Volume” score was created, he said, to gauge how important a specific brand is to shoppers in a broader category. .... "

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