Nielsen: Global Consumers More Likely to Buy New Products from Familiar Brands

  Nielsen: Global Consumers More Likely to Buy New Products from Familiar

  Nearly Two-Thirds of Global Survey Respondents Wait for New Products To Be
                           Proven Before Purchasing

Business Wire

NEW YORK -- January 22, 2013

Sixty percent of global consumers with Internet access prefer to buy new
products from a familiar brand rather than switch to a new brand, according to
a new study from Nielsen, a leading global provider of information and
insights into what consumers watch and buy.

The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than
29,000 Internet respondents in 58 countries^1 and shows that brand familiarity
is one of several key characteristics that resonate strongly with consumers

“Innovating on established brands that are already trusted by consumers can be
a powerful strategy,” said Rob Wengel, senior vice president, Nielsen
Innovation Analytics. “Companies spend millions of dollars on new product
innovation, yet two out of every three new products will not be on the market
within three years. Marketers and retailers can deliver successful new
products by ensuring they uncover unmet consumer needs, communicate with
clarity, deliver distinct product innovations, and execute an optimal
marketing strategy.”

Attributes of New Product Success

Half (50%) of global respondents say they are generally willing to consider a
new product purchase, with respondents in North America and the Middle
East/Africa (57%) most enthusiastic about making a switch. Nielsen’s survey
shows that value and proof-of-concept make a difference: more than two-thirds
(64%) of respondents say they would consider value or store-brand options, and
two-thirds (60%) will wait until a new innovation has proven itself before
making a purchase.

“Consumers are enthusiastic about adopting new product innovations but
somewhat apprehensive about embracing new brands,” said Wengel. “In order for
consumers to adopt new brands, marketers need to launch very strong awareness
and trial-building campaigns, supported by a positive product experience.
Generating positive word-of-mouth endorsements are important, because negative
experiences can significantly diminish the likelihood of new product success.”

Economic factors also play a role in purchase decisions, as 45 percent of
global respondents report that challenging economic conditions make them less
likely to try a new product. Four in 10 respondents (39%) indicate a
willingness to pay a premium price for a new product.

Nielsen’s survey shows that distinctions exist with regard to preferences for
local and global brands. Forty percent of global respondents say they are
partial toward local options, with North Americans most in favor of local
brands (47%). Asia-Pacific respondents are less likely to make a local
purchase – more than one-quarter (26%) say they do not prefer to buy local
brands over large global brands.

Importance of a Mixed Media Approach

Nielsen’s review of 21 methods to reach consumers across various media and
advertising platforms shows that a mix of word-of-mouth communication,
traditional advertising, and Internet activity are the most persuasive ways to
drive awareness. However, potential reach and ease of execution varies

While 77 percent of global respondents say word-of-mouth advice from family
and friends are the most persuasive source of new product information, active
Internet searching (67%), and traditional television advertising (59%) remain
influential. Globally, respondents say the Internet is very or somewhat
important when making a new product purchase decision for food and beverages
(62%), personal hygiene categories (62%), personal health/over-the-counter
medicines (61%), and hair care categories (60%).

“There is no one-size-fits-all approach to successfully developing and
marketing a compelling new product,” said Wengel. “By focusing on unmet needs,
creating a distinct solution, and developing a market-ready offer, marketers
and manufacturers will create the best opportunity to ensure their product
delivers on core demand insight and is ultimately adopted by consumers.
However, ensuring consumers are aware of the product and can find it on store
shelves is just as critical as coming up with that winning new product idea.”

About the Nielsen Global Survey

The Nielsen Global Survey of New Product Purchase Sentiment was conducted
between August 10 and September 7, 2012, and polled more than 29,000 online
consumers in 58 countries throughout Asia-Pacific, Europe, Latin America, the
Middle East, Africa, and North America. The sample has quotas based on age and
sex for each country based on their Internet users and is weighted to be
representative of Internet consumers and has a maximum margin of error of
±0.6%. This Nielsen survey is based on the behavior of respondents with online
access only. Internet penetration rates vary by country. Nielsen uses a
minimum reporting standard of 60-percent Internet penetration or 10M online
population for survey inclusion. The Nielsen Global Survey, which includes the
Global Consumer Confidence Index, was established in 2005.

About Nielsen

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement
company with leading market positions in marketing and consumer information,
television, and other media measurement, online intelligence, mobile
measurement, trade shows, and related properties. Nielsen has a presence in
approximately 100 countries, with headquarters in New York, USA, and Diemen,
the Netherlands. For more information, visit

^1 Findings based on respondents with online access across 58 countries. While
an online survey methodology allows for tremendous scale and global reach, it
provides perspective on the habits of existing Internet users, not total
populations. Survey responses are indicative of respondent’s beliefs about
their purchasing habits rather than actual measured data.


Jennifer Frighetto, 847-605-5686
Elizabeth Wolf, 646-654-5825
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