Posted in Marketing and Strategy Terms, Total Reads: 2504
Definition: Brand Preference
One of the most commonly used metrics of brand performance and brand strength, brand preference characterizes which brand/product/service is preferred under assumptions of equal price and availability. Brand preference can be considered an indicator of the effectiveness of the company’s marketing strategies, customer loyalty, and heterogeneity of consumer choices.
For example, if Britannia Pure Magic and Sunfeast Dark Fantasy (say, chocolate flavor in both cases) are equally priced at Rs. 20 (50gm packet) and are equally available and 70% of the consumers select Pure Magic over Dark fantasy, it signifies a preference towards the Pure Magic brand. The inherent idea is actually to be able to forecast the brand preference of a customer- would he choose Pure Magic or Dark Fantasy given his demographics and personality? While some consumers would swear by the taste of Pure Magic, some would say Dark Fantasy’s attractive packaging influences their preference.
Preference, in marketing, signifies desirability or selection of an alternative. Brand preference can be further seen as a consumer’s predisposition towards a brand that varies according to the cognitive, affective and conative effects that the brand has had on the consumer. In simple words, it implies consumer’s biasness towards a certain brand as a result of the consumer’s rational, emotional or behavioral responses towards the brand proposition and marketing strategy. In fact, in a practical scenario, more often than not, brand preference indicates a desire to seek out a specific product or service even if it implies paying more or expending more effort to find it!
Understanding the pattern of consumer preferences can be critical for a brand’s success. In order to drive preference towards a brand, marketers strategize to improve top of mind awareness (TOMA) and to increase the probability that the brand is included in the consideration set. But most importantly, to be preferred over others, a brand must beat the competition in at least one of the dimensions that define the product category and be as good as others in other aspects.