DISCOUNTS, BRAND TRUST ARE MOST EFFECTIVE AT DRIVING SPONTANEOUS CPG PURCHASE - NEW AD AGE/KNOWLEDGE NETWORKS STUDY

Survey assesses the factors behind unplanned buying; also covers promotion packaging, in-store media

Menlo Park, CA; February 9, 2004: When primary grocery shoppers decide spontaneously to purchase a CPG product, discounted prices and trusted brand names are the factors most likely to influence their choices; that is among the findings of a new Advertising Age /Knowledge Networks survey.

The study was conducted on the nationwide Knowledge Networks panel—the only online consumer panel based on a projectable statistical sample—in conjunction with Advertising Age's special February 9th section on in-store marketing of consumer packaged goods (CPG). Respondents do all or most of the grocery shopping in their households.

When asked to choose a single factor most likely to influence a spur-of-the-moment CPG purchase, 53% cited a sale or discount, while 11% chose "a brand name I trust." Having a coupon was selected by 8%, and a recommendation from a friend or family member by 6%.

Among five common packaging tactics, providing extra product for "free" was reported to be most effective (61%) at inspiring spontaneous purchases, followed by featuring product benefits on the package (20%). Use of a celebrity picture or endorsement was chosen by 0% of respondents.

The survey also asked consumers about a variety of in-store media and promotion strategies. Although 23% of respondents said they have noticed TV sets with advertising in the store where they do most of their grocery shopping, only 6% who have seen them report that these ads have influenced their purchase decisions. Similarly, advertising projected or attached to the store floor has been noticed by 21% but has influenced the purchases of just 3% of that group.

Knowledge Networks delivers quality you can use—superior methodologies, design, and analysis that give you an edge when it comes to making business decisions. KN's unmatched consumer research resources include the only projectable Web-based consumer panel. The company leverages its expertise in brands, media, advertising, and analytics to provide insights that speak directly to clients' most important marketing issues. In addition, Knowledge Networks has built a substantial practice in government and academic research, an area notable for its rigorous methodology standards.