Google research finds consumers are more loyal to brands than to retailers

Rakshnna Pattabiraman

20th Mar 2023

Australian consumers are more loyal to product brands than to retailers, according to new research.

Google Australia along with research and statistics consultancy The Behavioural Architects, studied 1000 consumers across five categories to “better understand” how people decide where to buy things from.

The study found that one in two shoppers will switch to their second-choice retailer while only one in four will switch to their second-choice product brand.

Likewise, more than 60 per cent of retail searches in Australia and New Zealand are for products or product brands compared with retailers.

The research also explored the term ‘Messy Middle’ which gives a “unique insight” into the brand versus retailer relationship.

Renee Gamble, MD at Google Australia, said: “It’s clear that product has a powerful position in the minds of Australian consumers.

“With the cost of living pressures in the background, people are re-evaluating not only the price tag but also what value means to them more broadly.”

The study suggested employing behavioural science principles in marketing strategies to influence human buying decisions.

Marketers and retailers are encouraged to reduce delivery friction, offer free ‘add-ons’, share positive customer reviews, expert reviews and highlight key product features in listings to enhance consumer preferences.

“Applying behavioural science principles can help consumers make better decisions, and have a strong impact on preference,” said Gamble.