Amazon is top Value-D brand in the world, according to Millward Brown research
14 March, 2011
— New consumer research launched today by brand research company Millward Brown reveals that Amazon is the most Value-D brand in the world. The online retailer is balancing its brand perception with its pricing strategy effectively, according to a new report entitled: ‘Value-D: balancing Desire and Price for brand success’.
The Value-D report was created in conjunction with The Futures Company and shows that in this post-recession world, where consumers’ cautious spending is the norm, price alone is not enough to attract consumers. On average only seven percent of consumers buy on price alone, but 81 percent regard brand as an important reason to purchase.
“In the current economic climate many brands worry about their prices being perceived as being too high, leading to lost business. Others are concerned that prices are too low leading to profit loss. What is needed is a balance between the consumer’s desire for a brand and the price they are prepared to pay for it. This new report will help brands to see where there is a shortfall and how to increase sales potential,” said Peter Walshe, Global BrandZ Director, Millward Brown.
The Value-D research separates brands into cheaper ones or more expensive. Low-priced brands can still be perceived to be a “Poor Value” if they don’t create desire. Conversely, even in price-sensitive categories, brands who generate strong desire are seen as “Great Value”. The more expensive brands can justify their premium or simply be too expensive. Any score over 100 is considered to be strong as it indicates the optimum value mix of price and desire.
Value-D is a special analysis from the BrandZ database, which measures thousands of brands across 20 countries. Global top 10 Value-D brands
Source: Millward Brown
||Brand Type |
||Great Value |
“Too many brands fail to fully optimize their power and instead overemphasize Price and downplay Desire. The consumer usually desires a brand first and then considers the price to determine whether to purchase or not. Amazon.com has mastered the art of being a trusted brand that consumers want to buy goods from. Its pricing is perceived to be great value, but it is its brand power that attracts customers in the first place,” commented Peter Walshe, Global BrandZ Director, Millward Brown.
The full report is available exclusively to WPP clients, but a summary version can be accessed at www.millwardbrown.com