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Grow Your Business Technology

For Smartphone Users, Mobile Deals Trump Brand Loyalty

Mobile smartphone promotion . / Credit: Mobile promotion image via Shutterstock

Consumer brand loyalty goes out the window when grocery and drugstore shoppers are offered in-store promotions on their smartphones, a new survey shows.  The least brand-conscious group consists of 25- to 34-year-old shoppers, with 82 percent saying they would switch brands if they received a mobile offer for a competing product while in a store.

Overall, nearly three quarters of shoppers in all age groups said they would switch brands if offered real-time mobile promotions delivered to their smartphones while shopping in a store, according to a nationwide survey of more than 1,000 shoppers sponsored by AisleBuyer, an in-store mobile commerce provider.

This should probably not come as a surprise. Smartphone grocery and drugstore shoppers are a notoriously fickle lot to begin with. Though 81 percent of smartphone owners go to grocery and drugstores prepared with a list of items to buy, only 8 percent list specific brands to purchase, the survey found. This indicates that a large majority of shoppers are making brand decisions while they are in the store aisle, providing a unique opportunity for brands and retailers to influence pre-purchasing decisions via a customer’s smartphone.

[Consumer Loyalty Is Endangered Species, Survey Finds]

When it comes to receiving in-store promotions for items they were already shopping for, almost all (90 percent) of 25- to 34-year-old smartphone users say, "Bring it on," the survey found. In-store, shoppers' purchasing decisions are based on price/everyday low value (76 percent), promotions/getting the most for their money (58 percent) and coupon availability (51 percent).

Brand loyalty was listed as a purchasing consideration by 38 percent of respondents.

“For years, brands have relied on traditional in-store shopper marketing tactics such as endcap displays, dump bins and sampling programs to influence the purchase decisions that are being made in the store aisle. But today’s shopper has become increasingly tech-savvy, and brands need to adapt their age-old strategies to remain competitive in our new online world,” said Andrew Paradise, AisleBuyer’s CEO. “Given that a majority of shoppers enter stores with only rough shopping lists, they are incredibly impressionable when they are in the aisle. As brand marketers look for new ways to feature their products when shoppers are considering the competition, they should look no further than something consumers already have in hand – their smartphones.”

Reach BusinessNewsDaily senior writer Ned Smith at nsmith@techmedianetwork.com. Follow him on Twitter @nedbsmith.

Ned Smith

Ned was senior writer at Sweeney Vesty, an international consulting firm, and was Vice President of communications for iQuest Analytics. Before that, he has been a web editor and managed the Internet and intranet sites for Citizens Communications. He began his journalism career as a police reporter with the Roanoke (Va.) Times, and was managing editor of American Way magazine and senior editor of Us. He was a Captain in the U.S. Air Force and has a masters in journalism from the University of Arizona.