4 factors that influence Filipinos' decision to buy
MANILA, Philippines - Filipino consumers are more likely to stick to brands they know and buy products if these are accompanied by freebies.
This was according to a Nielsen online survey of over 29,000 internet respondents in 58 countries.
The survey results, which were released on Tuesday, July 2, also showed that advertising — especially on TV — strongly influences Filipino respondents’ preference for a brand.
Below are 4 key insights from the online survey:
1. Filipinos love freebies
About 76% of Filipino respondents said they are more attracted to buy products that come with free gifts.
“The allure of good product promotions is strongest in developing countries such as the Philippines where practicality and creativeness are needed in order to stretch the budget," explained Stuart Jamieson, managing director at Nielsen Philippines.
"Filipinos may be ready to spend but still they are on the lookout for the best deals and promos. Offering extras or gifts to consumers will get them to buy a product over another," he added.
Other developing countries trailing behind respondents from the Philippines lured by freebies are Vietnam (75%) and Greece (74%).
The Philippines exceeds the world average of 58% and Asia Pacific region's average of 61%.
2. Filipinos shop around, loyal to brands
About 77% of Filipino respondents said that they usually have preferred brands and types before buying.
This is higher than the global average of 67% and the Asia Pacific region's 69%. The Filipino respondents came only second to India which had 80% respondents who agreed.
“In this report, we found out that Filipino consumers seldom switch to another brand and remain devoted to their favorite shampoo (63%), deodorant (56%) and coffee (53%) brands,” notes Jamieson.
This does not jibe with observations recently shared by a casual dining restaurant. An official of Pancake House Inc has told Rappler that the average Filipino consumer is open to new concepts but not very loyal.
The Nielsen survey acknowledged this. About 79% of the Filipino respondents shop around to buy the most value-for-money product.
3. TV remains main source of product info
Television remains the main source of product information for Filipino respondents for items, such as
- cosmetic/skin care
- food and beverage
- personal care
- health care/medicine
- household product
- home appliance
Online sources, however, lords all other sources of information for other products like cars.
Magazines are the favored source for jewelry and in-store display and promo packages for clothing items.
4. Advertising influence brand
Respondents from the Philippines (78%) and Korea (79%) said commercials increased their brand preference.
The two markets contributed to Asia Pacific's score (67%) as having the most consumers in the world saying that advertising influences their preference for a brand.
About 73% of Filipino respondents agreed that the image created by advertising influenced their decision to buy a product. This is 9 points more than the region's 64% average.
Liking the commercial and deciding to buy the product, however, are two different things for Filipinos. Only 48% of Filipino respondents agreed that they would buy a product because they liked its commercial. The Asia Pacific average was 51%.