Insight of the Day: Product Quality Remains the Key Differentiator for Brand Choices

InsightTrendsWorld
May 29, 2024
1 min read

The Qualtrics XM Institute report highlights that product quality remains the primary factor influencing consumer brand choices globally, including in the US. While factors like customer service and low prices also play a role, the brand's societal impact is less of a priority for most consumers.

Key Findings:

Global: 61% of consumers prioritize good products/services, followed by good customer service (47%) and low prices (43%). Only 18% prioritize a company's societal impact.
US: Results are similar to global trends, with 67% prioritizing good products/services, followed by low prices (52%). Societal impact is even less important for US consumers (13%).
Age: Older consumers prioritize product quality and customer service more, while younger consumers are more likely to consider societal impact.
Income: Higher-income respondents prioritize product quality, customer service, and societal impact more than lower-income respondents, who prioritize low prices.

Implications for Businesses:

Focus on Product Quality: Investing in product quality and innovation should remain a top priority for businesses, as it is the key driver of consumer choice.
Don't Neglect Customer Service: Providing excellent customer service is crucial for retaining customers and building loyalty.
Consider Price Competitiveness: While not the top factor, offering competitive prices can still be a significant differentiator, especially for lower-income consumers.
Communicate Societal Impact (Thoughtfully): While not a primary driver for most consumers, communicating a brand's positive societal impact can resonate with certain segments, particularly younger demographics. However, it's important to avoid "purpose-washing" and ensure that any claims are authentic and backed by action.

Overall, the report emphasizes the importance of delivering high-quality products and services while being mindful of price and customer service. While societal impact is not the top priority for most consumers, it can still be a factor in brand choice, particularly for younger and higher-income demographics.