aspirational brand attraction looks like this

One of the more common ways we can misidentify a brand’s potential market share is to overestimate how many non-customers are actual prospects.  In many categories, aspirational attraction or desire is a real issue as people report wanting to or being willing to purchase a brand.

We recently worked in a retailer category using the ConsumerEquity model which measures consumer-based brand equity.  One of the premium retailers in the study had the following results for non-customers.  Two-hundred and four (204) survey respondents said they were not buying but would consider buying from this retailer.

We ran the ConsumerEquity model which uses two measures related to the brand – a rational measure for how good the brand is relative to alternatives and an emotional measure for how desirable the brand is relative to competitors.  The resulting consumer equity score for these non-customers showed that only 90 of the 204 were true prospects for the brand while the remaining 114 consumers were false prospects.  Remembering that our model includes behavioural, demographic or other attitudinal information as profiling variables only, we knew that we should see significant behavioural and attitudinal differences if we were correct about who was a true or false prospect.

 True Prospects

False Prospects

Difference
# who said they would consider purchasing the brand

 (n= 90)

(n= 114)

ConsumerEquity Score

61

4

-57

% who say they actually visited a store

100%

24%

-76%

% who say cost is their 1st/2nd most important factor

33%

53%

+20%

% who say this brand fits their budget expectations

42%

20%

-22%

Expected budget for their purchase

$4,800

$3,900

-$900

Average household income (customers are $109,000)

$110,000

$97,000

-$13,000

The ConsumerEquity score easily identified those who were true brand prospects, making our estimate for this retailer’s market potential realistic.  Only a small number of the false prospects actually visited the store and their budget expectations and sensitivity to price reveals that although they would like to buy from this store, they are not really potential customers.

For more information about the ConsumerEquity model contact Ken Mison at 647.631.3925 or kenmison@rsginc.net.