No correlation between advertising and commitment for fast-food firms
The Conversion Model™, the South African developed psychological market research tool that measures a consumer's commitment to a product or service, has been used in a new study conducted by TNS Intersearch. The study shows that fast-food firms' big budgets don't necessarily buy consumer loyalty.
The study, based on Internet responses from 1600 customers, found that the most loyal patrons tend to frequent the chains with modest advertising budgets. Two sandwich chains, Panera Bread and Subway Restaurants, scored the highest level of commitment, with 12% of their consumers wedded to the brand. Meanwhile, the category's biggest spenders, McDonald's and Burger King had consumer commitment levels of 6% and 4% respectively.
Panera Bread had among the smaller advertising spend, according to a sister unit of TNS Intersearch that tracks ad spending. Subway spending was higher, but nowhere near the amounts spent by McDonalds and Burger King.
The study also found that only 41% of customers say they are committed to the stores where they eat most often, which is far less than the commitment other consumer products enjoy. According to further Conversion Model studies, a massive 79% of cigarette users, 78% of beer drinkers and 71% of coffee drinkers say they are committed to the main brand they use.
The study, which has a margin of error of plus or minus 2.5 percentage points, found that 17% of fast food consumers are single-minded and prefer one brand above all others, 24% choose brands out of convenience and habit, 25% spread their money across several brands, 27% don't care where they eat and 7% care but don't like fast food choices.
All in all, it looks like the survey is likely to give big-spending fast-food marketers heartburn.
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Pamela Westaway
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