Some 15% of Hungarians are loyal to products they usually buy, well above the world average of 8%, yet the rate of Hungarians open towards trying new products has grown by more than one quarter, according to a global survey by market research specialist Nielsen.
Nielsen surveyed 30,000 people in 64 countries. In Europe, about one-third of those surveyed are keen on trying new products, actively looking for them both online and offline. The rate in Hungary is somewhat lower, standing a hair above one-fifth of those surveyed. Globally, the rate stands at 42%.
While brand loyalty in Hungary is almost twice as prevalent as in Europe on average, 63% of Hungarians tend to try new products and brands once or twice.
"The mass of consumers turning away from proven brands is increasingly mounting a challenge for large manufacturers," says Gergely Kovács, client business partner at Nielsen Hungary. "This is partly due to the so-called Amazon effect, when consumers face a range of products never seen before, with transparent prices and consumer reviews. Half of Hungarian consumers are also influenced by recommendations by friends and family in choosing brands."
Globally, consumers named a better price/value ratio as the most common reason for changing brands (39%). Domestically, this is also the leading reason (34%), followed relatively closely by discounts/price cuts (26%). Products deemed more practical and serving convenience functions better are also a common reason for making a switch in Hungary (23%).
Hungarians are most loyal to coffee, tea, household cleaning, shampoo and hair conditioning brands, usually picking between one or two usual brands. According to the survey, the majority of Hungarians mostly buy products made in the country, while 30% do not care about the country of origin.
Nielsen says that manufacturers need to rethink their marketing strategies, especially their advertising practices, in order to retain customers. Globally, one-fifth of people are entirely unaffected by TV and radio ads, and the efficiency of ads in print magazines and brochures is even lower, the survey found.