Customers are reluctant to purchase from new brands because it may seem risky, explaining why repeat buying is high.
According to a SME Commspoint Journey research, 85% of the purchases made across 80 different categories were made by customers who had used the brand in the past. While 11% of shoppers report feeling anxious when buying from a brand they have associated with before, 22% of them feel nervous when buying from a new brand.
Consumers refer to multiple sources to assess a brand’s trustworthiness, before completing a purchase. Compared to reviews and recommendations, brand advertisements are cited more frequently as a helpful resource during a customer’s purchase journey.
The study found 18% of first-time buyers remember using reviews during their purchase journey. 33% of them reported using recommendations and 45% claimed to be influenced by advertising. Sponsorships, newspaper ads and advertising before movies are among the most trustworthy channels. Comparatively, ads on social media, in mobile text and on online banners are less trusted by consumers.
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[3 minute read]