]>License! survey reveals consumers are interested in favorite brand extensions, but most aren't willing to pay extra for them. Seeking competitive advantage and additional sources of revenue, food/beverage and household appliance companies increasingly are branching out into non-core licensed product categories such as home d¯r, apparel, and collectibles. But success depends on consumers' awareness of-and loyalty to-the brand and their willingness to extend their trust-and dollars-into new product categories. Success also hinges on retailers' willingness to yield (and availability of) shelf space to well-established brands attempting to break into new product segments.To aid licensors, licensees, and retailers in their decision to move forward with a brand extension, License! commissioned research company Taylor Nelson Sofres Intersearch to survey consumers on their buying habits and their likelihood of following their favorite brands into new categories. The telephone survey of 507 consumers across the U.S. revealed that more than half of respondents said they would be likely to purchase products in new categories from a leading or their favorite food/beverage and household appliance brands. But nearly 50 percent said they would not be willing to pay one cent more for the brand name. When asked which factors would most influence their decision to buy a new product, most consumers cited quality and price, followed by a recommendation by a relative, friend, or co-worker and product availability. Consumer advertising was the least important factor for most respondents, with nearly 44 percent saying it wouldn't influence their buying decision at all.Here, the results of License!'s consumer brands survey, analyzed across several demographics including: sex, age, income, region, race, education, employment, and household size. Quality (chosen by 87 percent) was the biggest influence on consumers' decision to buy a household item made by a leading or their favorite food or beverage brand. Quality was followed closely by price (82.7 percent) and recommendation by a friend, relative, or co-worker (79.2 percent). Despite tough economic times, consumers were not overly influenced by coupons or rebates (68.3 percent) compared with the other factors. Consumer advertising exercised the least amount of influence on respondents (56.1 percent said it would influence them very much/somewhat, while 43.9 percent said it wouldn't influence them at all). Women placed slightly more importance on product availability (82.0 percent) and coupon/rebate (74.6 percent) than men (72.5 percent and 61.2 percent, respectively). The West (89.2 percent) and Midwest (88.7 percent) placed a higher emphasis on price-putting it above quality-than other U.S. regions. Recommendation from a friend, relative, or co-worker was No. 1 for non-metro consumers vs. metro ones (84.9 percent vs. 77.1 percent), who chose quality as the biggest influence. Almost half the respondents (46.9 percent) said they wouldn't be willing to pay extra for household items from one of their favorite food or beverage brands, while 2.7 percent wouldn't buy the item at all.Those earning more than $100,000 a year were particularly not willing to pay (68.4 percent) vs. 36.9 percent for those earning between $25,000 and $34,999 and 46.4 percent for those earning less than $25,000. Full-time employees were more unwilling than part-timers to pay any extra (52.3 percent vs. 36.8 percent), as were consumers with no children in the household (50.6 percent vs. an average of 37.7 percent for those with kids at home).Some 31.1 percent said they would spend less than 10 percent more, 18.6 percent of those ages 18 to 34 said they would be willing to go to between 10 and 30 percent.Of those willing to spend more than 30 percent, only the 45 to 54 age group was in the double digits with 13.5 percent. Blacks likewise were willing to pay slightly more than whites, with 15.2 percent willing to go more than 30 percent vs. 3.8 percent for whites.Consumers with less than a high school education were almost twice as willing to pay between 10 and 30 percent more (22.8 percent vs. an average of 12 percent for those with more education). Households with three or more people were more likely to spend in this range (16 percent versus 10 percent).Slightly more consumers would be more likely to buy items other than household appliances from household brands (59.3 percent) vs. items other than food or beverages from food or beverage brands (57.4 percent).Women were a little more interested than men in the non-household items (62.2 percent vs. 56.1 percent, respectively), and those in the 35 to 44 age group were dramatically more interested than those in other age groups (73.5 percent vs. 50-plus percent). Those with higher incomes-$50,000 and more-were not as enthusiastic as those who made between $25,000 and $49,999 (56 percent vs. 71 percent, respectively). Those in the South were more apt to buy these items (68.6 percent vs. an average of 53.5 for the other regions), as were blacks (70.5 percent vs. 58.5 percent for whites). High school graduates were more likely to purchase the items (67.7 percent), while those with some college education were more reluctant (44.8 percent said it was unlikely).The 35 to 44 age group was more apt to buy non-food or non-beverage items from a leading or their favorite food or beverage brand (70.6 percent vs. an average of 53.5 percent for other age groups). Those 65-plus were least likely to make such a purchase (46.5 percent), as were consumers earning more than $100,000 (34.3 percent). The South was most interested (65.6 percent), and the Midwest was least interested (47.8 percent). Those with less than a high school education were more apt to make such a purchase (64.7 percent) vs. those with some college (54.7 percent). Single-person households were less likely to buy the item (48.1 percent vs. 58 percent for multi-person homes). Households with children younger than 12 were more enthusiastic than those with no kids in the home (65.8 percent vs. 56.2 percent).Buying a new non-food or beverage product from a leading or their favorite food or beverage brand would not be an impulse purchase, according to the majority of respondents. Some 60.1 percent said they would be unlikely to buy such a product on the spot (with 34.8 percent saying it was very unlikely and 25.4 percent saying it was somewhat unlikely). Those in the 35 to 44 age group were slightly more likely to buy such a product (45.7 percent), while those in the 55 to 64 range were least likely (31.9 percent). The higher their income, the least enthusiastic the consumers were (only 22.2 percent of those making $100,000 vs. 52.2 percent of those earning $25,000 to $34,999). Those in the West were more likely to act on impulse (47.8 percent), while those in the Midwest were least likely (30.9 percent). Some 68.4 percent of blacks said likely vs. 36.1 percent of whites. Those with less than a high school education were more likely (54.8 percent) vs. those with some college (30.4 percent); part-timers were more likely than full-timers (47.9 percent vs. 37.5 percent).
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