Editing Consumer behaviour (section)

=== Brand-switching ===
[[consumer switching|Brand-switching]] occurs when a consumer chooses to purchase a different brand from their regular or customary brand. Consumers switch brands for a variety of reasons including that the store did not have the regular brand or the consumer's desire for variety or novelty in brand choice. In the fast moving consumer goods market (FMCG), the incidence of switching is relatively high. A great deal of marketing activity is targeted at brand-switchers. Rossiter and Bellman have proposed a classification of consumers based on brand-loyalty/switching behaviour:<ref>Rossiter, J and Bellman, S., ''Marketing Communications: Theory and Applications'', Pearson Australia, 2005, pp 80-87.</ref>

;Brand Loyals: Purchase preferred brand on almost every purchase occasion
;Favourable Brand Switchers: Exhibit moderate preference for the brand or brands that they buy and can be readily enticed to purchase competing brands
;Other Brand Switchers: Normally purchase a competing brand, possibly because they are unaware of our brand or due to a negative experience with our brand
;New Category Users:  Those who are unaware of a category but have potential to become new users

Marketers are particularly interested in understanding the factors that lead to brand-switching. A global, large sample survey carried out by Nielsen shows that four in 10 shoppers (41%) said that getting a better price would encourage them to switch brands (or service provider/retailer), 26% said quality was an incentive to switch, 15% looked for a better service agreement and 8% said that improved features are a switching incentive.<ref>Nielsen International, ''Global Survey of Loyalty Sentiment'', 2013: [Topline survey findings], Online: http://www.nielsen.com/us/en/insights/news/2013/the-price-is-right-incentives-that-stimulate-switching-behavior.html</ref>  However, cross-cultural differences were observed among respondents. Price was the major switch incentive for more than half of North Americans (61%) and Europeans (54%) but price and quality held equal sway in Asia-Pacific and Middle East/Africa, with roughly one-third of respondents each in both regions reporting that both price and quality were the major incentives to switching.

The concept of ''switching costs'' (also known as [[switching barriers]]) is pertinent to the understanding of brand switching. Switching costs refer to the costs incurred by a consumer when they switch from one supplier to another (or from one brand to another). Although switching costs are often monetary, the concept can also refer to psychological costs such as time, effort, and inconvenience incurred as a result of switching. When switching costs are relatively low, as in the case of many fast moving consumer goods (FMCG), the incidence of brand switching tends to be higher.{{citation needed|date=December 2018}} An example of switching that includes both monetary and psychological costs is when Android or Apple users wish to switch to a different platform, they would need to sacrifice their data, including purchased music tracks, apps, or media and may also need to learn new routines to become an efficient user.

On the contrary, a key strategy to control the perception of a product to prevent brand switching through marketing is the halo effect. First coined by Edward Thorndike, the halo effect refers to the phenomenon whereby a product is viewed under a positive light because of the overall positive perception of the brand, of a concept highlighted in the marketing or related to its packaging.<ref>{{cite journal |journal=Journal of Sensory Studies |url=https://doi.org/10.1111/joss.12243 |title=Organic label's halo effect on sensory and hedonic experience of wine: A pilot study |last1=Apaolaza |first1=Vanessa |last2=Hartmann |first2=Patrick |last3=Echebarria |first3=Carmen |last4=Barrutia |first4=Jose |date=30 January 2017 |publisher=Wiley Blackwell |access-date=17 February 2025}}</ref> For example, due to the prestige of Apple as a maker of high quality products based on the success of such well-known consumer electronic products as the iPod or the MacBook, the new products of the company are perceived in a very positive light based on the halo effect of the Apple brand.<ref>{{cite journal |url=https://www.academia.edu/40683635/APPLE_INC_The_Halo_Effect |title=APPLE, INC. The Halo Effect |last=Johnson-Jacobs |first=Hadassah |date=2017 |publisher=Academia |access-date=17 February 2025}}</ref> Similarly, the products of luxury brands such as Hermes or Louis Vuitton are also influenced by the halo effect. Similarly, in the food industry, packaging that includes the words “Ecological” or “Organic,” tends to create a halo effect around the quality and healthiness of the product.<ref>{{cite journal |journal=Fashion & Law Journal |url=https://fashionlawjournal.com/the-psychology-behind-luxury-purchases/ |title=The Psychology Behind Luxury Purchases: Understanding Why Consumers Are Drawn to Luxury Fashion Items |first=Fashion Law Journal |date=11 Jan 2024 |publisher=Fashion & Law Journal |access-date=17 February 2025}}</ref>