Consumers are increasingly willing to shop around for a bargain
Italian consumers are on the hunt for product value as they are exposed to more choices than ever before. Moreover, a growing number of channels to research products and information through makes it easier for consumers to find the best deals. If a product satisfies their desire, they will choose to buy a similar yet less expensive product as this is perceived as savvy spending. Catherine O'Connor, senior analyst at Canadean, says: "In the Italian dairy market, product value has become more important than brand loyalty. Dairy consumers are showing greater willingness to shop around and to take their time to evaluate alternative products to decide if they offer better value for money."
Consumers can be encouraged to trade up to value-added products
While Italians are becoming more value-orientated when shopping, they do not associate value for money simply with price. Consumers are also seen to trade up to value-added products in their favourite categories, such as indulgent full-cream yoghurt. As a result, more consumers will demonstrate a sophisticated approach in keeping their shopping bills down and will look for cheaper alternatives in non-emotive product categories, so that they can trade-up in more emotive categories. According to O'Connor: "This will encourage consumers to down-trade in their purchase of everyday dairy products such as milk, increasing the need for manufacturers to bring out more diverse product ranges in order to differentiate their brands and drive loyalty."
