Online retailing giant Amazon.com balances value and desire in its products and services better than any other brand in the world, according to a new report.
Research company Millward Brown’s latest report ‘Value-D: balancing Desire and Price for brand success’, praised Amazon for creating demand for its items whilst keeping prices low.
The report shows that in a post-recession environment consumers do not just want cheap products, they want quality at a reasonable price.
Peter Walshe, Global Brandz Director at Millward Brown, said: “Too many brands fail to fully optimize their power and instead overemphasize price and downplay desire. The consumer usually desires a brand first and then considers the price to determine whether to purchase or not.
“Amazon has mastered the art of being a trusted brand that consumers want to buy goods from. Its pricing is perceived to be great value, but it is its brand power that attracts customers in the first place.”
Millward Brown used data from over one million consumers interacting with more than 7,000 brands worldwide to produce its conclusions.
According to the research only seven per cent of consumers buy on price alone, down from 20 per cent ten years ago, whereas 81 per cent regard brand as an important purchase driver.
Amazon was the only retailer to make it into the top five brands in the report, scoring an index score of 146, with Lidl the next highest at number 10 with an index score of 118.
Other high scorers included Colgate, Nokia, Pampers and Visa, with scores of 133, 128, 126 and 125 respectively.
Following the success of its own-brand e-reader product the Kindle, Amazon managed to record its first ever $10 billion (£6.25 billion) quarter in January of this year.
Walshe added: “In the current economic climate many brands worry about their prices being perceived as being too high, leading to lost business.
“Others are concerned that prices are too low leading to profit loss. What is needed is a balance between the consumer’s desire for a brand and the price they are prepared to pay for it.”