Introducing Market Reports—search the largest database of commercial real estate market reports.

Why Brand Loyalty Drives Consumers to Pay More

Brand loyalty leads consumers to pay up to 25% more, driven by consistent quality, experience, and emotional connection
Brand loyalty leads consumers to pay up to 25% more, driven by consistent quality, experience, and emotional connection.
  • Consumers are willing to pay 25% more for brands they trust.
  • Positive experiences and product consistency fuel brand loyalty.
  • Nostalgia influences buying decisions but everyday value matters more.
  • Nearly 75% of US consumers stay loyal despite rising prices.
Key Takeaways

Familiarity Breeds Loyalty

According to the study conducted by UserTesting in partnership with Talker Research, more than two-thirds of consumers across three major markets—the U.S., UK, and Australia—demonstrate a strong preference for familiar brands. On average, U.S. consumers are loyal to six brands, with the most devotion seen in categories like grocery, clothing, electronics, and footwear, per Retail Dive. This enduring preference underscores how brand loyalty shapes consumer behavior—even when faced with rising costs.

Price Isn’t Everything

“Price matters, but it’s not everything,” said Bobby Meixner, senior director at UserTesting. Especially in times of economic uncertainty, consumers are less likely to take chances with unknown names. Instead, they stick with brands that consistently deliver, even if it means paying more.

That’s especially true in sectors where trust and personal investment run high. US shoppers said they’d tolerate the highest price increases for gaming, jewelry, watches, and fitness brands.

Nostalgia + Experience = Loyalty

While pricing is important, emotional connections also play a significant role. The study found that nostalgia influences purchasing behavior—with a strong majority of US consumers gravitating toward brands that remind them of childhood. However, reliable, everyday experiences are ultimately what win out in the long run and help strengthen long-term brand loyalty.

Why It Matters

For brands looking to deepen customer loyalty and justify higher price points, the message is clear: invest in the customer experience. By delivering on product quality, maintaining consistent service, and engaging meaningfully with their audience, brands can secure long-term relationships—even in a cost-conscious market.

What’s Next

As economic pressures mount, expect to see more brands double down on experience-driven marketing and brand storytelling. With consumers willing to pay a premium for trust and reliability, the brands that connect authentically and consistently will thrive.

RECENT NEWSLETTERS
View All
60,000 Households at Risk as Pandemic-Era Housing Aid Runs Out
April 23, 2025
READ MORE
Sunbelt Under Pressure as Multifamily Deliveries Peak
April 22, 2025
READ MORE
Blackstone’s Real Estate Returns Sag Amid Trade War Headwinds
April 21, 2025
READ MORE
Prologis Cools Its Forecast as Tariff Tensions Shake Warehouse Market
April 18, 2025
READ MORE
CRE Daily - No Cap

podcast

No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.