AMAZON.COM TWICE VALUED

A new survey by Millward Brown, Value-D, uses data collected from a million consumers in 30 countries to rank the brands delivering the highest value.

The winner in both the US and internationally? Amazon.com. By a longshot. Here are the lists:

U.S. Top 10 Value-D Brands

1. Amazon 157
2. Crest 136
3. Coca-Cola 134
4. Folgers 133
5. Bud Light 133
6. Walmart 132
7. Microsoft 131
8. Colgate 130
9. Dell 130
10.  HP 129

Global top 10 Value-D brands

1. Amazon 146
2. Colgate 133
3. Nokia 128
4. Pampers 126
5. Visa 125
6. Coca-Cola 125
7. Microsoft 125
8. McDonald’s 124
9. Nescafé 120
10. Lidl 118

Amazon.com beats the competition on perceived value by wide margins. The average difference between Amazon and the second-place brand is 17 points. The rest of the brands on the list are only 1-2 points apart.

The significance of Amazon.com winning twice is underscored by the fact that only 4 out of 16 brands make both lists at any slot (the others being Colgate, Coke, Microsoft). In addition, only 4 out of 16 brands are retailers (the others being Walmart, Lidl, Dell).

Why does Amazon do so well? The methodology is one explanation. The Value-D score is calculated based on the gap between the consumer’s Desire for a brand and the consumer’s perception of the brand’s Price. Categories include location, brand, convenience, and habit. A few observations about why Amazon wins:

1. As an e-commerce player, Amazon may score better than traditional retailers on “location.”
2. In a crowded internet landscape, it stands above alternatives on “brand.”
3. With a one-stop assortment and one-click purchasing (even on mobile phones), Amazon does well on “convenience” and “habit.”

The scoring methodology is friendly to Amazon for another reason: it disfavors other consumer tech leaders. Apple lost points for high prices. Google is largely free and can’t be measured on the price dimension.

Interestingly, the other tech company on both lists is Microsoft, located only a few miles away. Score 2—no, make that 4—for Seattle.

Advertisements
Categories: Branding, Loyalty, Online | Tags: , , | Leave a comment

Post navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: