Epsilon: Friends and families are main driver on purchasing decision in Hong Kong

Dominic Powers, senior VP of Asia-Pacific at Epsilon, says that among all the researched industries, consumer behaviors in the airlines booking, insurance and consumer packaged goods (CPG) sectors are influenced most heavily by brand reputations between friends and families (F&F).

Approximately 70 per cent of those surveyed in these three sectors use F&F as information source on their next purchase.“Marketers are operating in increasingly competitive and transparent markets where the proliferation of different communication channels, empowers consumers like never before,” said Powers.

Search engines, product review websites and discussion forums account for up to 23 to 45 per cent of where Hong Kong consumers gather information.

In terms of media usage, 56 per cent of the first time insurance buyers recall brands before purchase from TV commercials. Meanwhile, 39 per cent recall from print ads and 30 per cent from direct email or postal mail from the brands. Email is the most preferred medium for receiving information on the insurance sector.

About 51 per cent of the survey respondent ‘definitely know’ which airline to take, the main reason being they have had good experience with the brand before. In terms of recall, 70 per cent of consumers say TVC and print ad drive high brand recall, although only 27 per cent to 33 per cent saiy the the two media influence their purchase decision.

For CPG, 81 per cent of respondent shop in supermarkets, 56 per cent in personal care stores and 45 per cent in drug stores. Pricing and quality of products are the main driver behind CPG purchases.

The most influential way of reaching both males and females in Hong Kong is using in-store displays. The channel is head of TVCs and print ads, generating nearly 60 per cent (for females) and 38 per cent (males) of recall.

The Epsilon reports highlights loyalty or reward programs in Hong Kong generate little satisfaction for CPG consumers. with 82 per cent of respondents 'mildly to not satisfied nor unsatisfied’ with the programmes. Powers suggested CPG marketers not to invest blindly into this promotional medium.

Seperately, brand advocate scores low in China, reflecting that consumers are not likely to recommend brands or products to others. Insurance and paid subscription publications had the lowest brand advocate scores at 43 per cent and 39 per cent respectively. The highest score goes to online travel service with 60 per cent.

Powers also said: "Marketers in China must quickly improve the customer experience by better engaging with consumers throughout the purchase process and thereafter.”

The Consumer Experience Marketing Study is broken down into different markets in Asia-Pacific: Hong Kong, China, Australia, Japan, Singapore and India. Data on each markets are progressively launching. Access the full report at www.epsilon.com/apac.CEMreport.