• by Jack Loechner , Staff Writer @mp_research, July 16, 2009

According to the latest research from Epsilon Targeting, 59% of Americans forsake pre-recession favorite food and household brands for store brands, but only 12% switch for child care products. 86.5% of consumers say the grocery store is the primary focus of their coupon efforts.

The study of 1,530 American consumers reveals the percentage who have switched to store brands and away from national brands in the past six months:

• 59% for food and household products
• 48% for health products
• 48% for personal care products
• 23% for pet care products
• 12% for child care products

In the category of over-the-counter medicinal healthcare items, survey responses show a direct correlation between severity and specificity of ailment and openness to switch. Consumers in each category who have switched to less expensive store brands and away from national brands in the past six months confirm the the "less-risk-means-more-switch" trend:

• 42.2% switched for general pain relievers
• 31.7% for cold and cough medicines
• 30.8% for allergy remedies
• 21.5% for heartburn medication

Warren Storey, ICOM Marketing Director, said "Perceived risk... is driving these key consumer decisions... the kind of insight that national brands can use to reach customers with promotions that meet their needs... "

A  separate ICOM/Epsilon survey in April established the grocery store as the epicenter of the American consumer's coupon activity, with 86.5% of respondents saying they had used coupons in the last month, identifying the grocery store as the place of redemption. The grocery far outpaced its closest competitors, which included:

• Restaurants at 46.5%,
• Department stores and mass merchants at 41.3%
• Drug stores at 34.9%

86.8% of respondents in the April survey said they are using the same amount or more coupons than they used a year ago. 33% said they're using more coupons than a year ago.

This shows, says Storey that "... for national brands is that there is... an opportunity to win back customers who have switched... depend(ing) on knowing who is switching and why... "

Survey respondents also said that customer loyalty rewards supporting basic household purchasing are the most appealing:

• 70% of respondents said they're interested in getting rewards at the grocery
• 60.7% said gasoline
• 41.2% say retail stores  
• 40.3% want household products rewards
• 29.3%. prefer travel

For additional information from Epsilon, please visit here.