• by Karl Greenberg , June 8, 2009

When the economic winds are howling and the weather gets ugly, consumers tighten their grip on brands they are loyal to; they don't run to the label with the lowest price. Brand equity does not lose potency when money is tight. So says Harris Interactive in its latest EquiTrend study.

Comfort foods and staples won the highest brand equity scores in the survey-based study that gauges consumer sentiment. The study measures 1,000 brands across 39 categories on parameters like brand familiarity, quality and purchase consideration. The study also includes a new measure on the value consumers feel they receive from a brand for the money they pay, a reflection of the economy.

The top brands were M&M's plain chocolate candy; Hershey's Kisses; Arm & Hammer Baking Soda, Reese's Peanut Butter Cups; Hershey's Milk Chocolate Candy Bars; Kleenex; Campbell's Soups; Google, M&M's Peanut Chocolate Candy; and Crayola Crayons.

The study -- which surveyed 24,446 U.S. consumers ages 15 and over in March and April this year -- asked respondents to rate 60 randomly selected brands, with 1,202 brands involved. Thus, each brand received approximately 1,000 ratings.

A brand's overall score is elaborated from scores on familiarity, quality and purchase consideration, and relevance from all respondents' responses, even from consumers who are not familiar with the brand in question.

At the bottom of the list, not terribly surprisingly, were brands tainted by the perception of moral turpitude around health and fiscal malfeasance. The firm says tobacco and financial service brands, particularly AIG, joined the ranks of these weaker brands on the bottom.

The top brands in various market segments are a panoply of premium, niche and mass-market brands, including Honda for automobiles; Subway for fast foods; KitchenAid for appliances; Coca-Cola for beverages; Microsoft for software; Sony for consumer electronics; Southwest for airlines; and Grey Goose for spirits.

Wes Brown, analyst with Iceology in Los Angeles, says the variability of brand loyalty in a down economy depends on the product category. "Logically, a large part of the population in times like this would be willing to forgo loyalty and ultimately get the cheapest thing out there," he says. "But it will be category-specific. What's a bag of M&M's cost? If that's your one indulgence, how much will that cost you?"

Brown also points out that loyalty that is driven by value isn't about price. "People stick with what they know -- so if my money is important, do I buy something I haven't used and am not too sure about and that might be cheaper, but perhaps not as good? Maybe I'm saving four or five or ten bucks, but rather than sticking with what I know, that works, I'm taking a chance."

Likewise, he says, the value of indulgence products like confection is not merely about price. "It's something you choose to reward yourself with, so you are going to buy what you like because, 'Screw it, everything else in my life may suck so why get rid of the one thing I like?'"