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Is ‘Made in the USA’ Motivating in Personal Care?

January 1, 2014

The latest shopper research survey conducted by Perception Research Services (PRS) indicates that shoppers are motivated by “Made in the USA” claims on packaging, as most say that they are more likely to purchase a product after noticing the “Made in the USA” claim on it.

While this claim has resonated with baby boomers in the past, it is now influencing millennials more so than in prior years, noted PRS.
According to the Boston Consulting Group’s (BCG) Center for Consumer and Customer Insight, US millennials are receptive to cause marketing and are more likely than non-millennials to purchase items associated with a particular cause (37% versus 30%).

Consistent with 2012 data, the PRS study shows that the primary reason shoppers claim they are more likely to purchase “Made in the USA” products is to “help the economy.” 

Another reason many shoppers claim to prefer “Made in the USA” products is because they are perceived to be higher quality and worth a higher price. According to the BCG, “when considering similar products made in the US vs. China, the average American is willing to pay up to 60% more for US made products.” 

However, this may vary greatly based on the specific product category.

For the shoppers in the cited study, the majority of products they say they would prefer to purchase if American-made were food, medicine and personal care items, suggesting that quality and safety may be the true motivating factors, noted PRS. This may be, in part, because for these lower priced items, the cost savings may not be substantial enough to sacrifice quality.

“Manufacturers of American-made products would do well to clearly state this fact as it is a meaningful point-of-difference. This is certainly true if all else is equal, and in some cases, could provide a sufficient level of quality assurance to justify a higher price,” stated Jonathan Asher, executive vice president of PRS. “As millennials enter their peak purchasing power years, it will benefit manufacturers to provide more “Made in the USA” products, and overtly tout this claim, as this group is likely to be increasingly interested in buying American.”

More info: www.prsresearch.com

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