The redefinition of value

In a recent Nielsen company case study about Greek yogurt (of all things), comes proof that stressed Americans are demanding more value from products, even if the price is somewhat higher.  The equation works like this:  heavy yogurt consumers eat and cook with yogurt primarily because they are health-conscious.  If Greek yogurt is fresher, more nutritious, and better-tasting than lower-priced brands, then Greek yogurt does a better job of providing the core value that is motivating yogurt purchase in the first place.

Still, given the weak economy, why aren't people more focused on price (i.e., so they can save money in case something goes wrong for them, as is happening in so many categories)?  The answer is two-fold.  In the first place, for heavy yogurt buyers, the product is not a discretionary purchase, but a necessary one.  Therefore it's high up on their shopping list, where price is unlikely to prevent them from making a purchase. 

Secondly, the definition of value is emotional as well as rational.  If money itself becomes (or is perceived as) scarce, then it becomes more valuable.  It becomes something you don't want to "throw away" on inferior products.  In this situation, people actually become pickier about quality--because they are just plain mad when a product they buy with their hard-earned money breaks, wears out, or even tastes inferior.

This is potentially bad news for down-price brands--watch for them to pump up their quality message loud and clear!  TJ Maxx is one brand that is emphasizing designer labels over price, showcasing in its social campaigns that you are getting great value for your money (rather than just saving "cash").

Net message?  Message value!