LevaData released the results of its 2017 Holiday Study. This study explores the impact of managing the volatility of supply risks and opportunities on market performance and brand reputation. The survey of more than 1,000 U.S. adults conducted on behalf of LevaData by Propeller Insights on October 12-16, 2017, determined that product delays affect brand trust - particularly around the holidays - and that Americans are willing to get creative to capitalize on post-holiday sales. Respondents also indicated that they would endure quite a bit of inconvenience and personal hardship before putting plans to order the new iPhone on hold.
Product Delays Affect Brand Trust
Almost 1 in 4 Americans (23 percent) say their trust in a brand would suffer if they had to wait to buy something because a key component had been recalled, and 1 in 5 (20 percent) would buy the product from a competitor.
Brand trust seems particularly fragile around the holidays, when Americans report that, if a gift they were excited about purchasing became unavailable, they would:
- Think the brand doesn’t plan well - 32 percent
- Think the product is overhyped - 16 percent
- Stop trusting the brand - 10 percent
- Stop shopping at that company - 9 percent
- Feel Christmas had been spoiled - 9 percent
Millennials especially felt Christmas would be spoiled (13 percent) and would stop trusting the brand (12 percent) if the gift they wanted to give became unavailable; in fact, a dramatic minority of them said they might also throw a tantrum (6 percent) or start a fight (5 percent).
“Expectations are high around the holidays,” said LevaData CEO Rajesh Kalidindi. “Consumers need to rely on their favorite brands to have the products they need on the ready. To ensure brand loyalty and capture market opportunities, global enterprises
need to improve the management of supply risks and margin opportunities. LevaData is committed to helping our customers address these challenges through cognitive sourcing and supply sensing capabilities.”
Apple, however, gets a bit more leeway. Americans are so excited about the new iPhone
that they would overcome a great deal of inconvenience - and adversity - to lay their hands on one. They wouldn’t let their plans to order a new iPhone be interrupted by a big delay in the ship date (19 percent), prices being higher than expected (18 percent), or bad reviews (17 percent).
What else wouldn’t stand in their way? Natural disaster (8 percent), economic collapse (7 percent), losing their job (7 percent), or a family emergency (5 percent).
Americans Willing to Get Creative to Save
Saving money is a huge priority over the holidays. While 40 percent of Americans would be willing to give cash or gift certificates to take advantage of post-holiday promotions for gift giving, others are willing to get even more creative by:
- Celebrating Christmas twice - 25 percent
- Celebrating Christmas a week late - 19 percent
- Faking a shipping delay - 15 percent
- Hiding popular toys inside the store - 11 percent
- Returning gifts after they’ve been opened - 10 percent
- Spending the holidays without loved ones - 8 percent
Three percent of Americans would even be willing to lie to a child about what day is actually Christmas.
Likewise, 36 percent of Americans would return a gift and re-buy it if they paid full price for it before the holiday and it went on sale immediately after; another 31 percent would ask for a refund.