What’s In a Name? Does Consumers Care?

June 30, 2008  by in UnCategorized   

By Home Furnishings Business in on July 2008 In a survey of more than 400 consumers in May, Home Furnishings Business asked what they knew about store brand versus “name” brand furniture and whether or not or how this factored into buying decisions.

For the purposes of this survey, store brands, also known as house brands, were defined as collections or single pieces of furniture over which the store had final design, production, pricing, delivery and other decision-making responsibilities and control whether or not they delegated some of those responsibilities to other companies. Store brands are only available at the store that contracted for the product and have a name unique to that store.

Name brands are those pieces of furniture designed, produced and delivered to the store by a single producer/vendor. Name brands are widely available, often through a variety of channels, are generally not exclusive to one store and often have name recognition value with consumers. Name brands in the industry include Ethan Allen and La-Z-Boy and the “S” bedding brands.

For years, furniture industry analysts have cited the lack of name brand recognition as a major concern within the industry. While most consumers recognize the names of La-Z-Boy or Ethan Allen, many other producers/vendors are not as well known. Unlike the automobile industry, where consumers recognize the names of Chevrolet, Ford, Toyota, Honda and others, and have an opinion about those brands, furniture consumers usually don’t have a fixed opinion on name brand furniture simply because they don’t recognize name brands.

Fewer than half—43 percent—of consumers surveyed said they thought they had purchased a store brand furniture product in the past, while six out of 10 thought they had previously purchased a piece of name-brand furniture. Generally speaking, they were unsure about what kind of furniture they had.

According to one Western shopper, “I don’t care what name is on my sofa as long as it’s what I want. I want the store I bought it at to stand behind it and that’s all I really care about.”

However, generically speaking, consumers did think there were differences between the two groups of furniture. Consumers gave name brand furniture higher scores when it came to quality, a wider selection of product, more name brands available and more fabric/coverings choices for upholstered product.

On the other hand, consumers thought store brand furniture products had better prices, were more stylish and were delivered more quickly.

But there are clear-cut cases where a name brand has strong pulling power, particularly when it comes to bedding. Nearly three-quarters of consumers said they were more likely to buy name brand bedding.

One Southerner summed it up: “I’ve heard a lot about the brand of bedding I bought and I associate quality and comfort with that name. Getting a good night’s sleep is very important to me and I trust this company because they’ve put a lot of research into their product.”

Recliners also had brand name appeal. One product with surprising name brand recognition was ready-to-assemble furniture. One middle-aged Midwesterner explained that choice: “When I got my first job, all I could afford was the kind of furniture that came in a box and you had to put it together yourself.

“You don’t want to have to take it apart and lug it back to the store if it isn’t right. When you don’t have much money and certainly none to waste, you learn very quickly what brands are worth buying and which aren’t,” he added.

So how do consumers make choices between name brand and store brand furniture? It’s all on who you know.

Consumers are more than five times more likely to trust a salesperson than their own judgment when choosing between a name brand and a store brand. The only more trusted opinion comes from family members and friends.

When it came to buying upholstery, 21 percent of consumers said the buying decision was made due to the fabrics or coverings offered, particularly if the product styles were similar.

What it comes down to is that the buying decision is unique to each customer. What is essential to one is meaningless to another. Consumers want choices, and that includes choices between name brands and store brands.

From October 2007 until February 2008, Home Furnishings Business conducted an exclusive survey of consumers on the furnishings industry, including what products they purchased, where they shopped, their shopping experience and their future shopping plans. More than 400 consumers were surveyed on a wide range of questions and the results of the survey were published in prior issues of HFB.

In May of 2008, consumers who responded to the original survey were re-questioned about the economy in their area and how they viewed “name” branded furniture versus store branded furniture.

The surveys were originated, conducted and compiled by Research Editor Janice Chamberlain under the guidance of Editor in Chief Sheila Long O’Mara.