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Branding | Insights

Shopper selectivity in CPG branding and loyalty

by Vanessa Doll

By Vanessa Doll

Shopper selectivity influences how consumers evaluate brands, products, and purchase options in the CPG food space. Understanding what drives that selectivity—brand loyalty, price sensitivity, quality perception, demographic differences, and switching behavior—can help brand builders prioritize on-pack communication, overcome barriers to purchase, and create experiences that give shoppers a reason to choose their brand.

What is shopper selectivity in CPG food?

Shopper selectivity is the degree to which consumers discriminate between products and brands when making a purchase. It is a mental filtering process in which attitudes, beliefs, experiences, and expectations shape the information shoppers notice and use to make decisions.

In a grocery store, shoppers are constantly navigating a complex environment filled with competing brands, prices, claims, flavors, packaging, and promotions. The brain naturally filters that information, helping consumers quickly narrow their choices based on what feels familiar, relevant, trustworthy, or valuable.

As brand builders and evolvers in the CPG food space, we get more granular. We focus on how carefully shoppers evaluate and compare options—and, more importantly, what can influence them to consider something different.

What five factors influence shopper selectivity?

The five factors that most influence shopper selectivity are brand loyalty, price sensitivity, quality perception, demographic differences, and switching behavior. Some are shaped by brand experience, while others are influenced by circumstances outside a brand’s control.

Understanding these factors helps identify potential barriers to purchase and opportunities to strengthen the connection between a shopper and a brand. The goal is not simply to make shoppers notice a product, but to give them a compelling reason to choose it.

How does brand loyalty influence shopper selectivity?

Brand loyalty is one of the most important factors in shopper selectivity because loyal consumers are more likely to stay with brands they already trust. In CPG food, loyalty is often category- and flavor-driven, with trust, indulgence, familiarity, and reward playing an important role in repeat purchase.

For example, we frequently see strong brand preference in snacking because the category is closely connected to trust and indulgence, as well as reward-driven eating. By contrast, commodities such as produce or dairy can be more vulnerable to switching when shoppers find better prices or special offers.

Brand loyalty is especially valuable when brands face shortages, inflation, or constant innovation. The more loyalty you cultivate, the better positioned your brand is to weather those disruptions. Authenticity, origin stories, connected brand experiences, messaging, and simply good design can all contribute to stronger loyalty.

How does price sensitivity affect CPG food purchases?

Price sensitivity can make shoppers more selective about the value they receive from a brand, particularly when household budgets are under pressure. When price becomes a stronger purchase driver, consumers may be more willing to compare brands, consider promotions, or move toward private-label alternatives.

This does not mean price is the only path to purchase. A strong brand experience can give shoppers reasons to believe a product is worth choosing even when it is not the lowest-priced option. Clear differentiation, relevant communication, and a compelling reason to believe can help reinforce that value.

For CPG food brands, understanding where price matters most can help determine what needs to be communicated on pack and where the brand experience needs to work harder.

How do demographics and location influence private-label preferences?

Demographic differences can influence how frequently shoppers buy a category, how closely they manage their budgets, and how open they are to private-label products. Frequent or budget-conscious consumers can absolutely be loyal to brands, but they may also be strong believers in store brands when the perceived quality is similar.

For example, according to Mintel, 60% of younger consumers believe store brands offer similar quality. However, region or location can have an impact. Urban shoppers tend to lean more toward brand labels, whereas suburban or rural shoppers can switch back and forth. Knowing where your brand has the largest footprint can influence your messaging and ability to connect.

Why is switching behavior an opportunity for CPG brands?

Switching behavior is an opportunity because shoppers who move between brands are already demonstrating a willingness to reconsider their choices. While switching can be unpredictable, it creates openings for brands to drive trial and potentially earn loyalty.

Samples, focused design, new shopper segmentation, and clear product differentiation can all encourage a shopper to take that first step. The opportunity is to identify what makes your CPG food brand genuinely different and translate that difference into a compelling, easy-to-understand brand experience that empowers shoppers to take the leap.

How can CPG brands turn shopper selectivity into brand loyalty?

CPG brands can use shopper selectivity to build loyalty by understanding what shoppers value, communicating those benefits clearly, and creating an experience that makes choosing the brand feel intentional.

More shoppers are aware of the influence brands have on their decisions. That awareness can be positive when brands genuinely give consumers the information, experience, and confidence to choose for themselves.

The opportunity for brand builders is to make that choice feel easy—and make your brand the one shoppers want to choose again and again.

Curious about brand loyalty in pet food packaging? Check out this article.

Source: Kantar Profiles/Mintel, March 2024

Vanessa is Partner & Director of Relationships at Freshmade. From bar owner to account lead, strategist to agency owner, she’s spent years in the trenches with leading CPG brands modernizing and optimizing their positioning to maximize growth.

Freshmade is a CPG Branding and Strategy Design agency focusing on food branding and package label design. We design for digital, from campaigns to websites, and have an in-house photography studio. Our goal is to accelerate growth for our clients through mouthwatering, thoughtful brand building and design. Notable clients we have designed CPG packaging for include Bolthouse Fresh, Evolution Fresh, Hartz, Publix, Mastronardi (Sunset), Annie Chun’s, Factor, and many more