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Epsilon International is the industry's leading provider of multi-channel, data-driven digital marketing technologies and services. Our fully integrated solutions combining advanced analytics, data modeling, database and loyalty technology with consulting services, help organisations measure, understand, manage and optimise their customer relationship, developing strategies that generate demonstrable returns throughout their customer lifecycles.


Epsilon International is an operating unit of Epsilon, a leading provider of multi-channel marketing services, technologies and database solutions and has developed successful email programs for hundreds of companies, including Expedia, Northwest Airlines and The Washington Post/Newsweek Interactive.

Survey Uncovers Chasm in Brand Perceptions between Developed and Emerging Markets

Chinese and Indian consumers welcome overseas brands, but respond differently to marketing

HONG KONG, China — December 6, 2011 — Big differences exist between consumer attitudes to brand loyalty and marketing in developed and emerging markets, according to a new study conducted by COLLOQUY on behalf of international multichannel marketing specialist Epsilon and global loyalty strategy and programmes provider LoyaltyOne.

Designed to provide perspectives on how brands and businesses can strengthen relationships with consumers worldwide, the 2011 COLLOQUY Cross-Cultural Loyalty Study was carried out in China, India, Brazil, Australia, the US and Canada. More than 500 people from a range of socio-economic categories from each country were surveyed and their responses compared with 1,100 from Canada and the US.

This research shows that both China and India are nations of increasingly globally aware consumers. In contrast to many developed economies, they welcome the idea of foreign competition and they embrace overseas brands. Nine out of ten Chinese think global brands are more trustworthy than domestic ones, for example, compared with only 16 percent sharing similar perceptions in the US or Australia.

China and India were broadly alike in their view of shopping as a leisure activity and embrace of prestigious brands. They also share a belief that it makes sense to be loyal to brands, a view more strongly held in India. Perceptions among Australian consumers, on the other hand, were found to be highly comparable with the US where audiences are untrusting of brands across the board, savvy to the efforts of marketers and generally not brand loyal.

Yet the study also reveals important differences between Asia's two biggest emerging markets. In China, middle class consumers across A, B and C socio-economic categories share broadly similar views towards the role of money, loyalty and rewards scheme, whereas in India there is a pronounced difference between perceptions between the upper middle class A/B and C segments.

"This survey provides a fascinating insight into what consumers in Asia Pacific and across the world are currently thinking about brand loyalty and how they react to marketing communications," said Dominic Powers, Senior Vice President & Managing Director, International Operations, Epsilon International. "Different markets present diverse challenges. An understanding of consumer perceptions in fast-developing markets is essential in order to market effectively build brand share and long-term loyalty."

An area of significant difference between emerging and developed economies is the role of word of mouth (WOM). Across all but one product category studied, the survey reveals considerably higher reliance among consumers on word-of-mouth recommendations in China and India than in developed markets such as the US and Australia when selecting service providers or brands to purchase from. Across categories, most consumers in developing countries rate WOM conversations at about 7-8 on a 10 point scale with 10 indicating that WOM conversations are "extremely important."

The average score among consumers in developed countries, on the other hand, is about 5-6.

Preferred platforms for engagement also vary significantly between the countries surveyed. In China, consumers rank email as their most preferred means of receiving communications from brands, followed by SMS and social media. Chinese consumers in the A/B socio-economic category show the strongest preference for receiving communications from brands via social media of all countries surveyed.

In India, the preferred means of communication are SMS, TV and email respectively, although email is the most preferred channel among in the A/B segments. In Australia the preference is for email, followed by postal mail and TV. Australian consumers are among the most difficult to convince of all the countries surveyed, however, with many preferring to receive no marketing communications at all.

"No matter where you are in Asia Pacific, getting consumers talking about your brand is an increasingly complex task," said Dominic Powers. "In emerging markets, multiple communications channels need to be employed, with the precise mix depending not only on country but also important distinctions between upper and middle classes. In developed markets such as Australia, however, the challenge is more in breaking through to more cynical and jaded consumers. Messages and marketing in general not only need to be impactful and immediately engaging, but also highly meaningful to meeting the hierarchy of needs of the consumers.

"Given the increasing role of digital channels across the board, brand marketers need powerful technologies to help them drive best practice," he said.

Additional in-depth information and analysis on Australia, China and India from the study are available in special reports from Epsilon. The reports can be found at www.epsilon.com/apacloyalty2011.

The Country Report Charts will be available for download in early January 2012. For latest update stay in touch with us at EpsilonAPAC on Twitter or Epsilon Asia Pacific on LinkedIn.

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