Most consumers will pay 25% more for brands they love

Published · Updated · 3 min read
Most consumers will pay 25% more for their favorite brands, survey finds - CX Dive
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Most consumers will pay up to 25% more for products from their favorite brands, a new survey finds. That figure comes from research reported by CX Dive, and it puts a hard number on something marketers have long argued in budget meetings: loyalty has real pricing power.

For a CMO, the math is simple. A shopper who accepts a 25% premium on a $40 product is effectively paying $50. Spread that margin across a loyal base, and brand equity stops being a soft metric. It becomes a pricing lever.

What does this change for marketing leaders?

Plenty of pricing conversations treat discounts as the default response to competition and inflation. This survey suggests the opposite move for strong brands. If most of your customers tolerate a quarter-more on price, the cheaper play may be deepening preference, not cutting margin.

The finding reframes three common decisions:

  • Pricing strategy. Premium pricing isn't just for luxury. It works wherever genuine preference exists.
  • Retention spend. Loyalty programs and brand-building campaigns can be judged against the price premium they protect.
  • Discount discipline. Frequent promotions may train customers to wait for markdowns rather than pay full price.

Where the limit sits

The number is 25%, not unlimited. Consumers named a ceiling, which means premium pricing has a boundary. Push past it and even fans walk. That's the practical warning inside the headline: capture the premium you've earned, but test before you assume it stretches.

There's also a selection question the survey forces. Which customers will pay more, and how many of them does a brand actually have? A 25% willingness-to-pay only matters at scale if "favorite brand" describes a large share of the category, not a devoted niche.

The loyalty-versus-price trade

The mechanism here is old economics dressed in new data. Preference reduces price sensitivity. When customers value a brand, they compare it less against cheaper alternatives and absorb cost increases without switching. The survey simply quantifies that effect for a broad consumer base, which is why the number travels well in board discussions.

The report arrives as many brands weigh price hikes against cost pressure. For marketing leaders defending brand budgets, the finding offers a concrete retort: the equity those budgets build shows up directly in what customers will pay.

The caveat worth keeping

Surveys measure stated intent, not checkout behavior. People often overstate what they'll pay when a question is hypothetical. The 25% figure is a directional signal, not a guaranteed margin. Smart teams will validate it with their own price-testing before moving list prices.

Still, the direction matters. Most consumers, not a fringe of superfans, said they'd pay meaningfully more for brands they prefer. That's a reminder that brand-building isn't a cost center. It's the thing that keeps pricing power alive when costs rise and rivals discount.

The next question is execution. Which brands can actually claim that premium, and how do they know? The survey suggests the answer starts with measuring preference honestly — then pricing against it.

Source: Google News: consumer research study

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Rebecca Stone

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News editor covering regulation, policy and their impact on marketing leadership at CMO Observer.

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