Filipino consumers demonstrate a pronounced attraction to freebies, which significantly influences their purchasing decisions. According to a Nielsen online survey, 76 percent of Filipino respondents indicated that products with freebies are more attractive to purchase, exceeding the Asia Pacific average of 58 percent. This preference is not limited to a single demographic or product category but is a widespread behavior across the market. The study, which surveyed more than 29,000 internet respondents in 58 countries, highlights that the allure of good product promotions is strongest in developing countries like the Philippines, where practicality and creativeness are needed to stretch the budget. Filipinos are ready to spend but remain on the lookout for the best deals and promos. Offering extras or freebies to consumers often gets them to buy a product over another.
The behavior extends beyond simple attraction to freebies. More than 80 percent of Filipino respondents reported that they shop around to buy the most favorable product. This indicates a proactive approach to finding value, where freebies serve as a key differentiator in a crowded marketplace. While television remains the dominant source of information for Filipino respondents, the influence of freebies is clear and measurable.
Characteristics of Filipino Buying Behavior
Filipino buying behavior is shaped by several key characteristics, including brand loyalty, price sensitivity, and the influence of advertising and promotions.
Brand Loyalty and Trust
Filipino consumers exhibit strong brand loyalty, particularly for items they trust. They prefer to buy well-known brands and often stick to brands they know. According to a Nielsen online survey, Filipino consumers are more likely to stick to brands they know and buy products if said products are accompanied by freebies. This loyalty is built over time; when a product receives positive evaluation by family members, it is readily recommended to friends, colleagues, and acquaintances. This word-of-mouth marketing is a powerful force in the Filipino market.
Even with price sensitivity, trust and reputation play a crucial role in the decision-making process. Filipino buyers often stick to brands they trust, even if they are more expensive. This suggests that while freebies attract initial attention, the underlying brand reputation sustains long-term loyalty.
Price Sensitivity and Value for Money
Price heavily influences Filipino choices, with consumers typically opting for products within their budget. According to Kantar’s 2020 Purchase Confidence report, "value for money" is the highest consideration for Filipino shoppers. Price is the first thing Filipino shoppers check online, with many using digital platforms as a virtual price catalogue to compare deals from different stores.
Highly price-sensitive consumers, often dealing with notoriously bad traffic, have become the main beneficiaries of online shopping advantages. A survey by Agile Data Solutions (2023) found that 92 percent of adults surveyed were able to save money by purchasing essential items online, proving that discounts, promotions, and deals are influential factors that attract customers. This price sensitivity is also common in neighboring countries such as Malaysia and Indonesia.
Influence of Advertising, Promotions, and Celebrities
Filipinos are influenced by advertising, promotions, and celebrities when choosing products. The influence of "Love Teams" in Philippine entertainment is a notable example. Love Teams are pairings of actors depicted to the public as romantic couples, and they have a fervent and loyal fanbase. These on-screen pairings capture the hearts of audiences and shape the careers of actors. While this source does not directly link Love Teams to freebie promotions, it highlights the broader cultural context where celebrity influence plays a significant role in consumer behavior.
Shopping Habits: Online vs. Brick-and-Mortar
Online shopping has grown in popularity in the Philippines due to convenient deals and discounts. Sites like Lazada and Shoppee are popular platforms. However, even though consumers prefer to buy familiar commodities online, 77 percent of them prefer a hands-on approach when it comes to new products. The sensory and emotional experience of on-site shopping is still preferred over online shopping convenience. Filipino consumers tend to maintain a balance between in-store and online shopping experiences, suggesting that brick-and-mortar stores may increasingly serve as venues for product launches and trials.
The Role of Freebies in Specific Promotions
Freebies are not just a general preference; they are often integrated into specific promotional campaigns. An example is the "Palenque" promotion at New Gateway Mall 2 in Araneta City, which ran from February 14 until April 9, 2024. This promotion encouraged dining by offering free treats with a purchase.
The Palenque Promotion
The Palenque promotion was a culinary journey across the Philippines. With a single-receipt purchase of ₱500, customers could get a free daily special from the restaurant of the day at Palenque. The promotion was structured to highlight regional Filipino flavors:
- Mondays: Bale Dutung (Pampanga) offered free ensaladang talong.
- Tuesdays: BEL Iloco offered free authentic Ilocos empanada.
- Wednesdays: Chicken Fandian offered a free plate of chami.
- Thursdays: Palm Grill offered free Knicker Fruit Halo-Halo.
- Fridays: Tindeli offered a glass of cold brew coffee for free.
Marjorie Go, AVP for Marketing of Araneta City, stated that the promotion was a celebration of Filipino cuisine, encouraging everyone to take a culinary trip around the country and experience diverse flavors. This promotion exemplifies how freebies can be used to drive traffic and encourage trial of specific products or regional cuisines.
Online Shopping and Freebies
The growth of online shopping in the Philippines is driven by increasing internet accessibility and convenience. Online platforms offer deals and discounts that attract price-sensitive consumers. The ability to compare prices easily online makes it a virtual price catalogue. Freebies offered online, whether through direct product bundling or promotional codes, contribute to the attractiveness of online shopping.
However, the preference for a hands-on approach for new products suggests that free samples in physical stores remain relevant. The sensory experience of touching, smelling, or tasting a product before purchase is valued. This indicates that a hybrid approach—using online channels for price comparison and familiar purchases, and physical stores for trial and new product discovery—is common among Filipino consumers.
Impact on Marketing Strategies
Understanding the Filipino consumer’s love for freebies has implications for marketing strategies. Brands that offer freebies are more likely to attract attention and drive purchase intent. This is particularly true in a market where value for money is a top priority.
The Nielsen Survey Findings
The Nielsen survey provides critical data for marketers. The fact that 76 percent of Filipino consumers find products with freebies more attractive is a significant insight. This exceeds the Asia Pacific average, indicating a unique characteristic of the Filipino market. Furthermore, the survey revealed that developing countries like the Philippines, Vietnam, and Greece responded most strongly in favor of receiving freebies. This suggests that economic factors play a role in the attractiveness of freebies.
Stuart Jamieson, managing director at Nielsen Philippines, noted that Filipinos may be ready to spend but are on the lookout for the best deals. Offering extras or freebies will get them to buy a product over another. This highlights the competitive advantage that freebies can provide.
Brand Loyalty Programs
The Southeast Asian market is one of the fastest-growing loyalty and rewards programs markets globally, with a large part of this growth driven by the Philippines. Loyalty programs often incorporate freebies as rewards, encouraging repeat purchases. The combination of brand loyalty and the attraction to freebies creates a potent mix for retention strategies.
Cultural Context of Consumption
Filipino consumption is influenced by lifestyle and priorities. Practical purchases for necessities are common among those who are working, while more fashionable items are preferred by those living in urban areas. This segmentation suggests that the type of freebies offered should align with the target audience’s lifestyle.
Family Influence
Family plays a crucial role in brand evaluation. When a product receives positive evaluation by family members over time, it is readily recommended to friends and acquaintances. This word-of-mouth effect amplifies the impact of a positive product experience, which can be initiated by a free sample or trial.
The Role of Media
Television remains the dominant source of information for Filipino respondents. However, the rise of social media and online platforms cannot be ignored. The influence of Love Teams, often promoted through television and social media, shows how integrated media channels are in shaping consumer preferences.
Summary of Consumer Preferences
Filipino consumers are characterized by:
- Attraction to Freebies: A strong preference for products accompanied by freebies.
- Brand Loyalty: A tendency to stick to trusted brands, reinforced by freebies.
- Price Sensitivity: A focus on value for money and comparison shopping.
- Influence of Promotions and Celebrities: Responsiveness to advertising and celebrity endorsements.
- Balanced Shopping Habits: A mix of online convenience and in-store sensory experience.
Conclusion
The Filipino consumer’s love for freebies is a well-documented phenomenon that significantly influences purchasing behavior. Data from Nielsen and other sources confirms that freebies are a key factor in product attractiveness, often tipping the balance in favor of one brand over another. This preference is intertwined with broader characteristics such as brand loyalty, price sensitivity, and a cultural inclination towards value-driven purchases. While online shopping continues to grow, the sensory experience of brick-and-mortar stores remains important for new product trials. Marketers targeting the Filipino market should consider integrating freebies into their strategies, whether through direct product bundling, loyalty programs, or promotional events like the Palenque dining promotion. Understanding these behaviors allows brands to design offers that resonate with the practical and promotional preferences of Filipino consumers.