Sometimes they're called store brands, others know them as private labels. Whatever you call them, generic products can save you lots of money. According to Harris Interactive, a recent poll shows three in five adults in the US have purchased more generic brands. Those between the ages of 34-45 are the most likely to use this money-saving method with 70% saying they're fine with choosing generics over name brand products. If you're not going generic, emotions could be playing a part.
Making Rational, Not Emotional Decisions
Experts say most of us may think we're making rational decisions when we choose which products to buy, but the reality is our 
emotions get in the way. Marketing pro Reid Neubert says marketing is the reason why you may trust one brand over another. "Marketing studies show that simple brand awareness leads to faster buying decisions with less consideration of other options. Also, brand awareness enhances perceived quality," he says. "One of the examples I use is that aspirin is aspirin; ask any pharmacist. But people gladly pay more for Bayer. Why? The brand and the trust the brand represents."
When People Choose Generic
Who's really going to know if you bake a cake with grocery store flour or Gold Medal? Branding expert Rob Frankel says most of us opt to save money on generic items when we know others won't see them. "Laundry detergent is much the same," explains Frankel. "Bleach is chemically identical, so long as your underwear comes back white, nobody cares about the brand that bleached it." Alternatively, if there's a chance your visitor or dinner guest may see the product, you could be more likely to stick with the name brand. "The more conspicuous the usage, the more important the brand tends to be," says Frankel. "Everyone has an uncle somewhere who purchased a bottle of Chivas Regal in 1998 and has been refilling it with Costco scotch ever since."
Taking Marketing out of the Equation
Some people honestly believe generic versions of some products aren't as good as the items they're trying to copy, others see them as virtually identical. But how do you know who to trust? Ryan Charles, CEO of the website Consmr says that was one of the reasons for launching the site. "The struggle between generics and brand names was actually one of the inspirations behind the creation of the company," he says. "The psychological resistance prevented me from saving money, which is why I started a site that would level the playing field with ratings for consumer packaged goods." Consmr offers independent, unbiased opinions to help consumers make informed decisions about everyday products.
The Best Store Brands
As the head of marketing agency STOKEFIRE, Tate Linden helps major name brands differentiate themselves. Recently he's seen indicators that some brands are feeling threatened by well-known store brands. "There are some instances where a generic has actually earned a reputation that outshines some of the Name Brands sold in stores. Whole Foods, Safeway, and Target (among many) have spent vast sums of money to build a reputation around their store brands," says Linden. "I've read stories recently where some major brands have threatened to pull out of stores that are competing too effectively with their store branded generics." Listerine and NyQuil now explicitly state on their packaging that they do not allow generics to use their formula, which may be proof that they see store brands as competition.
Saving Money with Generic Drugs
According to Consumer Reports when the patent on a brand name drug runs out, which is usually after ten to 14 years, other companies have the opportunity to make generic versions of that drug. By law the generic must have the same active ingredient as the drug it's copying. For instance, the generic version of Viagra is sildenafil, which is the active ingredient in that medication. Generic drugs may look different or have a different name, but you are paying far less for the same thing. Most drugs have a
brand-name and a generic name.
Brand Names That Became Generic
Tissue or Kleenex? In-line skate or Rollerblade? Adhesive bandage or Band-Aid? Many of the name brands of popular products have become widely recognized as the generic term for the item. Chapstick, Jell-o, Styrofoam, Vaseline, Velcro, Q-tips, and Walkman are all examples of name brands that are commonly used as generic terms. But the decision to buy real Q-tips or Walgreens cotton swabs comes down to how attached you are to the brand and whether anyone will find out you opted to save some money by going generic.
3 Responses to “Generic vs Name Brand: Does It Make a Difference?”
This is a debate that my girlfriend and I have every time we go to the store. I almost always will opt for the cheaper generic version of any product. My girlfriend will not buy generic anything. She doesn't believe that the quality is the same.
I buy generic everything, but I've found that the grocery stores just can't do Cinnamon Toast Crunch quite right.
When given a choice I always opt for generic brands. Why pay, in some cases, almost the double the price for a fancy name and packaging? It's not worth it at all when the products are practically the same inside the box.