I remember my undergraduate Marketing professor mentioning that the odds of a shopper buying a store brand drug (ex., Wal-Mart acetaminophen versus Tylenol acetaminophen) increased with education level.
I was reminded of that fact when I was at Costco over my lunch break today. I was just about to pick up a box of Claritin when I noticed a Kirkland brand equivalent right next to it (it wasn’t immediately obvious to me because the Claritin was in blue packaging and the Kirkland was in red).
As many store frequently do, Costco posted the “cost per 100” data for both products. The Claritin was $45 per 100. The Kirkland product was $3 per 100. That is a 15x difference! Unbelievable. I was expecting 2x to 3x…not 15x.
I wonder what percentage of shoppers walk away carrying the Claritin…
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