I have been wondering about this for a long time. Does being a stockholder in companies like PG, PEP, PFE etc affect your purchasing decisions in the grocery store/pharmacy etc?
For example, PG offers products in several categories from toothpaste to soaps to detergents etc. But each product has competitors including store brands. The pricing of products from competitors (sometimes) and store brands (most times) is less than its equivalent products from PG.
Similarly apart from soft drinks, PEP has products in other categories like bottled water, chips, snacks etc. And lot of times, store brands are definitely cheaper for such categories.
Pharmaceuticals are especially vulnerable to this because of huge price differences between the branded medication and generics. Lot of times for OTC medicines, the price difference between the branded medication and its store brand equivalent is huge (in terms of percentage).
The companies listed here are just an example and is applicable for almost any company. For the sake of discussion, let’s assume that the quality of the products are almost similar or identical (like in medicines where the chemical compounds are identical).
So if you are a shareholder of a company, are you tempted to buy the products from that company even if the price is higher or do you make the best decision for your home budget without considering other factors?
I definitely make my decisions based on my home budget and how much I can afford. There are some products in each category that I regularly use that are from specific brands (Tide, Bounty for example), but other than that, I always look for cheaper alternatives like store brands if available (assuming the quality is on par and lot of times they are).