Definition
Trading down (also called buying down or buy down) is the act of consumers switching purchases to less-preferred branded products to save money. These can be “peer” products on sale, lower-tiered products, or private label/store brand products. [1]
This is distinct from the real estate use of “buy down” meaning obtaining a lower interest rate by making a larger upfront payment, paying for discount points, or in some other manner.
See Also
References
- comScore, The Effects of the Recession on Brand Loyalty and “Buy Down” Behavior, December 2012.