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By Hunter Thurman

This is the ninth instalment in a series exploring the key decision-making factors that explain shopper and consumer behaviour, focusing on the four behaviour drivers and five barriers that can impede consumer choice and brand use. These factors draw on extensive insights from across psychology and behavioural science.

Together, these core “WHYs” offer a practical framework for assessing what really drives your business, what may be holding back your results, and which actions can significantly impact real-world behaviour.

As neuroscientist T. Sigi Hale, PhD, explains, “Human behaviour is actually predictable; given external stimuli—like a bear on a hiking trail—we know with pretty strong confidence how a person will react. And while it gets more subtle in contexts like everyday purchase behaviours for things like food and drinks, it’s no less predictable.”

This instalment sheds light on a less-exciting-but-no-less-important aspect of consumer behaviour: physical barriers. While transactional elements, such as price, and psychological factors, like consumer emotions, often take centre stage, the physical experience of buying and consuming is frequently overlooked.

As a recap from previous articles in the series, five core barriers can deter someone from making a purchase:

  • Price—Is this worth its cost?
  • Time—What am I giving up if I choose this?
  • Social—How will others perceive my choice?
  • Physical—Physically-speaking, will this negatively affect me?
  • Emotional—Will I be disappointed by this choice?

The fourth, physical barrier encompasses both the shopping experience and consumption itself. Shoppers in this mindset are essentially asking, “How will this choice make me physically feel?”

This consideration can be broken down into one of three perceived definitions of “physical feeling”.

  • Difficulty: Brand use hindered by perceived practical challenges.
  • Acute: Brand use hindered by the concern of immediate discomfort?
  • Chronic: Brand use hindered by potential long-term effects on the body.

Let’s explore these further, how they impact behaviour in everyday life and, most importantly, the ways marketers can overcome them.

Difficulty: Brand use hindered by perceived practical challenges.

This expression of the physical barrier is often misconstrued as being simply about availability. While this can be the case for niche products like speciality Bourbon, “difficulty” frequently surfaces in more routine situations. Often, consumer behaviour is not obstructed by the challenge of finding the brand, but rather the process of getting it stands in the way of enjoying it.

A notable and somewhat paradoxical example is Starbucks with its Mobile Order & Pay. While designed to streamline the drink-buying process—and ultimately reduce the physical barrier—Starbucks’ mobile ordering system can sometimes unintentionally introduce new physical barriers. These barriers manifest as both practical and psychological obstacles.

During peak hours, customers using the app may encounter crowded stores with long lines of mobile order pickups. Beverages are occasionally misplaced, promised ready times are missed, and navigating a busy café quickly detracts from the enjoyment of their coffee. This palpable congestion can turn what should be a convenient process into a stressful one, potentially discouraging customers from using the mobile ordering option or visiting Starbucks during busy periods in general.

This leads us to the psychological or perceptual aspect of the physical barrier: When the only metric you provide consumers is physical ease, it sets an almost unattainable expectation in their minds.

Starbucks initially built its brand around the concept of the “third place”—a relaxing environment for socializing and hanging out. However, in their drive to serve more drinks to more people more efficiently, the experience has shifted to an increasingly transactional, mobile-first model.

While effective, this shift has inadvertently reframed customer expectations, focusing them on the experience’s physical elements—easy ordering, effortless pickup, and so on. Under these reframed experiential metrics, any deviation from a perfectly streamlined transaction is perceived by the consumer as producing “high costs” in the form of the physical barrier.

A similar issue happens with Jimmy John’s sandwiches, whose tagline “Freaky Fast” places emphasis on speed. Once speed becomes the sole measure of satisfaction, it raises the question: How fast is fast enough?

In contrast, QSR Magazine recently reported Chick-fil-A’s drive-thru wait times were long relative to competitors like McDonald’s, Wendy’s, and Taco Bell. However, customer satisfaction scores for Chick-fil-A led the pack.

How’s it possible that the service was slower, but guests were happier? It’s potentially because Chick-fil-A successfully takes the focus OFF of the physical hassle of the drive-thru and refocuses guest attention on non-physical factors like friendliness, order accuracy, and experience.

Acute: Brand use hindered by the concern of immediate discomfort.

This version of the physical barrier focuses on concerns about near-term physical consequences. Few categories face this barrier more widespread than energy drinks. Customers worry, “Will I feel too jittery? Will I feel an energy crash? Will the niacin make my face flush?”

As alluring as the fast-acting effects of these products—from a burst of energy to the convenience of the drive thru—can be, short-term physical concerns can be a deterrent.

Celsius is one brand that disrupted the category dominance of brands like Red Bull and Monster by reframing the physical effects the category provides. Rather than promoting an instant energy boost, Celsius touted the effects of “accelerating metabolism”, which shifted the conversation toward more balanced, health-conscious effects.

This approach successfully repositions the brand’s physical impact from quick energy to a more desirable physical experience which, as the brand’s tagline suggests, helps one “Live Fit.” It promises a much lower physical consequence versus the category’s status quo.

Chronic: Brand use hindered by potential long-term effects on the body.

The third physical barrier that might hinder a consumer’s decision is the more chronic concern; specifically, the concern of long-term physical considerations, such as health concerns.

While it’s difficult to experience the long-term effects of consuming something immediately, the concern of lasting consequences can significantly impact a customer’s decision. The most prominent of these longer-term physical barriers comes in the form of weight management, followed by concerns such as heart health, risk of diabetes, and cosmetic concerns related to one’s skin and hair.

The “clean label” movement addresses the chronic physical barrier, with snack brands like Lays and Walkers easing consumer concerns by highlighting that their chips are made with just four simple ingredients. Kroger’s Simple Truth takes things a step further, leveraging innovation to create offerings that promise more of the good or less of the bad. The brand’s cross-product “Free From” list assures shoppers that the products omit virtually anything that would cause physical concerns in the long run.

As Kroger states on their website: “Trust in Simple, Simple Truth® makes it easy to know you’re getting quality products, Free From over 101+ unwanted ingredients. That’s why we proudly display our ‘Free From’ badge across our products. When you see Simple Truth®, you can be confident in your choice.”

Marketers frequently use the word “feel” when diagnosing consumer perception and behaviour, but this word is usually reserved for the assessment of emotions or mental “feelings”. By assessing the physical domain, however, brands gain the potential to address consumer concerns and remove barriers to brand choice, thereby opening a new domain of consumer experience and brand effectiveness.

Feature Image Credit: Danon

By Hunter Thurman

Hunter Thurman is president of Alpha-Diver, the market research and consulting firm that applies decision science to more deeply understand marketplace behaviour. The firm’s neuroscientists and strategists work with leading brands, retailers, and Wall Street analysts to explain–and predict–consumer behaviour in ways proven to help clients drive double-digit brand growth via activation.

Sourced from Brandingmag

BY JASON MILLER

In business, a key part of effective marketing is knowing the customers needs, wants and desires. Much of this can be predicted by the behaviours in the market and knowing the ideal customer for your product or service. Knowing how your ideal customer thinks and their buying trends will drastically increase sales in your business.

In the landscape of marketing, a profound understanding of consumer behaviour stands as an indispensable element. Far from being merely about product promotion, it involves a deep exploration of the intricate motivations that drive consumer choices. This nuanced understanding is critical for developing marketing strategies that not only engage but profoundly resonate with the target audience, thereby driving sales and fostering enduring brand loyalty.

The realm of consumer behaviour is a tapestry woven from diverse influences, encompassing psychological factors, social and cultural dynamics and individual preferences and experiences. These multifaceted aspects collectively shape how consumers perceive, interact with and decide upon products and services, making their understanding vital for marketers.

Psychological dynamics

  • Emotional and rational decision-making: The balance between emotional impulses and rational thought processes in consumer decision-making cannot be overstated. Recognizing and understanding this interplay is crucial for effectively influencing consumer behaviour.
  • Cognitive biases and heuristics: These mental shortcuts, while facilitating decision-making, often lead to predictable but sometimes irrational behaviours among consumers.
  • Impact of social networks: The significant influence of family, friends and broader social networks in shaping consumer decisions is a key consideration in marketing strategies.
  • Cultural backgrounds: The profound impact of cultural heritage on consumer preferences, perceptions and purchasing behaviours necessitates a nuanced approach in global marketing strategies.
  • Personal experiences and history: A consumer’s past experiences significantly influence their current and future behaviours towards brands and products.
  • Lifestyles and values: The individual lifestyles and personal values of consumers play a crucial role in their decision-making process.

Effective strategies for utilizing consumer behaviour insights

Effectively leveraging consumer behaviour insights involves several strategic approaches. Simplicity in communication is essential, as clear and concise messaging resonates more effectively with consumers, influencing their decision-making. A customer-centric focus, where the spotlight is on meeting the specific needs and desires of the consumer, enhances engagement and loyalty. Assembling a diverse team with a broad spectrum of insights is vital in crafting strategies that resonate with a varied consumer base.

Streamlining consumer processes ensures a positive experience from initial awareness to the final purchase. Moreover, leadership deeply rooted in an understanding of consumer behaviour is fundamental. Such leadership ensures that consumer insights are translated into effective marketing strategies, guiding companies toward success.

Ethical implications in consumer behaviour analysis

The ethical dimensions of understanding consumer behavior are significant. Marketers must balance the pursuit of insights with respect for consumer privacy, employing strategies that are ethical and responsible. This balance is crucial in avoiding manipulative tactics while maximizing marketing effectiveness. The future of marketing is set to witness an even deeper understanding of consumer behaviour, especially with emerging technologies like AI and advanced data analytics. These tools promise more precise insights into consumer preferences and behaviours, opening up new frontiers in marketing strategies.

Digital platforms have become pivotal in analysing consumer behaviour. The wealth of data generated by online interactions provides rich insights into consumer preferences and behaviour patterns. Understanding digital interactions, from social media engagement to online shopping habits, is essential for effective digital marketing.

In my personal experience, I have always made it a point at the Strategic Advisor Board to have my customers at the forefront of my business decisions. I seek to match their interest and to maintain whatever working relationship we have. Customers have high standards and for good reason, they have the autonomy to choose you or choose your competitors and it’s up to you to give them a reason why they should go with your services when other companies could easily provide you with similar results.

Analysing consumer behaviour and being able to quantify it gives you a specific edge over your competitors as being able to know what satisfies your customers makes it possible for you to apply it to your business operations which could lead to a multitude of beneficial results such as increased business performance, be it through simply retaining your original customer base and using them as an example for future marketing campaigns and hopefully gaining more customers.

Ways to get ahead with psychological methods of marketing and customer experience

1. Brand storytelling

Brand storytelling has emerged as a potent tool in marketing, influencing consumer behaviour by evoking emotional responses and creating deeper connections with brands. Effective storytelling can transform products or services from mere commodities into integral elements of a consumer’s life.

2. Consumer reviews and testimonials

In the digital age, consumer reviews and testimonials significantly influence purchasing decisions. Managing online reputation and encouraging positive customer reviews have become crucial aspects of modern marketing strategies.

3. Sustainability and consumer preference

The growing consumer preference for sustainability and ethical practices is reshaping marketing strategies. This shift towards environmentally friendly and socially responsible products compels brands to market not just their products, but also their commitment to sustainability and ethics.

4. Adapting to changing consumer behaviours

Adapting to ever-changing consumer behaviours is a challenge that modern marketers must meet. This requires a dynamic approach to marketing, where strategies are continually refined based on the latest consumer behaviour trends and insights.

The essential role of consumer behaviour in future marketing strategies

Understanding consumer behaviour is foundational to successful marketing. It involves creating a synergy between marketing strategies and consumer preferences to meet consumer needs while fostering long-term relationships. In the rapidly evolving consumer landscape, being informed, adaptable and ethically aware is crucial for the future success of marketing endeavours. Staying ahead of consumer trends, embracing technological advancements responsibly and upholding ethical marketing practices will be essential for businesses to remain competitive and relevant in the market.

BY JASON MILLER

CEO of the Strategic Advisor Board

Jason Miller is a seasoned CEO with an overwhelming passion to help other business owners and CEOs succeed. He was nicknamed Jason “The Bull” Miller because he takes no BS and no excuses from the people he serves. He has mentored thousands of people over more than two decades.

Sourced from Entrepreneur

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With the Covid-19 pandemic transforming shopping habits, journey orchestration matters now more than ever before. Digital commerce has shifted the journey stage balance. Annie Little, strategy director at agency Initials, asks whether there is, now, such thing as ‘the’ consumer journey for any given category and explains the complex maze of touchpoints that brands must carefully navigate.

The stakes have never been higher.

Brands need to get a firm grip on how the consumer journey has evolved and update traditional linear purchase funnels from their marketing agenda as a strategic priority.

Here, we’ll look at the evolution of the purchasing journey, the impact this has on consumer behaviour, and how to ensure that (in a sea of endless consumer choice) your brand gets chosen first.

Decision paralysis

The ease with which consumers can access product information has changed the landscape forever.

Gone are the days of a linear purchase journey. With more options and far greater accessibility than ever before, consumers today are spoiled for choice.

While this new world offers countless benefits for brands and retailers, it also adds a new layer of complexity to consumer decision-making. When this complexity reaches a tipping point, it can spiral into ‘decision paralysis’: too much choice, too many options, too hard to decide.

Such an overwhelming wealth of information for consumers to wade through has done the opposite of streamlining the consumer journey. In many ways, these extra touchpoints and decision-factors have created a more complex and cumbersome path to purchase.

A new model for the consumer journey

Some of the savviest brands and retailers have quickly pivoted their consumer engagement strategies, adopting prevailing shoppable touchpoints to remove any immediate friction or pain points for their target audience.

Creating a high-converting omnichannel purchase journey can’t be a checkbox exercise. A more holistic and strategic approach is required, spanning the entire consumer journey and incorporating reciprocal actions at every experience encounter.

This requires, first, an understanding of how the consumer journey has evolved; and, second, insight into how consumers are navigating their way through it.

Let’s start with the former. The ‘messy middle’, coined by Google, is a space of abundant choice and unlimited content. Here, consumers explore and evaluate product information, research brands, and weigh up their options. This is happening across an ever-expanding digital ecosystem, from online channels to social media to search engines, aggregators, review website and much more.

This exposure is not a stage or step in the buying process, but an ‘always-on’ experience. Consumers will traverse the loop between exploration and evaluation many times before making a purchasing decision.

So, how can brands show up at the right moment and win consumer preference?

How to address cognitive biases and win consumer preference

While the initial trigger and purchasing moments still stand in today’s journey, the middle area between the trigger and purchase has become messy and complex.

Due to the constant bombardment that consumers now face, they are turning to a range of coping mechanisms (including cognitive biases) to shortcut indecision and make purchase conclusions.

Cognitive biases are often a result of the brain’s attempt to simplify information processing. In this case, they help consumers make sense of the world and reach decisions with relative speed.

These cognitive biases shape shopping behaviour and influence why we choose one product over another.

By responding to the cognitive biases at play intelligently, responsibly, and at the right moment in the consumer journey, brands can effectively shorten the gap between trigger and purchase and emerge victorious at the point of conversion.

But how do brands pinpoint which biases are at play during a typical purchase journey in their category?

At Initials, we’ve developed a strategic model to help brands hack the consumer journey and win the moments that matter. Since the path to purchase is no longer linear, we can’t afford to think in linear terms.

Our Consumer Journey Hacker is a data-driven and behavioural science-based strategy that helps brands plan for the right stimuli that will impact buyers in key moments.

Understanding behavioural biases does more than just increase advertising effectiveness; it can encourage a deeper psychological understanding of consumers and their cultural norms and nuances. It can inspire new business strategies and products.

These behavioural science principles (and the behavioural and informational needs they align with) are powerful tools for winning and defending consumer preference in the new complex consumer journey.

The goal is close the gap between trigger and purchase. This means consumers spend less time exposed to competitor brands and transition to your basket faster and with greater confidence.

In a sea of overwhelming choice, this is how your brand can emerge victorious.

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Sourced from The Drum

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Anyone working within programmatic advertising is likely to hear the phrase ‘curated marketplace’ a lot in 2021 – but what does ‘curation’ really mean in this context and why should it be a key priority for media buyers over the next 12 months?

Michael Simpkins, Marketplace Commercial Lead at Xandr explains, as the programmatic landscape has become increasingly cluttered and complex over the past decade, many people now assume that media buyers operating their own ‘curated marketplace’ are simply looking to work with fewer partners in the advertising supply chain. However, this is only the first step and barely scratches the surface of how curation can help improve the effectiveness of a media strategy.

Going back to basics

With the rapid growth of the programmatic industry, the supply chain became fragmented, resulting in a loss of control and transparency for both buyers and sellers. Buyers are also facing increasing pressure to justify return on ad spend, but siloed spending, rigid metrics and a convoluted supply chain make it hard to prove marketing impact on business outcomes.

As a collective, the industry has matured in the past few years to take a step back and simplify the complex landscape. Direct relationships between buyers and sellers are being rebuilt and big steps are being taken to improve supply chain transparency. Marketers, now more understanding of the supply chain, are seeking to regain control not just over their ad spend but over their campaign performance too and, with the deprecation of the third-party cookie, these objectives take on even greater importance. On the other hand, with the proliferation of header bidding, publishers want to make sure their most important media buyers are still able to reach and value their inventory effectively. It is important for companies to deliver unique value across the advertising ecosystem from consumers, buyers and sellers. One of the ways we at Xandr are able to do this is through our curation offering, which brings buyers and sellers together on our platform, offering buyers a simplified and dedicated workflow to easily build out their own curated marketplaces from the supply available on our premium advertising marketplace.

Regaining control of the supply chain

By building out a curated marketplace, buyers gain control within the SSP (sell-side platform) and can apply macro business rules to supply before it hits the DSP (demand-side platform) for targeting, significantly reducing risk in a diverse supply chain.

Through curation, buyers are able to maximise their investment by having full control over supply decisioning and ensuring all media is run across brand safe environments and eliminating non-essential pass throughs in the supply chain. Costs can also be reduced as buyers streamline supply sources, campaign workflows and operational complexity while also having the ability to negotiate price and priority within publishers. Buyers are able to receive regular reports on supply-side fees and auction dynamics, strengthening cross-industry relationships and supporting our industry’s quest for supply chain transparency.

As collaboration becomes even more important in 2021 and beyond, curating a marketplace on a single platform can reduce the risk even further. With fewer partners you’re able to work together on market and regulatory changes, niche audience targets and specific campaign needs together.

What is curation?

Today, we are used to a two-party transaction with a buyer using a DSP to purchase inventory and a seller using an SSP to surface their inventory to the buy side. Curation moves us to a three-party transaction where we now have a curator that sits between the SSP and DSP and works alongside the publishers to decide what inventory is allowed into their marketplace and then packages and merchandises that inventory via a curated multi-seller private marketplace (PMP) to make it available to the buy side to trade in their DSP.

Creating your own curated marketplace does not have to be a huge undertaking – in fact, it involves just four key steps:

  • Identify what you want to get out of the curated marketplace. Is it fee and auction dynamic transparency? More control on your supply paths? Performance gains? Setting a clear objective and strategy for the curated marketplace will make the process clearer for all parties involved.
  • Establish who you want to partner with to build out the curated marketplace. Pick a technology partner that has the supply coverage, tools, expertise and service models to implement a successful curated marketplace.
  • Work with your technology partner to understand what supply to bring into your marketplace and how to work with the publishers to do so. A curated marketplace should bring buyers and publishers closer together, not act as a blocker.
  • Optimise your curated marketplace. These marketplaces shouldn’t be static and should constantly be optimised based on performance, market changes and pricing.

As consumers continue to access media content across numerous devices, their attention becomes increasingly difficult to capture and hold. To catch their audience wherever they are viewing content means marketers are having to reconsider their strategies for planning, buying and measuring advertisers. We have to introduce an option for those who want to buy advertising and access to consumers on all devices and formats in one place, and that option is curation.

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Sourced from The Drum

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Cleanup in aisle five! Has there ever been a more disruptive time in retail? To get a better handle on what businesses should be doing to fix this messy situation, The Drum called up long-admired retail trends spotter and PSFK founder Piers Fawkes. Here are the three top actions he recommends:

1. Own the experience. Customers are anxious to return to their everyday retail and lifestyle routines, but stores and physical marketplaces are having difficulty offering any creature comforts as they reopen with limited services. Consumers are looking for brands to step in and streamline the purchase path or even reduce the frustrations of today’s in-store visits ‑ all to make the total shopping experience feel just a little bit more manageable. At Best Buy for example, after scheduling an in-store appointment, customers preparing for a visit receive a call from a store employee ahead of their visit to review store procedures and offer more information about their shopping purpose.

2. Reenergize the relationship. Regular store visits were an anchor for customer/brand relationships. As customers are forced to spend more time on apps, websites, and digital spaces, use this moment to re-establish and reenergize relationships with shoppers by focusing social engagements around community building and amplifying the voices of your most loyal customers. For example, Vans has done wonderful job celebrating, supporting and promoting the subculture of LBGTQ+ skaters called The Skate Witches with a series of online photo, video, and writing workshops. Vans have found the right way to say welcome to this culture in a way that is authentic.

3. Redesign the infrastructure. The retail industry as a whole is realizing a new level of nimbleness and flexibility necessary to survive constant consumer trends, marketplace evolutions, and global economic shifts. In doing so, retailers and brands are learning to navigate and thrive in environments that are less certain and consistent. Part of this evolution involves brands allowing customers to shape your brand’s long-term operational strategy and product direction. Enact this change by inviting customers into the design process, while reconfiguring retail infrastructure to respond to their real-time trends and behaviors. For example. makeup and skincare company Arfa promises 5% of its profit to the customers who participate in creating, testing, and marketing the products.

Piers Fawkes is founder of PSFK. Fawkes has inspiring leading brands, retailers and their partners on trends and innovation since 2004.

Feature Image Credit: PSFK founder Fawkes. / Randee St. Nicholas

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Sourced from The Drum

Can the feeling that you are being watched hinder your willingness to buy? Absolutely.

No shopper likes being watched closely, especially if they’re buying an item they find very personal and potentially embarrassing – for instance, foot fungus cream or haemorrhoid cream. Three marketing professors recently conducted research on this phenomenon and concluded that the problem is real and is relatively easy for retailers to address.

The article in the September issue of the Journal of Retailing attributes the reluctance of shoppers to make a sensitive purchase under watchful eyes to “reactance theory.” When shoppers feel that their privacy or freedom of behaviour is threatened, they will back off, either permanently or temporarily. Retailers must balance their need to control shoplifting with their customers’ need for privacy.

The authors of the study designed a series of studies and field experiments that tested shoppers’ reaction to being watched while shopping for foot fungal cream and haemorrhoid cream. A researcher dressed as a retail employee purposely made eye contact – or not – as customers were surveying the shelves for these items. When eye contact was made, almost two thirds of the customers abandoned the purchase; when it was not made; nearly three quarters completed the buy.

In further studies, the authors tested solutions that would ease customers’ concerns over privacy and yet be easy to implement for retailers – for instance, providing a shopping basket or opaque bag to hide the embarrassing selection. Based on their observations, the authors concluded that retailers who were able to provide shoppers with at least some privacy – even a shopping basket – could circumvent shoppers’ perceptions of being watched and made so uncomfortable that they walked away empty-handed.

For those selling online, do these finding apply to the world of e-commerce? Do customers balk at buying embarrassing products (or any products) if they think their data and buyer behaviour is being monitored? In this case, it is easy to put two and two together.