Understanding the types of consumer buying behavior and ways to influence them
CPG brands need to carefully monitor how consumers choose their products to help them stand out among the competition. Approaching these consumers as they’re in the shopping aisle and prepared to make a purchase can be an ideal method. Managing the brand’s online reputation is also critical for differentiating products. With technology, brands can cater to all four types of traditional buying behaviors: impulse, habitual, dissonance reducing, and complex.
The Types of Consumer Buying Behavior and Their Impact on CPG Brands
There is a basic model of human buying behavior established by Henry Assael, professor of marketing for NYU Stern. Assael broke down the consumer buying models according to consumer knowledge of products and the difference between brands. These categories break down as follows:
Variety-seeking:
Consumers may enjoy reading about and trying new brands and will often make decisions to try new products impulsively. There’s very little time between product discovery and purchase. The consumer isn’t switching brands due to dissatisfaction, but simply because they want to try something new. Variety seeking is a substantial area of opportunity for CPG brands as CPG goods are typically priced lower than others, posing a low risk for consumers.
Habitual buying:
Consumers stick to brands they know as they see little difference between products. Habitual buying challenges CPG brands when that loyalty is to a competitor, as it can be very difficult to pull the consumer away from the products they trust. The brand must be able to differentiate its products from the competitors to win consumer attention.
Dissonance reducing:
There may be very little difference between the products available across various brands, but consumers may still choose to do extensive research. This research may stem from dissatisfaction with the product itself. Alternatively, this information gathering may come as a result of increased social awareness about the impacts of manufacturing. In either case, brands must invest in products and overall reputation to connect with these shoppers.
Complex buying:
Consumers who do extensive research before buying may have little familiarity with the brands and choices available. This buying behavior is typical when making big-ticket purchases, but that does not mean it’s not a concern for CPG brands with lower price points. Complex does not have to mean costly. It can also occur when a consumer has a concern over a product’s impact on their well-being, like in the case of health and beauty products with unfamiliar ingredients.
Using Mobile Shopping Apps to Excite Variety-Seeking Consumers
Variety-seeking consumers are promising prospects for CPG brands as they’re open to trying new products. While they may not extensively research before making a purchase, digital marketing still makes an impact. Timely promotions delivered via mobile shopping apps can provide excellent ROI for impulse buying behaviors. Such messages target these consumers based on their location and drive them to interact with products. We see an example of this through Shopkick and how consumers use the shopping app.
Notifying:
The first step to securing a purchase is brand awareness. With Shopkick, a timely notification lets the consumer know which products in the store offer kicks (aka rewards points) and how many. The alert makes the consumer aware of the brand and encourages them to seek it out.
Priming:
When a consumer physically handles a product, it establishes a sense of ownership. Shopkick encourages consumers to pick up products by offering incentives for scanned UPCs. The moment a consumer touches the product, the chance of purchase increases.
Incentivizing:
Shopkick users receive rewards points when they locate certain products in the store, and even more points when they purchase them. By rewarding purchase path behaviors both in-aisle and through checkout, brands create customer affinity and increase sales potential.
Gamification:
The entire process works as a digital scavenger hunt with various goals and rewards. Shopkick’s design turns an everyday shopping trip into an enhanced customer experience. This gamification improves the use and retention of the app, which expands the brand’s audience.
Cultivating Habitual Buying Through Data-Driven Personalization
Customer loyalty is entirely relationship-driven. Brands wishing to pull loyal customers from competitors, while also growing their faithful following, should look to personalization to establish these relationships. Profiles created with existing consumer data aid in this process by helping brands deliver personal messages on a mass scale.
Any time a brand uses data, consumer privacy must be a concern. If a consumer feels their personal information is unsafe, there’s a risk of alienating them. However, consumers are receptive to data use for personalization, and consider value the number one driver of trust. As long as their data is used to provide them with a heightened experience, consumers are willing to share it.
Attracting Dissonance-Reducing Buyers With Online Reputation Management
Dissonance-reducing consumers are researchers who are well-informed about products. Differentiative marketing is critical as this buying often occurs in the CPG market, where branded products are similar to those of their competitors. Brands may not be able to rely on their product but instead must focus on their overall reputation to stand out.
How Video Marketing Supports Complex Buying
When consumers make complex buying decisions, they’re often at a disadvantage. They know they need to do significant research but may not be familiar with the product. A typical example of complex buying is car purchasing. Consumers may not understand the differences between several different options and will turn to the digital space to learn more about them. However, CPG brands need to stay on top of this buying behavior as well, because it can impact lower-cost, mass-produced items.
Catering to complex buyers requires a simplified approach. Explainer videos are ideal as they allow a brand to share information about a product while making those details easy to digest for the consumer. In some cases, they can drive the success of a debut product.
