Consumer Behaviour: Price is Not What it Seems

When it comes to understanding consumers it’s always important to consider the issues from a rational perspective, and then completely ignore what you conclude. Why? Because consumer behaviour isn’t, for the most part, rationally based. Recently I happened across a great example. The UK supermarket chain Waitrose has always operated at the higher end of the market, catering to customers who are willing to pay a little more for higher quality produce.  Waitrose’s marketing makes much of the fact that they source their products carefully; some of their packaging will state which farm meat has come from for instance. With the economic downturn all of the supermarkets have been keen to communicate low price messages; which isn’t easy since most of them operated on a low price platform anyway.  Indeed, the big two supermarkets (Asda who are owned by Wal Mart) and Tesco frequently squeeze suppliers brutally hard in order […]

Unconscious Advertising

Firstly, thanks for all your comments, I find them encouraging, constructive and inspiring. Secondly, Yann has raised another question.  Questions are wonderful things and, yet again, Yann has raised something that causes me to think about the subject of consumer behaviour (which I love to do) and given me a direction for this edition of my blog. Yann asked whether our unconscious associations of brands are more influenced by broader environmental factors than advertising; things like what we hear (reputation). Of course, there isn’t a single, clear-cut answer to this.  It is certainly the case that, were someone to hear an involving account (story) from a friend (social proof / trusted source / someone like me) this would trump an advertising message.  In this case, the powerful associations primed by the friend’s account work very similarly to negative personal experience: as soon as the brand name appears (be it at the […]

The Easiest Way to Spend Money

Today I had the last of five or six conversations with my brother about buying a camera. I’m no Annie Liebovitz!  But I did get into SLR photography many years ago and have had the good luck to take one or two half decent photographs over the years – including one of the Brooklyn Bridge that my brother has in his house.  It’s a good picture, although not so good that he’s ever asked me to sign it or anything. Probably the best picture I ever took was of a sculpture.  I was in Paris and took a black and white photo of a Rodin work called The Woman Under the Stone (only that in French, I imagine).  By over-exposing the picture perfectly, the dark weathering of the sculpture was magically transformed into a dramatic blend of shimmering shades.  Of course, this was in the days when you didn’t know […]

When a Consumer Behaviour Expert Says “No”

I enjoy watching myself as a consumer, in that slightly schizophrenic way that I encourage everyone interested in understanding customers better to do.  If you have the right framework you can learn a lot about the way in which other people make decisions by watching how you make a decision – after all, you’re a person aren’t you? The challenge is always to split out that part of you that consciously post-rationalises what you do in a totally bogus way.   If you can learn to tell yourself that, deep down, you’re smart, sexy, clever and incredibly good at parking a car, you can put your ego to one side for a few minutes and observe what you’re doing as a consumer.  You’ll have a reasonable idea that you’re on the right track when you spot yourself doing things that are  impulsive, irrational, poorly judged and altogether a bit dumb. Recently, […]