In partnership with the Experiential Marketing Forum, EMF, the latest research article has recently been posted to the IMI International Downloads page. This month’s topic focuses on changing buying habits by consumers.
Recently on the EMF posts, there has been a lot of reference to a change in consumer buying habits as a result of the economic conditions in recent times. One such article referenced from Comscore suggests consumers are trading down in price and becoming less loyal to National brands. Just last week, 
another EMF post referenced an article from the Globe & Mail suggesting consumers consider short-term reward more strongly than the long-term gains. Thus consumers are irrational, and it has been argued that this emotional context needs to be overlaid to more rational economic models.
These two articles provided impetus to share with the EMF membership what we at IMI International have learned about changes to consumer buying habits from a proprietary study we fielded called “Building Your Brand in Turbulent Times”. We asked some questions that could be benchmarked versus more “normal” times in 2007, fielded during the ‘dark days’ of January 2009 and followed up again in early 2010 to see which of these changes have a lasting effect.
First, our study agreed with both the articles referenced above:
i) Consumers are indeed trading down to the lowest price more often now than in 2007 (for details, please see the June 2010 EMF/IMI research article in the members section on the EMF site or on IMI International’s Downloads page).
ii) What is interesting, however, is the consideration of “short-term reward” in this environment. Consumers have also increased their consideration for the “best quality”—while this seems inconsistent, consider that there has also been a consistent increase in the attitude that it is “worth spending more time to be a smart shopper”.
iii) Another finding reflects a return to the importance of Brand Name products versus price considerations, after a dip in 2009.
Some other category studies we have done at IMI International (from snack food to autos) lead us to conclude that some of the switching to low priced alternatives may not have turned out so well, and the consumer has learned from this experience. For bigger purchases, you’ll know this as “buyer’s remorse”.
One of the key pieces that was missing for me from the previous articles was a big “Now What” – as a marketer or a person working at an agency, what can I do about it? This thinking is precisely why we added other questions around value, brand benefits and price (essentially, inputs into the value equation) into our Turbulent Times study. The conclusions we make provide some clear actions steps for EMF members, as price and value are intricately linked.
To summarize action steps for this audience, we would suggest the following:
i) Do your homework to determine your brand’s unique value proposition. That is – which brand in my portfolio represents high value, which benefits can I highlight to illustrate added value versus my competition (i.e. ‘washes more dishes’ versus ‘soft on hands’…) and,
ii) How can I best showcase these benefits to overcome potential purchase barriers?
While price discounting is a tactic that can be used, and is always a consideration, it tends to erode brand equity (and ROI/margins) over the long term. Our consistent learning for over 15 years has illustrated the power of Experiential Marketing as an excellent method to convey new benefits or activate new learning areas, whether it is to overcome a shared barrier or perception, showcasing new value benefits or illustrating new ‘reasons to believe’.
So, it’s time to act. Consumers are still buying. Our shared challenge is to break through the spending concerns that this economic environment has brought to consumers and make them feel good again, as “smart shoppers”.
For more information on the EMF, visit http://www.experientialforum.com/ where you can join to receive regular updates on the latest experiential news, research and insights. The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.
Tags: Brand Activation, Brand Marketers, Consumer Insights, ConsumerTrack™, Dan Hunter, EMF, Experiential, In-Store Marketing, Insights, Marketing ROI, Measurement, Shopper Marketing, Syndicated Marketing Research, Turbulent Times