The Lighthouse Effect: Guiding Shoppers To Their Treasure
A guide to how Shoppers make purchase decisions at the moment of truth. Is it just the price, or brand loyalty, or other functional benefits that turn the needle when it comes to making the final selection?
Decision Tree, also commonly known as Purchase Decision Hierarchy (PDH) is a roadmap that outlines the product attributes which shoppers consider before purchasing a product, helping them find the best choice based on their needs and preferences.
An analysis of decision choices across the “Spectrum of Necessity” – essential categories (like feminine hygiene) at one end leading upto casual indulgence (categories which are part of our daily lives, but still discretionary spends like packaged beverages, RTE), and pleasurable or luxury indulgence (like alcoholic beverages) at the other end, reveals some interesting insights:
- The Brand Influence Ladder: As shoppers move from buying what they need to what they want, and finally to what they crave, the role of the brand transforms from a simple identifier to a powerful driver of choice and loyalty.
- The Essential Truth: For essential categories, functionality and price are the top drivers of choice. Here, a brand must stand for a distinct, demonstrable benefit to win loyalty.
- Flavour as a compass: For casual indulgence, flavour i.e. the indulging parameter comes into play. The sensory experience that flavour offers can serve as a significant an emotional driver, leading consumers to favour products that promise a pleasing experience.
- Unpacking Convenience: Pack size and pack type gain importance in casual indulgence categories. Here the packaging form and function must communicate its benefits instantly, be it for on- the go consumption or at home shareable packs.
By recognizing that the significance of a brand is not static, marketers can more effectively allocate their resources and craft messages that resonate with the consumer's mindset in each specific purchasing context. The key is to understand whether the consumer is making a choice based on function, a calculated decision based on value, or an emotional investment in a story and an identity.
