How to understand contradictory consumer behaviour: study

Understanding consumer behaviour is critical to creating a relevant retail offer and marketing message, but what happens when consumers behave in contradictory ways?

Many retailers will recognise the reality that despite consumers saying they care about sustainability, their spending tells a different story. 

Similarly, a new study by strategic consultancy agency Nature found that while consumers are more health-obsessed, busy and connected than ever, they are also unhealthy, bored and lonely.

The study, ‘Truths and Tensions of the Modern Age’, suggests that the gap between consumers’ actual and idealised selves is larger than the industry is aware of, and this is where the opportunity lies.

“Knowing your consumers as people, not just demographics is fundamental to the success of any brand or retailer,” Chris Crook, Nature’s managing partner and founder, told Inside Retail.

Resolving consumers contradictions 

Brands and retailers must work to reconcile these paradoxes if they want to connect and convert consumers. 

“The volatility, complexity and ambiguity of the modern world means the pressures on young consumers are compounding – be it financial or social. Brands must be empathetic and recognise how they can support,” said Crook.

While these paradoxes make for a more confusing landscape for retailers to navigate, it does present them with a unique opportunity, according to Aliya Hasan, Nature’s head of strategy.

“Brands have an opportunity to play a significant role here by adding that much-needed spark,” said Hasan.

“Think about leaning into entertainment over interruption, re-ignite play through the power of experiences and human connection and find ways to keep things simple, being acutely aware of the seductive power of technology that can unintendedly overcomplicate and force your brand message into eternal servitude of the algorithms,” Hasan added.

Helping consumers visualise the reward of achieving their ideal self is the quickest way for brands to cut through the online noise and help consumers bridge the gap through purchase.

The key is keeping consumers’ aspirations around sustainability, health, relaxation and connection at the forefront of marketing strategies and materials. 

“Another dimension for retailers to think about is how retail spaces can be better used as community hubs – we know loneliness and social disconnection is a challenge for many people, especially younger generations,” said Crook.

“Retail has always been linked to emotional feel good moments, but in today’s world ‘responsible retail’ is just as important for brands to be conscious of,” he added.

The sustainability mismatch

There are countless industry reports that suggest consumers are focused on increasing their sustainability habits and often evaluate brand measures before purchase – but Nature’s report finds this to be an oversimplification of consumer behaviour. 

“Our study in 2022 into sustainability habits revealed that younger generations continue to lead the charge in their positive intent towards sustainable behaviours and purchases, however, this wave of the study has shown that they are finding it harder to deliver on their intentions, not only due financial pressures but are also feeling like they are letting others down,” said Crook.

The large majority of consumers have good intentions of increasing their sustainability practices, but their true motives are more often than not price-driven – according to Nature’s report, 39 per cent of Australian consumers believe making sustainable choices is too expensive.

While price remains the biggest barrier for consumers to convert to sustainable habits and products, eroded brand trust and conflicting information also play a role.

“Brands will need to invest in R&D and work together to make sustainable products and services affordable and achievable for the mainstream,” said Hasan.

“The onus is well and truly on brands to help consumers achieve the sustainable lifestyles they aspire to,” she added.

However, consumers do penalise brands for taking advantage of their personal goals and values, including sustainability, if it comes across as a publicity stunt or money grab.

“We’re seeing this play out particularly with brands looking to tap into culture in an inauthentic way, or simply viewing culture as a short-term benefit from a moment of online virality,” explained Hasan.

“Many brands have been accused of greenwashing, woke washing and even rainbow washing – we’re thankfully seeing less of this happen.”

Crook and Hasan recommend brands take a new three-part approach to selling sustainability to consumers. 

Firstly, “recalibrate”; be transparent and demystify instead of ‘greenhushing’, secondly,  “reframe”; focus on the ‘me’ and ‘we’ and finally “renew”; find ways to lean into the circular economy throughout the product lifestyle.

“Don’t be afraid to lean into your own vulnerabilities or that of the wider industry you operate in. Consumers will value authentic efforts and steps in the right direction,” concluded Hasan.

The post How to understand contradictory consumer behaviour: study appeared first on Inside Retail Australia.