Nearly 9 in 10 parents say their kids influence their purchase decisions. Recent studies have identified children as the most important influencers in making daily household shopping habits more environmentally responsible. 

Climate activist Greta Thunberg also began her climate change journey when she persuaded her parents to adopt lifestyle choices that reduced their carbon footprint.

There has been a significant increase in awareness about the impact of human activity on the environment. As the world grapples with the challenges of climate change, young people are taking an active role in advocating for a more sustainable future. Children are increasingly influencing their parents to adopt green practices daily.

Spending on sustainable brands and products by Gen X has increased by 24 percent since 2019 as a result of the Gen Z influence.

Studies have shown that children significantly influence their parents’ behavior when it comes to environmental issues. Parents with children concerned about the environment are more likely to change their daily habits and be more conscious of their impact on the planet. Children are also encouraging their parents to become more active in advocating for environmental issues and supporting brands that are committed to sustainability.

The Greta generation is growing up and looking to raise awareness, often starting in their own homes. Brands that are looking to become more sustainable should take note of the role that children are playing in this movement. 

Steps brands can take to become more sustainable and appeal to eco-conscious families.

To convey their social purpose and position themselves as eco-friendly and sustainable to Gen Alpha and Gen Z, brands can follow these steps:

  1. Be transparent.

    Be open and honest about your sustainability practices and initiatives. Gen Alpha and Gen Z value sustainability and are more likely to trust and support brands that are transparent about their environmental impact.
  2. Use eco-friendly materials.

    Use environmentally friendly materials in your products and packaging. This can include using recycled materials, reducing plastic usage, and using biodegradable packaging.
  3. Support social causes.

    Gen Alpha and Gen Z are more likely to support brands actively involved in social causes. Support social causes that align with your brand’s values and messaging.
  4. Communicate your values.

    Clearly communicate your brand’s values and beliefs about sustainability. This can be done through social media, advertising campaigns, and product packaging.
  5. Engage with your audience.

    Engage with Gen Alpha and Gen Z through social media and other digital platforms. Encourage them to share their thoughts and feedback on your sustainability efforts.
  6. Take concrete actions.

    Take concrete actions to reduce your environmental impact. This can include reducing waste, using renewable energy sources, and supporting sustainable farming practices.
  7. Educate your audience.

    Educate your audience on sustainability issues and the impact of their choices. Provide tips and resources on how they can reduce their environmental footprint.

It is important for brands to not just talk about sustainability but to take steps to reduce their environmental impact actively. By doing so, they can gain the trust and support of Gen Alpha and Gen Z, who are increasingly conscious about sustainability and the environment.

Brands that want to appeal to eco-conscious families should take note of this and take steps to become more sustainable. By reducing waste, using sustainable materials, supporting environmental causes, and providing educational resources, brands can demonstrate their commitment to sustainability and appeal to consumers looking for eco-friendly products.

Not surprisingly, TikTok has become a popular platform for promoting sustainability and raising awareness about environmental issues among the younger generation. Its short-form video format and engaging content make it an effective platform for educating and inspiring others to take action toward a more sustainable future.

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Here are a few examples of how TikTok contributes to the sustainability movement:

  1. #ClimateChange and #Sustainability Challenges.

    TikTok users have created various climate change and sustainability challenges, such as the #ClimateChangeChallenge and #SustainabilityChallenge. These challenges encourage users to share their own sustainable habits and tips, spreading awareness about the importance of sustainability.
  2. Upcycling and DIY Videos.

    TikTok is a popular platform for DIY and upcycling videos. Users share videos of themselves transforming old clothes or other items into something new and fashionable, encouraging others to reuse and repurpose items instead of throwing them away.
  3. Sustainable Fashion and Beauty Tips.

    Many TikTok creators use the platform to share sustainable fashion and beauty tips. They show how to shop secondhand at thrift stores and online, create sustainable skincare routines, and reduce waste in the beauty industry.
  4. Environmental Education.

    TikTok has also become a platform for environmental education. Creators share short videos explaining climate change, sustainability, and other environmental issues in a fun and engaging way.
  5. Advocacy Campaigns.

    Many advocacy campaigns related to environmental and sustainability issues have taken place on TikTok, including campaigns focused on reducing plastic waste, promoting renewable energy, and protecting biodiversity.
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Barriers brands face when trying to become eco-friendly. 

Several barriers brands face when trying to become eco-friendly. Some of these barriers include:

  1. Cost.

    One of the biggest barriers for brands that want to become eco-friendly is the high cost of sustainability. Sustainable materials and manufacturing processes can often be more expensive than traditional materials and methods. This can make it difficult for some brands to invest in sustainability.
  2. Infrastructure.

    Brands may also face barriers related to their infrastructure. For example, finding suppliers and manufacturers that use sustainable practices may be difficult. Additionally, it may require significant investment to update existing facilities and equipment to be more sustainable.
  3. Lack of Consumer Demand.

    While there is a growing demand for eco-friendly products, some brands may still face barriers related to consumer demand. Brands may hesitate to invest in eco-friendly practices if consumers are not yet prioritizing sustainability when purchasing.
  4. Regulation.

    Brands may also face barriers related to regulation. Governments may have regulations and policies that make it difficult for brands to adopt sustainable practices. Additionally, compliance with these regulations can be costly and time-consuming.
  5. Education.

    Finally, brands may face barriers related to education. Not all consumers may be aware of the benefits of eco-friendly products, and some may not understand the environmental impact of their purchasing decisions. Brands may need to invest in education and awareness campaigns to help consumers understand the importance of sustainability.

Becoming eco-friendly can be a challenging process for brands. However, as sustainability becomes more important to consumers and the planet, it is becoming increasingly necessary for brands to overcome these barriers and invest in sustainability.

Eco-Friendly Brands in the US, UK, and Asia: Examples and Positioning Strategies for Sustainability.


Here’s how successful sustainable brands position themselves as eco-friendly and attract consumers with their environmentally-friendly practices.

Patagonia.

Patagonia is a well-known outdoor apparel brand committed to sustainability. The brand has used recycled materials and organic cotton for years and has launched several initiatives to reduce its carbon footprint. Patagonia is known for its transparency in its supply chain and for advocating for environmental causes.

Eileen Fisher.

Eileen Fisher is a fashion brand focused on sustainable and ethical fashion. The brand uses organic cotton and recycled materials to make its clothing and has launched several initiatives to reduce its waste and carbon footprint. Eileen Fisher also partners with organizations that promote sustainability in the fashion industry.

Rapanui.

Rapanui is a sustainable clothing brand in the UK. The brand uses organic cotton and recycled materials to make its clothing and has a closed-loop production process that minimizes waste. Rapanui also uses renewable energy to power its factories and offsets its carbon footprint by planting trees.

Paperboat.

Paperboat is a beverage brand in India that uses natural ingredients and traditional Indian recipes to make its drinks. The brand uses eco-friendly packaging and is committed to reducing its carbon footprint by sourcing ingredients locally and using sustainable transportation.

Bamboo Straw Girl.

Bamboo Straw Girl is a brand in Singapore that sells eco-friendly bamboo straws. The brand sources bamboo from sustainable farms and has a closed-loop production process that minimizes waste. Bamboo Straw Girl also partners with environmental organizations and advocates for plastic-free living.

Sapa O’Chau.

Sapa O’Chau is a social enterprise in Vietnam that sells organic tea and coffee. The brand works with local farmers to source its ingredients and uses eco-friendly packaging. Sapa O’Chau also reinvests its profits into the local community, supporting education and sustainable tourism.

Messy Bessy.

Messy Bessy is a personal care and cleaning brand in the Philippines. The brand uses plant-based ingredients and eco-friendly packaging for its products. Messy Bessy also partners with organizations that promote environmental causes and provides employment opportunities to marginalized communities.

Avani Eco.

Avani Eco is a brand in Indonesia that produces eco-friendly bags and packaging made from cassava starch. The brand’s products are biodegradable and compostable, and its manufacturing process uses renewable energy. Avani Eco also partners with organizations that promote sustainable living and advocate for a circular economy.

MUJI.

MUJI is a Japanese brand that produces a wide range of products, including clothing, home goods, and food. The brand strongly focuses on sustainability and uses eco-friendly materials such as organic cotton and recycled paper. MUJI also encourages a minimalist lifestyle, which reduces waste and promotes sustainability.

Innowell.

Innowell is a Chinese brand that produces eco-friendly air purifiers. The brand’s purifiers use natural materials such as bamboo charcoal and HEPA filters to remove pollutants from the air. Innowell also focuses on energy efficiency, using less energy than traditional air purifiers.

Klean Kanteen.

Thailand-based brand Klean Kanteen produces eco-friendly water bottles and containers using stainless steel, a sustainable and recyclable material. It encourages consumers to reduce their use of single-use plastic bottles. Klean Kanteen also partners with organizations that promote environmental causes and sustainable living.

These brands have positioned themselves as environmentally-conscious by using eco-friendly materials, reducing waste, and promoting sustainable lifestyles. They also communicate their eco-friendly practices to consumers through marketing and transparency in their supply chains. Additionally, they partner with organizations that promote environmental causes and sustainable living, which helps to raise awareness of sustainability issues and promote positive change.

To position themselves as sustainable and appeal to this generation, brands need to take a 360-degree approach to sustainability. This means that they should consider not only the materials they use in their products and packaging but also the production methods and conditions, as well as their supply chain and distribution practices.

Brands that prioritize sustainability and are transparent about their practices can build trust with young consumers, who also yield some influence on their parents’ purchasing behavior and gain a competitive advantage in the marketplace. By adopting sustainable practices, brands can contribute to the global effort to address climate change and reduce their environmental impact.

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Have you ever found yourself hesitating before making a purchase? You may have been unsure about the quality of the product or whether you could afford it. Or maybe you were simply feeling uncertain about the future and didn’t want to commit to something that might not be a wise investment. 

Whatever the reason, you’re not alone. Uncertainty is a common experience for many consumers and can significantly impact buying decisions. It’s important to understand uncertainty’s role in consumer behavior and how we can respond to it to better meet our customers’ needs.

In this article, we’ll explore the fascinating world of consumer psychology during times of uncertainty. We’ll delve into the effects of uncertainty, how consumers respond to it, and what marketers can do to adjust their strategies accordingly. 

We’ll also discuss market research’s crucial role in understanding and responding to uncertainty and provide some practical tips for conducting research during uncertain times. 

So buckle up and get ready for a deep dive into the unpredictable waters of consumer purchasing behavior!

The Concept of Uncertainty

Let’s break down the different types of uncertainty. 

Economic uncertainty is perhaps the most well-known and pervasive form of uncertainty. It can arise from various factors, such as recessions, inflation, or changes in government policies. When consumers are uncertain about their financial futures, they may be more cautious about spending money and prioritize essentials over luxury items.

Social uncertainty, on the other hand, can arise from changes in social norms or cultural values. For example, the #MeToo movement sparked a reckoning in many industries as consumers became more aware of issues related to sexual harassment and assault. This led to increased uncertainty about what behavior is considered acceptable in the workplace and beyond, which may have affected consumer preferences and buying decisions.

Personal uncertainty can stem from various sources, such as health concerns, relationship issues, or significant life transitions. When consumers are experiencing personal uncertainty, they may be more likely to prioritize products or services that offer a sense of stability or comfort, such as self-care products or experiences that provide a sense of escapism.

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The Effects of Uncertainty

For one thing, uncertainty tends to make consumers more cautious about spending money. Consumers may be more likely to save their money for a rainy day when the future feels unpredictable rather than splurge on non-essential items. This can be especially true during times of economic uncertainty, such as recessions or market crashes, when consumers may be worried about losing their jobs or experiencing a decline in their financial well-being.

Uncertainty can also lead consumers to seek out products or services that offer a sense of stability or security. For example, during social or political uncertainty, consumers may be more likely to support brands or businesses that align with their values or offer a sense of community or belonging. Similarly, during times of personal uncertainty, consumers may be drawn to products or services that provide a sense of comfort or escape, such as luxury goods or experiences.

The effects of uncertainty on consumer behavior can be complex and multifaceted. Still, uncertainty can significantly impact consumers’ willingness to take risks and make purchases. It’s essential for brands to be aware of these effects and to adapt their strategies accordingly. By understanding how uncertainty affects consumer behavior, we can better tailor our messaging, products, and services to meet the needs of our customers, even in the most uncertain of times.

Consumer Response to Uncertainty

Consumers may respond in various ways when faced with uncertainty, depending on their personal circumstances and individual preferences. However, some common patterns tend to emerge when consumers feel uncertain about the future.

One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision. This can be especially true during times of uncertainty, when consumers may be more risk-averse and less willing to take chances on products they need to learn more about.

Another common response to uncertainty is a preference for familiar brands or products. Consumers may be more likely to stick with brands or products they know and trust when the future feels unpredictable rather than experimenting with new or unfamiliar options. This can be especially true during times of economic uncertainty, when consumers may be looking for ways to save money and reduce risk.

Additionally, during times of uncertainty, consumers may be more likely to prioritize practical needs over aesthetic or luxury desires. For example, during a recession, consumers may be more likely to purchase essential items like food and clothing rather than splurge on expensive vacations or high-end fashion items.

Implications for Marketers

As we’ve seen, uncertainty can significantly impact consumer behavior, affecting everything from purchasing decisions to brand loyalty. For marketers, it’s important to be aware of how uncertainty affects their target audience and to adapt their strategies accordingly.

One key implication for marketers is the need to reassure consumers during times of uncertainty. This can involve emphasizing the quality, safety, and reliability of products and services and addressing any concerns or questions consumers may have. By providing clear and transparent messaging, marketers can help build trust and loyalty among consumers, even during times of unpredictability.

Another critical consideration for marketers is pricing strategy. During times of uncertainty, consumers may be more price-sensitive and risk-averse, making it challenging to attract and retain customers. To address this, marketers may need to adjust their pricing strategies to reflect changing consumer behavior, such as offering discounts or promotions to incentivize purchases.

Additionally, marketers must be more flexible and adaptable in their approach, as consumer behavior can shift quickly in response to changing circumstances. This may involve experimenting with new marketing channels or tactics or being open to adjusting messaging or product offerings as needed.

Lessons from Past Uncertain Times

The 2008 Financial Crisis 

During the financial crisis of 2008, many consumers became more cautious about spending money, particularly on luxury goods and services. As a result, brands that relied heavily on discretionary spending, such as high-end fashion labels and luxury hotels, saw a significant decline in sales. At the same time, consumers became more interested in value-driven products and services, such as budget airlines and discount retailers. 

Many luxury fashion brands responded by offering affordable options like diffusion lines and collaborations with fast fashion retailers. For example, designer Versace partnered with H&M, a popular fast fashion brand, to reach a wider audience and appeal to price-sensitive consumers. Similarly, many luxury hotels responded by offering promotions and deals to attract customers looking to save money.

The COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted consumer behavior, as many people have experienced economic, social, and personal uncertainty. During the pandemic, consumers have been more cautious about in-person shopping and have increasingly turned to online retailers for their purchases. Additionally, consumers have become more interested in health and wellness products, home improvement, and DIY products as they spend more time at home.

For example, beauty brand Sephora launched a virtual makeup try-on tool, allowing customers to test out products from the comfort of their own homes. Additionally, many brands pivoted their messaging to emphasize safety and hygiene, such as restaurant chains highlighting their contactless delivery options or airlines emphasizing their cleaning procedures.

The #MeToo Movement

The #MeToo movement has profoundly impacted consumer behavior, particularly in the fashion industry. Brands perceived as promoting unrealistic beauty standards or perpetuating gender stereotypes saw a decline in sales, while brands that embraced inclusivity and diversity saw increased demand. 

For example, lingerie brand Aerie launched a campaign featuring unretouched photos of models with a range of body types to promote body positivity and self-confidence. 

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The Role of Market Research

Market research is a crucial tool for understanding consumer behavior, particularly during times of uncertainty. By gathering data and insights on how consumers respond to changing circumstances, market researchers can help marketers develop effective strategies that meet the needs of their target audience.

One of the main benefits of market research during times of uncertainty is the ability to identify changing consumer needs and concerns. For example, during the COVID-19 pandemic, market research has helped brands understand how consumers adjust to working from home, their concerns about public health and safety, and what products and services they are most interested in. By gathering this data, marketers can develop messaging and products that resonate with consumers’ changing needs and priorities.

Another role of market research during times of uncertainty is to identify changes in consumer behavior. Brands that use market research can identify trends and patterns that may indicate more significant shifts in consumer behavior by analyzing purchasing patterns, brand loyalty, and other key metrics. This can help marketers anticipate changes in the marketplace and adjust their strategies accordingly.

Finally, market research can help marketers develop messaging and branding that resonates with consumers’ emotions and values. During times of uncertainty, consumers may be more sensitive to trust, safety, and social responsibility issues. Market research can help identify the most effective ways to communicate these values to consumers.

Overall, market research is a crucial tool for navigating the complex and unpredictable world of consumer behavior during times of uncertainty. By gathering data and insights on consumer needs, behavior, and values, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key Takeaways

Uncertainty is a fact of life that can significantly impact consumer behavior. From economic downturns to social movements to global pandemics, uncertainty can make consumers more cautious, risk-averse, and focused on practical needs. However, by understanding how uncertainty affects consumer behavior, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key takeaways include the importance of reassurance, adaptability, and flexibility in uncertain times. Marketers must be attuned to their target audience’s changing needs and concerns and be willing to adjust their strategies accordingly. Additionally, market research is crucial for understanding how consumers respond to uncertainty and can provide valuable insights into changing behavior and priorities.

Moving forward, brands should prioritize building trust and loyalty among their target audience, emphasizing practical needs and value-driven products and services, and remaining flexible and adaptable in the face of changing circumstances. By doing so, marketers can weather even the most uncertain times and emerge stronger and more resilient.

So, let’s approach uncertainty with optimism and confidence. By embracing change, staying attuned to consumer needs, and remaining flexible and adaptable, we can build a more resilient and successful future for ourselves and our brands.

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Gamification, the use of game mechanics and design elements in non-game contexts, has become a popular strategy for encouraging healthy behaviors. By making healthy activities more engaging and fun, gamification has the potential to motivate individuals to adopt healthier lifestyles. 

In recent years, many brands have embraced gamification to enhance consumer engagement and loyalty. This approach effectively creates lasting behavior change, a significant challenge in health and wellness.

One of the key benefits of gamification is its ability to leverage intrinsic motivation. By tapping into people’s natural desire for mastery, autonomy, and relatedness, gamification can create a sense of enjoyment and satisfaction that makes healthy behaviors more appealing. Additionally, gamification can provide a sense of social support and accountability as users compete with friends and track progress toward shared goals. By making healthy behaviors more fun and engaging, gamification has the potential to create lasting behavior change and drive positive outcomes for both consumers and brands.

One of the main features of gamification is using rewards to incentivize desired behaviors. Unlike traditional games primarily focused on entertainment, gamification is designed to encourage specific behaviors or outcomes. For example, a fitness app might award badges or points to users who reach certain milestones, or a loyalty program might offer discounts or exclusive perks to customers who make repeat purchases. By creating a sense of progress and achievement, gamification can motivate users to continue engaging with the product or service.

Benefits of gamification for health and wellness

Here are a few of the main benefits of gamification for health and wellness:

Increased motivation: One of the primary benefits of gamification is that it can increase motivation for healthy behaviors. By tapping into people’s natural desire for achievement and mastery, gamification can create a sense of satisfaction and progress that makes healthy behaviors more appealing.

Increased engagement: Gamification can also increase engagement with health and wellness programs. By making activities more fun and interactive, gamification can encourage people to stick with their programs and continue making progress toward their goals.

Increased retention: Gamification can also increase the retention of healthy behaviors over time. By creating a sense of community and accountability, gamification can encourage people to continue engaging with health and wellness programs even after the initial novelty wears off.

Examples of gamification use in health and wellness

Many health and wellness brands use game mechanics and design elements to encourage healthy behaviors. Here are a few examples of how gamification has been used in health and wellness:

Fitness apps: Many fitness apps use gamification to motivate users to exercise and track their progress. For example, the app Strava allows users to compete with friends and track their running or cycling routes, while Fitbit and other wearable devices use badges and challenges to encourage physical activity.

Weight loss programs: Weight loss programs like Weight Watchers have incorporated gamification elements to increase engagement and motivation. For example, the program allows users to earn “FitPoints” for physical activity and offers rewards for reaching weight loss milestones.

Mental health apps: Gamification has also been used in mental health apps to encourage mindfulness and stress reduction. The app Headspace, for example, uses game-like elements to encourage users to meditate regularly and track their progress.

Chronic disease management: Gamification has also been used to help people manage chronic diseases like diabetes. The app MySugr, for example, allows users to track their blood sugar levels and provides feedback and rewards to encourage healthy habits.

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Best practices for using gamification

By following these best practices, brands and organizations can create effective gamification strategies that encourage healthy behaviors and deliver measurable value. With the help of market research, they can identify and prioritize the most effective gamification features and continuously improve their approach over time.

  1. Set clear goals: To create effective gamification strategies, you must set clear goals for what you want to achieve. This might involve defining specific behaviors or outcomes you want to encourage, such as increased physical activity or better medication adherence.
  2. Create meaningful rewards: Rewards are a vital aspect of gamification, and creating meaningful and motivating rewards for users is essential. This might involve offering tangible rewards like discounts or prizes or more intangible rewards like badges or social recognition.
  3. Design a user-friendly experience: To encourage engagement and retention, it’s essential to design a user-friendly experience that is intuitive and easy to use. This might involve testing different user interfaces and gathering user feedback to identify improvement areas.
  4. Use data to inform strategy: Market research can gather data and insights on user behavior and outcomes, which can inform the development of gamification strategies. This might involve analyzing user engagement and retention rates, conducting surveys or focus groups to gather feedback, or using analytics tools to track user behavior over time.
  5. Evaluate ROI: It’s important to evaluate gamification investments’ return on investment (ROI) to ensure they deliver value for the organization. This might involve measuring the impact of gamification on key metrics like user engagement, behavior change, or health outcomes and using this data to prioritize and refine gamification features.

Market Research’s role in gamification

Market research is a critical component of developing and implementing effective gamification strategies. By gathering data on consumer needs and preferences, testing prototypes, and evaluating the effectiveness of campaigns, brands can create gamification experiences that are engaging, effective, and sustainable over the long term. 

Here are some specific ways that market research can contribute:

  1. Identifying consumer needs and preferences: Market research can gather insights into consumer needs and preferences related to health and wellness. This might involve conducting surveys, focus groups, or user testing to understand what motivates consumers to adopt healthy behaviors and their preferences for gamification features and rewards.
  2. Testing prototypes: Once a gamification strategy is developed, market research can test prototypes and gather user feedback. This might involve conducting user testing or focus groups to identify areas for improvement and refine the user experience.
  3. Evaluating the effectiveness of campaigns: Market research can also evaluate the effectiveness of gamification campaigns over time. This might involve tracking user engagement and retention rates, conducting surveys or interviews to gather feedback, or using analytics tools to measure the impact of gamification on key metrics like behavior change or health outcomes.
  4. Prioritizing features: Market research can help prioritize gamification features based on their potential impact on user engagement and behavior change. By gathering user needs and preferences data, brands can identify the most critical features and allocate resources accordingly.

Important considerations when developing a gamification strategy

When using gamification in health and wellness, it’s important to consider ethical considerations to ensure that users are treated fairly and respectfully. Here are some ethical considerations that should be taken into account:

  1. Privacy and data security: Gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands should protect user data and ensure it is only used for its intended purpose.
  2. Transparency and informed consent: Users should be fully informed about how their data will be used and have the opportunity to provide informed consent. Brands should be transparent about their data collection and use policies and provide users with clear information about how their data will be used.
  3. Inclusivity: Gamification should be designed to be inclusive of all users, regardless of their race, ethnicity, gender, or other personal characteristics. Brands should be sensitive to the potential for bias or discrimination and take steps to ensure that gamification features are designed to be accessible and inclusive.
  4. Accuracy and fairness: Gamification should be designed to measure and reward user behavior accurately. Brands should avoid using gamification features that are misleading or unfair and should be transparent about how rewards are calculated and distributed.

Limitations of gamification

While gamification can be an effective strategy for promoting health and wellness, it is not without potential limitations or drawbacks. Here are some of the key considerations:

  1. Short-term impact: Gamification is often used to motivate users in the short term, but it may not lead to lasting behavior change. Users may lose interest in gamification features once they become less novel and may revert to their old habits over time.
  2. User preferences: Not all users may find gamification features engaging or motivating. For some users, gamification may feel trivial or inauthentic and may not lead to sustained engagement or behavior change.
  3. Potential for addiction: Gamification features, particularly those involving rewards or points systems, may potentially create addictive behaviors. Users may become overly focused on achieving rewards or points at the expense of other aspects of their health or well-being.
  4. Privacy and data security: As mentioned earlier, gamification often involves collecting and storing user data, which can raise privacy and security concerns. Brands must protect user data and ensure it is only used for its intended purpose.

Potential for bias or discrimination: Gamification features may inadvertently reinforce existing biases or discrimination, particularly if designed without considering users’ diverse needs and preferences. Brands must be careful to avoid any features that may perpetuate stereotypes or bias.

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The role of social influence in gamification

Social influence and peer support can play an influential role in the success of gamification strategies. By creating a sense of community and accountability, gamification can tap into users’ social networks to increase engagement and motivation. Here are some ways that social influence and peer support can be incorporated into gamification:

  1. Social features: Many gamification strategies incorporate social features, such as leaderboards or social sharing, that allow users to compete or collaborate with their peers. By tapping into users’ natural desire for social validation and recognition, social features can increase engagement and motivation.
  2. Peer support networks: Gamification strategies can also leverage peer support networks for encouragement and accountability. For example, fitness apps like Nike Training Club allow users to join virtual workout groups and connect with other users who share similar fitness goals.
  3. Rewards for social engagement: Brands can incentivize social engagement by offering rewards or recognition for users who share their progress on social media or invite friends to join their program. This can create a sense of community and encourage users to support each other in their health and wellness journeys.
  4. User-generated content: User-generated content, such as user reviews or success stories, can also be a powerful tool for creating social influence and peer support. By highlighting the achievements and experiences of other users, brands can inspire and motivate new users to join their programs.

Health and Wellness gamification success stories

There are many examples of gamification strategies that have been successful in promoting health and wellness. Here are a few specific examples, along with their respective outcomes and impact:

  1. Pokemon Go: Pokemon Go is a popular mobile game incorporating gamification elements to encourage physical activity. Players must walk or run to different locations to catch virtual Pokemon characters, earning points and rewards along the way. One study found that Pokemon Go players increased their physical activity by an average of 1475 steps per day or about 25% more than their baseline activity levels.
  2. Habitica: Habitica is a gamification app that tracks users’ daily habits and tasks, earning rewards and points for completing them. The app incorporates social features that allow users to connect with friends and join virtual communities based on shared goals. One study found that users who used Habitica for four weeks were likelier to continue using the app than those who used a non-gamified habit-tracking app.
  3. Blue Shield of California’s Wellvolution program: Blue Shield of California’s Wellvolution program uses gamification to encourage healthy behaviors among its members. The program offers challenges and rewards for completing healthy activities like exercise or healthy eating and allows users to connect with health coaches and track their progress over time. One study found that users who participated in the Wellvolution program had significantly lower healthcare costs than non-participants.
  4. Mango Health: Mango Health is a medication management app that uses gamification to encourage medication adherence. Users earn points and rewards for taking their medications on time and can connect with friends and family members for support. One study found that Mango Health users were 1.5 times more likely to take their medications on time than non-users.

Case Study: Zombies, Run!

Zombies, Run! is a popular mobile game that combines storytelling, fitness tracking, and gamification elements to encourage physical activity. The game has been credited with increased physical activity in users. Let’s look at how the game works and why it has been so successful.

The premise of Zombies, Run! is simple: players are runners in a post-apocalyptic world overrun by zombies. The game combines immersive storytelling with fitness tracking, allowing users to experience a thrilling adventure while getting in shape. Players start by selecting a mission, which might involve gathering supplies or rescuing survivors, and then begin running. The game tracks their distance, pace, and burned calories as they run while immersing them in a rich audio narrative.

The game’s developers, Six to Start, conducted a study to evaluate the impact of Zombies, Run! on physical activity levels. The study included 3,906 participants who completed a survey before and after using the app for six weeks. 

The results were impressive: on average, participants who used the app increased their weekly physical activity by 23 percent. In addition, 90% of participants reported that the game had motivated them to exercise more, and 80% reported that they were more likely to continue using the app in the future.

So why has Zombies, Run! been so successful at increasing physical activity levels? One key factor is the game’s immersive storytelling. By creating a compelling narrative that users can engage with, the game makes running more enjoyable and engaging. The game also incorporates gamification elements, such as rewards for completing missions and progress tracking, that give users a sense of accomplishment and motivation. In addition, the game’s community features, such as leaderboards and social sharing, allow users to connect with other players and provide a sense of accountability and support.

Overall, the success of Zombies, Run! highlights the potential of gamification to increase physical activity and promote healthy behaviors. By combining storytelling, fitness tracking, and gamification elements, the game provides users with an engaging and motivating experience that can lead to sustained behavior change. 

Case Study: SuperBetter

SuperBetter is a website developed to help people recovering from traumatic brain injuries, and it uses gamification elements to encourage users to set goals, track progress, and build resilience. Let’s look closer at how the website works and why it has been so effective.

The concept behind SuperBetter is simple: users set goals for themselves, such as managing pain or reducing stress, and then use the website’s tools to track their progress and build resilience. The website incorporates gamification elements, such as quests, power-ups, and challenges, that give users a sense of accomplishment and motivation. Users can also connect with friends and family for support, creating a sense of community and accountability.

The study published in the Journal of Medical Internet Research evaluated the effectiveness of SuperBetter among 388 participants who were recovering from traumatic brain injuries. The participants were randomly assigned to use the website or receive standard care. 

The results were striking: after 12 weeks, participants who used SuperBetter reported a 50% decrease in symptoms of depression and anxiety, compared to a 20% decrease among participants who received standard care. In addition, users of SuperBetter reported a 55% increase in their ability to cope with stress, compared to a 16% increase among those who received standard care.

So why has SuperBetter been so effective at reducing symptoms of depression and anxiety? One key factor is the website’s focus on building resilience. By providing users with a range of tools and strategies for coping with stress and setbacks, the website helps users feel more in control and better manage their symptoms. The website also incorporates social support and community features, allowing users to connect with others who share similar experiences and provide encouragement and accountability.

Overall, the success of SuperBetter highlights the potential of gamification to promote mental health and well-being. By incorporating gamification elements and community features, the website gives users a sense of accomplishment, motivation, and social support that can lead to sustained behavior change. The study also underscores the importance of using market research to evaluate gamification strategies’ effectiveness and continuously refine and improve them over time.

Key Takeaways

Gamification has emerged as a powerful strategy for promoting health and wellness, with many brands and organizations using game mechanics and design elements to encourage healthy behaviors. 

Market research plays a critical role in developing and implementing effective gamification strategies by gathering insights on user behavior and outcomes, testing prototypes, and evaluating the effectiveness of campaigns. 

Here are some key takeaways from this blog:

  • Gamification can be an effective tool for promoting healthy habits by increasing motivation, engagement, and retention.
  • Best practices for gamification in health and wellness include setting clear goals, creating meaningful rewards, designing a user-friendly experience, using data to inform strategy, and evaluating ROI.
  • Ethical considerations, such as privacy and data security, should be considered when using gamification.
  • Social influence and peer support can play an influential role in the success of gamification strategies by creating a sense of community and accountability.

Gamification can potentially transform how we approach health and wellness by making healthy behaviors more engaging, fun, and sustainable. By incorporating best practices, ethical considerations, and social influence, brands and organizations can create gamification programs that are effective, inclusive, and impactful. 

If you seek a market research partner to help with your gamification strategy, Kadence International is happy to help.

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The allure of new and improved products is undeniable. We constantly see updates and revised versions of our favorite products and wonder if and when we should buy the updated versions of products that already work for us. 

The truth is that brands frequently release products as new and improved, and consumers feel compelled to buy even when there is little objective improvement. Revising things may or may not make products better than their previous versions, yet, consumers perceive them as improved products. This is the reason brands release improved flavors, revised editions of books, and technology updates. 

For product development teams to release product improvements, it is vital to consider market research to collect consumer preferences and behavior data. Product development includes innovating and creating new products based on these insights. In this blog post, we will explore why updates and revised products are more appealing to consumers and how market research and product development play a part.

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Why do consumers think updates and revised products are better even if they are not?

When a new version of a product is released, consumers often perceive it as being better than its predecessor. This can be seen in technology, from smartphones to video game consoles. 

Research studies show consumers have difficulty passing up on a product labeled new, improved, or revised, even if it isn’t objectively better than its previous version. 

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So why do consumers think updates and revised products are better than their previous versions? It is due to a combination of consumer psychology and behavior.

Consumers no longer make decisions solely based on rationality, as evidenced by the financial crisis and a wealth of research. The leader in this space, Daniel Kahneman, has presented his groundbreaking book, “Thinking, Fast and Slow.” The book explains how our minds possess two distinct methods of thinking, which he calls System 1 and System 2 thinking.

Kahneman’s work on the System 1 and System 2 thinking models helps explain why people make certain decisions about purchasing updated products. System 1 is instinctive, fast, and emotional, while System 2 is logical, slow, and analytical. In many cases, people are drawn to updated products due to the former type of thinking, which means they are likely to be swayed by the allure of what appears to be a shiny, new object. 

People often assume new versions of products and services are better, even if the improvements are insignificant.

One study by the University of Michigan found that people are more likely to choose new products than old ones, even when the products are identical. The researchers also found that people are willing to pay more for products labeled as new than those labeled as old.

Another study published in the Journal of Consumer Research found that consumers are more likely to choose products labeled as new or improved than those not labeled in this way. The researchers found that consumers associate these labels with innovation and quality and are more likely to be attracted to them.

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This behavior is further explained by Kahneman’s distinction between “fast” and “slow” thinking. Fast thinking is the instinctive, automatic response to the perceived differences between old and new products. Slow thinking involves more deliberation, where consumers compare the cost of the new product against the benefit it provides.

Market research into what consumers want and need has revealed that people tend to view these new versions as more desirable because they offer additional features or more convenient use than earlier versions. 

How high technology product developers and marketers make decisions regarding updates. 

If you’ve ever agonized over the perfect time to replace your mobile device with a shiny new model, then you can appreciate the difficult decisions technology developers and marketers have to make when planning their product updates. 

To assist planners of high-tech consumer products in making these kinds of decisions, V. “Seenu” Srinivasan, a distinguished professor at Stanford GSB, and Sang-Hoon Kim, an assistant professor at Seoul National University, created a mathematical model which forecasts the sales pattern of a new version of an existing product. 

In an article titled “What Makes Consumers Want to Buy the Latest Model?” Srinivasan describes the model as simple, saying it is based on how much the benefits of a new product (compared to an old one) outweigh any obstacles that may inhibit a customer from upgrading. For instance, the probability of a customer buying a new laptop will increase if it is much better than their existing one and the upgrade is easy and not overly expensive. The obstacles taken into consideration for this model include not just the financial, procedural, and psychological costs of upgrading but also a consumer’s expectations on how soon future technology improvements will occur, the customer’s level of innovativeness, and the customer’s existing opinion of the product.

As anticipated, if the gains of upgrading outweigh any perceived drawbacks, it is more probable that the consumer will upgrade in a specific month.

Exploring such an analysis in the actual world is far more complex and expensive. For some products such as laptops, printers, and cell phones, Srinivasan states, their new versions come out so quickly that some technical supervisors think there needs more time for this kind of market exploration.

But educators are enthusiastic as the model is an imaginative blend of two prevailing methodologies in marketing science: conjoint analysis and hazard rate modeling. Conjoint analysis, which includes asking a sample of customers from the goal market how essential they consider various features to be, has been applied for some time to determine which group of product features to offer. However, since conjoint analysis provides a static snapshot of the marketplace at a specified moment, it does not provide the sorts of answers linked to product upgrades. It requires the inclusion of hazard rate modeling, traditionally used to compute the time discrepancy between a product’s initial purchase and future replacement purchases.

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The importance of Market research in product development.

The idea of buying something new and improved can be seen in many industries, from food or beverages to technology and streaming services. Smartphone companies typically announce a new version of their device every year or two, even though the updates are relatively minor. Similarly, streaming services offer different packages with additional features or added content. In all cases, the companies use this lure of new to boost their sales and keep customers interested in their products.

When it comes to developing high-tech products, market research plays an important role. Companies must carefully evaluate consumer preferences, pricing strategies, and other factors to ensure their product is attractive to customers and has the potential for long-term success. Market research also helps companies predict when to introduce a new version of an existing product. By understanding consumer behavior, companies can make informed decisions about when to launch a revised product that will maximize its success.

Ultimately, combining consumer psychology and behavior helps explain why consumers find updates and revised products more attractive. As marketers plan out their product releases and try to find the best ways to reach consumers, understanding these factors is essential for success.

Take a deep dive into Gen Z’s psychology, behavior, preferences, beliefs, and attitudes. Download our exhaustive guide to understand and engage with this target segment.

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The beauty industry is constantly evolving and growing, with global sales projected to reach $716 billion by 2025. However, in this crowded and competitive market, it is becoming increasingly challenging for brands to stand out and capture the attention of their target audience.

Did you know that 75% of consumers expect personalized experiences from beauty brands? To provide personalized experiences and create effective marketing strategies, brands in this space must understand the consumer behavior of their target audience.

Demographics

Understanding the demographics of the beauty and cosmetics consumer is essential for product marketing managers to create effective campaigns and products that resonate with their target audience. Over the years, the demographics of the beauty industry have evolved significantly, with changes in age, gender, and socioeconomic backgrounds.

Traditionally, the beauty industry was primarily marketed towards women, but in recent years, there has been a shift towards inclusivity and diversity, with many brands now targeting men, non-binary individuals, and individuals of all ages and ethnicities.

According to a report by Euromonitor International, in 2020, the global beauty and personal care market saw a 6.5% increase in male grooming products, and 60% of men reported using skincare products daily. This trend is expected to continue in the coming years, with more men becoming interested in grooming and personal care.

In terms of age, the beauty industry targets a wide range of age groups. The younger generation, especially millennials and Gen Z, have been particularly influential in driving trends and shaping the industry. This demographic is more likely to be influenced by social media and celebrity endorsements and is more open to trying new products and experimenting with different looks.

Socioeconomic background also plays a role in consumer behavior in the beauty industry. High-end luxury brands tend to target a more affluent audience, while drugstore brands aim to be more accessible to consumers on a budget.

Psychographics

In addition to demographics, understanding the psychographics of your target audience is essential for product marketing managers in the beauty industry. Psychographics refers to consumers’ attitudes, values, and beliefs and how these factors influence their purchasing decisions.

For example, some consumers may prioritize sustainability and ethical sourcing when choosing beauty products, while others may prioritize convenience and affordability. Some consumers may be loyal to a particular brand or product, while others may be more open to trying new products and experimenting with different looks.

To better understand the psychographics of your target audience, it can be helpful to conduct market research, such as surveys or focus groups, to gather insights into their preferences and purchasing habits. Social media can also be a valuable tool for understanding the attitudes and values of your target audience, as it provides a platform for consumers to share their opinions and engage with brands.

Once you have a better understanding of the psychographics of your target audience, you can tailor your marketing strategies and products to meet their specific needs and preferences. For example, if sustainability is essential to your target audience, you could focus on using eco-friendly packaging and ingredients in your products. If convenience is a priority, you could develop products that are easy to use on-the-go.

Consumer Behavior Models

Exploring different consumer behavior models can be helpful to better understand the consumer behavior of your target audience in the beauty industry. These models provide a framework for understanding consumers’ purchasing decisions and can help brands develop effective marketing strategies.

  • Traditional Marketing Funnel: This model is a widely used framework for understanding the customer journey. It consists of four stages: awareness, interest, decision, and action. At each stage, consumers have different needs and requirements, and it is the job of product marketing managers to provide the right information and support to move them through the funnel toward a purchase.
  • Customer Decision-Making Process: This model is a more in-depth framework that focuses on the internal thought processes of consumers. It consists of five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. This model highlights the importance of understanding the needs and preferences of consumers at each stage of the decision-making process.
  • Consumer Adoption Process: The consumer adoption process model focuses on how consumers adopt new products. It comprises five stages: awareness, interest, evaluation, trial, and adoption. This model benefits brands introducing new products to the market, as it helps them understand the factors that influence consumers’ adoption of new products.

By understanding these different consumer behavior models, product marketing managers can tailor their marketing strategies to better meet the needs and preferences of their target audience at each stage of the customer journey. 

For example, suppose a brand is launching a new product. In that case, the consumer adoption process model can be used to develop a targeted marketing campaign that focuses on building awareness, generating interest, and encouraging product trialing.

Understanding the different consumer behavior models is crucial for brands in the cosmetics and beauty industries to develop effective marketing strategies that resonate with their target audience. These models provide a framework for understanding the customer journey and can be used to create targeted campaigns that meet the needs and preferences of consumers at each stage of the decision-making process.

Purchase Decision Factors

To better understand the consumer behavior of your target audience in the beauty industry, it is essential to identify the key factors that influence their purchase decisions. Some of the factors that can influence purchase decisions in the beauty industry include:

  • Brand Loyalty: Brand loyalty is a significant factor in the beauty industry. Consumers often develop strong attachments to specific brands and are more likely to purchase products from those brands. This can be influenced by factors such as product quality, brand reputation, and the consumers’ emotional connection to a particular brand.
  • Price Sensitivity: Price is another significant factor in consumer purchase decisions in the beauty industry. Consumers may be willing to pay a premium for high-end luxury products but also look for affordable options that provide value for money. Price sensitivity can be influenced by factors such as the consumer’s budget, the product’s perceived value, and the market’s competition.
  • Product Quality: Product quality is a crucial factor in the beauty industry. Consumers expect high-quality products that deliver on their promises and provide the desired results. Quality can be influenced by factors such as the ingredients used, the manufacturing process, and the testing and certification of the product.
  • Social Influence: Social influence can also significantly influence consumer purchase decisions in the beauty industry. Consumers may be influenced by the recommendations of friends and family, as well as social media influencers and celebrities. This can be particularly important for younger generations, who are more likely to be influenced by social media.

By understanding these key purchase decision factors, brands can develop marketing strategies and products that meet the needs and preferences of their target audience. 

For example, if brand loyalty is a significant factor for the target audience, the marketing strategy could focus on building emotional connections and highlighting the brand’s reputation and heritage.

Consumer Segmentation

Consumer segmentation divides consumers into groups based on shared characteristics, such as demographics, psychographics, and behaviors. This approach allows brands to understand their target audience better and develop products and campaigns that meet their specific needs and preferences.

In the beauty, personal care, and cosmetics industries, consumer segmentation can be beneficial due to the wide range of products and needs of different consumers. Some examples of different consumer segments within the beauty industry include:

  • Age-Based Segmentation: This segmentation approach targets consumers based on their age groups, such as millennials, Gen Z, or Baby Boomers. Each age group may have different needs and preferences regarding beauty products, and marketers can tailor their products and campaigns to meet those specific needs. For example, younger consumers may be more interested in social media and influencer marketing, while older consumers may prefer traditional advertising.
  • Gender-Based Segmentation: While the beauty industry has traditionally targeted women, there has been a shift towards gender-neutral and inclusive marketing in recent years. Gender-based segmentation can help marketers develop products and campaigns that speak to the specific needs and preferences of different gender identities.
  • Skin Type-Based Segmentation: Consumers may have different skin types, such as dry, oily, or combination. Products can be tailored to meet the specific needs of each skin type, such as developing products for oily skin that focus on reducing shine and controlling oil production.

By understanding the needs and preferences of different consumer segments, brands can develop targeted products and campaigns that resonate with their target audience. For example, if a brand targets younger consumers, it could focus on developing products that are Instagrammable and easily shared on social media. Alternatively, if a brand targets consumers with specific skin concerns, it could develop products that address those concerns, such as anti-aging products for mature skin.

Consumer segmentation is a valuable tool for product marketing managers in the beauty industry to understand their target audience better and develop products and campaigns that meet their specific needs and preferences. By tailoring their marketing strategies and products to different consumer segments, product marketing managers can increase the effectiveness of their campaigns and better connect with their target audience.

Trends in the Beauty Industry

The beauty industry constantly evolves, and brands must stay current with the latest trends and developments. Here are some of the current trends in the beauty industry:

  • Clean Beauty: Clean beauty refers to products made with non-toxic, natural ingredients free from harmful chemicals. Consumers are becoming increasingly concerned about the ingredients in their beauty products and are looking for products that are better for their health and the environment. This trend is influencing consumer behavior and driving demand for clean beauty products.
  • Sustainability: Sustainability is becoming a top priority for consumers in the beauty industry. Consumers are looking for products that are produced in an environmentally-friendly way and packaged in sustainable materials. This trend drives innovation in product development and packaging and encourages companies to adopt more sustainable practices throughout their operations.
  • Inclusivity: Inclusivity is a growing trend in the beauty industry, with consumers looking for products that cater to a diverse range of skin tones, hair textures, and gender identities. This trend drives increased representation and diversity in advertising and product development and encourages companies to be more inclusive in their messaging and branding.

Brands can adapt to these trends by developing products and campaigns that align with consumer values and preferences. For example, a brand could create a line of clean beauty products that use natural ingredients and are free from harmful chemicals. They could also focus on sustainability by using eco-friendly packaging and reducing their carbon footprint. Additionally, they could incorporate inclusivity into their marketing strategies by featuring a diverse range of models in their advertising and offering products that cater to a diverse range of skin tones and hair textures.

Staying up-to-date with the latest trends in the beauty industry is crucial for product marketing managers to develop effective marketing strategies that resonate with their target audience. By adapting to trends such as clean beauty, sustainability, and inclusivity, product marketing managers can create products and campaigns that meet the needs and preferences of their consumers and drive demand for their brands.

Case Studies

To better understand effective product marketing campaigns in the beauty industry, analyzing successful campaigns and understanding why they effectively reached their target audience can be helpful. Here are some examples of successful product marketing campaigns in the beauty industry:

Dove Beauty Case Study

Dove is a brand synonymous with inclusivity and body positivity in the beauty industry. In 2004, Dove launched its “Real Beauty” campaign, which quickly became one of the most iconic marketing campaigns in the industry.

The “Real Beauty” campaign focused on celebrating the natural beauty of women of all ages, sizes, and skin tones. The campaign featured real women in their advertisements rather than professional models or actresses. The campaign also included a series of viral videos that challenged traditional beauty standards and encouraged women to embrace their natural beauty.

The campaign was a huge success, generating millions of views and sparking a conversation about beauty standards and representation in the media. Here are some reasons why the campaign was so effective:

  1. Catering to consumer values: The “Real Beauty” campaign was successful because it focused on consumer values, such as inclusivity, authenticity, and body positivity. The campaign resonated with consumers tired of seeing unrealistic beauty standards in the media and looking for brands that celebrated diversity and real beauty.
  2. Using social media to build a following: Dove leveraged social media to connect with its target audience and build a loyal following. The campaign included a website and social media channels that encouraged women to share their stories and photos, creating a community of women who were united by the campaign’s message.
  3. Differentiating from competitors: Dove differentiated itself by taking a bold stance on inclusivity and body positivity. The campaign challenged traditional beauty standards and celebrated the natural beauty of women of all ages, sizes, and skin tones. This differentiated Dove from other beauty brands focused on promoting unrealistic beauty standards.

The “Real Beauty” campaign was not without its critics, however. Some criticized the campaign for promoting Dove products as a solution to low self-esteem and body image issues. Others argued that Dove was still promoting a narrow definition of beauty, despite its message of inclusivity.

Despite these criticisms, the “Real Beauty” campaign remains an iconic example of effective marketing in the beauty industry. The campaign was successful because it resonated with consumers on a deeper level by focusing on values and emotions rather than just selling products. The campaign also had a lasting impact on the industry, sparking a conversation about beauty standards and representation that continues to this day.

Boots Case Study

Boots is a leading health and beauty retailer in the UK that offers a wide range of products, from skincare to makeup to fragrance. The brand has successfully differentiated itself by providing diverse products and catering to consumers of all ages and backgrounds. Here are some reasons why Boots has been successful in the beauty industry:

  1. Segmentation: One of the keys to Boots’ success is its segmentation strategy. The brand offers a wide range of products that cater to consumers of all ages and backgrounds, from teens to seniors and from luxury to budget. This segmentation strategy allows the brand to appeal to a broad range of consumers and meet the specific needs of each segment.
  2. Branding: Boots has built a strong brand reputation over the years by focusing on quality and affordability. The brand is known for its commitment to customer service and has won numerous awards for its loyalty program. This strong branding has helped to build a loyal following of consumers who trust the brand and continue to shop at Boots for their health and beauty needs.
  3. Product Development: Boots has also been successful in the beauty industry by focusing on product development. The brand offers diverse products, from branded products to exclusive partnerships with other brands. Boots also has a strong focus on innovation, with a dedicated team constantly researching and developing new products to meet the changing needs of consumers.
  4. Digital Strategy: Boots has also been successful in the beauty industry by leveraging its digital channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. Boots also offers a range of digital tools and services, such as its “Virtual Beauty Counter,” which allows consumers to get personalized beauty advice online.

Overall, Boots’ success in the beauty industry can be attributed to its strong segmentation strategy, branding, product development, and digital strategy. By catering to a broad range of consumers and offering a diverse range of products, Boots has built a loyal following of customers who trust the brand and continue to shop at Boots for their health and beauty needs. Additionally, by leveraging digital channels to connect with consumers and offer innovative products and services, Boots has been able to stay ahead of the curve in the highly competitive beauty industry.

Lotus Herbals Case Study

Lotus Herbals is a popular Indian beauty brand specializing in using natural and herbal ingredients. The brand has successfully differentiated itself by focusing on affordable yet high-quality products accessible to a wide range of consumers. Here are some reasons why Lotus Herbals has been successful in the beauty industry:

  1. Natural and Herbal Ingredients: Lotus Herbals has differentiated itself from its competitors by focusing on natural and herbal ingredients. The brand strongly focuses on sustainability and uses environmentally-friendly practices in its production processes. This focus on natural and sustainable ingredients has helped the brand build a loyal following of consumers looking for safe and eco-friendly beauty products.
  2. Accessibility and Affordability: Another key to Lotus Herbals’ success has been its focus on accessibility and affordability. The brand offers a wide range of products at an affordable price point, making it accessible to a wide range of consumers. This has helped the brand to build a large customer base and compete with larger, more established brands in the Indian beauty market.
  3. Innovative Products: Lotus Herbals has also been successful in the beauty industry by focusing on innovation. The brand has a dedicated research and development team that is constantly researching and developing new products to meet the changing needs of consumers. This focus on innovation has helped the brand to stay ahead of the curve and differentiate itself from its competitors.
  4. Marketing Strategy: Lotus Herbals has also been successful in the beauty industry by leveraging its marketing channels to connect with consumers. The brand has a strong online presence, with a website that offers a wide range of products and services, as well as an active social media presence. The brand also partners with influencers and celebrities to promote its products and build brand awareness.

Overall, Lotus Herbals’ success in the beauty industry can be attributed to its focus on natural and sustainable ingredients, accessibility and affordability, innovative products, and marketing strategy. By catering to a wide range of consumers and offering affordable yet high-quality products, Lotus Herbals has built a loyal following of customers who trust the brand and continue to purchase its products. Additionally, by leveraging its marketing channels to connect with consumers and promote its products, Lotus Herbals has been able to stay ahead of the curve in the highly competitive Indian beauty market.

SK-II Case Study

SK-II is a luxury skincare brand known for its innovative and high-quality products. The brand has successfully differentiated itself by using natural ingredients, such as Pitera, in its products. Here are some reasons why SK-II has been successful in the beauty industry:

  1. Product Innovation: One of the keys to SK-II’s success has been its focus on product innovation. The brand is known for using Pitera, a natural ingredient derived from yeast fermentation, in its products. This innovative ingredient has become synonymous with the brand and has helped to differentiate SK-II from its competitors.
  2. Luxury Branding: SK-II has also been successful in the beauty industry by leveraging its luxury branding to connect with consumers. The brand has a strong focus on quality and premium products. It has successfully marketed itself as a high-end brand offering its customers a luxurious and exclusive experience.
  3. Digital Marketing: SK-II has also been successful in the beauty industry by leveraging digital marketing channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. SK-II also partners with influencers and celebrities to promote its products and build brand awareness.
  4. Emotional Connection: SK-II has also been successful in the beauty industry by building an emotional connection with its customers. The brand strongly focuses on empowering women and has launched several campaigns that focus on issues related to women’s empowerment, such as its #ChangeDestiny campaign. This emotional connection has helped to build a loyal following of consumers who feel strongly connected to the brand.

Overall, SK-II’s success in the beauty industry can be attributed to its focus on product innovation, luxury branding, digital marketing, and emotional connection. By leveraging its unique ingredient, Pitera, and focusing on luxury branding and premium products, SK-II has been able to differentiate itself from its competitors and build a loyal following of consumers. Additionally, by leveraging digital marketing channels and building an emotional connection with its customers, SK-II has stayed ahead of the curve in the highly competitive beauty industry.

In conclusion, understanding consumer behavior is essential for product marketing managers in the beauty industry. By understanding the demographics and psychographics of their target audience, brands can create more effective marketing strategies and better tailor their products to meet the needs of their customers.

Additionally, by understanding consumer behavior models, purchase decision factors, and consumer segmentation, companies can better target their audience and create more effective marketing campaigns.

Lastly, by staying up-to-date on current trends in the beauty industry and analyzing successful case studies, brands can adapt their strategies to meet the changing needs and preferences of the market.

Key Takeaways:

  • Understand the demographics and psychographics of your target audience
  • Use consumer behavior models to understand your audience better
  • Identify key purchase decision factors that influence consumer behavior in the beauty industry
  • Use consumer segmentation to target your audience better
  • Stay up-to-date on current trends in the beauty industry
  • Analyze successful case studies to adapt your marketing strategies and product offerings.

Want to learn more about the latest beauty, cosmetics, and personal care trends? Download our report About Face here

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In today’s fiercely competitive market, brand perception plays a critical role in determining the success of a product. According to a recent survey, over 90% of consumers consider their perception of a brand when making purchasing decisions. In other words, how a customer perceives a brand can significantly impact the buying behavior and loyalty towards the product.

Moreover, in the era of social media, where customer feedback and reviews are readily accessible, building and maintaining a positive brand perception is more challenging than ever. It requires a deep understanding of customer needs and preferences, a clear differentiation strategy, and consistent execution across all touchpoints.

social-media-listening

This is where market research comes in. It provides valuable insights into customer perceptions, attitudes, and behaviors, which can help shape and improve brand perception. By leveraging market research, companies can gain a competitive edge by better understanding their customers and building a strong and distinctive brand.

In this blog, we will explore the role of brand perception in product marketing and provide insights from market research that can help Product Marketing Managers build and maintain a positive brand image for their products.

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Understanding Brand Perception

Brand perception refers to how customers perceive and evaluate a brand. It is formed through a combination of experiences, associations, and beliefs that customers have about a brand. 

The term “brand perception” was first coined by David Aaker, a brand strategist and author, in his 1991 book, “Managing Brand Equity.” Since then, brand perception has become central to marketing research and strategy.

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Brand perception is shaped by a variety of factors, including product quality, customer experience, and advertising. A study conducted by PwC found that 73% of consumers consider product quality as the most important factor in their perception of a brand. In contrast, poor customer experience can significantly damage a brand’s reputation. According to a study by NewVoiceMedia, 86% of consumers are willing to pay more for a better customer experience.

Advertising plays a crucial role in shaping brand perception. A company’s advertising message can influence customers’ beliefs and attitudes toward the brand. For example, Nike’s “Just Do It” campaign has helped to create a perception of the brand as one that promotes motivation, empowerment, and self-expression. 

However, brand perception is not solely shaped by the company’s actions. External factors, such as media coverage, social media buzz, and word-of-mouth, also play a significant role. In 2019, Malaysian airline company AirAsia faced negative media coverage and social media buzz after a safety incident involving one of its planes. The incident sparked concerns about the airline’s safety record and raised questions about the company’s brand perception. AirAsia responded quickly to the incident, issuing a statement and working to address customer concerns. The company also implemented new safety measures and invested in training programs to improve its safety record. By taking swift action and prioritizing safety, AirAsia maintained its brand perception and continued growing its business in the competitive airline industry.

Understanding brand perception is crucial for Product Marketing Managers. By understanding how brand perception is formed and the various factors that influence it, companies can develop effective marketing strategies that build and maintain a positive brand image.

The Impact of Brand Perception

Brand perception has a significant impact on the success of a product. Positive brand perception can lead to higher sales, increased market share, and greater customer loyalty. In contrast, a negative brand perception can significantly damage a product’s success.

One study found that brands with a strong and positive perception outperform those with a weak or negative perception by 20%. 

Additionally, according to a report by Deloitte, customers are willing to pay up to a 16% price premium for products from brands they trust.

Cadbury has built a strong and positive brand perception around its chocolate. It is associated with high quality, indulgence, and nostalgia. This has helped Cadbury maintain its market-leading position in the UK’s chocolate market, despite the entry of many competitors over the years.

Similarly, in Singapore, Shangri-La Hotels has built a positive brand perception around luxury, hospitality, and attention to detail. It has used this perception to differentiate itself from competitors and attract high-end customers.

shangri-la

Brand perception has a significant impact on the success of a product. Companies that build and maintain a positive brand perception can outperform their competitors and attract a loyal customer base. By understanding the impact of brand perception, Product Marketing Managers can develop effective marketing strategies that leverage their brand’s strengths and address any weaknesses.

Conducting Market Research

Market research is crucial for understanding brand perception and gaining insights into customer behavior. Surveys, focus groups, and social media monitoring are just a few of the methods that can be used to gather insights into customer perceptions and preferences. 

Surveys are a common market research method that asks customers about their brand perceptions. Surveys can be conducted online or in person and tailored to specific customer demographics or preferences. Surveys can help companies understand customer perceptions of their brand, identify strengths and weaknesses, and gain insights into areas for improvement. 

Focus groups are another market research method involving bringing customers together to discuss their perceptions of a brand. Focus groups can help companies understand how customers perceive their brand and how they interact with it. They can also provide insights into customer preferences and attitudes toward different product features. 

Social media monitoring is a relatively new market research method involving analyzing social media conversations about a brand. Social media monitoring can help companies understand how customers perceive their brand, identify areas for improvement, and gain insights into emerging customer trends. 

By leveraging market research, Product Marketing Managers can gain a deep understanding of their brand’s perception and develop effective marketing strategies that address their customers’ needs and preferences.

Interpreting Market Research

Interpreting market research findings is essential for gaining insights into brand perception and shaping product marketing strategies. To interpret market research findings effectively, brands must first identify key themes and patterns in the data. They should also compare and contrast the findings to identify any discrepancies or areas of inconsistency.

Once the key themes and patterns are identified, companies can use the findings to shape their product marketing strategies. For example, suppose a company’s market research finds that customers perceive their brand as low-quality. In that case, it might focus on improving the quality of its products and repositioning its brand as a high-quality option.

Market research can also provide insights into emerging customer trends and preferences. If a company’s market research finds customers increasingly interested in sustainability, they might develop new products or marketing campaigns highlighting their commitment to sustainability.

Companies can also use market research to identify opportunities for differentiation. If market research reveals that a brand’s customers value high-quality customer service, it might focus on developing a customer service strategy that sets them apart from its competitors.

Interpreting market research findings is essential for gaining insights into brand perception and shaping effective product marketing strategies. By identifying key themes and patterns, companies can use market research to address customer needs and preferences, identify opportunities for differentiation, and stay ahead of emerging customer trends.

Calculating Brand Perception

While there is no one-size-fits-all formula for calculating brand perception, Product Marketing Managers can use various methods to measure their brand’s perception. 

Some common measurables are customer satisfaction, brand awareness, and brand loyalty. In addition, brands may develop their own measures that are specific to their brand and marketing goals.

Customer satisfaction is a key metric that can provide insights into brand perception. By measuring customer satisfaction through surveys or other means, Product Marketing Managers can better understand how customers perceive their brand and what factors are most important to them. For example, a hotel chain might measure customer satisfaction by tracking guest reviews on social media and review sites such as TripAdvisor or Booking.com.

Brand awareness is another measurable to consider. This can be measured by tracking how many people are aware of the brand and how well they understand the brand’s value proposition. Companies can use surveys or other methods to track brand awareness and compare their brand awareness to that of their competitors. For example, a new online retailer might track brand awareness by conducting market research to assess how many people are aware of their brand compared to established players in the market.

Brand loyalty is also an important measure of brand perception, reflecting customers’ commitment to a brand. Companies can track brand loyalty through metrics such as repeat purchases, customer retention rates, and customer lifetime value. For example, a subscription-based service might track customer retention rates to understand how well they are retaining customers and how this may be impacted by changes in their service offering or pricing.

customer-loyalty-quote

There are also some indicators that brand perception may be declining, such as negative reviews, social media backlash, declining sales, or decreased customer loyalty. By monitoring these indicators, marketers can take action to address any issues that may be impacting brand perception.

For example, in the fashion industry, negative reviews, declining sales, or decreased social media engagement may indicate a decline in brand perception. In response, a fashion brand might adjust its marketing strategy, improve product quality, or invest in customer service to enhance the customer experience and win back customers.

Measuring customer satisfaction, brand awareness, and brand loyalty can provide valuable insights into how customers perceive a brand. Monitoring indicators of declining brand perception can help companies address any issues and improve brand perception over time.

Brand Perception and Product Launches

Brand perception’s role in a product launch’s success cannot be overstated. A strong brand perception can generate excitement and anticipation for a new product, while a weak brand perception can make gaining traction in the market more challenging. 

Product Marketing Managers must leverage their brand perception and use market research to inform their product launch strategies to ensure success. Market research can help identify customer preferences and trends, allowing the development of products that align with these preferences. By leveraging their brand perception, companies can create products aligned with their customer’s expectations, generating significant buzz and excitement around the product launch.

To maximize the impact of a product launch, companies must also focus on creating a strong brand story and messaging that resonates with their target audience. This messaging should focus on the product’s unique benefits and how it meets the needs and desires of the target audience. Marketers can craft compelling and relevant messaging by using market research to develop a deep understanding of their target audience.

One example of a successful product launch that leveraged brand perception is the release of the iPhone in 2007. Apple’s strong brand perception around innovation, design, and quality helped to generate significant anticipation and buzz around the iPhone before its launch. As a result, the product gained considerable market share and established a loyal customer base.

Overall, the success of a product launch is heavily influenced by brand perception. By leveraging market research and developing a deep understanding of their target audience, companies can create products that align with customer preferences and generate significant excitement around the launch. Additionally, by developing a strong brand story and messaging, companies can establish a meaningful connection with their target audience and establish themselves as a leader in their industry.

Managing Brand Perception

Managing brand perception is an ongoing process that requires a deep understanding of customer preferences and trends. To maintain a positive brand image over time, companies must consistently deliver high-quality products and services, invest in customer service and support, and respond effectively to negative feedback.

One key strategy for managing brand perception is to consistently deliver high-quality products and services. This includes investing in product development and quality control, ensuring that products meet customer expectations, and continually innovating to stay ahead of competitors. By delivering high-quality products and services, companies can establish a strong reputation and build a positive brand perception over time.

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Investing in customer service and support is also critical for managing brand perception. This includes providing prompt and effective customer service, being responsive to customer needs and concerns and continually monitoring and improving the customer experience. Companies can build customer loyalty and strengthen brand perception by investing in customer service and support.

Inevitably, companies will receive negative feedback from time to time, whether it be through social media, online reviews, or other channels. The key to managing negative feedback is to respond effectively and in a timely manner. This includes acknowledging the customer’s concerns, addressing the issue directly, and taking steps to prevent similar problems from occurring. By responding effectively to negative feedback, companies can demonstrate their commitment to customer satisfaction and build trust with their customers.

In the early 2010s, McDonald’s saw a decline in brand perception due to negative media coverage around the healthiness of its menu items. To turn this around, the company introduced several new menu items, such as salads and fruit smoothies, to appeal to health-conscious consumers. McDonald’s also focused on improving the customer experience by investing in restaurant renovations and digital ordering systems.

McDonalds

Brand perception plays a critical role in the success of any product marketing strategy. By understanding how brand perception is formed, how it affects consumer behavior, and how to measure and manage it, Product Marketing Managers can ensure that their products and services resonate with customers and generate the desired business outcomes.

Market research is a valuable tool for understanding and shaping brand perception. By using methods such as surveys, focus groups, and social media monitoring, companies can gain insights into customer preferences and behavior, which can then be used to inform product development, marketing campaigns, and customer experience strategies.

Effective brand management requires a commitment to quality, innovation, and customer service. By consistently delivering high-quality products and services, investing in customer support and engagement, and responding effectively to feedback, companies can build a positive brand perception over time and establish themselves as leaders in their industry.

Key takeaways:

  • Brand perception is critical to the success of product marketing strategies.
  • Market research is an essential tool for understanding and shaping brand perception.
  • Effective brand management requires a commitment to quality, innovation, and customer service.

As a global market research firm, Kadence International can help companies navigate the complexities of brand perception and consumer behavior. With expertise in a range of research methods and a deep understanding of different markets and industries, we can provide the insights and guidance that companies need to succeed. Request a proposal today.

UX (User Experience) refers to the overall experience of a person using a product or service, including how easy or enjoyable it is to use and how well it meets their needs. In market research, UX research helps to understand how users interact with and perceive a product and identify improvement areas.

UX market research is also known as:

  • User experience research
  • User research
  • Human-centered design research
  • User-centered design research
  • Usability research
  • User testing
  • User insights
  • User-centered research
  • Human factors research

CX (Customer Experience) refers to a customer’s overall experience with a company, including their interactions with its products, services, and staff. In market research, CX research is conducted to understand the customer’s perspective of the company and identify areas for improvement to enhance the overall customer experience.

CX research is also known as:

  • Customer experience research
  • Customer satisfaction research
  • Customer insights research
  • Customer-centric research
  • Customer journey research
  • Customer feedback research
  • Customer engagement research
  • Voice of the customer research
  • Customer loyalty research

UX research has been used since the 1980s, when computers became more widespread in everyday life. At that time, the focus was on improving computer software and hardware’s usability and making it more accessible to users.

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CX research has a longer history, as it has been used in the context of customer service and customer relations for many decades. The idea of CX as a key aspect of a company’s brand and marketing strategy became more prominent in the early 2000s as companies began to realize the importance of creating positive and memorable customer experiences.

As technology has continued to advance and customers have become more discerning, UX and CX have become increasingly important in market research. Companies use UX and CX research to gain insights into their customers’ needs, preferences, and behaviors and to create products and services that meet their expectations.

UX and CX are related but distinct concepts in business and market research. UX and CX are both important aspects of business and market research, but they have different goals, focuses, and outcomes. Both are crucial for ensuring customer satisfaction and driving business success.

  1. Definition: UX refers to the overall experience of a user with a product, including the usability, accessibility, and desirability of the product. CX, on the other hand, refers to the entire customer journey, from initial engagement with a brand to post-purchase customer service.
  2. Focus: UX research focuses primarily on the design and functionality of the product, while CX research looks at the entire customer experience, including interactions with customer service and the brand.
  3. Methods: UX research typically involves usability testing, user research, and surveys, while CX research may also involve customer surveys, interviews, and customer journey mapping.
  4. Goals: The goal of UX research is to improve the design and functionality of the product to create a better user experience, while the purpose of CX research is to improve the overall customer experience and build customer loyalty to the brand.
  5. Outcome: The outcome of UX research is improved product design and functionality, while the result of CX research is increased customer satisfaction and loyalty.

UX and CX research can be either qualitative or quantitative, depending on the research objectives and the type of data collected.

Quantitative UX and CX research often involve surveys, online polls, and other forms of data collection that generate numerical data, which can analyze and identify patterns and trends.

Qualitative UX and CX research typically involve more in-depth, exploratory methods such as interviews, focus groups, and observation. This type of research is designed to gain a deeper understanding of customers’ thoughts, emotions, and experiences with a product or service.

Brands may conduct UX or CX research to understand their customers better and improve their products or services. Here are some signs that a UX or CX research study may benefit a brand:

  • Customer Feedback: If the brand receives a large number of negative comments or complaints from customers about the user experience or customer experience, it may be a sign that a research study is needed.
  • Low Customer Satisfaction: If the brand’s customer satisfaction scores are low, it may indicate that there is room for improvement in the customer experience.
  • High Customer Churn: If the brand has a high customer churn rate, or if customers are not returning to use their products or services, it may be a sign of a problem with the customer experience.
  • Competitor Advantage: If competitors offer better user or customer experiences, research can help the brand understand how it can improve to remain competitive.
  • Product Development: If the brand is developing a new product or service, UX or CX research can provide valuable insights into the needs and preferences of the target customer.

Consider the tables below for a smartwatch to show further the differences and parallels in UX and CX market research.

*** Insert Table ***

user experience study
customer experience study

Examples of UX Research Questions

While there are some similarities in how UX and CX market research is conducted, the questions are often very different.

UX questions help to identify areas for improvement in the product and provide valuable insights into the user experience. The answers to these questions can inform design and development decisions to create a better user experience and improve customer satisfaction.

Here are some examples of research questions that might be asked in a UX market research study:

  1. How easy or difficult is it for users to navigate the interface of the product?
  2. How intuitive is the product design and layout?
  3. How well do the features of the product meet the needs of users?
  4. Are any areas of the product that could be clearer or easier to use?
  5. How efficient and effective is the product in performing its intended tasks?
  6. How satisfied are users with the overall user experience of the product?
  7. What are the users’ expectations of the product, and how well does the product meet those expectations?
  8. Are there any frustrations or pain points with the product that users would like to see improved?
  9. Are there any unmet needs or desires for new features users would like to see added to the product?
  10. How does the product compare to similar products in terms of user experience?

Examples of CX Research Questions

Conversely, CX research questions help to identify areas for improvement in the customer experience and provide valuable insights into customer needs and preferences. The answers to these questions can inform customer-focused initiatives and drive business success.

Here are some examples of research questions that might be asked in a CX market research study:

  1. How easily can customers find information about the product and make a purchase?
  2. How satisfied are customers with the purchase process, including delivery and payment options?
  3. How well does the company handle customer service inquiries and issues?
  4. How satisfied are customers with the post-purchase customer service experience?
  5. How well does the company meet customer expectations for product quality and performance?
  6. How do customers perceive the brand, and how does this affect their loyalty to the brand?
  7. What factors influence customer satisfaction with the product and overall customer experience?
  8. How does the customer experience with the product compare to similar products in the market?
  9. How well does the company understand and address the needs and preferences of its customers?
  10. How well does the company handle customer feedback and incorporate it into product development and customer service initiatives?

While UX and CX have different business area focuses, several research methodologies are complementary. By incorporating these complementary areas into UX and CX research, companies can gain a more comprehensive understanding of their customers and users and make informed decisions about product design and customer experience.

These include:

  1. Brand Research: Brand research focuses on the reputation and perception of a brand, which can impact the overall customer experience.
  2. Customer Segmentation: Customer segmentation helps to identify different customer groups and understand their needs, preferences, and behaviors, which can inform UX and CX research.
  3. Voice of the Customer (VOC): Voice of the customer research involves collecting customer feedback and opinions about products, services, and the overall customer experience, which can inform UX and CX research.
  4. User Persona Development: User persona development involves creating detailed profiles of typical users, which can help to inform UX design and CX strategies.
  5. Surveys: Surveys can be used to gather data and feedback from customers and users, which can inform UX and CX research.
  6. Behavioral Analysis: Behavioral analysis involves observing and analyzing user behaviors, which can inform UX design and CX strategies.
  7. Customer Journey Mapping: Customer journey mapping involves mapping out the different stages of the customer journey and understanding customer needs, preferences, and behaviors at each stage, which can inform UX and CX research.

Why should brands monitor UX and CX collectively?

UX and CX are important to monitor because they play a crucial role in determining the success and competitiveness of a company in today’s market. 

Monitoring UX and CX provides several benefits, including:

Customer Satisfaction: Monitoring UX and CX helps companies understand customer needs, preferences, and satisfaction and improve the customer experience to increase customer satisfaction.

Improved User Experience: Monitoring UX helps companies understand user behaviors and preferences and make improvements to the design and functionality of their products to enhance the user experience.

Increased Loyalty and Retention: A positive customer experience leads to increased customer loyalty and retention, which is essential for long-term business success.

Better Business Decisions: Monitoring UX and CX provides valuable insights into customer and user behaviors and attitudes, which can inform better business decisions.

Competitive Advantage: Brands that prioritize UX and CX can differentiate themselves from their competitors and gain a competitive advantage in their market.

Increased Revenue: Companies that invest in UX and CX can increase customer satisfaction and loyalty, leading to increased revenue.

The frequency of UX and CX research can vary depending on several factors, such as the size and complexity of the product or service, the target audience, the research goals, and the research budget available.

For UX research, it is common to conduct user testing and research at crucial stages of the product development cycle, such as during prototyping, before launching a new product or feature, or when making major updates to an existing product. The frequency of UX research can range from one-off studies to ongoing research and testing.

For CX research, companies may conduct studies regularly, such as annually or bi-annually, to track customer satisfaction and feedback over time. This type of research can also be undertaken after key customer interactions, such as after a purchase or customer service interaction, to gather real-time feedback.

In general, it is recommended that companies continuously monitor and gather data on both UX and CX to make informed decisions and improve their products and services over time.

If you would like to improve your user or customer experience, Kadence International would love to assist. Simply, get in touch or submit a research brief.

Clean eating profoundly impacts food production as consumers worldwide gravitate toward healthier, cleaner foods.

In 2022, the global health and wellness food market was valued at USD 841 billion and is projected to increase to one trillion U.S. dollars by 2026.

What is clean eating?

Clean eating might have various interpretations for consumers, but it generally refers to eating whole foods as close to their natural state. Consumers that opt for clean eating usually prefer making their meals from scratch. For food and beverage companies, this means using suppliers who cultivate high-quality ingredients and organic farming. These typically come from smaller productions, which means higher prices for consumers.

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Consumers want to eat healthily, but the price is an obstacle.

The pandemic has put health at the forefront and changed our relationship with food. Consumers want to eat healthier, and this has been the most significant lifestyle change in recent years, followed by working out more often.

With the impending recession and high inflation rates, spending less money is also a priority. 

Consumers are looking for “farm-to-table” foods, and the buzzwords are healthy foods that are accessible. These consumers want to know what is in their food and where it comes from. 

Health and wellness factor heavily in purchasing decisions, and food production brands adapt to the trend. Protein-rich foods and superfoods with high antioxidant values are foods that more health-conscious consumers prefer today.

Superfoods refer to nutritionally dense foods or foods that are exceptionally high in vital nutrients. Some commonly regarded superfoods are salmon, kale, blueberries, chia seeds, acai, and quinoa. 

Statista states that between 2016 and 2017, retail sales of quinoa grew by 15.6 percent in the United States as its health benefits became more well-known. Chia seeds witnessed a 14.7 percent increase in retail sales during the same time. 

Consumers are discerning what foods they put in their bodies with increasing awareness about the harmful effects of preservatives and rampant chronic diseases. While there was already a slow rise in this awareness, the pandemic accelerated the shift. For today’s consumers, it is also essential to trace where the product is from. In terms of dairy, vegetables, meat, and fruits, “locally grown or sourced” is gaining significance. 

According to a survey, in 2022, 52 percent of respondents surveyed reported following a specific diet, a sharp increase from 39 percent in the previous year. Amongst those who followed a diet or plan, clean eating (16 percent) was the most popular, followed closely by mindful eating (being intentional and aware when eating) and calorie counting. 

Superior quality, organic foods, and ethical farming practices

From farm-raised over wild-caught seafood to cage-free eggs and non-GMO grass-fed beef, consumers are looking for high-quality ingredients and slowly moving away from pesticide-ridden, low-quality GMO foods. 

The global sales of organic food have risen between 2000 and 2020. In 2020, organic food sales amounted to about USD 120.65 billion, up from nearly USD 18 billion in 2000.

Organic food can vary wildly depending on the nation and certifying agency, but it frequently means crops grown without genetic modifications, artificial pesticides, or harmful fertilizers. Organic meat, dairy, and eggs require animals to be provided organic feed, given sufficient time outdoors, and not be fed growth hormones or fillers. 

In 2019, organic food sales amounted to USD 106 billion, up from nearly USD 15 billion in 1999. The United States accounts for over 40 percent of the retail sales of organic food worldwide, followed by Germany. 

According to the same report, in 2019, there were approximately 72 million hectares of organic farmland worldwide. There were more than one million organic food producers in India, which amounts to at least five times more producers than in any other country.

Ethical farming, manufacturing/ production, and distribution practices are essential to purchase considerations for many buyers. Slave trade, animal cruelty, and environmentally safe farming practices are encouraged. Many consumers won’t buy products that they know follow these inhumane and anti-environment practices.

All this comes at a high cost, and most consumers won’t pay the higher prices for organic foods, even though they would like to. 

Plant-based foods

While veganism, a diet that eliminates all meat and animal-derived foods, is still a lifestyle followed by very few consumers, there is continued demand for plant-based foods worldwide. 

Plant-based meat alternatives include food products from vegetarian or vegan sources, such as soy, vegetables, seitan, tempeh, or pea proteins. 

The percentage of vegans differs by country. With a 9 percent vegan population, India is the leading nation by share of vegans. In the U.K., their percentage is less than 2 percent, but in the U.S., it is closer to 6 percent.

In 2021, Beyond Meat was the leading company producing alternative protein products, such as plant-based meat, with an estimated market value of USD 9 billion. The company offers burger patties, among other alternative meat products. Impossible Foods, which ranks second, is a direct competitor in this market. Brands with plant proteins, dairy alternatives, and meat and seafood substitutes attract Venture Capitalists and are amongst the most funded start-ups in many markets. 

According to a report, in 2020, the global market value of plant-based meat was estimated to be around USD 6.7 billion. The market is expected to continue its growth and will reach about USD 16.7 billion in 2026. With a share of 44 percent, North America, has the largest market share in the plant-based meat market, followed by Europe, at about 34 percent. 

Vegan and plant-based foods are becoming popular with the meat-eating population as well. Non-vegans regularly consume many types of meat and dairy substitutes. Impossible Foods is one of the world’s most prominent alternative protein companies. The global vegan market is valued at USD 15.8 billion, and the global plant-based food market is valued at USD 35.6 billion. The milk substitute market alone is valued at USD 19.5 billion. China and the U.S. are the largest milk alternatives markets and together account for USD 12 billion of the total global revenue. 

The global plant-based food market will reach USD 77.8 billion in 2025, and the forecast projects that by 2030 the market will have more than doubled. 

Contribution to a greener, more sustainable world

Consumers are looking to make more significant contributions toward a sustainable and green future, especially for younger generations, like Millennials and Zoomers. 

Today’s consumers are more conscious of how they consume products and are more aware of enterprises’ impact on the ecosystem. Many consumers will stop using brands that are not environmentally friendly and will favor those that are and move their loyalty toward them. Sustainability is not restricted to just the environment and includes ethical practices and humane conditions. Packaging and reducing carbon emissions are a huge part of sustainability. 

Numerous big brands have incorporated sustainability into their corporate social responsibility frameworks. Many large fast-food chains have joined the climate movement, and Chipotle Mexican Grill, a US-based fast-casual chain, is an excellent example. Besides introducing eco-friendly packaging and measures to reduce waste, the brand went a step ahead. It launched a ‘sustainability tracker’ to provide data on the environmental impact of all its ingredients. Chipotle diners now receive data on five environmental metrics on their order confirmation screen, showing carbon in the atmosphere, gallons of water saved, improved soil health, organic land supported, and antibiotics avoided. 

For sustainability to happen, technology is a critical piece that can allow companies to forecast, monitor quality, and improve processes and packaging, to name a few. Factors like natural resources, labor, climate, and air quality are also important. 

With this new wave of the conscious shopper, many brands need to rethink their business operations for a complete rehaul. 

It is worth noting that it is a challenging change as brands grapple with offering better, cleaner foods at affordable prices.  

While consumers are more aware now, can they eat as healthy as they would like, given the inflation rate and higher prices for organic, clean foods?

With the current inflation rates, consumers find even regular food choices expensive. So everything comes down to value for the consumers. If your brand fails to show the consumer enough value, they will move to a less expensive option. So brands must be proactive in delivering value to the consumers to retain them. The good news is that even though we are in a supply-driven inflationary market, employment levels remain healthy. Currently, consumers absorb rising prices by reallocating their budgets toward priority areas. However, the imminent recession will impact purchasing power, so brands need to think ahead.  

For a more in-depth look at the Food and Beverage industry, download our report, “Food and Beverage Trends to Watch in 2022.”

Consumer behavior is shifting more rapidly and drastically than ever before. Brands are trying to keep up with massive changes in consumer behavior and preferences in virtually every sector, from groceries and fitness to banking and finance. Consumers continue to pivot their preferences and priorities with uncertainty, inflation, and an economic downturn. 

In the early days of the pandemic, an uncertain and dismal picture caused anxiety and depression, which led to panic buying globally. Those were short-term behaviors and did not last. However, many massive shifts due to the pandemic have stuck, including online shopping and the need for speed, efficiency, and convenience. 

The pandemic has changed certain habits for the long haul, with many consumers going to stores less frequently than before. Buyers are now more comfortable shopping online, and most consumers prefer a hybrid shopping experience combining the physical and digital worlds as convenience becomes paramount.

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With the growth of online shopping and technological advancements making online shopping as personalized as a store visit, consumers are exploring options beyond traditional brick-and-mortar stores and looking for a complete experience, be it physical, online, or hybrid. Businesses must adapt quickly to these changes and shifts in consumer preferences to remain competitive in a dynamic and ever-changing market. These changes have been taking place for some time, but the pandemic accelerated the rate of change unexpectedly. 

Some of the consumer behaviors that have drastically shifted post-pandemic are food and grocery delivery services. In the U.S., consumers did not regularly use grocery delivery services. According to some reports, about 15 percent of U.S. consumers tried grocery delivery services for the first time due to the pandemic, about 80 percent of those first-timers liked the service, and 40 percent said they would continue using it post-pandemic. 

While convenience and safety were the two reasons delivery services skyrocketed during the pandemic, the price will likely supersede convenience as we enter a time of out-of-control inflation. Consumers will try to make their money stretch further because savvy consumers know the premium they pay for using delivery services like Instacart. 

In this new economy, will they still be comfortable paying a premium and missing out on discounts for fuel when they don’t shop in person? 

Food delivery services also became more popular worldwide, and the takeout and delivery trend was rising. However, as people returned to in-person dining, food delivery apps took a hit. These apps will also follow the same path as grocery delivery services because when consumers buy from DoorDash, the prices are higher, and they cannot use vouchers. 

Many big retailers like Walmart are following shifts in consumer behavior by offering pick-up and delivery with no markup on prices. Other delivery apps are double-dipping on price, and the consumer pays more than they would in the store. 

Brands need to understand that just as convenience and safety were top priorities during the pandemic, consumers prioritize value and price over everything else, given the current economic environment. 

The fitness market is also seeing massive shifts, and consumers now want an omnichannel approach to fitness, where they use at-home gym equipment and online classes and apps in combination with in-person classes. 

Many e-commerce brands capitalized on creating connections with their consumers by using hand-written-style notes to add to the unboxing experience.

Beauty and fashion brands made it easier for consumers to shop online by using machine learning and artificial intelligence to offer personalized suggestions, experiences, and Virtual try-on sessions using Virtual Reality to mirror an in-store experience. 

Brands need access to high-quality consumer data, insights, and business Intelligence to stay in the game, meet customers’ demands, and outpace the competition.  

In any business environment, enterprises need to clearly understand the psychology behind why consumers behave the way they do. Consumer behavior is the study of consumers and analyzes how consumers decide what to buy, when, and how to buy. It seeks to understand the psychology behind consumers’ needs, wants, and desires and how they purchase, use and dispose of products and services. 

This study is critical because it helps brands understand the motivations and influences behind their purchases. It allows brands and marketers to develop the right products for the right audiences and market the product with the right messaging to convert prospects into buyers and retain them over time. 

Several factors come into play during the purchase decision stage, and these may include personal (age, culture, values, beliefs), psychological (brand perception), or social (friends, family, influencers, social media).

There are four types of consumer behavior:

  1. Complex buying behavior

This type of buying behavior is associated with big-ticket purchases, like buying a home or a car, where consumers invest a lot of time and energy. 

2. Dissonance-reducing buying behavior

This type of consumer behavior is often seen when a consumer is highly involved in the buying process but takes longer than usual because they do not want to regret the decision. This happens when multiple brands are very similar, and choosing one is tricky.

3. Variety-seeking behavior

This behavior is exhibited by consumers who opt for a different brand, even if they were happy with their previous purchases because they value variety.

4. Habitual buying behavior

Consumers that purchase the same brand because of habit rather than brand loyalty are in this category. 

A grasp of the type of consumers your brand attracts will allow you to segment your market based on consumer characteristics.  

Marketers also need to understand buying roles and who is the decision maker regarding their specific product. In a family, for instance, the parents make major buying decisions; however, in some cases, young children are highly influential in the decision. In fact, unlike in the past, the younger cohorts, Generation Alpha (those born after 2010) and Gen Zs (those born between 1995-2010), make many important buying decisions regarding what they wear, eat, or travel. 

There are six major buying roles brands need to take into consideration:

  1. Influencer(s): Several people may be involved in the purchase decision in many cases, but they may not all be consumers. Influencers are those who can exert influence in the final decision. These could be bloggers in today’s world or friends and family whose advice commands weightage in the purchase decision. 
  2. Gatekeepers are usually family members who control the information flow regarding a product within a household. 
  3. Initiator: This is the person who first initiates the purchase idea. 
  4. Decider: This person has the final say in the purchase decision and decides whether or not to buy the product. He also may determine how and where to buy it. 
  5. Buyer: This is the person who ends up buying the product.
  6. User: This is the person who consumes or uses the product purchased. 

Consumer behavior helps with market segmentation, as it goes beyond the essential demographic elements like age, gender, and location to explore the behavior patterns customers exhibit when interacting with a particular product, brand, or website. This concept is instrumental in e-commerce and online shopping environments. 

Here’s how e-commerce brands use consumer behavior to segment customers and users based on their level of engagement with the website, app, or product page. 

They segment or group their customers by their attitude toward their brand, level of brand recognition, usage, frequency and timing of purchase, and purchasing patterns or tendencies, like special occasion buying behavior. 

This allows them to tailor their marketing messages and create compelling campaigns to achieve their goals. 

By utilizing behavioral segmentation, brands can get a complete picture of their customers and filter them by the highest levels of engagement. For instance, brands can track those who regularly open their emails or visit their product pages. Marketers can also target ads with the most appealing messaging to customers based on their needs. For instance, an online shoe store can show those interested in athletic wear more running shoes and sneaker ads, and at the same time, serve ads with formal shoes for those interested in evening shoes. 

Another significant shift in consumer behavior is related to a demand for personalized and customized products, especially amongst the younger cohort of Gen Zs. Using behavioral segmentation, brands can provide more refined personalized experiences to win business. Brands can gain deep insights into their consumers’ needs, wants, desires, challenges, preferences, and concerns to gain a competitive advantage. Upselling and showing complementary products and replenishment reminders based on customer history and interests can reduce cart abandonment and boost brand loyalty. 

The use of behavior segmentation beyond the purchase also helps provide a high level of customer service to cement the relationship with the customer, leading to higher retention rates, more repeat business, referrals, and brand loyalty. 

Using behavioral segmentation, brands can unearth invaluable data and insights that may otherwise never have been discovered.

Understanding consumer behavior comprehensively helps brands improve performance across channels to diversify their marketing efforts. Brands can use these insights to adjust brand messaging, packaging, design, features, pricing, and more to stay ahead of the competition and boost brand equity. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.

Fear is a negative emotional response to the presence of danger or threat. Speculative fear is a negative emotional response to the anticipation of danger or threat, which may or may not occur. Humans are hardwired to look for things to fear, forming a necessary part of our survival instinct from birth. 

The human response to danger or threat is flight, fight, or in extreme cases, immobility. However, people respond in several ways when trouble or threat is perceived only as a looming risk. Avoidance, hunkering down, freezing in place, and acting impulsively are responses to prolonged anxiousness caused by pending fearful situations.

While fear is ingrained in our nervous system, it can also be taught. Technology has dramatically changed the way people get information. Social media has become the primary source of news online, with more than 64 percent of internet users receiving breaking news from social media instead of traditional media.

These statistics may be a sign of modern times. Still, the challenge with most people getting their news on social media sites is concerning when coupled with the fact most people do not read past the headline, and the vast majority of headlines are negative. 

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Negative media coverage reports show that negative words such as “bad,” “worst,” and “never” are 30 percent more effective at catching people’s attention than positive words. Research studies also revealed that negative words improved the average click-through rate. Headlines with negative bias showed a 63 percent higher result when compared to positive ones. Most (59 percent) of all news article links shared on social networks aren’t clicked on, implying that most article shares are not read in their entirety. 

So, you’d be right if you think we live in an increasingly hostile world, and most news is bad news. We are increasingly exposed to negativity and fearful news, affecting our collective anxieties and behaviors.

Panic buying

When the Spanish flu arrived in Britain immediately after the First World War, people panicked and rushed to purchase quinine and other medications, leading to national shortages.

Since then, panic buying and hoarding have been observed during many crises. Panic buying is much more common in developed or industrialized countries where people expect they will always be able to access food and other essential items easily. 

During the COVID-19 pandemic, psychologists observed that panic buying was associated with individuals with higher incomes, the presence of children in households, depression and death anxiety, and mistrust of others or paranoia.

Panic buying results from the perceived threat of the event and the perceived scarcity, fear of the unknown, and as a coping mechanism.

Retail therapy

Retail therapy is shopping primarily to improve the buyer’s mood or disposition. It is often a short-lived habit in people with depression or stress. 

Research has shown that shopping can help reinforce a sense of personal control and ease feelings of sadness.

In 2014 the Journal of Consumer Psychology found that retail therapy makes people happier immediately and can also fight lingering sadness. According to the study, the choices and outcomes inherent in the act of shopping can restore a feeling of personal control and autonomy. 

Another study by the University of Michigan showed that purchasing things you enjoy can be up to 40 times more effective at giving you a sense of control than not shopping. In this study, those who actually purchased items were also three times less sad compared to those who only browsed.

How brands can respond to environments of high fear and low trust

Listen to your customers. 

During times of financial stress, such as high inflation or recession, seek as much information as possible about your audience. 

Take a deep dive with multiple data streams to build a clear picture of behavior and sentiment. It will likely be vastly different than it was a few months ago and will continue to change. Don’t leave questions out of your research about fear and perceived risk with your customers.

Words matter.

The world is changing faster than ever, with your buyers’ attention and priorities shifting quickly in response to stressful events. 

For brand marketers and product managers, understand that language that sounded good last month can mean something entirely different today.

Take action. 

With insights from your research, determine what your brand should do to address your customers’ wants, needs, and fears. Your target audience has expectations from brands during uncertain times. Discover what they are, and see if you can deliver while remaining authentic to your brand promise. 

Communicate authentically. 

Be bold and authentic when storytelling and communicate practical information to help reassure and educate your customers. Give your customers an added feeling of security and stability by providing in-depth information. Choose to be a voice of comfort, instilling confidence in your consumers and alleviating fears with the right message. 

Fear and anxiety aren’t going away anytime soon. Financial fear and stress can adversely affect buying behaviors, so it is essential to acknowledge these emotions and develop strategies to address them head-on. What was true of your target audience a few short months ago may not be true today. It all starts with an in-depth understanding of the perceived risks and barriers to purchase when it comes to your product or service. Great research is the first step for brands to develop compelling and compassionate messaging that helps customers feel empowered, confident, and comfortable with their purchase decisions during times of financial stress.

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Simply fill out our Request for a Proposal here.