consumer perception case study

Burberry Case Study about Consumer Behavior

15 Pages Posted: 10 Feb 2020

Chenoy Ceil

Independent

Date Written: May 12, 2018

Consumer behavior is an essential part of the marketing for brands that are trying to influence the purchasing behavior of consumers. Burberry as a brand has been able to influence the purchase decisions of consumers by utilizing motivational, perception, personality and lifestyle strategies. This paper looks at the various factors that are utilized by Burberry that act as marketing stimulus for influencing the purchasing decision of their consumers. Some recommendations dealing with the brand perception of Burberry are also provided to help Burberry improve their sales and create a unique fashion brand for itself. Motivation, personality and emotion are important factors that affect consumer decision making, especially in the case of high fashion products. Looking at all these various factors in detail, this paper concludes that motivation, perception, personality and lifestyle have been carefully utilized by Burberry to reposition its brand for the modern age.

Keywords: chenoy ceil, consult corportes, consumer behaviour, purchasing decision, fasion brand

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Chenoy Ceil (Contact Author)

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Decision-Making in Economics & Finance eJournal

Decision-making & management science ejournal, social & personality psychology ejournal, cognitive psychology ejournal.

• Kathryn Ambroze, Michelle Niedziela, PhD (HCD Research) and Andrea List (Porter Novelli)
• Dec 8, 2021

The Power of Purpose: A Case Study on Consumer Perception and Brand Purpose

Updated: Dec 29, 2021

As human beings, we strive to create meaningful connections throughout our daily lives. Supporting a mission beyond ourselves creates a sense of enjoyment and empowerment. Making small efforts, from putting a can in the recycle bin to purchasing cruelty-free shampoo, feel extra constructive in achieving a grander goal. Consumers expect more from brands than good products. Now, perhaps more than ever, consumers expect brands to be sensitive to social, ecological, economic, and/or health problems (purpose-driven branding).

HCD Research, in partnership with public relations firm Porter Novelli, sought to examine the true value of purpose on brand perception and consumer decision-making using psychological and traditional methods to explore what types of attributes drive certain behaviors, attitudes, and perceptions among different brands. We found that consumer brand perceptions differ greatly between purpose- and function-driven brands, and that purpose-driven perceptions drive different consumer behaviors.

Perception is Reality

Perception is everything. Consumer brand perceptions, its products or services, and its values impact how consumers interact with the brand. In fact, fostering positive perceptions can help brands build a “sustainable, loyal, and growing customer base,” according to Forbes (Duggal, 2018). Brand perception goes beyond the individual sale; it shapes the long-term relationships—good or bad—consumers establish with a brand. As a result, every touchpoint a brand has with consumers is an opportunity to steer their perceptions in a positive direction. Market and consumer researchers have been motivated to apply newer and more in-depth emotional and perceptual measures to understand the consumer experience, many tapping into psychological methods to dive deeper than traditional surveys can assess (Harrell, 2019).

Semantic priming is one such implicit method that is derived from a traditional priming procedure and implemented to measure consumers’ feelings (Neely, 1977; Greenwald et al., 1998). The methodology is based on reaction times in which two words (a prime and a target) are consecutively displayed, and the link between the prime and the target is investigated. The technique stems from the fact that perceptive judgment depends on an individual’s past experiences, and that the perception of a stimulus activates the associated mental representations. A target is identified more quickly when it is preceded by a strongly linked prime (e.g., Shelton & Martin, 1992). Using this psychological approach bridges the gap between the conscious and the non-conscious responses by identifying the strength of an association experienced among a set of descriptive attributes and brands.

For this study, eight different brands, or primes, within four industries (food/beverage, quick service cafes, personal care, and outdoor retailer) were compared by 1,200 participants, with half the brands chosen for being categorized as conventional (function-driven) and half as purpose-driven. Descriptive attributes, or targets, similarly were broken down into being categorized as functional (high-quality, affordable, practical, reliable, and convenient) or purpose (responsible, compassionate, inclusive, ethical, and eco-friendly). These words were carefully selected to determine if brands with a stronger purpose association would inspire further action.

Figure 1: Implicit association responses for the purpose and conventional brands, categorized into fast, medium, and slow reactions. Attributes ranking in the 80th percentile or higher were labeled as high associations. Reaction times were statistically analyzed by brand at a 95% confidence interval.

As seen in Figure 1, purpose attributes have a stronger connection with brands recognized for actively engaging in meaningful goodwill. Purpose marketing has an emotional component that resonates with consumers by having a positive impact on the wider world. Based on significantly faster reaction times, participants associate purpose brands as providing a benefit to society. Further, the exit survey revealed that 78% of participants are more likely to remember a company with a strong purpose . Suggesting that not only do purpose-driven brands build stronger connections with purpose-driven words, but they are also more likely to be remembered.

Perception Drives Behavior

The responses from this study are a depiction of consumer perception of the brands, which can have a direct impact driving behaviors brands desire. Exploring how the brands can influence the consumer based on their perception gives insight into the following brand actions: purchase a brand, trust a brand, be loyal to a brand, have a deeper connection with a brand, and work for a brand. To understand the action triggered by certain brand sentiments, the research used Maximum Differential Scaling (MaxDiff) to differentiate the attributes tested through forced preference. Simply, participants had to select the most and least important messages from a set of various options repeatedly. Figure 2 shows the purpose attributes drive desired behaviors. Participants indicated purpose attributes motivated them to trust, be loyal to, work for, and have a deeper connection with a brand. Each of these actions demonstrates an intrinsic goal contributing to a relational dynamic between the brand and the consumer. Reinforcing the notion that purpose serves as a call to action for the consumer.

Figure 2: Maximum Differential Scaling (MaxDiff) responses exploring what brand attributes, functional-based or purpose-based, motivate specific actions. On average, purpose-driven drivers were more motivating or important for the non-purchase MaxDiff.

The traditional polling questions in the survey exit data also served as a telling indicator that purpose-driven brands have additional support over other brands. The self-reported data solidifies the effect purpose has on consumers, showing 78% of respondents reported being more likely to want to work for a purpose-driven company, while nearly the same amount would be more likely to trust (77%) and be loyal to (72%) that company. Additionally, supporting brands with a strong purpose ripples into other aspects of its business. For example, if a company was to make a misstep, 72% of participants were more likely to forgive that company, and 70% were more likely to defend the company if spoken about poorly. Learning how participants would react to disruptions demonstrates their alliance with purpose-driven brands and shows the attractiveness of purpose on human values. Having a greater purpose can guide a brand through hardships because of its strong foundational core message that empowers and appeals to consumers.

Why the “Why” Matters

Rounding out this research, participants were asked to choose between two brands from the same industry which they preferred, with one being generally considered purpose-driven and the other being more conventional. After selecting a brand, the participants were then asked to explain why they preferred their choice.

Purpose-driven brands were chosen three out of four times with a tie in the fourth case. Yet, participants struggled to explain why they chose those brands, often citing functional qualities such as the product’s performance, quality, and cost. When participants struggle to articulate exactly what they are feeling, it is often because emotions are complex and challenging to share (Harrell, 2019). The difficulty in explaining emotions frequently causes individuals to revert to surface-level features. The disconnect between self-reported reasoning and implicit responses suggests that purpose-driven features in brands include an emotional or non-cognitive attachment because it involves values that align with the consumer. It is the purpose which inspires and engages the consumer as a link between the brand and the consumer, fostering long-lasting consumer-brand connections and loyalty.

Building a Purpose-Driven Brand

Consumer perceptions are shaped by how they interact with brands, as well as the way brands are portrayed in media or reviews by others, across all platforms and communications. Having a consistent, core mission, which is authentic and well-intentioned, creates a deep-rooted connection between the consumer and brand. This purpose-driven strategy acts as a meta understanding around the big picture and helps brands engage with the narrative that the brand is just one contributing factor to the grander society. This research demonstrates how impactful purpose-driven consumer perspectives on brands are for driving certain consumer behaviors. It is this alignment that boosts a brand over a competitor, by creating a commonality in ethical values between the consumer and the brand.

This research serves as a clear indicator that purpose may originate with words, but if correctly implemented, has the power to translate to competitive actions. By cultivating a company culture infused with ethical initiatives into the marketing, messaging, and overall mission, purpose can enable brands to satisfy the needs of consumers while also fulfilling the yearning to make a difference.

References:

Greenwald, A. G., McGhee, D. E., & Schwartz, J. L. (1998). Measuring individual differences in implicit cognition: the implicit association test. Journal of personality and social psychology , 74 (6), 1464.

Duggal, R (2018, May 29). The One Marketing Truism You Cannot Ignore: Perception Is Reality. https://www.forbes.com/sites/forbescommunicationscouncil/2018/05/29/the-one-marketing-truism-you-cannot-ignore-perception-is-reality

Harrell, E. (2019, January 23). Neuromarketing: What You Need to Know. https://hbr.org/2019/01/neuromarketing-what-you-need-to-know

Neely, J. H. (1977). Semantic priming and retrieval from lexical memory: Roles of inhibition less spreading activation and limited capacity attention. Journal of Experimental Psychology: General, 106 (3), 226–254.

Shelton, J. R., & Martin, R. C. (1992). How semantic is automatic semantic priming? Journal of Experimental Psychology: Learning, Memory, and Cognition, 18 (6), 1191–1210.

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Brand Activism, the Relation and Impact on Consumer Perception: A Case Study on Nike Advertising

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Consumer studies: beyond acceptability—a case study with beer.

1. Introduction

2. traditional quantitative studies, 2.1. product perception and segmentation, 2.2. expectation studies, 2.3. emotional measurements, 3. new techniques in traditional quantitative studies, 3.1. multimedia technology and virtual reality in-context, 3.2. application of implicit measurements, 4. traditional qualitative studies, 4.1. ethnographies, in-depth interviews and focus groups, 4.2. mental and social representation, 5. new techniques in traditional qualitative studies, 5.1. internet and social media, 5.2. product experience, 6. conclusions, author contributions, data availability statement, acknowledgments, conflicts of interest.

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Share and Cite

Hernández-Mora, Y.N.; Verde-Calvo, J.R.; Malpica-Sánchez, F.P.; Escalona-Buendía, H.B. Consumer Studies: Beyond Acceptability—A Case Study with Beer. Beverages 2022 , 8 , 80. https://doi.org/10.3390/beverages8040080

Hernández-Mora YN, Verde-Calvo JR, Malpica-Sánchez FP, Escalona-Buendía HB. Consumer Studies: Beyond Acceptability—A Case Study with Beer. Beverages . 2022; 8(4):80. https://doi.org/10.3390/beverages8040080

Hernández-Mora, Yareth N., José R. Verde-Calvo, Frida P. Malpica-Sánchez, and Héctor B. Escalona-Buendía. 2022. "Consumer Studies: Beyond Acceptability—A Case Study with Beer" Beverages 8, no. 4: 80. https://doi.org/10.3390/beverages8040080

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5 mini case studies about understanding and serving the customer

This article was originally published in the MarketingSherpa email newsletter .

Mini Case Study #1: 34% increase in conversion for powdered health drink company by helping customers come to their own conclusions

A single-product company that sells high-quality, all-natural, powdered health drinks engaged MECLABS Institute to help better understand their potential customers and increase the conversion rate of prospects reaching the homepage.

The original homepage took a claims-driven approach – it provided several bold statements about what the product would do for a customer with no information about the product to help the customer understand why it would work for them. Here is a look at the upper left of the original homepage.

Creative Sample #1: Upper left of original homepage for health drink company

The MECLABS team created a version of the homepage that took a conclusion-driven approach – instead only trying to convince potential customers with only bold claims about the product, the homepage copy included information about the product to help customers understand why the product would help them.

Creative Sample #2: Upper left of treatment homepage for health drink company

The team tested this version as the treatment against the original homepage (the control) to help better understand what communication style customers would respond to.

The treatment generated a 34% increase in conversion rate.

This experiment highlights a classic disconnect between customers and marketers. If you work in a company or with a client, you have intimate knowledge of the product and believe in its effectiveness. You spend all day thinking about it. You personally know some of the people who designed it. Your paycheck depends on the success of the product.

A customer does not have this same understanding or belief in the product. They have a significant gap in their knowledge about your product. Bold claims alone are not enough to close that gap. They have to understand why the product will work and come to their own conclusions about the company’s ability to deliver on its promises.

You can learn more about this experiment in The Conversion Heuristic Analysis: Overcoming the prospect’s perception gap from MarketingExperiments (MarketingSherpa’s sister publication).

Mini Case Study #2: Bags company increases conversion 191% by adding clarity to homepage

“I'm the CEO of Doubletake , a tennis and pickleball bag company, but I spent the majority of my career focused on messaging and research, consulting as a strategist for top brands for the last 10 plus years, and in-house prior to that. I'm almost embarrassed that I have this example to share, but I thankfully came to my senses!,” Shawna Gwin Krasts told me.

“It is interesting that crafting messaging/copy for products that aren't ‘your baby’ is so much easier – there is just more distance to see it for what it is. If this wasn't so near and dear to my heart, I would have caught it in a second.”

The team launched its homepage with only the headline “Sports Meets Style” over a photo of a bag. The headline was meant to differentiate the brand from competitors that were either only sporty or fashionable. Below the headline was a call-to-action (CTA) button with the word “shop.”

Creative Sample #3: Previous homepage copy for bag company

Internally it seemed obvious that the company sells tennis and pickleball bags since a bag was in the photo.

But they came to realize that it might not be as clear to website visitors. So the team added the subhead “Gorgeous Yet Functional Tennis and Pickleball Bags.” They also added the word “bags” to the CTA so it read “shop bags.”

Creative Sample #4: New homepage copy for bag company

These simple changes increased the website's conversion rate by 191%.

“It is so important for marketers to get out of their own heads,” Krasts said. “I suppose this is why I struggle with messaging so much for Doubletake. I am the target customer – I have the answers in my head and I suppose my natural curiosity isn't as strong. But clearly, I also have to remember that I've seen my homepage 10,000 more times than my customers, which means things that seem obvious to me, like the fact that Doubletake is a tennis brand not a reseller, might not be obvious.”

Mini Case Study #3: Online motorcycle gear retailer doubles conversion with personalized emails

There are ways to better tap into what customers perceive as valuable built into certain marketing channels. Email marketing is a great example. Marketers can build off information they have on the customer to send more relevant emails with information and products the customer is more likely to value.

"Very early in my marketing career I was taught, 'You are not the target audience' and told to try to see things from my customer's perspective. Empathizing with customers is a good start towards seeing products from the customers' perspective, but marketers really need to focus on quantifiable actions that can help identify customers' needs. That means continuous testing across messaging, price points, packaging, and every other aspect of a product. This is where personalization can really shine. Every time a marketer personalizes a message, it brings them closer to their customer and closes that gap," said Gretchen Scheiman, VP of Marketing, Sailthru.

For example, 80% of the email messages RevZilla sent were generic. But the website sells motorcycle parts and gear to a wide range of riders, each with their own preference in brand and riding style. The online motorcycle gear retailer partnered with Sailthru to better connect with customer motivations. The team started by upgrading the welcome series for new customers by personalizing the email messages based on the customers’ purchases and preferences.

The company has tested and added many new triggers to the site, and now has 177 different automation journeys that include triggers for browse and cart abandonment as well as automations for different product preferences, riding styles and manufacturer preferences.

The conversion rate from personalized email is double what RevZilla was getting for generic batch-and-blast sends. Automated experiences now account for 40% of email revenue. Triggered revenue is up 22% year-over-year and site traffic from triggers has increased 128% year-over-year.

"Customizing the buyer journey isn't about one long flow, but about lots of little trigger points and tests along the way. For any marketer that is intimidated about getting started with personalization, it's important to realize that it's more like a lot of small building blocks that create a whole experience. We started with a custom welcome series using testing and built from there. We're still adding new tests and new trigger points, but it's with the same concept that we started with,” said Andrew Lim, Director of Retention Marketing, RevZilla.

Mini Case Study #4: Pet protection network increases revenue 53% thanks to survey feedback

Huan makes smart tags for pets to help owners find their pets if they go missing. Initially, the company focused on the technical features in its homepage copy. For example, the tags don’t emit harmful radiation, are water-resistant and have a replaceable one-year battery.

From customer feedback surveys, the team discovered that customers purchased the product because they were worried they wouldn’t be able to find their pet if the pet went missing. This discovery prompted the team to change its messaging.

The new messaging on the homepage read, “Keep your pet safe and prevent heartbreak. Huan Smart Tags help you find your missing pet automatically.”

Revenue increased 53% increase following the change in messaging. “We immediately saw an increase in engagement on our website, with a lower bounce rate, higher click-through rate and a higher conversion rate. There were also a few people who messaged us on social media saying how our new message resonated with them,” said Gilad Rom, Founder, Huan.

Mini Case Study #5: Talking to new customers leads SaaS to change strategy, increase sales 18%

When Chanty launched, the marketing messages focused on pricing since the Saas company is 50% less expensive than the best-known competitor. However, when the team started talking to customers, they discovered most people had switched from the competitor for different reasons – ease of use, better functionalities in the free plan, better experience with the customer support team, and a better mobile app.

The team changed its marketing to focus around these product attributes and only listed pricing in the end as an additional benefit.

“It turned out that this was the way to go because we attracted people who wanted a better experience, rather than just customers who wanted to save money. After six months of implementing this new marketing and sales strategy, our sales grew by 18%,” said Jane Kovalkova, Chief Marketing Officer, Chanty.

Related resources

The Prospect’s Perception Gap: How to bridge the dangerous gap between the results we want and the results we have

Customer-First Marketing: Understanding customer pain and responding with action

Marketing Research Chart: How customer understanding impacts satisfaction

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Customer Perception: Meaning, Importance, Factors and Examples

June 12, 2023 | By Hitesh Bhasin | Filed Under: Marketing

Marketing can get complicated and intricate at times. It is because of the complexity of the human brain and the way it functions. Customers are dynamic in thought but tend to converge while displaying certain emotions and behaviours.

A lot of these complex thoughts and behavioural patterns that the customers exhibit can be combined into a concept called as customer perception .

Table of Contents

What is customer perception?

Customer Perception is a marketing concept that tells us what customers think about a brand or a company or its offerings. It can be positive or negative feelings, perceptions, inhibitions, predispositions, expectations or experiences that a customer has.

If you understand the concept of customer perception, you will figure out that it is arguably the most important factor that decides the success of a brand, product or a company as a whole. How a particular brand or company is positioned also plays a vital role in this. The characteristics of a brand and its personality play a big role.

If we look at the company Apple , we can see that the company is positively perceived by most of its customers. In fact, there are die hard fans of Apple. The reason being that the company has been repeatedly innovative, it has good performing products which make a connect with their customers. As a result, Apple is one of the consistently top performing brands across the world.

Customer Perception decides how much a product sells and how a company is perceived. Let us study a few examples to understand the importance of customer perception and why it is important in customer decision making .

Factors Influencing customer perception

In general, customer perception can be influence by a lot of factors. Some of the major factors are

• Consistency of performance – How has the brand performed in the past and how it is performing currently.
• Emotional connect – Superb brands know that emotional connection with the customer is critical to brand development .
• Marketing communications – How the brand communicates with the customers using the various media vehicles.
• Holistic marketing – A brand cannot be excellent if it has good sales staff but pathetic support staff. A brand has to be a good all rounder and satisfy customers from all its touch points.
• Personal experience –  Personal experience is one of the most important influencers that can easily have a direct impact on customer perception. Our personal experiences matter most. When a customer experiences a good service or purchases a great product, the quality of goods and services matter.
• Advertising – Promotional campaigns are an integral part of any organization. It takes important steps to create advertisements that can change your perception about a brand easily.
• Influencers –  We all are surrounded by several influencers that have a direct and indirect impact on your mindset. It can change customer perception at the drop of a hat. Suppose you saw an advertisement about apparel and were impressed by the brand. Next day you met your friend who told you about the horrible experience he had at the brand outlet the other day. Your perception changes once again.
• Social media platforms –  This is the age of technology where most people are on one or the other social media portal browsing to their heart’s content. When you read reviews or comments about particular products services of a brand, your sub-conscious mind automatically takes a decision.

Importance of customer perception

Make sure that a customer leaves happy from your place because he or she will take this emotion back to his friends and family and tell about his experience to one and all. Ensure that they feel valued after an interaction with you.

Remember, it is easy to felicitate a positive customer perception from the onset than to change his negative perception to an optimistic one.

1) Brand loyalty

It is important that both brand and customer perception tally. Sometimes what the brand is offering may differ from what the customer perceives. It can cause unfavorable reactions from one or other parties.

Make sure that the brand is in complete sync with the customers to boost their perception about its products and services. Once you gain his faith, it becomes possible to earn his loyalty gradually. This helps the brand to increase its customer base and proves an advantage in terms of customer perception.

2) Increase in sales figures

The actual aim of a business entity is to boost its sales figures.  It implements several steps to lure in its customers. Remember, it is the consumer perception that drives his behavior and ultimately leads to buying decision.

An important advantage of positive customer perception is that it leads to an increase in sales because the customers react favorably to the company and its products.

3) Customer retention

Serious competition forces the brands to decrease their prices because they want to win over customer loyalty at any cost. Although the sales figures increase the actual revenues does not increase at the same rate.

When you already have a good and loyal customer base because of positive customer perception, it becomes easier for a brand at customer retention .

4) Strengthens the bond

An important advantage of good customer perception is that it strengthens the bond between the brand and its customers.  An individual is likely to visit the place at least once if his interactions over there have been favorable.

Problems with Bad perception

1) Loses credibility

A company must keep its promises to its customers. Always strive for truth and make sure whatever you have promised you are delivering it to the letter.

False promises will create a negative impact on the customer, and you will lose your credibility in the market . An important disadvantage of wrong customer perception is that making false promises loses the trust of the common man.

2) Customer service impact

Make sure your customer service department is up to the mark if you want to avoid negative perception about your brand. When the customer service department does not work efficiently, it has a direct impact on the mind of an individual.

An important disadvantage in this scenario is that once a customer makes up his mind negatively about your brand, you will need to work extra hard to remove this preconceived notion from his mind. There isn’t a guarantee that you will succeed in your endeavor.

Customer perception is relative, but once it gets fixated on something g, it becomes difficult to change it immediately.

3) Complacency

Do not get comfortable if you are getting positive feedbacks of your brand. When everything is going smoothly, people start taking all the things for granted and become complacent.

If a customer complains, it is taken lightly or passed to some other employee who forgets to pay timely attention to it.

This can cause serious repercussions as it will cause negative customer perception. Maintain a strict vigil on your employees so that they can work efficiently towards maintaining a positive impact.

Remember, it is important to push your employees to avoid complacency as it can prove a serious disadvantage in terms of customer perception.

How to have good customer perception?

Customer perception is about impressions and feelings. Facts and figures occupy a back seat where these two emotions are concerned.

The journey of a customer from the first to the last point in your outlet is very important. It will take him only a few seconds to judge and make up his mind.

Remember he is both the judge and jury, so the brand must remain vigilant in its effort to offer a positive brand impression on each customer. It is imperative to have good customer perception if you want to achieve growth and expansion in your business.

Creating good vibes about your business is not as difficult as it seems. You can take the help of several tools to achieve your target . Remember, even if you face any negative impact, it will need just some extra steps and voila you can convert it into the optimistic and positive customer experience . This will be able to change customer perception dramatically and work in your favor.

Customers need to feel valued hence treat them with warmth and genuine feelings. If any problems occur, listen attentively so that he can have his say. Communicate in a clear and precise manner and offer a viable solution.

It is important that a customer feels that you can relate to his problems. Be empathetic and compassionate. Show him that you care and are trying to resolve the issue as per his directives.

Case study Example of Customer perception

SAMSUNG NOTE 7! BOOM!!

The second you read this, the first thought that will hit your mind is that of the entire fiasco of the Note 7 phones bursting in the pockets of customers. It might not have happened to you or it might have even not happened with anyone you know personally. But the very fact that you have heard about this in so many places, makes you harbour negative feelings towards the model.

If you were to buy a new phone and someone suggested the Samsung Note 7 to you, you would immediately reject the idea . Even if Samsung recalls all the devices of this model that have already been sold and were to give a public announcement that the malfunctioning has been rectified, people will be hesitant to buy it.

This is because the perception that the customer has about the device is completely negative. It will prevent the customer from making the purchase and will lead him/her to another model or possibly even another brand altogether.

Another example of customer perception is of Brad Pitt. Yes, human beings are brands too. Personalities like Roger Federer, Tiger Woods and Michael Schumacher are brands. They are perceived in certain ways by the public and they have brand managers who manage their positioning and public image.

So when we talk of Brad Pitt, there are a lot of customer perceptions that we can see. There are some who are the typical ‘Brad Pitt’ fans. They will perceive the brand very positively and will watch his movies enthusiastically. These people will usually be the ones who like a lot of drama and are fans of the entire machoism displayed by the characters he plays.

There are others who might perceive him in negative light. Some might not be interested in his acting whereas others might be surprised at the number of extra marital affairs he has had.  Even Tiger woods for that matter, was a strong brand in Golf but destroyed it in the end with the various sexual lawsuits to him.

So, if you combine the case studies that we showed with the factors that influence customer perception, you will see various action points of how a brand can influence customer perception. A brand has to be consistent , flambouyant, it has to communicate and connect with the customers and it has to give an all round excellent performance to impress the customers.

The above case studies and the reasons that influence customer perception explain to a great extent as to what customer perception is, how it is important and how it influences customer decision making.

Liked this post? Check out the complete series on Customer Management

Related posts:

• Perception: Meaning, and Process of Perception
• Perception in Marketing: Meaning, Stages and Examples
• What is Subliminal Perception? Definition and Meaning
• What Is Brand Perception? How to Measure It with Examples
• Customer Persona – Meaning & Best Tips Develop a Customer Persona
• What are Customer Insights? Importance of Customer Insights
• What is Market Attractiveness? Importance, Examples and Factors
• How to get Customer Testimonials? 9 Customer Testimonial Examples
• Customer Care: Concept, Examples, & How to have Good Customer Care
• Market Power – Definition, Meaning, Factors And Types

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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Sir liked ur article on Customer Perception.Very informative. Could u please provide some information on impact of customer perception on Smart Phones. How some attributes like CREDIBILITY,UNIQUENESS,RELEVANCE ,POSITIONING will help decide a customer about his purchase intention. Thankx

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Understanding the ever-evolving, always-surprising consumer

For many consumers around the world, a return to normalcy feels so close, yet so far away, in light of the alarming spread of COVID-19 variants. Although it’s unclear what the next 12 to 24 months will bring, what’s almost certain is that consumers won’t simply revert to doing exactly what they did in 2019. In this episode of the McKinsey on Consumer and Retail podcast, three consumer-behavior experts share their insights into how consumers’ spending patterns and purchasing behaviors are changing, and what companies should do given those changes. An edited transcript of the conversation with executive editor Monica Toriello follows. Subscribe to the podcast .

Monica Toriello: Over the past several weeks, people in some parts of the world have resumed their prepandemic habits. Maybe you’ve recently seen a movie at a theater, or flown on an airplane, or even just stopped for a cup of coffee on your way to the office for the first time in over a year. But a return to “normal” won’t look the same for everyone. Today, we’ll hear from three people who intensively study consumer behavior. They’ll share fascinating insights into how consumers are changing and what companies should do about it.

Kari Alldredge is a McKinsey partner based in Minneapolis. Kari has been advising consumer-goods companies for more than 20 years on a variety of topics, and she leads McKinsey’s work in consumer-goods growth transformation. She is an author of several articles, including a recent one on COVID-19’s impact on demand and costs in the consumer-packaged-goods [CPG] industry .

Anne Grimmelt is a senior knowledge expert in McKinsey’s Consumer Packaged Goods Practice. She is based in Stamford, Connecticut. Anne has been one of the driving forces behind McKinsey’s consumer-sentiment survey , which was launched in 2008 and during the pandemic has expanded to 45 countries. It provides a rich fact base for how consumers are feeling about their finances and how their buying behavior is changing.

And our third guest is Anjali Lai, a senior analyst at Forrester. Anjali, who is based in New York, helps chief marketing officers [CMOs] and other business leaders to understand the shifts in consumer behavior and consumer decision making and then to figure out what these changes mean for the future of brands and industries.

[To comply with Forrester’s Citation Policy, this transcript excludes Anjali Lai’s comments. Listen to the full episode on McKinsey.com or on Apple, Google, and other podcast platforms.]

A ‘reversal of fortune’ for big brands

Monica Toriello: Kari, Anne, Anjali, it’s great to have you here today. All three of you have been keeping your fingers on the pulse of consumers, both before and throughout the pandemic. Have there been any surprises? Are consumers doing things that you didn’t expect? Or is there anything that seemed to be going one way in, say, March or April 2020 but is going in a different direction today?

Kari Alldredge: In 2019 or early 2020, the topic on the minds of large branded consumer-packaged-goods manufacturers was portfolio shaping: how to reimagine their portfolios, how to move away from center-of-store food products and big brands and instead engage with consumers in very different, more targeted, niche-oriented ways. The degree to which the pandemic pushed people back toward big brands in the center of the store, and toward cooking at home, has been a complete turnaround, a reversal of fortune, for large CPG companies.

Some of those changes could have been anticipated, but others are quite shocking: the notion that bread baking would become a phenomenon among millennials, or that pet ownership would skyrocket to the extent that it has, and that those same millennials would be willing to spend more than they spend on their daily Starbucks to feed their new pets.

So, many of those companies that were desperately searching for growth 18 months ago now have the opposite problem: their supply chains can’t keep up . The big question for all of them is which of those consumer behaviors are truly going to persist  and be “sticky” coming out of this pandemic? Certainly, the dog that you adopted is likely to stay at your home. But when you go back to ordering your daily Starbucks and spending $7 a day on a coffee, are you going to spend the same amount to feed your pet? Those are the questions that are on many company leaders’ minds.

Anne Grimmelt: As Kari said, we saw a complete shift. Prepandemic, the growth was in smaller, niche brands, but early in the pandemic, it was large CPG players that really gained scale because their products were available on the shelf. They were also brands that were trusted by consumers, so consumers felt good buying them. If you look at point-of-sale data from IRI or Nielsen, you see that large companies—those with more than $2.5 billion in retail sales in the US market—picked up most of the share growth early in the pandemic, whereas smaller and midsize companies, as well as private label, were really not picking up growth.

In the second half of 2020 and in early 2021, small and midsize companies are regaining their sales growth. And we expect that private label is going to be powerful again , because if you dive into the why—why did consumers pick a new brand, and why did they pick the brands they chose?—it was about availability, it was about purpose, but it was also about value . It was about price points. Going forward, value is going to be even more important, and private label will gain strength in the future.

Trust as a strategic imperative

Monica Toriello: All three of you to some extent have written about customer loyalty: how to win it and how to retain it, particularly in an environment where people are willing to try new brands. Anne and Kari, you found that 39 percent of consumers tried new brands during the pandemic. And Anjali, in your research, you found that small brands are particularly good at earning consumers’ trust and consequently their loyalty. In a recent blog post, you wrote, “Now is the time for companies to embrace trust as a strategic imperative.” What does that mean? How should companies do that?

Even relatively mundane CPG companies are thinking about the end-to-end consumer journey, including consumer experience pre- and postpurchase. Kari Alldredge

Kari Alldredge: I’m seeing two interesting things in response to the trends you just talked about, Anjali. One is the degree to which even relatively mundane CPG companies are thinking about the end-to-end consumer journey, including consumer experience pre- and postpurchase, as they try to understand how to serve their existing consumers but also look for new ways to better meet consumer needs. The notion that there is a pre- and postpurchase experience related to a can of soda or a can of soup is a relatively novel idea, right? But, increasingly, the most forward-thinking companies are doing research across that entire journey to be able to understand the needs of consumers as they’re considering the range of options that are available to them—all the way through to satisfaction with usage and even disposal of the packaging of products.

Another interesting thing I’m seeing is a recognition that marketing is a dialogue, and a recognition of the degree to which consumers now “own” or shape the narratives of many brands. This, too, was happening before the pandemic but was vastly accelerated during the pandemic. The notion that a marketer positions the brand and delivers a message and a promise to consumers is really becoming quite an antiquated one, I think, as consumers themselves—through reviews, ratings , blogs, videos, and social-media posts—shape the identity of many of these brands. Recommendations from friends and family become part of the brand’s identity and are critical to shaping both loyalty and consumer trust.

We found in our research that about 33 percent of millennial and Gen Z consumers say they choose to buy a brand from a company that has their values, versus about 12 percent of baby boomers. Anne Grimmelt

Anne Grimmelt: Our research corroborates that. We found in our research that about 33 percent of millennial and Gen Z consumers  say they choose to buy a brand from a company that has their values, versus about 12 percent of baby boomers. But every demographic group is leaning toward that.

Another finding from our research is the reasons why consumers change to a new brand. It is definitely the younger generation that more often indicates that it’s because of purpose. It’s because of what the company stands for, how it treats its employees, et cetera.

Purpose: More than just a buzzword

Monica Toriello: We’ve been hearing a lot about purpose and values, but I also hear some skepticism in certain pockets of the corporate world as to whether an emphasis on corporate purpose  actually pays off. Because there is an attitude–behavior gap, right? What’s your response to a CEO who says, “Consumers like to say they care about purpose and values, but when they’re at the point of deciding to buy something, they truly only care about convenience or price or quality. Purpose is just a buzzword.”

Kari Alldredge: It’s necessary but not sufficient. I think there’s an increasing recognition that alignment with a consumer’s values may put you in the consideration set but won’t drive you over the line to purchase. You still have to have product superiority, whether that’s taste superiority, functional superiority, or a price-to-value equation that works for that particular consumer.

We talk a lot about the pandemic, which definitely shone a light on health in general, but there are other crises—like social justice  and climate change —that have come to light over the past year and a half and that have really shaken the corporate community. These crises have helped companies understand that some of these factors are fundamental in how consumers perceive themselves and the world around them, to the point where we now actually see some change happening.

One of the things that I was struck by was the speed and seriousness with which many of the household-cleaning companies responded to the pandemic and the heroic efforts to convert production capacity to manufacture things like wipes and sanitizer. Yes, some of that was for financial gain, but I think there really was an almost wartime mentality that I saw companies get new energy from.

I think about center-of-store food manufacturers who, prepandemic, maybe viewed themselves as being a bit sleepy and not exciting in terms of attracting the best talent. Now when you hear them talk about what they do, there’s real pride in the fact that they fed America, or they kept America safe. It really changed the way they think about the importance of what they do.

Subscribe to the McKinsey on Consumer and Retail podcast

Sources of insight.

Monica Toriello: All three of you are experts in consumer behavior. But consumers are changing fast and they’re changing constantly. Anjali, in another recent blog post, you wrote, “Rather than expect consumers to settle into a defined postpandemic normal, CMOs should prepare for a constant evolution of consumer needs and expectations over the next 12 to 24 months.” So beyond reading the latest consumer research and analysis, what are the best ways for CMOs and CEOs to understand where consumers are and where they’re headed?

Kari Alldredge: One of the best sources of insights is their online channel partners and their own D2C [direct to consumer] sites . Companies should mine online data to get a quick pulse on the way consumers are thinking or feeling. They should look at ratings and reviews using advanced analytics to understand and see trends and what’s selling on sites like Kroger.com, Walmart.com, or Amazon.com. They could even develop products that they can quickly test in an online environment and then change and adjust, as opposed to thinking about mass development of a product that gets pushed out to thousands and thousands of brick-and-mortar retail stores.

Consumers don’t always know what they want, and they can’t predict how their behavior will change. So traditional consumer research—which asks consumers how likely they are to purchase something—is becoming less relevant or reliable than actual data in market. That’s why data from e-commerce sites can be so valuable.

Anne Grimmelt: Another very powerful way to understand consumers  is by looking at what your peer companies do. You can go to industry conferences like the CAGNY [Consumer Analyst Group of New York] conference and hear a company like L’Oréal talk about how they use their D2C and their online-sales platform to see what type of color lipstick people try—not buy , but try —on their online platform. That information is critical for them to know where to innovate. What are the colors that people want and what are the products that people like to try out on the digital platform?

Similarly, I think it’s very important to keep an open mind beyond your own borders, to realize what’s happening elsewhere in the world. Going back to the topic of purpose, for instance, it is very much alive in the US but it’s also very much alive in Europe. Learning about the power of what consumers demand and how purpose is driving consumer decisions about CPG companies—and what companies in Europe are doing to meet consumer demand—can be valuable, wherever you are in the world.

Kari Alldredge: I think we also shouldn’t underestimate the resilience of consumers and the gravitational pull of life as we knew it before the pandemic. One thing that surprised me even in the past several weeks is the degree to which behaviors have bounced back. If there’s anything I’ve learned over the past 18 months it’s that I don’t have a crystal ball, or if I did, it is certainly broken—because there is no part of this last 18 months that I ever could have in a million years predicted.

At the beginning of the pandemic, one company I work with asked every board member, “When you look back, what’s the one thing that will be blazingly obvious that we either should always have done or never have been doing?” And one of the things that came up was shaking hands: “We’re never going to shake hands again.” But I attended a graduation ceremony in the beginning of June—so, early into the recovery—and what was striking to me is that the dean of that school shook the hand of, and physically embraced, every single one of the thousand students who crossed that stage. And this was at an institution that had been, like most educational institutions, incredibly thoughtful and conservative about their public-health response. Literally days after restrictions were lifted, the urge to connect was so strong that it looked as if the pandemic had never happened.

People are resilient. Hundreds of years of behavior certainly have been meaningfully changed by the past 18 months, but I think a lot of the old behaviors will bounce back pretty quickly.

Monica Toriello: So if you could gather all the CEOs and CMOs of consumer companies in one room and leave them with one message, what would it be? What is the one thing they need to do to position themselves for success in 2021 and 2022?

Anne Grimmelt: My one-liner would be, “Be open to change and be agile .”

Kari Alldredge: I would say, “Listen; don’t tell.”

Kari Alldredge is a partner in McKinsey’s Minneapolis office, and  Anne Grimmelt is a senior knowledge expert in the Stamford office.  Monica Toriello is an executive editor in the New York office.

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The Black Box of Consumer Behaviour and Brand Value Perception: Case Study of the Slovak Republic

• First Online: 27 June 2020

Cite this chapter

• Jana Majerova 2 &
• Anna Krizanova 2  

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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Brand value, as subjectively perceived by customers, represents a source of valuable competitive advantage for an enterprise. However, there are numerous theoretical approaches to building and managing brand value, which bring about many problems in practice when it comes to its application. These are related to the variety of approaches to measuring brand value as well as to strategies of the building and management thereof. In order to avoid undesirable impacts associated with the implementation of an inappropriate branding pattern, marketing managers should primarily consider the nature of the socio-cultural profile of a country where the branding concept is to be applied and the country of origin of the concept itself. However, the awareness of the need to respect the socio-cultural profile of the country is not sufficient. It creates a space for identifying causalities and correlations among attributes of socio-cultural profiles and subjectively perceived sources of brand value. In accordance with the abovementioned factors, the aim of this chapter is to identify specifics in the perception of sources of brand value in the scope of the traditional quadratic typology of purchasing behaviour, based on a case study of the Slovak Republic. To fulfil this aim, the data obtained from our own survey has been statistically evaluated by means of factor analysis supported by the implementation of the KMO Test, Bartlett’s test of sphericity and the calculation of Cronbach’s Alpha. Thus, the specifics in brand value perception across traditional quadratic typology of purchasing behaviour can be identified, and a platform for future research on the relevant disparities in the cross-cultural investigation of brand value sources can be created.

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Acknowledgements

The research leading to these results has received funding from the project entitled “Integrated model of management support for building and managing the brand value in the specific conditions of the Slovak Republic” in the framework of the Slovak Research and Development Agency programme under the grant agreement number APVV-15-0505.

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Majerova, J., Krizanova, A. (2020). The Black Box of Consumer Behaviour and Brand Value Perception: Case Study of the Slovak Republic. In: Sroka, W. (eds) Perspectives on Consumer Behaviour. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-47380-8_5

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