The Recession Will Dramatically Change the Way and the Reasons Why Your Target Buys -- in Many Cases, Permanently

Apr/23/2008 10:53 Filed in: Marketing Environment
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From today's Ad Age comes a timely article on consumer behavior. In summary customers' behavior is changing right under our noses and when the economy bounces back, you might find that what motivates consumers to choose or not choose your brand has changed. The life of a consumer can change in an instant, often with just a few words, such as "I do" or "You're fired," or the cry of a newborn baby. These change points -- when almost everything in our lives shifts -- drive us to change our behavior and embrace new brand relationships. For marketers, these change points are opportunities to forge new relationships that could last a lifetime.




Consumers are notoriously bad at predicting or remembering their behavior, so don't rely on what they say in focus groups or one-on-one interviews. Instead, watch what they do. Last year, people were ready to trade in their SUVs for hybrids at the thought of $3-per-gallon gas. Today, those same SUVs are swerving across three lanes of traffic for the opportunity to fill up for gas that cheap.


Reports indicate that half of consumers are reducing their spending to compensate for rising gas prices, but what we don't know is how that remaining spending is changing. It is no longer safe to assume that store brands or other traditional category competition are the biggest threat. Consumers are weighing purchases across categories in ways they haven't done since the mid-1970s.


Your brand, especially life style drugs like Viagra & Levitra might be competing against a completely unrelated product or service. Strapped consumers who are not willing to give up their TiVos might start cutting back on their daily VitaminWater or drop the Gold's Gym membership for jogging. They forgo branded drugs and ask their physicians for generics if it means less money out of their pockets.



Observe consumer behavior outside of your traditionally defined category or region. A behavior change in some unrelated category or in another country could be affecting your brand.


Behavior is driven by motivation. Motivation is fueled by emotion. And when times are tight, emotions often intensify. Uncertainty, frustration and fear can dominate consumers' emotional caches. Different emotions may drive different behaviors, or they may reinforce existing behaviors. Either way, it is critical that brand stewards understand the changing emotional motivations driving their customers' behavior. People might feel more down and out during these troubled times and go to their physicians to ask about products to help them cope. Frustration can lead to higher blood pressure or poor eating habits which in turn can effect health care issues.


To consistently ignore the changes in consumer behavior is a major blunder that can lead to wasted marketing dollars. Think how your customers will be affected by the economy and understand that many behaviors will never return. How will pharma marketers react? Well I expect little change if any change at all.
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