Want to Understand Shopper Decisions? Context is the Key

Did you know that shoppers, on average, consult approximately 18 sources of information before making a purchase? This number varies by product category, but this reality is indicative of the type of environment in which shoppers now operate. Consumers are highly knowledgeable about their choices and have come to expect ongoing innovation in the marketplace. They have nearly unlimited, in-the-moment access to extensive information about the products and services they seek (and the companies that offer them). Barriers to trial are often mitigated with the low-risk availability of seemingly unlimited options. All of these factors have come together to create a perfect storm: something we call the “promiscuous shopper.”

What we mean is that consumers are increasingly promiscuous regarding the brands they buy, leaving brand loyalty in the dust and seeking the “next best thing” — or at the very least the thing that best fits their unique needs, wants and circumstances. In fact, Alter Agents’ Shopper Influence Study among 6,000 recent category purchasers revealed nearly half (48 percent) of consumers do not have a brand in mind at the start of their shopper journey. Instead, their purchase decisions are influenced by a vast number of contextual factors.

Predicting Behaviors Rises in Difficulty

With all these options and all this information at their fingertips at every stage of purchase, consumers cannot accurately predict their own behaviors. Hypothetical behaviors are often aspirational for what consumers hope or even expect to achieve, but don’t necessarily reflect the reality of their actions. These intentions don't take into account the factors that influence decision making throughout the shopping journey and often disrupt the direct line from intention to action.

It's the circumstances in any given moment that motivate end behaviors. The same person may experience dramatically different shopping journeys within the same category, each with distinctive influences and outcomes driven by the specific needs of that particular occasion. For example, a parent looking to upgrade their washing machine due to the addition of their third child may go on a very different journey than if that same parent were desperately seeking to replace a washing machine that unexpectedly broke down.

The data shows this to be true. We compared consumers’ descriptions of their general anticipated shopping behaviors with their actual shopping behaviors across six categories in our Shopper Influence Study. We found consumers’ anticipated behaviors didn't always align with their actual behaviors during a recent purchase occasion, regardless of category, including quicker-turn CPG and longer frequency, higher ticket items.

Brand (Dis)Loyalty and the Quest for Information

Consumers who generally describe themselves as brand loyal or decisive when shopping don’t necessarily apply this premise to every category nor occasion. In our study, nearly half (46 percent) of those who agreed “I am extremely brand loyal for most products I buy” when answering about their general shopping habits didn't have a specific brand in mind when they first decided to shop for their recent category purchase. Similarly, nearly half (46 percent) of those who agreed “I typically go to a store/site knowing exactly what I want” didn't have a specific brand in mind during their recent purchase.

Additionally, consumers may understate the role outside factors play in their decision making unless asked about individual influences within a relevant context. The majority (72 percent) of consumers who disagreed “I like to be as informed as possible before making a purchase” sought out, came across or discovered six or more distinctive information sources when considering their recent category purchase, and nearly half (46 percent) used 16 or more information sources.

Even those who generally consider themselves impulsive shoppers tend to be well-informed. Sixty-two percent of consumers who agreed “most of my purchases are impulse buys” used 16 or more information sources during their recent purchase. Furthermore, only three in 10 who agreed “most of my purchases are impulse buys” actually made their recent category purchase “immediately, in the moment.”

Implications for Brands, Retailers and Research Teams

Because of today’s boundless ecosystem — filled with innovation, product options, information, purchase channels, and more — we cannot rely on consumers to accurately predict their own behaviors in the marketplace. It’s difficult to overestimate the importance of situational context, the prevalence of information, and the openness to influence — or promiscuity — along the shopping journey.

Some best practices to keep in mind in order to more effectively understand and impact consumers’ shopping behavior include:

• Speak with recent purchasers (rather than intenders) about their actual experiences to more accurately reflect true shopping behaviors.
• Capture situation-based attitudes and motivations to understand the context within which decisions were made.
• Identify specific influences that either reinforced or disrupted consumers’ journeys between intention and action.

All of these approaches require a break from more traditional research models focused on category generalities and brand intentions. Turning to a consumer-centric model that seeks to understand shopper motivations and behaviors within a specific context can help provide the insights necessary for informed decision making across organizations.

*Alter Agents 2021 proprietary research among recent purchasers of one of the following categories: dog supplements and treats, home fitness equipment, home furniture, household cleaning supplies, packaged coffee, and self-improvement subscription services.

Michelle Castle is chief innovation officer at Alter Agents, a full-service marketing research consultancy. Casey Willard is chief analytics officer at Alter Agents.