Consumer Research and Bad Consumer Behavior
This week has been quite challenging for me, so I’m going to make this a quick article (bullet points type). So, let’s begin.
This week, we had two sessions:
🔸How consumer research methods can be used to uncover consumer behaviour insights
🔸Undesirable consumer behaviours
In session 1
🔸Market research methods are useful tools to uncover consumer insights.
🔸Recall the Mills et al Article
🔸When to use what method?
|
Method |
Insights Uncovered |
When to Use |
|
Quantitative Methods (e.g.,
Surveys, Experiments, Longitudinal Studies) |
Descriptive, Correlational,
Causal insights (e.g., preferences, cause-effect relationships) |
For large-scale, generalizable
data or testing specific hypotheses |
|
Qualitative Methods (e.g.,
Focus Groups, In-depth Interviews, Ethnography) |
Exploratory, Contextual,
Cultural/Social insights (e.g., why consumers behave a certain way) |
To explore unknown consumer
motivations or rich, nuanced behaviors |
|
Observational Methods (e.g.,
Eye Tracking, Online Behavior Tracking, Field Experiments) |
Behavioral,
Attention/Engagement, Usability insights (e.g., actual behavior, product
interaction) |
For real-time observation of
unmediated consumer behavior or usability testing |
|
Secondary Data Analysis (e.g.,
Big Data Analytics, Industry Reports, Social Listening) |
Market/Competitor, Emerging
patterns, Sentiment insights (e.g., macro trends, public sentiment) |
For fast, data-driven
decisions or spotting trends in large datasets |
|
Mixed Methods (e.g., Combining
Surveys with Interviews or Focus Groups) |
Comprehensive,
Cross-validation insights (e.g., validating quantitative data with
qualitative) |
To combine breadth of
quantitative data with depth of qualitative insights |
🔸Remember, hyper reliance on industry reports can be a bad thing. The people who prepare the report have assumptions in their mind that you are not familiar with. Therefore, relying only on them can be a bad thing.
🔸To get our own insights, it is important to do the market research ourselves
🔸A single insight can change the way the industry works. Here are some really good examples that changed the industries.
🔹Most women didn’t relate to traditional beauty standards – Example: Dove’s “Real Beauty” campaign transformed beauty industry marketing to focus on real women and diverse beauty.
🔹People wanted a comfortable place to relax and socialize, not just coffee – Example: Starbucks introduced the “third place” concept, reshaping how coffee shops are designed and operated.
🔹Streaming content is more convenient than renting physical DVDs – Example: Netflix shifted from DVD rentals to online streaming, revolutionizing the entertainment industry.
🔹Environmentally conscious consumers wanted stylish, high-performance electric cars – Example: Tesla’s electric cars led to mainstream adoption of EVs, pushing the auto industry toward sustainability.
🔹Consumers value user-friendly, aesthetically pleasing technology over technical specifications – Example: Apple focused on design and user experience, setting new standards in the tech industry.
🔹Consumers preferred on-demand streaming over purchasing music – Example: Spotify’s streaming model disrupted the traditional music industry, making streaming the dominant mode of music consumption.
🔸Are there more insights that you can uncover in your own marketing journeys?
Session 2 – Undesirable Consumer Behaviours
While we have spent the bulk of the course on understanding the bright side of consumer behaviour. However, there are many undesirable behaviours that consumers exhibit routinely. Let’s quickly talk about them:
🔸Agency Problem – Occurs when an agent acts in their own interest rather than the party they represent. Example: A salesperson pushing products for commissions, not consumer needs.
🔸Free Riding – Consumers benefit from services without paying for them. Example: Testing products in-store but purchasing online at a lower price.
🔸Counterfeiting – Buying or selling imitation products as legitimate items. Example: Fake luxury goods that harm brand value and consumer trust.
🔸Abusing Company Policies – Taking advantage of lenient policies. Example: Buying, using, and returning products to “rent” them for free.
🔸Product Returns – Excessive or fraudulent returns. Example: Returning items after wearing them once, creating logistical and financial burdens for companies.
🔸Disposal of Products in Wrong Ways – Improper disposal leading to environmental harm. Example: Throwing electronics in the trash instead of recycling.
Remember, we had discussed this in the backdrop of the Flipkart product returns case. The intent of the case was to discuss not only the B2C consumer who was misbehaving, but also the B2B consumers and their issues.
Today, the market has become very demanding and the scope of some of these issues has broadened considerably.
It’s critical that we are also aware of:
🔸Ethical Concerns in Data Sharing – Some consumers knowingly provide false information or misuse company data. Example: Consumers using fake identities to sign up for promotional offers multiple times.
🔸Planned Obsolescence – Though more of a business practice, consumers who regularly discard products early (even if still functional) contribute to waste and excessive consumption. Example: Upgrading phones every year when the older one is still operational.
🔸Moral Hazard in Consumption – Occurs when consumers overuse or misuse services or products because they don’t bear the full cost. Example: Excessive use of insurance-covered services or warranties without regard for costs.
🔸Overconsumption and Materialism – Consumers prioritizing material goods over sustainability or necessity. Example: Purchasing fast fashion excessively, contributing to environmental harm.
🔸Social Influence and Herd Behavior – Consumers may act based on peer pressure or trends, leading to irrational or harmful consumption patterns. Example: Buying expensive items to fit in socially, even if it causes financial strain.
This is a topic that is ever-expanding, and the discussion will have to be a continuous one.
