Tuesday, May 1, 2012

Consumers and Their Path to Purchase


In the current digital era with the web becoming a significant engine for commerce and promotion, the modern path to purchase is itself being influenced by myriad aspects - the information that is available to the consumer from multiple sources, the decisions made by the consumer, and the social interactions taking place on the web.

In such an environment it has become critical for brands to understand the journey by which shoppers come to buy a particular brand, product, or service. 

Shopper insights research shows that, for many products, 50% or more of purchases and brand choices are decided on right in the store. As a result P&G emphasized the "First Moment of Truth" (FMOT). Wall Street Journal described Proctor & Gamble’s emphasis on FMOT in the following words. 

“The “first moment of truth,” as P&G calls it, is the three to seven seconds when someone notices an item on a store shelf. Despite spending billions on traditional advertising, the consumer-products giant thinks this instant is one of its most important marketing opportunities.”

Then Google came up with the concept of "Zero Moment of Truth" (ZMOT). Consumers are going online to research about the products they want, get to know peer reviews, online ratings etc. before they buy. 

What is therefore becoming critical is that the brands need to be able to remind consumers about the brand when the consumer is making the decision to buy, either on the web or in the physical stores. 

At AaramShop we have observed some interesting trends when we analyse the path of purchase corresponding to some of the categories that are being bought on AaramShop. For each of the categories, we have identified the next 4 categories that seem to be closely associated while buying. Each figure in percentage signifies the frequency with which a particular category has been bought after the main category has been bagged.

Main Category
Associated Categories
Biscuits & Cookies
Snacks
(49.42%)
Cereals & Breakfast (35.47%)
Rice, Atta, Lentils & Dals (33.72%)
Milk & Dairy Products (33.14%)
Rice, Atta, Lentils & Dals
Laundry Supplies (36.32%)
Milk & Dairy Products (35.26%)
Edible Oils (30.53%)
Cereals & Breakfast (30.53%)
Snacks
Biscuits & Cookies (61.59%)
Milk & Dairy Products (39.86%)
Rice, Atta, Lentils & Dals (31.16%)
Coffee, Tea & Cocoa (31.16%)
Milk & Dairy Products
Rice, Atta, Lentils & Dals (44.67%)
Biscuits & Cookies (38%)
Snacks
(36.67%)
Cereals & Breakfast (36%)
Chocolates & Sweets
Biscuits & Cookies (48.19%)
Snacks (37.35%)
Milk & Dairy Products (32.53%)
Rice, Atta, Lentils & Dals (28.92%)
Edible Oils
Rice, Atta, Lentils & Dals (53.21%)
Laundry Supplies (43.12%)
Milk & Dairy Products (36.7%)
Coffee, Tea & Cocoa (34.86%)
Baby & Child Care Products
Laundry Supplies (20.69%)
Milk & Dairy Products (17.24%)
Coffee, Tea & Cocoa (17.24%)
Chocolates & Sweets (13.79%)
Coffee, Tea & Cocoa
Rice, Atta, Lentils & Dals (42.75%)
Biscuits & Cookies (41.98%)
Miscellaneous Food Items & Additives (35.88%)
Household & Cleaning (35.88%)


The above should provide brand decision makers some food for thought in terms how to place themselves in the path of purchase of the consumers. Further it will be important for brands to create “Likelihood to See/ Hear” (LTS) factors along the path to purchase, and ensure meaningful “recency”, when the consumers are searching and buying.

Read more here:
  1.  The path to purchase
  2. Shopper “path to purchase”: a new approach to media planning?
  3. The Future of Marketing: Winning the Zero Moment of Truth 

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