While post recession shoppers increasingly make purchases based solely on product value, brands such as Coca-Cola and Oreo cookies are using social media to promote their product and engage with consumers.
Consumers emerging from the recent economic downturn have drastically altered shopping behaviors, according to a July 23 report by business intelligence provider Euromonitor. The report is based on the findings delivered at the Shoppers Insights in Action Conference, a worldwide retailer conference held this year in Chicago July 11-14.
According to the report, consumers are now more comfortable using coupons, searching for the best price and seeking out deals.
Most importantly consumers have re-defined value, whereas before the recession consumers saw value as a combination of product quality and range of product options, consumers now define value solely in terms of price. Consumers now are placing a greater emphasis on ‘needs' rather than ‘wants' or desires. The report also found that consumers are becoming increasingly concerned about the authenticity of the product, wanting to know where it came from and how it was manufactured.
Retailers are reacting to these shifting trends by offering consumers increasingly customized and targeted experiences while shopping and more focused marketing strategies.
Media agency MEC Global notes that retailers are also taking note of consumer frustrations. In response to growing consumer anger at packaging waste and developing environmental concerns, retailers are offering more ‘wholesome' products that use less packaging and are recyclable.
Brands are also using more social media or networking sites such as Twitter and Facebook to engage with customers. According to Facebook monitoring page allFacebook.com, several retailers, including coffee chain Starbucks, soft drink manufacturer Coca-Cola, Oreo cookies and energy drink Red Bull were amongst the top 30 most popular pages on Facebook.