Way to Shop­pers Mind, Heart & Wal­let

Point of Purchase - - INTERNATIONAL - Reena Me­hta

This is­sue we bring to you a study that re­veals the mind­set of shop­pers in emerg­ing mar­kets. Read on to know what how shop­per be­hav­ior and loy­alty are is chang­ing and what are the trends herein. We hope th­ese in­sights help you pave your way to shop­pers mind, heart and wal­let.

to new brands and prod­uct op­por­tu­ni­ties than do their coun­ter­parts in de­vel­oped na­tions. The ef­fec­tive­ness and rel­e­vance of brand com­mu­ni­ca­tions and mar­ket­ing is an­a­lyzed across dis­tinct con­sumer seg­ments. The U.S., Canada and Aus­tralia data spans the gen­eral pop­u­la­tion and in­cludes ad­di­tional anal­y­sis in the af­flu­ent, young adult and se­nior sec­tors of the United States and in Canada. The emerg­ing mar­ket data (In­dia, China and Brazil) in­cludes at­ti­tudes and per­cep­tions from con­sumers across three dif­fer­ent so­cioe­co­nomic classes. Three T’s—Tired, Turned Off, and Tuned Out—are used to char­ac­ter­ize con­sumers in de­vel­oped mar­kets, where there is strong ev­i­dence of a new set of much higher ex­pec­ta­tions for in­no­va­tion and rein­ven­tion among loy­alty pro­grams. Con­versely, the emerg­ing mar­ket con­sumer sen­ti­ments can be summed up as Three E’s—En­ergy, En­gage­ment, and En­thu­si­asm. Yet, de­spite this pre­vail­ing com­mon­al­ity in op­ti­mism, marked dif­fer­ences in per­cep­tions around loy­alty and shop­ping-re­lated be­hav­iors were de­tected. Ac­cord­ing to Loy­al­tyOne Pres­i­dent Bryan Pear­son, whose book, The Loy­alty Leap: Turn­ing Cus­tomer In­for­ma­tion into Cus­tomer In­ti­macy, is due out in May 2012: “Con­sumer sen­ti­ment is in­cred­i­bly im­por­tant bell­wether. While there are many im­mi­nent con­cerns for busi­ness on the hori­zon, cor­po­ra­tions, es­pe­cially those that are bank­ing on loy­alty for growth, would be wise to heed two strong pre­vail­ing themes: Suc­cess in North Amer­ica re­quires a re­write of the rules of en­gage­ment, and emerg­ing mar­kets will not be won with a one-size-fits-all men­tal­ity.” De­vel­oped and Emerg­ing Com­par­i­son Highlights:

Mar­ket

For­eign vs. do­mes­tic brands: Shop­pers in emerg­ing na­tions are more wel­com­ing of for­eign brands and in some cases are more trust­ing of for­eign/global brands. In China, nine out of 10 con­sumers say that global brands are more trust­wor­thy than do­mes­tic brands. Chi­nese con­sumers are six times more likely than Amer­i­cans to agree with the state­ment that com­pe­ti­tion from for­eign com­pa­nies is a good thing.

Credit card us­age: China, Brazil and In­dia con­sumers are five times more likely than U.S. and Cana­dian con­sumers to say they will use credit cards for “things you can’t af­ford now.”

Pri­vacy: 68% of Brazil­ian con­sumers are con­cerned about pro­tect­ing their per­sonal in­for­ma­tion, com­pared with 50% of con­sumers in the United States and Canada. This far out­strips China, where just 33% of re­spon­dents said they are con­cerned.

Brand Loy­alty De­fined: Con­sumers al­most uni­ver­sally de­fine brand loy­alty as telling friends or fam­ily to shop at a par­tic­u­lar store, ex­cept in China, where loy­alty is de­fined as shop­ping with a spe­cific com­pany for more than three years. “We’ve en­tered into a pe­riod of great change and com­plex­ity, which is driv­ing a crit­i­cal need for clar­ity and di­rec­tion. This study is an es­sen­tial nav­i­ga­tional bea­con re­gard­less of whether you’re lead­ing the charge for growth on for­eign soil or in a mar­ket where growth is in­creas­ingly hard to mine,” says Kelly Hlavinka, Manag­ing Part­ner of COLLOQUY. In addition to the macro com­par­isons be­tween ma­ture and emerg­ing economies, the “2011 COLLOQUY Cross-Cul­tural Loy­alty Study” ex­plores in-depth sen­ti­ments of each of the co­horts across the mar­kets stud­ied. A ful­some anal­y­sis of the de­vel­oped mar­kets will be the sub­ject of the sec­ond of the three white pa­pers, due out later in Novem­ber. It will pro­vide a closer look at the ef­fects of the con­fi­dence cri­sis in the ma­ture mar­kets. Ac­cord­ing to Hlavinka, “The find­ings from the emerg­ing mar­kets are telling us that even where there is pent-up de­mand, set­ting up shop doesn’t guar­an­tee you’ll end up in the win­ner’s cir­cle. If, on the other hand, you par­lay core in­sights into a long-term en­gage­ment strat­egy from the out­set, the po­ten­tial for on­go­ing re­turn on in­vest­ment in­creases ex­po­nen­tially.”

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