Co-authored by Michael Zyla.
In our previous article, the modern warp speed consumer, we learned about the new-age hyper-personalized consumerism and the need for major brands to adjust rapidly. This article will delve deeper into the consumer psyche as they are the main catalysts affecting the change in product lifecycles.
In research done on consumer buying processes, the most common denominator observed has been ‘the problem identification’. On a detailed analysis of these behaviors, three levers are commonly found in numerous top-tier product organizations. These levers have been framed to consumers in the forms of marketing jargons like:
- Two for the price of one
- Sale on up to 50% off all stock
- We won’t be beaten on price
- Throw out the old, in with the new
- Save time
- We’ll take the hassle out of it
- It’s 20% faster than the last model
- Now available in more colors
The consumer wants to save time. If you think about fast food, it is an entire industry flourishing in having meals prepared for you within a short time from ordering. Dominos and McDonalds are examples of brands constantly innovating on their products and manufacturing methods to improve efficiency while maintaining levels of quality. Recently, both brands have diversified their offerings to expand towards changing consumer preferences, tastes, and sentiments towards sustainability and dietary needs. Lockdowns led by the pandemic worldwide have had a fascinating impact on this lever, with the emergence of refrigerated low prep meal options such as Dineamics and Youfoodz growing their market presence.
In addition, the consumer wants to save money. This can be tricky and often riddled with assumptions and situational considerations. For example, a millennial consumer currently might have up to 5 IPTV services adding up to approximately $60, which has grown over the last year. However, they would hesitate to sign up for a plan with a provider for the same amount. The proposition here is presented within the value perceived, with 5 TV services for the price of 1. It is crucial to understand how consumers spend on existing solutions and “share of wallet” to their needs today.
Furthermore, consumers do tend to buy the hype. Many remarkable, unconventional and beautiful inventions come out every day that sometimes instigate the urge to purchase. In addition, crowdfunding and payment apps have made buying superfluous goods easier. Consumers have a spectrum of tastes, and the desire to spend money is favored in this lever as there are always new products coming into the market. Often, collectibles and antiques are generated in valuation from hype, with demand for limited release and hard-to-find goods spurring new market opportunities and monetization for avid traders.
Infosys Consulting works closely to collect and understand significant data pools and analytics to help clients mature their mindsets towards these levers to influence future product development. To learn more about the topic, please reach out to our experts.
Partner, Infosys Consulting
Rohit is a partner in our APAC region where he advises clients across a number of areas such as organic and inorganic growth, enterprise-wide transformation, capital optimization, harnessing of operating model capabilities such as Future of work, Analytics and Digital. Prior to Infosys Consulting, he has held executive roles across Telecom, Media and Financial services sectors including a number of years within global management consulting firms.
Principal, Infosys Consulting
Michael joined Infosys Consulting in 2021 as part of the Communications, Media and Entertainment practice in the Asia Pacific Region. He brings over 11 years of experience in emerging industries, digital transformation, industry strategy development, product innovation, development and management. Michael is passionate in working on the next generation of products and business models for a range of clients. Michael holds several degrees and certifications, demonstrating active interest in developing new and emerging capabilities.