Consumer Decision Hierarchies
There are a multitude of factors that influence the way we shop and what leads us to make a purchase. To develop effective shopper marketing strategies, manufacturers and retailers need to understand how people shop a particular category. Do your ideal shoppers make decisions based on advertising, pack size, brand, price, flavour, claims or a combination of these attributes?
Understanding the criteria that drive shoppers to make a purchase is key to unravelling the competitive dynamics of a category. Using insights from our 10,000-household continuous shopper panel, we can develop a purchase decision hierarchy that highlights the attributes most important to shoppers when they are shopping your category.
This analysis provides you with a comprehensive view of the dynamics of your category, from consumer to shelf, with actionable recommendations to make your business more profitable.
How we do it
By analysing purchasing behaviour from Nielsen’s shopper panel over a 12- or 24-month period, we can aggregate consumer behaviour in terms of the relative importance of product attributes and interactions among competing products or categories.
Our outputs help you to understand how to rationalise range by identifying which attributes are more ‘substitutable’ to buyers and, therefore, which products are less likely to have a negative impact on customers if they disappeared. For example if the tree shows that pack type is relatively unimportant compared to flavour, you should consider reducing the number of pack types (bottle, can, carton, etc.) you offer but maintain the range of flavours available.