Solutions

Consumer Decision Hierarchies

What we measure

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 target shoppers make decisions based on advertising, pack size, brand, price, flavor, 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. Leveraging our experience with consumer choice data, 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 analyzing purchasing behavior and consumer trade-offs through our expert modeling capabilities, we can aggregate consumer behavior in terms of the relative importance of product attributes and interactions among competing products or categories.

Our outputs help you to understand how to rationalize range by identifying attributes that are more ‘substitutable’ to buyers and, therefore, products that 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 flavor, you should consider reducing the number of pack types (bottle, can, carton, etc.) you offer but maintain the range of flavors available.

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