Emerging Consumer Values Affect Purchase Decisions

In today's economy consumers are expecting greater value from every product they buy. This value is often defined as personal ROI (return on investment), meaning we are beginning to focus on making the most of everything we have; not just products, this includes our investment of time, experience, and money. This reality of finite resources and time creates the desire to demand even greater value. These value requirements transcend product cost and function to include a value differential which prompts consumers to look longer and harder at the products they buy in order to evaluate the real value of the products as opposed to just the perceived value – this is the differential that is now driving the new consumer demand. Increased food functionality, fair trade ingredients, and a sustainable supply chain are all examples of value differentials that are beginning to play bigger roles in consumers' purchase decisions.

Data from several recent Natural Marketing Institute (NMI) consumer research studies provides insights into how consumers are reevaluating products in the market based on this emerging set of values.

Adjustments in Consumer Purchase Behaviors

Over the past few years as the economy has dipped into recessionary levels and for most of us personal wealth has declined dramatically, consumers have been forced to make major adjustments in their purchase behaviors. Almost half of American consumers indicate that during the past year they have become more of a saver than a spender and report they enjoy a more satisfying life by having less material possessions.

Given the continued economic uncertainty and less discretionary income, consumers are reevaluating not only their spending but the true value of their purchases. For instance, the value of store brands continues to gain in the consumer's eyes. Beyond this, consumers overall, are becoming more experimental across brands and less brand loyal.

This new value-conscious consumer behavior is also reflected in how consumers view advertising as well as the shopping experience. They are increasingly skeptical of companies telling them "what they need," and instead seek more control over decisions for themselves and their families. Today over half of Americans indicate they would rather find out about new products and services on their own compared to traditional advertising.

The shopping experience has become another level of personal ROI with seventy percent of consumers agreeing that when they go shopping, the overall experience with the store is just as important as what they are purchasing. Keep in mind that this desire for an "experience" manifests itself in many aspects of consumer purchase behavior.

Consumers Expect More from Companies

The values supporting fair trade, resource management, and the efficacy and effectiveness of corporate social responsibility (CSR) programs are increasingly part of the emotional and social value equation yielding a growing dimension to personal ROI.

CSR is gradually gaining momentum on how consumers view a company and its products. Based on trended research, it appears CSR will continue to grow in consumers' minds as a value differential and will increasingly impact purchase decisions. Increased corporate responsibility measures are not only viewed by consumers as the "right thing to do", they are impacting consumers' willingness to pay for that added value.

Today's consumers are rethinking value based on new measures and beliefs. While monetary cost will always be a factor consumers are increasingly evaluating the real value of products as they expect more return on their personal investment. Corporate social responsibility, sustainability, functionality and fortification are just a few of the differentiating factors which may boost the consumer's perceived value. Understanding how these value differentials affect consumers purchase decisions is increasingly important in today's uncertain economy.