Consumer decision making influences
We have commissioned some independent research into the key influences on consumer decision making - in-store, on-line and socially. This includes a deep-dive into the Financial Services market. Our infographic shows the outline results:
The online channels have massive importance during proactive decision making - however traditional media remains an essential part of the mix to stimulate consumers.
With the exception of in-store offers, friends and family have the single biggest influence on purchase decision making. Consumers claim not to be receptive to social media advertising however tools such as liking companies or products have the potential to leverage the power of personal recommendations.
- In-store offers is the single most important factor influencing end purchase, with 79%, claiming they often or sometimes buy products seen advertised as offers in-store
- 74% claim they often or sometimes buy products recommended from a friend, spouse partner or family member
- 54% claim that social media websites are made for keeping in touch with family and friends - they are not appropriate for advertising
Consumers claim that the internet has as much of an influence on purchase decision making as TV, with BTL marketing activities playing key supporting roles.
- 55% claim they often or sometimes buy products they have heard of on Television, compared to 54% on the Internet
- 41% claim they often or sometimes buy products they have seen advertised in Newspapers
- Over one in three (37%) claim they often or sometimes buy products they have seen advertised on posters in-store or in shopping centres
- Over one in three (36%) claim they often or sometimes buy products they have seen advertised in advertising in magazines
- One in three (33%) claim they often or sometimes buy products they have seen advertised in leaflets/flyers sent through the letterbox
‘I use the internet, the internet doesn’t use me’ – the internet is an absolutely essential tool to help consumers make the best purchase decisions (researching, comparing, validating, purchasing) however they see social media as a haven from “passive” broadcast media and conventional advertising. Social media are seen as tools to keep in touch with friends and family, and half see traditional, passive advertising on these sites as either intrusive or out of place on these sites.
- 81% agree that using the internet to choose which product or service to buy helps saving money
- 75% agree that using the internet to choose which product or service to buy helps buying better products
- Over half (54%) agree that these social media sites are made for keeping in touch with family and friends - they are not appropriate for advertising
- Almost half (47%) agree that advertising on social media sites feels intrusive
- 44% agree that advertising feels out of place on social media sites
- 79% agree that the internet has changed the way they go about choosing which products and services to buy
- 81% agree that they use the internet a lot to find out about products and services before buying them
Now looking at Financial services…
The case of Financial Services products clearly demonstrates that marketing communications strategy needs to be tailored for individual product categories, since the information gathering – and purchase – process can vary considerably by individual product.
Print media, whether prior to consumers being in the market or during an active information search, has an overall marginal influence on product choice in the Financial Services sector (at least at a conscious level). Web based interactive tools can help consumers cut through the ‘small print jargon’ and put the control back in their hands.
TV communications seen prior to purchase have a stronger influence on choice of current account and motor insurance than other product categories. It can be argued that in the case of the former TV cuts through because it is a high involvement decision and TV can get important messages across effectively, in the case of the latter the sheer volume of advertising ensures the category generates high recall.
Insurance - When in an active product search mindset, price comparison sites have a bigger influence on insurance than any other product category, particularly motor insurance. General internet browsing has a bigger influence on home and travel insurance than it does motor. Insurance is a product category that demonstrates particularly well the power of online interactive tools such as price comparison websites, used extensively during the purchase process for this product.
Looking for information on companies’ own websites has a bigger influence on choice of ISAs than they do any other product category – perhaps due to the fact that it’s less commoditised compared to insurance, and requires an involved, thought-out approach to purchasing given its long-term nature.Download your free report