What is an impulse consumer?
And what are they craving?
In this model logic follows emotion as consumers rationalize or justify their reason for making the purchase, whether it be big or small. As brands continually deepen their understanding of the consumer experience they will not only increase their revenue through impulse purchases, but open new In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary.opportunities to strengthen their brand with the consumers – creating long-term, profitable relationships.
The Core ‘Impulse’ Categories
Within the food and beverage industry, the most common impulse purchase is confectionary; an affordable indulgence that brightens the day. In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary. Manufacturers like Mars, Kraft and Ferrero all plan marketing and distribution strategies around impulse purchasing. But with changes in disposable income has led to changes in impulse purchasing patterns. The question is what long lasting impact will this have.
Shrinking Size and Lower Unit Prices
Chocolate and sugar confectionary along with chewing gum retail sales were up 3.4% in 2011. Brands like Kraft and Wrigley are hoping to make their impulse appeal even stronger with consumers by releasing gum packs with fewer sticks at a much lower cost. Trident and Stride currently offer 5-stick packs for 50 cents and Wrigley plans to launch a similar pack format this year. The goal is to land more pocket-change purchases, mainly from Gen Y and Gen Z targets.
While these are small, inexpensive items they are enough to help consumers relieve stress and anger. With the added frugal mindset brought on by the economic downturn, these examples do not cost enough to give the consumer spending guilt. There is a sweet spot between spending guilt and buying something that gives the consumer a short but sweet delight. Brands need to understand where that opportunity lies, and importantly, which can be specific to their category.
New Media Outlets for Impulse Purchasing
Impulse buying could see a substantial increase as Smart TVs become more mainstream in the marketplace – and they are well on their way. In 2011, 17% of all TVs shipped in the US had Internet connection capabilities. The market is expected to continue to expand and reach approximately 123 A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumersmillion shipments by 2014. As these devices become more common and advertising media becomes more sophisticated it could open a new channel for brands to capitalize on a consumer’s emotional state influenced by a show to prompt them into an impulse purchase directly from their TV.
A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumers based on emotional, impulse purchases that bring revenue in for the brand and delight to the consumer.