Understanding Consumer Behavior

At airtel, I ran an iPhone giveaway marketing campaign three times, and to my surprise, none of them performed. Logically, you’d think offering a prize as attractive as an iPhone, especially during the launch period, would drive massive engagement. The assumption is that everyone would rush to participate, download your app, engage with the campaign, and complete the required actions. But what actually happened was the opposite. Engagement was shockingly, embarrassingly low. In contrast, campaigns that offered much smaller rewards—like a ₹1,000 or ₹500 voucher, or even just a free mobile recharge—generated higher participation rates, more app downloads, and greater overall engagement. But why does this happen? This outcome can be largely attributed to consumer psychology. When the reward seems too large or unattainable, people instinctively doubt their chances of winning. The concept of *perceived probability* comes into play here. When the prize is something as high-value as an iPhone, people immediately think, "What are the odds that I’ll actually win?" This skepticism causes them to disengage and not even bother trying, as they don't see the reward as realistically achievable. On the other hand, smaller, more attainable rewards feel within reach. A ₹1,000 voucher or a free recharge doesn’t carry the same sense of improbability. People feel like they have a real shot at winning something smaller, which encourages them to take the necessary actions, leading to better campaign results. In essence, psychology plays a far more critical role in shaping consumer behavior than we give it credit for.

The Dark Side of Sustainable Packaging Sustainable packaging. The golden ticket to a greener future, right? Not always! Research* shows that 70% of packaging changes lead to a drop in sales. Let that sink in. Even the most sustainable solutions flop if they don't align with what consumers actually want. Take it from someone who champions sustainable packaging every day, this isn't just about swapping one material for another and calling it a win. It's far more complex. The stakes are higher than ever. Switching to sustainable materials represents a significant investment for brands. But the real challenge isn't just covering higher costs for materials or manufacturing, it's about understanding the consumer mindset. That same research reveals that in a quarter of cases, packaging changes lead to sales drops of 10%–25%. Imagine pouring resources into an innovative, eco-friendly solution, only to watch it fail on the shelf. Not only is this unsustainable, it's devastating for brands. Even big names get it wrong. Remember Frito-Lay's biodegradable SunChips bag? So loud that consumers created a Facebook group just to vent. Sales dropped by over 11%, and the brand scrapped the material. Sustainability means nothing if it ruins the consumer experience. Too many brands make decisions based on assumptions rather than evidence. They rush to market with "green" products, hoping for applause, only to discover consumers didn't want the changes in the first place. Consumers want sustainability, but they also expect convenience, affordability, and a seamless experience. A material swap that leads to leaky containers or higher prices just won't cut it. That's why risk assessment with in-store empirical research is crucial. Testing concepts in real-world scenarios helps identify pitfalls and ensures packaging resonates with consumers before hitting the shelves. Fixing issues at this stage is far easier than recalling a failed product later Sustainable packaging isn't just about doing good for the planet, it has to work for your brand and customers. We need to ask tougher questions: Will the packaging perform on-shelf? Will it enhance the consumer experience or undermine it? The ball is in our court. How do we ensure sustainable packaging doesn't just sound good but actually works in practice? It starts with listening (really listening) to consumers. Understanding their needs, testing new concepts in real-world scenarios, and finding the balance between eco-innovation and usability. The path to sustainability is complex, but with the right research and a consumer-first approach, we can create solutions that tick all boxes. Nothing's less sustainable than going back to the drawing board after a failed launch after all. Are you still in the dark? Do you research what consumers really want? What surprising insights have you uncovered? (*Source: The Sales Effect of Innovative Package Changes: Evidence from the U.S. CPG Industry, 2023)

Sustainable packaging goes emotional. Sustainability alone isn’t enough, your brand should expect to build emotion on your customers. Sustainability is expected, what truly sets a product apart is how it makes people feel. The beauty industry is evolving from performance-based promises to emotionally-driven experiences, where storytelling, self-expression, and emotions begin right at the packaging. >>Why does sustainable emotional design matter more than ever?<< Beauty is intimate. Whether it's skincare, makeup, or fragrance, these are products that touch the body and reflect identity. Today’s consumers, especially Gen Z and future Alphas, are no joke, they crave narrative-driven packaging that speaks to their emotions, values, and aesthetics. +72% consumers say packaging design influences their purchasing decisions. +60% report emotional packaging enhances their experience. +306% higher lifetime value for products with emotionally engaging packaging. >>Sustainable ≠ Special<< Eco-friendly packaging is now table stakes. Recycled materials, refillable containers, and plastic-free alternatives are simply expected. What creates real differentiation is sustainability with soul, packaging that is not only responsible, but also beautiful, tactile, and emotionally resonant. Without an emotional layer, even the most sustainable product risks feeling generic. +Design for the Senses. +Tell Authentic Stories. +Co-create with Your Community. +Embed Cultural & Emotional Relevance. +Make Sustainability Personal. >>Hype builds loyalty<< Exclusivity still plays a vital role. Limited-edition launches, whether tied to creators, cultural moments, or nostalgic design, create a sense of urgency and emotional connection. +200–300% Demand can spike during limited drops. +50% millennials actively seek out exclusive beauty releases. +43% of millennials and 38% of Gen Z are more likely to buy when it's a limited edition. Emotional Sustainability. Today’s beauty consumers aren’t just buying products, they’re buying emotions, stories, and values. For sustainable beauty to stand out, the packaging must do more than protect the planet, it must connect with people. That’s how brands transform from choices into communities, and from purchases into passions. Find my curated search of examples and get inspired for your next Hit. Featured brands: Prose Osea Prmr Muebiome Milou Foile Elate Flora Flora Maison Matine Herbar Colekt Botnia Oh’G #beautybussines #beautyprofessionals #sustainablepackaging #sustainablepackaging

The recent transformations within leading Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG) companies signify a paradigm shift underscored by the necessity to adapt to evolving consumer preferences. As these brands pivot away from traditional food categories toward personal care and wellness, they are responding to critical market dynamics: shrinking profit margins in food sectors, a surge in health-conscious consumer behavior, and eroding brand loyalty among food products. This transition illustrates how businesses must not only recognize but anticipate changes in consumer values, particularly the growing inclination towards premium self-care and wellness products. The implications of this shift are profound. For instance, while the global personal care market is projected to reach $758 billion by 2030, the sluggish growth within processed food sectors signals a pressing need for CPG leaders to innovate continually. The evidence revealed through L'Oréal’s robust revenue growth in skincare juxtaposed with declines in traditional food categories serves as a clarion call for all CPG firms: the future lies in aligning product offerings with consumer demands for personalization, health optimization, and quality over quantity. Thus, the critical question posed to FMCG executives is not merely one of survival but of strategic foresight: Are you actively redefining your brand strategy to harness the potential of emerging categories, or are you resigned to merely managing a downward trajectory? This moment is not just about adaptation; it represents an opportunity for reinvention and sustained relevance in a rapidly changing consumer landscape.

The Brutal Truth About Consumer Trust in Home Care Why do some brands inspire trust effortlessly while others struggle to convince consumers? Home care isn’t like beauty or food, where customers instinctively check labels. For decades, legacy brands have relied on familiarity over transparency—building trust through big advertising spends rather than real ingredient disclosures. But that’s changing. Consumer trust is now shifting toward brands that disclose, educate, and take a stand. 1️⃣ The Parle-G Effect: Legacy Trust vs. New-Age Transparency For years, people have trusted brands like Surf Excel, Vim, and Harpic—not because they knew what was inside, but because they were always there on shelves and TV screens. This is the "Parle-G effect"—familiarity breeds trust. But today, trust is no longer inherited; it’s earned. The rise of brands like Kapiva (Ayurveda transparency), The Whole Truth (ingredient honesty) shows how modern brands build trust differently—by being upfront about what’s inside. 2️⃣ The Johnson & Johnson Shock: When Legacy Trust Breaks For decades, J&J was the gold standard for baby care. But lawsuits over talcum powder contamination with asbestos shattered consumer confidence worldwide. Even in India, brands like Mother Sparsh surged because young parents started reading labels—they no longer assumed safety just because a product was from a heritage brand. 3️⃣ The Patanjali vs. FSSAI Scandal: Why Trust Must Be Backed by Proof Consumers initially believed in Patanjali’s “natural” positioning. But repeated quality violations (like the recent FSSAI crackdown on misleading claims) eroded trust. The lesson? Trust cannot be built on slogans alone. If a brand claims toxin-free, natural, or safe—it must prove it consistently. 4️⃣ The Decathlon & Ikea Strategy: Trust Through Radical Transparency Decathlon shares detailed product breakdowns—how much polyester is used, where a product is made, and even the carbon footprint. Customers trust them because they don’t have to “guess” what they’re buying. Ikea lists every material, every environmental impact, and even assembly instructions upfront. No surprises. Just facts. In home care, Koparo is taking the same approach—putting ingredients front and center. Not just saying "toxin-free," but explaining why certain ingredients matter for better or worse (like the bioaccumulation of harmful chemicals in traditional cleaners). So What’s Next for Consumer Trust in Home Care? ✅ Brands that educate will win over brands that advertise. ✅ Ingredient transparency will become a non-negotiable (just like food labels). ✅ Consumers will demand not just safe products—but proof of safety. At Koparo, we’re all in on radical transparency. No vague claims. No marketing gimmicks. Just home care that’s safe, effective, and backed by science. The real question is—do you know what’s inside your cleaning products? #ToxinFree #Koparo #HomeCareRevolution 🚀

After decades of working with leaders at companies like Apple, Salesforce, and Cisco, we've identified 4 storytelling techniques that consistently work to deliver important messages in high-stakes settings: 1. Start with the unexpected Don’t begin your presentation with context. Instead, begin with the moment that makes people think, “Wait…what?” Instead of something like: “Here’s an update on our September campaign…” Try starting with the most interesting detail: “I broke our biggest marketing rule last month, and it worked.” Lead with the surprise. You can add context later. 2. Let people feel the tension After the surprise, don’t rewind to the beginning. Take your audience to the moment where things weren’t working. Flat numbers. Missed goals. Stalled progress. Instead of: “The campaign was underperforming, and our team went back to the drawing board.” Try:  "We were two weeks out from the end of the quarter. The campaign wasn’t producing results, and the team was out of ideas. That’s when I decided to take a risk...” You don’t need to explain the problem. You need to make people feel it. 3. Use real dialogue When your audience hears what was actually said, they stop listening to you and start visualizing the moment. This helps them connect emotionally with what you’re saying. Instead of: “The campaign manager said team morale was low and they were struggling to find a solution.” Try: “My campaign manager pulled me aside in the hallway and said, ‘We’ve tried everything. The team has been working overtime, and we don’t know what else to do.’” Dialogue brings listeners into the moment with you. It makes the story real. 4. Share the lesson Never assume people will infer the meaning you intended. End your story by answering: - What does this mean? - How should someone act differently now? Example: “Breaking our biggest marketing rule helped us turn this campaign around and hit our numbers. I strongly suggest we revisit our marketing guidelines. We could be leaving a ton of revenue on the table.” Without the lesson being clear, even a good story feels unfinished. These are the same techniques we teach to our clients at Duarte. Try them out during your next presentation and watch how people lean forward and tune in to your message. #ExecutivePresence #BusinessStorytelling #PresentationSkills

Overconsumption drives the transgression of several planetary boundaries, according to a new study in 'Nature'. Significant parts of the planetary boundary breaching responsibility can be attributed to the global top 10% and top 20% of consumers. The data is based on a global expenditure database that includes up to 201 consumption groups across 168 countries. "The world’s top 10% of consumers were responsible for 51%, 48%, 38%, 31% and 67% of the PB transgressions in terms of climate change, land-system change, N flows, P flows and biosphere integrity, respectively." If the global top 20% of consumers would adopt effective mitigation measures, they could yield a reduction of 25%-53% in environmental pressure. In such a scenario, just focusing on the food and services sectors would be sufficient to push land systems change and biosphere integrity back within their boundaries. === Full study (open access): https://lnkd.in/dZXQJAwh #sustainability, #planetaryboundaries

I get asked about Ganni A LOT whenever I talk about how to drive consumer behavior using psychological triggers and the challenges sustainable brands face against the allure of fast fashion. Interestingly, Ganni doesn't label itself as a sustainable brand; instead, it acknowledges the inherent contradictions in fashion and sustainability, focusing on continuous improvement. Despite this, the cult fashion brand is widely recognized for its chic, contemporary styles and strong commitment to sustainable practices, setting a new standard for balancing aesthetics, sustainability, and mainstream appeal. From a consumer behavior and psychology standpoint, Ganni offers many lessons. But for me, a key takeaway is that Ganni isn't trying to be a sustainable fashion brand; it's trying to be a desirable brand that makes clothes more responsibly. Many of Ganni's marketing and strategy practices aren't new, but the way they approach them sets them apart. They invest heavily in building a strong, recognizable brand identity aligned with their values and resonating with their fashion-seeking target market. They create clothes people genuinely want to wear, not just those in the sustainability community. They invest in fun, values-aligned collaborations, events, and experiences that tap into consumers' desires for community, shared experiences, and social recognition. What's different about Ganni reminds me of my interview with Danielle L. Vermeer on the #GreenBehavior podcast, where we discussed Amazon's laser focus on the customer. Ganni similarly prioritizes understanding and meeting customer desires for bold, playful, and versatile fashion that blends style with individuality. They recognize that purchasing decisions are influenced by social perception and create experiences that resonate on that level. It makes sense, seeing that Ganni's Chief Brand Officer, Priya Matadeen, has a background in psychology. 😉 Through its products and the brand built around them, Ganni allows its customers to signal their fashion-forward sensibility and alignment with responsible fashion values. Similar to Tesla's approach with electric cars, Ganni makes sustainability an integrated benefit, driving loyalty and sustainable behavior without compromise. The truth is that people's purchasing decisions are often influenced by how they believe others will perceive them. For sustainable brands to reach mainstream consumers, we need to start asking some tough questions like: 🤔 How unique and recognizable is our brand identity? 🤔 Are we making clothes people want to wear? 🤔 Do we truly understand our target customers' motivations/needs/desires? 🤔 Is our marketing strategy communicating our sustainability efforts AND fashion appeal? 🤔 Are we addressing the psychological triggers that drive consumer behavior in fashion? 🤔 Are we adapting our strategy based on market changes and consumer behavior insights? Curious to hear your thoughts! 🤓

Some of you have heard me say that there are only two types of pricing discounts: smart and stupid. And you want to get rid of the stupid ones. Stupid discounts are bad for five reasons: 1. They eat directly into your margin. 2. They lower the value perception of your product and service. 3. They create pricing inconsistencies. 4 They encourage customers to haggle and reward the wrong type of customers with lower prices. 5.Because of (3) and (4), sales cycles in B2B markets tend to be longer and focused on price, not on value. Today, I want to emphasize the second point- discounts lower the value perception of your products and services. There is sufficient empirical evidence that this is true across product categories, customer segments, and cultures. One remarkable study did not only measure the perception of discounted products but also actual performance. The study by Shiv, Carmon, and Ariely explored how discounts influence consumers' perceptions and actual experiences with a product. The researchers demonstrated that when participants purchased an energy drink at a discounted price, they performed worse on cognitive tasks compared to those who paid full price for the same drink. This phenomenon was attributed to participants' expectations about the efficacy of the product, which were influenced by its price. Study Design The research consisted of three experiments designed to test the hypothesis that lower prices negatively impact perceived and actual efficacy due to placebo effects: - Participants: Individuals were recruited and randomly assigned to different pricing conditions. - Product: The energy drink used in the study was marketed to enhance mental acuity and cognitive performance. - Procedure: Participants were told they would consume an energy drink before completing a series of word-jumble puzzles (e.g., solving anagrams). The drink was offered at either its regular price or a discounted price. Participants then consumed the drink and completed the puzzles within a set time limit. - Outcome Measures: Cognitive performance was measured by the number of puzzles solved correctly. Participants also rated the perceived effectiveness of the drink on a scale. Key Findings Participants who paid full price for the energy drink solved more puzzles on average than those who purchased it at a discounted price. The results indicated that the lower price activated weaker expectations about the product's efficacy, which in turn led to poorer performance. This effect was consistent across all experiments, supporting the role of expectancy in mediating placebo effects. The key takeaway from this and other studies is obvious: your price serves as an indicator of quality, whether it makes sense or not. Price discounts cost you five times. Shiv, B., Carmon, Z., & Ariely, D. (2005). Placebo effects of marketing actions: Consumers may get what they pay for. Journal of Marketing Research, 42(4), 383-393. DOI:10.1509/jmkr.2005.42.4.383. #pricing

STUDY FINDS COST PER WEAR INFORMATION SHIFTS SHOPPERS TO QUALITY: A new study published in Psychology & Marketing offers a fascinating look at what fashion drives fashion purchasing decisions. Researchers from the University of Bath and Cambridge University found that simply showing consumers the cost per wear (CPW) of garments (price divided by the number of times an item can be worn) can shift preferences away from cheap, low-quality clothing toward higher-priced, longer-lasting options. The findings draw on behavioural psychology to reveal that people respond more to perceived 'economic value' than to abstract sustainability messages. When shoppers could compare CPW between garments, and especially when figures were backed by trusted certification, they were far more likely to choose quality over quantity. The authors suggest CPW could be a powerful tool for brands and policymakers seeking to reframe sustainability as smart spending. Full story in comments.