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5 Shifts in Consumer Behavior & Mindset

Name: 5 Shifts in Consumer Behavior & Mindset
Uploaded: 2020-06-25T21:49:34+00:00
Duration: 2 min 7 s
Channel: Royston G King
Description: In this presentation, the speaker outlines five major shifts shaping modern consumer behavior and offers strategic guidance for founders and marketers…

25 Jun 2020 · 2 min

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2:07

In this presentation, the speaker outlines five major shifts shaping modern consumer behavior and offers strategic guidance for founders and marketers. First, consumers are increasingly ready to purchase directly from brands, prompting companies to evaluate and scale direct‑to‑consumer (DTC) offerings. Second, purchase decisions are now driven more by functional benefits and product availability than by brand loyalty, allowing smaller brands to compete with larger players if they can demonstrate clear value. Third, there is growing interest in brands that pair strong functional performance with pro‑social actions, though this does not require every brand to “save the world”; instead, companies should identify authentic ways to align with social causes relevant to their vertical. Fourth, status‑driven buying is waning, with consumers focusing on value rather than prestige. Fifth, shoppers are paying close attention to how companies treat their employees, making internal labor practices a factor in brand perception. The speaker encourages brands to assess where they stand on each shift, consider how to adapt, and leverage these trends to drive growth.

Chapters

We could probably literally teach a class on every single one of these points, but in general, the highlights are this, right? Increase readiness to try direct-to-consumer offerings. So I'd encourage you right now to think about, is your brand doing that? And if not, how can you do it? And if you are doing it, how can, how can you do it better? And how can you potentially accelerate that or scale that? The second thing, the second shift is to focus on function. It's really about purchase behavior is being driven by the availability of products and services within that category and the type of benefit versus brand preference. So this tells us that you can be a smaller brand and still be able to play with the big boys, basically, if you understand how your product or solution really drives value to a particular customer segment. Growth of interest in brands that combine functional performance with that pro-social behavior, right? Where do you stand on these issues is really important. And some of the members in our community and the founders that I've talked to over the years and years, there's always sort of this misconception that you need to be out here saving the world to be important. And yes, there are amazing brands and tons of ways to do this, but if you're— if that's not your business or that's not the founders that you're working with. There's a lot of different ways that you can take a stance on pro-social behavior within your unique vertical, right? And there's no way we could kind of go into all that today. Maybe we could take a few questions on it, but essentially it just goes back to what do you care about? You know, if you are manufacturing a product, are there certain stages in the manufacturing process that you are talking about? What is the broader dialogue of your brand and how does this relate to pro-social behavior? So figuring out those connections with your companies are going to be really important. Again, to highlight loss of interest in those status-driven purchases. So again, it's about value. And then the fifth big shift in review is an interest in how companies behind those brands are treating their employees.