Considered Purchases

While the path to purchase for even an everyday CPG item is no longer clear-cut, shopper marketers can expect an uncertain course for big-ticket items. When faced with needing to make a considered purchase – large and small consumer electronics, household appliances, furniture and more – shoppers are looking at a large investment of time and money; they may be unfamiliar with the brands offering what they need if it’s an item not purchased frequently; and they need to educate themselves to compare price, value, as well as touch and feel the item.“It’s probably more in line with what a consumer needs versus wants,” says Kelly Downey, vice president, digital and shopper solutions, Philips Consumer Lifestyle. “A considered purchase involves much more research and analysis because it may be costly and last longer.”Paul Yoo, director, shopper marketing, at LG Electronics USA, notes that all products within LG home entertainment, home appliances and mobile (phones, tablets, wearables and accessories) can be categorized as considered purchases because they share key characteristics. The reason to purchase is not to replenish but to replace or upgrade. Research is conducted, both in-store and online, prior to making the purchase. In-store trips – commonly to multiple stores – are often for information gathering and browsing, not to buy. “Post-purchase verification is extremely important,” Yoo adds, “and can involve another trip to the store.”One’s path from consideration to purchase may include everything from online research (on a variety of devices) to in-store experiences and word-of-mouth influence. “The consumer may research online, then visit a brick-and-mortar store to check the product out in person, then price check on their mobile, before ultimately returning online to purchase,” Downey says, adding that there is a good amount of both showrooming and webrooming occurring along the final consumer decision and purchase journey.“The length and complexity of the purchase process is usually dictated by the nature of the original prompt to purchase,” adds Yoo. “Upgrading a living room TV is a different experience than replacing a broken washing machine or remodeling your kitchen.”Omnichannel shopping is definitely on the rise, but Yoo finds that for home entertainment and home appliances, the majority of purchases are still made in a brick-and-mortar store. Internet and other out-of-store media influence is more prevalent “in the research stage,” he explains, “as shoppers look at what’s new, what types of products meet their needs, reviews, prices and promotions, service and finance options, and the best place to finalize the purchase.”Shopper MotivationsWith a path that is not linear or always logical, shopper marketers need to look at the reasons one is making a purchase. “That determines how media will be used and why,” says Yoo. The frustration and stress one feels when the washing machine breaks down and replacement needs to happen quickly is a far different shopper mindset than deciding to buy that larger TV for your Super Bowl party. “They’re focused on finding a solution that meets their needs – which may evolve as the purchase process unfolds,” says Yoo. As one does research, she may realize what is really needed is different from what she initially thought.The Integer Group’s annual “The Complex Shopper” study seeks to understand the motivations that drive considered purchases and has identified four distinct profiles of big-ticket shoppers: “Experience Lovers,” “Fretting Frugals,” “Social Adventurers” and “Passive Purchasers.” (See sidebar.)While shopping is a labor of love for the Experience Lovers, Fretting Frugals are price conscious and easily overwhelmed, explains The Integer Group’s Xan McNelly, executive vice president, chief integration and strategy officer. Social Adventurers love shopping and want purchases to reflect their style and personality. Passive Purchasers have no emotion, seeing the process as simply transactional. “Each group exhibits different shopping behaviors as they move through a considered purchase decision-making process,” says McNelly, “and each likes to be engaged with differently.”Ultimately, best practice here is providing comprehensive, yet easy to understand information, at various touchpoints and grounding the program in a consumer insight. And at the same time not becoming buried in the particulars of all the possible paths. For Yoo, it’s looking at the common sense questions and problems that need to be solved – “these are the ones we end up trying to prioritize in our work.”Interactivity isn’t necessarily a must. “Sometimes it’s about getting them hands-on and involved with your product,” McNelly says, “and at other times it may be about simplifying to drive their confidence in making a decision.”Interactivity can be positive if there’s a clear payoff for asking the shopper to do more work, says Yoo. “If you’re doing it to be clever though,” he adds, “you may not get noticed. It’s more about engagement: how to engage and involve a shopper on their terms. This is the bigger consideration and motivator.”Philips worked hard last year to engage with both shoppers (parents) and consumers (children) with its Sonicare For Kids rechargeable sonic electric toothbrush. Leveraging the insight that current adult Sonicare users are more likely to purchase a rechargeable toothbrush for their children, Downey says a 360-degree effort included everything from in-store touch and learns; to online content like product usage videos, ratings and reviews; and a Brush Busters app that aims to make brushing fun for kids.Staying on PathCommunicating clearly and offering quick access to consumer call centers, live chat options and responding promptly to social media inquiries can minimize the risk of shoppers exiting the decision journey, Downey says. Solve shoppers’ problems by providing information and solutions they need. “If we help a shopper advance to the next step in the process, it will help minimize their frustration,” explains Yoo. “That’s important to us.”Sales associates continue to play a role in the purchase decision and have the ability to move the buyer closer to a decision or push them away from the sale. But because technology has given shoppers more control – “the shopper can oftentimes have the upper hand with all the product, pricing information, ratings and reviews that are right at their fingertips,” McNelly says – the role of the sales associate is now one more of validator instead of gatekeeper. In The Integer Group’s “The Power of Three: The Key to Branding, Selling and Complex Shopping,” the report showed that shoppers do want to talk to an associate but they want to feel that the individual is offering help, not selling to them.“Store associates probably have a more difficult job these days,” adds Yoo. “Shoppers come to the store with very specific, pointed questions that were not addressed online and getting those questions answered will determine whether they consider the trip worthwhile. Not every trip to the store will result in closing the sale, but the associate that wins the trip can win a return trip.”The power of the in-store experience, whether or not one is interacting with a sales associate, is still critical, especially for a product such as LG’s OLED (organic light-emitting diode) TV. Yoo notes that in 2014, dedicated displays were placed in major retailers nationwide with the TVs playing content specially produced to show the color reproduction and infinite contrast. “Rather than trying to explain the technical know-how for this groundbreaking display technology, in-store we opted for simply showing what the TV can do,” he says, “and how it handles scenes requiring pinpoint accuracy in color, detail and contrast.”

Considered Purchases

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