When making key decisions about brand positioning and activation opportunities, brand leaders must pay close attention to the factors that influence audience buying behaviors. Brand leaders must leverage shopper mindsets to create powerful brand strategies, from messaging to channel strategy. In a Gartner survey, over 2,000 U.S. consumers were asked about traits that described the way they typically shopped. An analysis of their responses identified four prevalent mindsets that influence how consumers shop: Budget, Pragmatic, Luxury and High-Information.
1. Budget Mindset
Quality and service are two of the most important factors shaping brand perception for shoppers with a budget mindset, which made up 45 percent of consumers in Gartner’s survey. Price is top of mind for these shoppers, putting them at high risk of trading down to less expensive brands. The research found that shoppers possessing a budget mindset are more likely to be female, baby boomers, and low-income and lower-middle-income compared to the general U.S. consumer population.
When targeting consumers with a budget mindset, brands must emphasize value for money. However, they must also consider the secondary factors driving a purchase decision. Consider low-income consumers, many of whom have a budget mindset. This economic group also expressed an increased association with nonmonetary values such as beauty (“I crave and appreciate all types of beauty”). For example, brands focusing on budget-oriented consumers may focus their messaging in order to make their customers feel like they’re getting a premium product with no-frills packaging, in order to save on costs and provide value for money.
2. Pragmatic Mindset
Shoppers with a pragmatic mindset appear more loyal to a brand — up until a certain point. They spend time researching products and services and also weigh price and quality. The habit of making purchase decisions based on these factors places them in a category characterized as a pragmatic mindset and represents 34 percent of survey respondents. A disproportionate share are from low-income and high-income/affluent households — one trait that crosses the socioeconomic divide.
Brands that want to win over consumers with a pragmatic mindset must emphasize quality and value. For example, a brand tailoring its activities to pragmatic shoppers will focus on providing optimal customer experience and customer service, while offering promotions and discounts to retail customers that would be at risk of buying elsewhere.
3. Luxury Mindset
Unsurprisingly, shoppers with a luxury mindset have high expectations when it comes to service and want convenience in their shopping experiences. These consumers are more likely to be loyal to brands and prioritize quality over other factors such as cause. Shoppers with a luxury mindset, who represented 11 percent of survey respondents, are more likely to be from upper-middle-income and high-income/affluent households. They’re also predominantly Gen Z and millennials.
In-person shopping experiences remain a key factor — and stores should be more than a place to purchase a product. Luxury brands have responded with in-store experiences such as made-to-measure and made-to-order services. Luxury brands also need to connect online and in-store experiences to meet the expectations of Gen Z and millennial consumers. It’s not just luxury brands that should tailor their offerings for luxury mindsets; nonluxury brands can engage with luxury consumers by tailoring their messaging to highlight quality and exceptional customer experience.
4. High-Information Mindset
Shoppers with a high-information mindset weigh multiple factors when making a purchase. Customer reviews and ratings are key when appealing to shoppers with this mindset. They would also be dissuaded from making a purchase if a topic expert or influencer spoke negatively about the company.
These consumers are more likely than others to feel confident about their personal finances and spending power. This mindset makes up the smallest proportion of consumers, with just 10 percent of consumers fitting this description. They’re most likely to be millennial, male, and married, with higher income.
Brand leaders should work with their digital marketing counterparts to ensure that these shoppers can easily obtain information online about a product or service. Brands can help customers feel more confident about their purchase decisions by providing customized product and service recommendations, facilitating these shoppers’ thought processes when it comes to making a purchase.
By closely considering these four shopper mindsets, brand leaders can more effectively tailor and prioritize brand actions in order to drive purchases.
Join Gartner’s marketing experts to learn more about how CMOs can leverage consumer insights at the 2024 Gartner Marketing Symposium/Xpo taking place in London and Denver.
Anna Maria Virzi is a senior principal, research in the Gartner Marketing Practice, studying consumer behaviors and attitudes that impact marketing leaders’ decision making. Kate Muhl is a vice president, analyst in the Gartner Marketing Practice, specializing in cultural and consumer insights.
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