Understanding Consumer Behaviour and Building a Compelling Value Proposition – John Fahy at REI Retail Retreat 2023

Andrew spoke to Professor John Fahy at REI Retail Excellence about his talk at the event. They dive into several of the key insights he shared, including consumer behaviour, the importance of brand awareness for online businesses, and the significance of a compelling value proposition. 

TLDR: Watch the video below!

The Psychology of Pricing and Consumer Choices

Fahy discussed the dynamics of consumer decision-making when presented with three price points. A significant majority tends to opt for the middle price point, when presented with no other information. There’s an inherent concern that consumers have about making the wrong choice which suggests that decision-making is not always rational. Fahy emphasised that an excessive amount of details and choices can overwhelm consumers, as our brains are not wired to process extensive information efficiently.

Online Brands: Investing in Brand Awareness

One crucial point Fahy made was that online brands need to invest in building brand awareness. Simply being present online does not guarantee visibility or success. In fact, Fahy argued that online brands should allocate more resources to offline marketing efforts than those who primarily operate offline. Building an offline brand presence is crucial in establishing trust, credibility, and capturing the attention of consumers in a crowded digital space.

The Value Proposition: A Key Differentiator

Fahy acknowledged the challenges faced by businesses in the post-COVID era and during a cost of living crisis. However, he stressed that these difficulties should not define the future. Instead, businesses should focus on developing a compelling value proposition and staying true to it, even during lean periods. Defining a value proposition does not come naturally to any company; it requires careful consideration and differentiation. Yet, finding something unique and compelling that resonates with the target audience is essential for long-term success.

John makes the case for investing the time into your brand, your brand awareness, the consideration of your price point, and your brand’s key differentiator. Getting to know and understand consumer behaviour is pivotal in best positioning your brand. We’ve been conducting our own research into consumer behaviour. And we share! We’re providing you with meaningful insights that you can leverage. Keep up to date on Bradley Insights across our social media channels.

Find the full interview below!