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Bachelor's thesis IMPACTS OF SOCIAL MEDIA ON CONSUMER BEHAVIOR – Decision Making Process

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Nazmul Tahsin

consumer behavior for thesis

Zenodo (CERN European Organization for Nuclear Research)

Petar Borisov

Dr. Theodore J Bagwell

This paper examined the influence of social media advertising on consumers during their purchase decision-making process and the implication for marketers. It was a qualitative study that utilized secondary data to base its findings and generalizations. The study was motivated by the need to highlight the roles played by social media advertising on consumers during their purchase decision-making process. Since, it was a qualitative study, no hypotheses were tested to generate findings. Instead, the findings of the study were extracted from empirical review of similar studies conducted by researchers around the world. These findings revealed that social media advertising (FaceBook advertising, Instagram advertising, Twitter advertising, and YouTube advertising) a significant influence on consumers during their purchase decision-making process. On that note, it was concluded that social media advertising plays a fundamental role in influencing consumer behavior during the purchase decision-making process. The following implications were drawn for marketers: social media advertising has come to stay, so marketers of the modern age should learn and adopt this important strategy; social media advertising is more strategic, targeted and measurable than traditional media advertising; social media advertising can substitute for traditional media advertising in some cases; the advent of social media advertising is only one step towards a more digitized and internet-based marketing practice in the nearest future; and marketing requires adaptation and innovation, hence as customers have gone digital, so should modern marketers.

Tandieka Johnson

Randhika Curana

THE IMPACT OF SOCIAL MEDIA ADVERTISMENT ON CONSUMER BUYING BEHAVIOUR - Bajon Daa Useni

Bajon Daa Useni

This study investigates the impact of social media advertising on consumer buying behavior. With the pervasive influence of social media platforms in contemporary society, businesses increasingly rely on social media advertising to reach and engage with consumers. The study utilizes secondary data spanning from 2013 to 2023 to analyze the relationship between social media advertising exposure and consumer buying behavior. Drawing on theories from economics and marketing, as well as empirical research on social media advertising effectiveness, the study employs regression analysis, mediation analysis, and moderation analysis to examine the direct and indirect effects of social media advertising on consumer purchase intentions and satisfaction. The findings reveal that social media exposure positively influences consumer purchase intentions, with brand awareness mediating this relationship. Additionally, demographic variables such as gender, age group, and occupation moderate the effectiveness of social media advertising on consumer buying behavior. Based on these findings, recommendations are provided for businesses to optimize their social media advertising strategies and enhance consumer engagement and satisfaction. The study contributes to the understanding of the role of social media advertising in shaping consumer behavior and provides valuable insights for practitioners and researchers in the fields of marketing and economics.

SDIWC Organization

The flow of information in the age of social media is bidirectional and interactive, hence creating wealth of information. This information is leveraged by the consumer when conducting external search for his consumption decisions. However, only few studies have explored the influence of social media content on decision making act during the consumption process, it hence needs further investigation. In this study, we try to fill the gap by using in depth interviews with 21 participants, to investigate how product information on social media influences consumers’ propensity to consume. The findings of the research propose the “IDEA” model which explains that Social Media Content can influence the decision making process of other consumers (1) by providing Information about products, (2) by instilling Desire among consumers, (3) by sharing of Experience knowledge and (4) by extinguishing Anxiety around a product purchase decision. Our results give the community managers some elements to understand and manage their brand’s appearance in different social media.

husnain mustafa

UNICAF UNIVERSITY

Geofrey Lusaggi

For any business to thrive in this era, it has to embrace social media in its marketing strategy combination as a critical element of business operations. The strength of the customer relationships is through uniting communications across the entire business, from 6 marketing and sales to customer service and operations. Cheri Husney in Guth, D. J .(2021) is asserts that even if one uses the traditional marketing platforms like seminar, the exercise becomes more fulfilling and effective when followed by social media platforms like tweeter, SMS, and others. A business must engage hybrid marketing approach of including online and traditional marketing. This helps the business to optimize the scarce recourse for best results. Integration of social media marketing to other core business process enables greater yields (Bae, Il-Hyun, Zamrudi, M.F., 2018). This approach strikes a balance between the positives impacts of conventional marketing like: ease, faster and cheap way of reaching mass customers, instant feedback, market intelligence and proactive enablement among others, yet traditional marketing approaches bring in positives impacts like: the ability to reach prospects that are off online or not any social media, control of people’s feedback, focused customer reach and others. Furthermore, elements in a marketing mix complement and generate information of one another. Data security and information control must be handled with lots vigilance and with caution.

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consumer behavior for thesis

Consumer Behaviour Dissertation Topics (28 Examples) For Research

Mark Aug 11, 2021 Aug 11, 2021 Consumer Behaviour No Comments

Some of the most interesting consumer behaviour dissertation topics are listed on this site. The list of dissertation topics on consumer behaviour is developed based on emerging concepts and ideas in the field of business and marketing. Consumer behaviour is a vast area to study and has gained the attention of researchers belonging to different […]

consumer behaviour dissertation topics

Some of the most interesting dissertation topics on consumer behaviour are listed on this site. The list of dissertation topics on consumer behaviour is developed based on emerging concepts and ideas in the field of business and marketing. Consumer behaviour is a vast area to study and has gained the attention of researchers belonging to different fields.

The project topics on consumer behaviour and research topics on consumer behaviour are listed down, and we can also help in completing projects according to your requirements. You can explore the dissertation, project, and research topics to carry out your study.

A list of Dissertation Topics on Consumer Behaviour

How online shopping consumer behaviour affects the high-street shopping patterns in the UK?

Examining the differences between male and female customer psychologies.

Analysing how advertising stimulates excessing consumption patterns.

To conduct a literature review on the importance of understanding customer needs.

Exploring the differences in consumer buying patterns considering different consumer characteristics.

Are the consumers willing to pay a premium for convenience?

Comparing the factors influencing consumer behaviour related to clothing brands in the UK.

Evaluating the country of origin effects on consumer buying behaviour.

Studying the impact of brand association on consumer buying behaviour in the sports industry.

Examining the impact of advertising media on consumer purchasing behaviour related to food and beverage products.

To explore the factors affecting consumer’s purchase decisions in the UK’s retail market.

A quantitative study on how online shopping trends have affected the profitability of leading retailers in the UK – A case study of Tesco.

Studying the impact of trends in consumer’s food behaviour contributing to the development of marketing strategies in the fashion industry.

A review of twenty-five years research of the consumer behaviour study in different markets.

Does e-marketing influence consumer purchase decisions?

Analysing and comparing the strategies used by luxury brands to influence consumer behaviour.

Examining the role of information technology in revolutionising the marketer’s approach to motivate and influence consumers.

Assessing the impact of integrated marketing communication on consumer impulsive buying behaviour.

A literature review on the impact of branding on consumer behaviour.

Importance of ethics in building and maintaining relationships with the consumers.

The role of innovation and creativity on consumer behaviour and perceptions.

Qualitative analysis of the impact of loyalty schemes on consumer purchasing decisions and loyalty.

Impact of cross-cultural marketing on the marketing techniques used to attract and influence consumers.

A literature review on the effects of globalisation on customer behaviour.

Consumer, customer and perceived value: past, present and future.

Examining the environmental orientation of consumer behaviour: motivational component.

Impact of the external stimuli on the impulsive buying behaviour of consumers.

Studying the female consumer behaviour towards jewellery products in Asian countries.

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Consumer Behavior Research Paper Topics

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Consumer behavior research paper topics are essential to students studying this field. This comprehensive guide from iResearchNet provides a comprehensive list of consumer behavior research paper topics divided into 10 categories, expert advice on selecting a relevant topic, and a step-by-step guide on writing a successful research paper. Additionally, iResearchNet offers writing services with expert degree-holding writers, custom written works, in-depth research, custom formatting, top quality, customized solutions, flexible pricing, short deadlines, timely delivery, 24/7 support, absolute privacy, easy order tracking, and a money-back guarantee. By following the expert advice provided and using iResearchNet’s writing services, students can produce high-quality research papers that make meaningful contributions to the field of consumer behavior.

Understanding Consumer Behavior Research

Consumer behavior research is an essential field of study that explores the processes and activities that individuals undertake when making decisions related to purchasing goods and services. This field is particularly important for marketers, advertisers, and sales professionals who seek to understand how consumers make purchasing decisions and how they can influence these decisions.

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Consumer Behavior Research Paper Topics

For students studying consumer behavior, research papers are a common assignment that require them to explore various topics related to this field. However, selecting a relevant and feasible research paper topic can be challenging. Furthermore, writing a successful research paper requires attention to detail and adherence to academic standards. This comprehensive guide from iResearchNet is designed to assist students in selecting appropriate consumer behavior research paper topics and providing expert advice on how to write a successful research paper. The guide also provides information on iResearchNet’s writing services, which offer students a valuable resource for producing high-quality research papers that meet the academic standards of their instructors. By following the guidelines and using iResearchNet’s writing services, students can produce research papers that make meaningful contributions to the field of consumer behavior.

100 Consumer Behavior Research Paper Topics

Consumer behavior research encompasses a wide range of topics, each of which explores different aspects of how individuals make decisions related to purchasing goods and services. Here are ten categories of consumer behavior research paper topics that students can consider when selecting a research topic, along with ten sample topics for each category:

Perception and consumer behavior:

  • The impact of package design on consumer perception of food products
  • The effect of product display on consumer attention and purchase intention
  • The role of brand familiarity in consumer perception of luxury goods
  • The influence of product color on consumer perception and behavior
  • The effect of music in advertising on consumer perception and recall
  • The impact of celebrity endorsement on consumer perception of products
  • The effect of font type on consumer perception of brand personality
  • The role of scent in retail environments on consumer behavior
  • The influence of product label claims on consumer perception of health and wellness
  • The impact of product design on consumer perception of eco-friendliness

Motivation and consumer behavior:

  • The influence of brand personality on consumer motivation to purchase
  • The role of scarcity in marketing on consumer motivation and behavior
  • The impact of rewards and incentives on consumer motivation and loyalty
  • The effect of social proof on consumer motivation to purchase
  • The influence of emotions on consumer motivation to purchase
  • The role of self-congruity in consumer motivation and brand preference
  • The impact of brand trust on consumer motivation to purchase
  • The effect of personalized marketing on consumer motivation and engagement
  • The influence of product involvement on consumer motivation and purchase intention
  • The role of value perception in consumer motivation and price sensitivity

Attitudes and consumer behavior:

  • The impact of brand image on consumer attitudes and loyalty
  • The role of social responsibility in consumer attitudes towards brands
  • The influence of culture on consumer attitudes towards luxury goods
  • The effect of perceived risk on consumer attitudes and behavior
  • The impact of celebrity endorsement on consumer attitudes towards products
  • The role of nostalgia in shaping consumer attitudes towards brands
  • The influence of brand authenticity on consumer attitudes and behavior
  • The effect of word-of-mouth communication on consumer attitudes and behavior
  • The impact of service quality on consumer attitudes and loyalty
  • The role of price perception in shaping consumer attitudes towards products

Learning and consumer behavior:

  • The impact of advertising on consumer learning and recall
  • The role of sensory marketing in consumer learning and behavior
  • The influence of online reviews on consumer learning and purchase decisions
  • The effect of product placement in movies on consumer learning and recall
  • The impact of social media on consumer learning and brand awareness
  • The role of brand familiarity in consumer learning and recall
  • The influence of product packaging on consumer learning and memory
  • The effect of information overload on consumer learning and decision making
  • The impact of brand slogans on consumer learning and recall
  • The role of perceived value in consumer learning and purchase behavior

Memory and consumer behavior:

  • The influence of brand familiarity on consumer memory and recall
  • The role of nostalgia in consumer memory and brand preference
  • The impact of product design on consumer memory and recall
  • The effect of advertising repetition on consumer memory and brand awareness
  • The influence of mood on consumer memory and recall of advertising
  • The role of social media in consumer memory and brand awareness
  • The impact of story-telling in advertising on consumer memory and recall
  • The effect of novelty in advertising on consumer memory and recall
  • The influence of age on consumer memory and recall of advertising
  • The role of emotions in consumer memory and recall of advertising

Culture and consumer behavior:

  • The impact of cultural differences on consumer behavior and preferences
  • The role of religion in shaping consumer behavior and preferences
  • The influence of gender roles on consumer behavior and preferences
  • The effect of country-of-origin on consumer behavior and brand perception
  • The impact of subcultures on consumer behavior and preferences
  • The role of ethnicity in shaping consumer behavior and preferences
  • The influence of language on consumer behavior and perception
  • The effect of cross-cultural marketing on consumer behavior and perception
  • The impact of cultural values on consumer behavior and decision making
  • The role of consumer ethnocentrism in shaping consumer behavior and preferences

Emotions and consumer behavior:

  • The impact of emotions on consumer decision making and behavior
  • The role of mood on consumer decision making and purchase intention
  • The influence of emotional branding on consumer behavior and loyalty
  • The effect of emotional appeals in advertising on consumer behavior
  • The impact of emotions on consumer satisfaction and loyalty
  • The role of self-expression in shaping consumer emotional responses to brands
  • The influence of nostalgia on consumer emotional responses to brands
  • The effect of humor in advertising on consumer emotional responses and behavior
  • The impact of product design on consumer emotional responses and behavior
  • The role of perceived authenticity in shaping consumer emotional responses to brands

Social Influence and consumer behavior:

  • The impact of social norms on consumer behavior and preferences
  • The role of social comparison in shaping consumer behavior and preferences
  • The influence of reference groups on consumer behavior and brand perception
  • The effect of social media on consumer behavior and decision making
  • The impact of social identity on consumer behavior and brand loyalty
  • The role of social class in shaping consumer behavior and preferences
  • The influence of social networks on consumer behavior and brand perception
  • The effect of social proof in marketing on consumer behavior and preferences
  • The impact of peer pressure on consumer behavior and decision making
  • The role of social responsibility in shaping consumer behavior and brand perception

Decision Making and consumer behavior:

  • The impact of information overload on consumer decision making
  • The role of decision heuristics in shaping consumer behavior and preferences
  • The influence of product complexity on consumer decision making and preferences
  • The effect of decision context on consumer decision making and behavior
  • The impact of decision fatigue on consumer behavior and decision making
  • The role of decision-making style in shaping consumer behavior and preferences
  • The influence of decision-making strategies on consumer behavior and preferences
  • The effect of cognitive dissonance on consumer behavior and decision making
  • The impact of choice architecture on consumer decision making and behavior
  • The role of decision framing in shaping consumer behavior and preferences

Ethics and consumer behavior:

  • The impact of corporate social responsibility on consumer behavior and brand perception
  • The role of ethical consumption in shaping consumer behavior and preferences
  • The influence of perceived ethicality on consumer behavior and brand loyalty
  • The effect of green marketing on consumer behavior and purchase intention
  • The impact of fair trade on consumer behavior and brand perception
  • The role of animal welfare in shaping consumer behavior and preferences
  • The influence of social justice issues on consumer behavior and brand perception
  • The effect of cause-related marketing on consumer behavior and brand loyalty
  • The impact of transparency in marketing on consumer behavior and trust
  • The role of consumer activism in shaping consumer behavior and preferences

These ten categories provide a broad range of consumer behavior research paper topics for students to explore within the field of consumer behavior. By selecting a topic that aligns with their interests and research goals, students can produce a high-quality research paper that contributes to the knowledge base of consumer behavior.

Choosing a Consumer Behavior Topic

Choosing a topic for a research paper in consumer behavior can be a challenging task, especially given the vast array of potential topics. To help students navigate this process, it is important to consider a few key factors when selecting a topic.

  • First , it is essential to choose a topic that aligns with your interests and passions. When you are passionate about a topic, it is easier to stay engaged throughout the research process and to produce high-quality work. Additionally, having a personal connection to the topic can inspire new and unique perspectives, leading to original research.
  • Second , consider the relevance and significance of the topic. The best research papers are those that make a meaningful contribution to the field of consumer behavior. Look for topics that are timely, relevant, and offer a new perspective on existing theories or practices. A topic that is of current interest to industry professionals, policymakers, or academics can also provide opportunities for real-world impact.
  • Third , consider the available resources and access to data. Research papers require a significant amount of data and research, so it is important to choose a topic that allows for access to relevant data and resources. Consider the availability of data sources, academic journals, and industry reports that may be needed to support your research.
  • Fourth , consider the scope and focus of the research paper. A topic that is too broad or too narrow can make the research process more challenging. It is essential to identify a specific research question or hypothesis that can be effectively addressed within the scope of the research paper. Additionally, it is important to consider the level of analysis, such as individual or group-level behaviors, and whether the research will be qualitative, quantitative, or mixed methods.
  • Fifth , consider seeking guidance from your instructor or a research advisor. They can provide valuable insight and feedback on potential topics and can help guide the research process. Additionally, they may be able to offer suggestions for data sources or research methodologies that can strengthen the research paper.

Ultimately, the key to choosing a successful topic for a consumer behavior research paper is to identify a topic that aligns with your interests, offers relevance and significance, has available data sources and resources, has a focused research question or hypothesis, and seeks guidance from a research advisor or instructor. By carefully considering these factors, students can select a topic that inspires them and leads to a high-quality research paper.

How to Write a Consumer Behavior Research Paper

When it comes to writing a research paper on consumer behavior, there are several key steps to follow to ensure a successful outcome. Here are some tips to help guide you through the writing process:

  • Develop a clear and concise research question : The first step in writing a research paper on consumer behavior is to develop a clear and concise research question. This question should be focused and specific, and should guide your research and analysis throughout the writing process.
  • Conduct a thorough literature review : Before beginning your research, it is important to conduct a thorough literature review to identify existing theories and research related to your topic. This review will help you to identify any gaps in the existing research that your paper can address.
  • Choose appropriate research methods : There are a variety of research methods that can be used in consumer behavior research, including surveys, experiments, and case studies. Choose the appropriate method(s) based on your research question and the data you are trying to collect.
  • Collect and analyze data : Once you have identified your research question and chosen your research method, it is time to collect and analyze your data. This may involve conducting surveys or experiments, analyzing existing data sets, or conducting interviews or focus groups.
  • Organize and present your findings : After analyzing your data, it is important to organize your findings in a clear and concise manner. This may involve creating charts or graphs to visually represent your data, or using tables to compare and contrast your findings. It is also important to provide a clear and concise summary of your findings in your conclusion.
  • Use appropriate formatting and citation styles : When writing a research paper on consumer behavior, it is important to use appropriate formatting and citation styles. Most papers in this field will use either APA or MLA style formatting and citations.
  • Revise and edit your paper : Once you have completed your first draft, it is important to revise and edit your paper to ensure clarity, conciseness, and accuracy. This may involve reorganizing sections, cutting out extraneous information, or rephrasing sentences for clarity.

By following these steps, you can produce a high-quality research paper on consumer behavior that contributes to the field and provides valuable insights for academics, policymakers, and industry professionals alike.

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In conclusion, writing a research paper on consumer behavior can be a challenging task, but it is also a rewarding one. By following the steps outlined in this guide, you can produce a high-quality research paper that contributes to the field and provides valuable insights for academics, policymakers, and industry professionals alike.

Remember to choose a clear and concise research question, conduct a thorough literature review, choose appropriate research methods, collect and analyze data, and organize and present your findings in a clear and concise manner. Additionally, using appropriate formatting and citation styles and revising and editing your paper are also important steps in producing a successful research paper on consumer behavior.

If you need additional help with your research paper, iResearchNet offers custom writing services designed to help students produce high-quality, well-researched papers on any topic related to consumer behavior. Our team of expert writers has the knowledge and expertise to help you produce a paper that meets your specific needs and exceeds your expectations.

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consumer behavior for thesis

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Consumer Behavior

Open theses.

Normally, the subject for the Master thesis is selected among the topics of the Major. There is a possibility to write a thesis in the context of the current research projects even though there are no explicit theses announced.

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Understanding Consumer Behavior and Psychology: How to Drive Decisive Purchasing Decisions

Hey fellow entrepreneurs!

I've been diving deep into the world of consumer behavior and psychology lately, and I'm fascinated by how much these factors influence purchasing decisions. We all know that understanding our customers is key to creating effective marketing strategies, but I'm curious to hear your thoughts and experiences on this topic.

Specifically, I'd love to know:

What psychological triggers have you found most effective in driving decisive purchasing decisions?

Are there particular tactics, like scarcity, social proof, or authority, that have worked well for you?

How do you leverage consumer behavior insights to engage and convert leads?

Do you use personalized marketing, targeted messaging, or other techniques to resonate with your audience's motivations and needs?

What role does emotional appeal play in your marketing strategies?

Have you found that tapping into emotions like fear, excitement, or nostalgia significantly impacts conversion rates?

What are some common psychological barriers to purchasing, and how do you overcome them?

How do you address issues like buyer’s remorse, trust, or perceived risk in your sales process?

Any interesting case studies or examples where understanding consumer psychology made a big difference in your business?

I’d love to hear real-world applications and success stories!

I believe that tapping into the psychology and behavior of consumers can turn a hesitant lead into a loyal customer. Your insights and experiences could help us all refine our approaches and drive better results.

Looking forward to your thoughts, opinions, and ideas on how to harness the power of consumer psychology to enhance our businesses!

Thanks in advance for sharing!

State of the Consumer 2024: What’s now and what’s next

If you think you know consumer behavior, think again. Middle-income consumers are feeling the squeeze and worrying about inflation but aren’t holding back on splurges. Rather than sticking to tight budgets in retirement, aging consumers are splurging too. Speaking of older shoppers, it turns out that the brand loyalty they’ve long been known for is a thing of the past. And young consumers in Asia and the Middle East are more likely than those in Western markets to switch to higher-priced brands.

These are just some of the large-scale shifts taking place in the global consumer landscape. Consumers have continued to defy expectations and behave in atypical ways , keeping consumer goods manufacturers and retailers on their toes. More than ever, companies that cultivate a detailed, up-to-date understanding of today’s and tomorrow’s consumers—who they are, what they want, and where and how they shop—will be best positioned to succeed.

A mother is putting away groceries in the kitchen while her four children observe with curiosity. She has a relaxed expression as she inspects a box of crackers.

You’re invited

Join us for a discussion of our report, Rescuing the decade: A dual agenda for the consumer goods industry , on June 26 at 10:00 a.m. ET | 4:00 p.m. CET.

In this article, we draw on our ConsumerWise  research to delve into nine trends shaping the global consumer sector and four imperatives to help consumer businesses move from “now” to “next.”

Nine trends defining the global consumer market

To forecast where the global consumer landscape is heading, we surveyed more than 15,000 consumers in 18 markets that together make up 90 percent of global GDP. Their answers revealed surprising nuances about demographic groups, seemingly contradictory consumer behaviors, and categories poised for growth.

Three young Arabic women wearing black abayas walking down a street with modern architecture and laughing with each other while carrying shopping bags.

Who is the future consumer?

Consumers no longer fit into traditional archetypes. Some of the most influential consumers of tomorrow are currently underserved.

1. Young people in emerging markets. By 2030, 75 percent of consumers in emerging markets will be between the ages of 15 and 34. Our data indicates these consumers may be optimistic about the economy and willing to spend.

Among this group, young consumers aged 18 to 24 in Asian and Middle Eastern nations, such as India and Saudi Arabia, will be particularly important to consumer businesses, given their pent-up demand and willingness to spend. These consumers indicate a strong desire to spend on premium products, so much so that they are up to two times more likely to trade up—meaning opt for higher-priced brands and retailers—than young consumers in advanced economies. They are also up to three times more optimistic about their respective economies (Exhibit 1). This optimism could translate into higher levels of future consumption. It’s worth noting that young consumers in Latin America are actually less likely to trade up than young consumers in other emerging economies.

2. Retired and ready to spend. Longer life expectancies and declining birth rates, particularly in advanced economies, are pushing the global population of people older than 65 to increase at a quicker rate than the population of people younger than that age. 1 “Ageing,” United Nations, accessed May 29, 2024. Yet for all the data relating to aging populations, older consumers are often misunderstood.

Despite the financial constraints that may accompany retirement, aging consumers across all income levels are willing to spend on discretionary items. In experiential categories such as travel, older consumers’ intent to splurge is even higher than that of millennials, who have historically been big travel spenders. High-income baby boomer and Silent Generation consumers (those whose household incomes exceed $100,000) are a sizable cohort in the United States, making up 30 percent of the market—and they’re more likely to spend on discretionary purchases, such as home improvement and gardening, compared with lower-income consumers their age.

In emerging markets, it’s not just younger consumers who are ready to spend but their parents, too. Wealthy aging consumers in emerging markets are more optimistic, expect to spend more on discretionary items, and plan on treating themselves more than wealthy aging consumers in advanced markets. In one of the starkest examples, 42 percent of wealthy aging consumers in emerging markets 2 Forty-two percent of consumers in Brazil, China, India, Mexico, and Saudi Arabia. said they expect to spend more on entertainment, compared with 7 percent of comparable consumers in Europe 3 Throughout this article, we will refer to “Europe” to indicate France, Germany, Italy, Spain, and the United Kingdom. and 11 percent in the United States. We see a similar willingness to spend in categories such as home improvement, airline flights, and hotel stays. Consumer businesses that market exclusively to younger consumers are thus missing out; they ignore wealthy aging consumers at their own risk.

3. The squeezed-but-splurging middle. We expect that cost-of-living increases in advanced economies will continue to put pressure on middle-income consumers. While conventional wisdom would suggest that these consumers will clamp down on discretionary spending as a result, our data reveals something different: instead, middle-income consumers in Europe and the United States say they plan to splurge on discretionary items at a rate that is comparable with that of high-income consumers.

This intent to splurge appears across various categories, including experience-based categories such as travel and dining out, as well as groceries and discretionary goods. Middle-income consumers might typically be expected to delay purchases during economically challenging times, but our research shows that they’re only slightly more inclined to delay purchases than wealthier consumers. They’re also not much more likely to trade down than higher-income consumers.

What will consumers want?

What consumers want is changing too. Weakened brand loyalty, affordability over sustainability, and heightened interest in wellness products and services reflect the preferences and priorities of consumers across ages and geographies.

4. Brand exploration. When they couldn’t find exactly what they needed because of pandemic-era supply chain disruptions, roughly half of consumers  switched products or brands. That behavioral change has proved quite sticky: consumers continue to be open to exploring alternatives, and brand loyalty is fading across demographic groups.

In advanced markets, over a third of consumers have tried different brands, and approximately 40 percent have switched retailers in search of better prices and discounts (Exhibit 2). Inflation and economic uncertainty are almost certainly inducing this behavior.

This weakening of brand loyalty is not limited to a specific age group. In the past, older consumers remained consistently loyal to their preferred brands, but today, they’re just as likely to embrace new brands and retailers. In Europe and the United States, Gen Zers and millennials are only slightly more likely than older consumers to trade down to lower-priced brands and retailers.

One beneficiary of this rampant downtrading is private labels. Thirty-six percent of consumers plan to purchase private-label products more frequently, and 60 percent believe private brands offer equal or better quality.

5. Sustainability: Value upstages values. In recent years, young consumers in our survey data said they prioritized sustainability considerations when making purchases. It wasn’t all talk: in the United States, sales of products with sustainability-related claims  outpaced sales of products without such claims.

While young consumers still say they care about sustainability, they are now making clear trade-offs in the face of economic uncertainty and inflation. In Europe and the United States, fewer Gen Zers and millennials ranked sustainability claims as an important purchasing factor at the beginning of 2024 than in 2023 (Exhibit 3).

Younger consumers aren’t just deprioritizing sustainability in their purchase decisions; they’ve also become less willing to pay a premium for sustainable products. In Europe and the United States, the percentage of young consumers willing to pay a premium for products with sustainability claims declined by up to four percentage points across product categories. Among these consumers, only a very small percentage were willing to pay a premium for personal care and apparel products with sustainability claims.

6. The worldwide wellness wave. We estimate the global wellness market to be worth more than $1.8 trillion , growing 5 to 10 percent annually. 4 “ The trends defining the $1.8 trillion global wellness market in 2024 ,” McKinsey, January 16, 2024. In advanced economies, health and wellness products and services have been in high demand over the past several years. Today, these categories are also growing quickly in emerging markets, and in some cases, growth in intent to spend on health and wellness products in emerging markets is outpacing growth in advanced markets.

In emerging markets such as China, India, and the Middle East, the percentage of consumers who intend to increase their spending on wellness products and services is two to three times higher than in advanced markets such as Canada and the United States (Exhibit 4).

It’s not only Gen Zers and millennials who are propelling growth in this space, but also Gen Xers and baby boomers. To be sure, regional variations appear. According to our research, for example, 63 percent of baby boomers in China intend to spend more on fitness in the near future, while only 4 percent of the same cohort in India plan to do so.

Weight management products and services, in particular, could help induce growth in the wellness sector over the next several years.

By 2035, just over half of the world’s population is projected to be overweight or obese. At the same time, the availability of weight management drugs is expected to grow as more health plans approve coverage, doctors are able to prescribe them for more uses, and doses are made available in pill form. Adoption of these drugs, compared with other weight management solutions (such as dieting or exercise), will depend on cultural norms and beliefs, too. Less than 30 percent of Chinese and UK consumers consider weight loss drugs to be very effective . 5 “ The trends defining the $1.8 trillion global wellness market in 2024 ,” McKinsey, January 16, 2024.

7. Wellness for women. Investments in women’s wellness are also growing . Consumers in both advanced and emerging markets are indicating a greater interest in spending on women’s wellness products and services, as well as on adjacent personal-care categories. We estimate that closing the women’s health gap could be worth $1 trillion annually  by 2040. 6 Kweilin Ellingrud, Lucy Pérez, Anouk Petersen, and Valentina Sartori, Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies , McKinsey Health Institute, January 17, 2024.

A higher percentage of women in emerging markets (48 percent), in fact, indicate an intent to splurge on beauty and personal-care products and fitness, compared with women in advanced markets (27 percent). And young women are especially interested in wellness: Gen Z women across both emerging and advanced markets said they expect to spend more on personal-care goods and services, compared with Gen Xers and baby boomers. As innovation in women’s health continues to push the sector forward, we expect spending to increase as well.

A close up shot of a woman comparing the labels of two different cooking sauce brands.

Where will consumers shop?

Knowing what consumers want means little if businesses do not meet consumers where they are. Global migration patterns—both to and from major urban hubs—are changing where consumers spend their time and money in the physical world, while growth in social commerce accounts for new movement in the digital world.

8. The new urban hot spots. In both advanced and emerging markets, people are moving to seek out new opportunities and a better quality of life. In advanced markets like the United States, consumers are moving away from larger cities in the Pacific Northwest and the Northeast to “secondary cities,” or those with populations between 50,000 and 500,000 people. Two-thirds of the fastest-growing US cities are in the South and West. In these cities, the cost of living is lower than in larger cities, and remote work opportunities are plentiful. Millennials, Gen Xers, and boomers are propelling this trend.

Just because US consumers are moving to scaled-down versions of metropolises does not mean they are curtailing their spending: just as many consumers in secondary cities say they plan to splurge as do consumers in the largest American cities. Meanwhile, 1.3 times more consumers in secondary cities say they plan to splurge, compared with US consumers in rural areas.

Emerging markets will continue to see urban-population growth in both megacities and secondary cities as consumers move in search of better economic opportunities and improved well-being. By 2035, for example, 43 percent of the Indian population may reside in urban areas, up from 35 percent in 2018. In China, the percentage of middle-class households is expected to increase in both tier-one and tier-two cities as well as in tier-three and tier-four cities by 2030. And by 2040, there will be 537 million people in African urban centers, making the African urban population the largest in the world.

9. Social commerce takes flight. For several years, China has led the world in the adoption of social commerce, in which consumers browse and buy directly through social media and content creation platforms. Today, social-commerce markets in both China and India continue to mature, while those in other emerging-market countries—such as Brazil, Saudi Arabia, and the United Arab Emirates—are close behind (Exhibit 5). Consumers in these countries consistently spend more on purchases made through social media platforms, compared with consumers in Europe and the United States.

Attempts to grow the social-commerce market  in the West have had limited success. Companies simply may have been too early to embrace this opportunity. We expect social commerce in the United States to expand to $145 billion by 2027, up from $67 billion today. 7 “ Social commerce: The future of how consumers interact with brands ,” McKinsey, October 19, 2022. Gen Zers and millennials are propelling this growth: they make purchases on social media four times more often than older generations do. More than a third of Gen Z and millennial survey respondents said they had made a purchase on social media in the prior three months.

Four imperatives to win the consumer of the future

In light of these nine forward-looking themes, what should consumer companies do? The most successful ones will be those that act on four imperatives:

Build microtargeting capabilities

About quantumblack, ai by mckinsey.

QuantumBlack, McKinsey’s AI arm, helps companies transform using the power of technology, technical expertise, and industry experts. With thousands of practitioners at QuantumBlack (data engineers, data scientists, product managers, designers, and software engineers) and McKinsey (industry and domain experts), we are working to solve the world’s most important AI challenges. QuantumBlack Labs is our center of technology development and client innovation, which has been driving cutting-edge advancements and developments in AI through locations across the globe.

Rather than putting consumers in predefined—and often outdated—boxes, companies should focus on microtargeting to build a richer understanding of consumer preferences. This involves taking a “smart reach” approach , whereby consumer businesses use their consumer data to target specific microsegments of consumers who may demonstrate particular shopping behaviors or preferences. Generative AI can help consumer businesses reach these microsegments  at scale by increasing creative output and automating marketing outreach. Through microtargeting, companies can engage high-potential consumer groups—for example, younger people in emerging markets or wealthy aging individuals—and provide personalized experiences that build brand love and loyalty and propel future purchases.

Invest in wellness

A rise in both consumer interest and purchasing power presents tremendous opportunities in the $1.8 trillion global-consumer-wellness space. Consumer goods leaders have a chance to reevaluate their product development road maps and consider whether they have more opportunities to introduce personalized-wellness products to priority consumer groups. Consumers across the globe want data- and science-backed health and wellness solutions. Best-in-class companies should evaluate opportunities to lean into these offerings and other wellness growth areas (such as women’s health and healthy aging).

Propel the social–digital experience

Companies should take steps to engage with consumers on social media and other digital platforms. This involves identifying the right channels and platforms, creating attractive content, and tailoring strategies to meet evolving consumer needs. This is especially important as industry lines blur (for example, as consumer companies enter the healthcare space and vice versa) and as ecosystems (networks or partnerships that cut across different industries)  become more important.

We see innovative, international companies testing new approaches to social commerce to connect with consumers on a local level. Some are mobilizing local key opinion leaders to precisely target consumers and create viral digital campaigns that resonate with them. Social media and private chats through platforms such as WeChat help to continually engage consumers.

Offer premium products where they matter

Offering premium products in relevant categories can help improve brand loyalty. Consumer brands should identify which categories are ripe for this, such as experiential travel—where splurge activity is common even across middle-income and aging consumers. Conversely, some categories are more suitable for value plays based on trade-down behavior or frequent brand exploration. Integrating loyalty and pricing strategies , instituting pricing tiers, and tailoring product assortments at the local and channel levels are ways that consumer businesses can provide value to consumers, while also managing economic pressures.

In this consumer landscape—one in which standards, complexity, and stakes are all higher—leaders should understand the new nuances that define who the “next” shoppers are, what they care about, and how they shop. These insights, which should then inform strategic category and channel investments, can lead to long-term, profitable growth and sustained competitive advantage.

Christina Adams

The authors wish to thank Cait Pearson, Heather Gouinlock, and Keir Sullivan for their contributions to this article.

This article was edited by Alexandra Mondalek, an editor in the New York office.

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After a long anticipated wait, the Bank of Canada has finally decided to cut interest rates by 25 basis points . The decision marks a departure from the series of interest rate hikes that were previously implemented to curb inflation .

The recent decrease appears to be signalling that inflation is finally starting to stabilize in Canada.

Over the past few years, Canadians have felt the strain of inflation . Many individuals turned to deal-chasing and savings as a way to build financial safeguards, giving rise to what we, as retail researchers, call the “new consumer.”

This “new consumer” phenomenon appears to be more than just a temporary response to economic hardships. It has since evolved into a more permanent behavioural shift, reflecting a broader transformation in consumer habits and preferences.

As inflation stabilizes and the economy adjusts to a new normal, businesses must adapt to meet the changing needs and preferences of this demographic.

Who is the ‘new consumer’?

The new consumer is marked by value consciousness , digital savviness and a preference for experiences over material goods .

Despite the recent stabilization of consumer prices , the new consumer has retained habits formed during economic uncertainty , continuously seeking deals and discounts.

According to the latest Future Consumer Index report by consulting firm Ernst & Young Global Limited, U.S. consumers are increasingly prioritizing savings over brand loyalty.

The survey revealed that nearly half of participants would download a brand’s app to access loyalty promotions or exclusive deals, while 70 per cent were inclined to join loyalty programs for free shipping benefits.

Read more: The rising cost of living is eroding brand loyalty as consumers seek more cost-effective alternatives

Additionally, 45 per cent of respondents have used discount codes or vouchers during online shopping in the past six months. This trend highlights the significant shift towards cost-conscious consumer behaviour.

Consumers are also actively using digital platforms to compare prices and read reviews , making more informed purchasing decisions than ever before. This digital savviness allows them to navigate the online marketplace efficiently, ensuring they get the best value for their money.

Physical store experience is still key

Despite the emphasis on looking for deals and reviews online, the new consumer still values in-store experiences. According to the Ernst & Young survey, 59 per cent of consumers visit stores to see, touch and try items before buying, and 57 per cent prefer in-store shopping to avoid shipping hassles.

Additionally, human interaction is increasingly important during the post-purchase journey. Fifty-six per cent of U.S. consumers consider it crucial for product returns and refunds, and 55 per cent value it for discussing product questions or concerns.

There’s also a notable shift towards experiential spending . Consumers are now more inclined to invest in travel, dining and unique activities over accumulating material possessions. This trend reflects a desire for meaningful and memorable experiences that offer greater satisfaction than physical goods.

Understanding these characteristics is essential in the new age of retailing. The new consumer’s focus on value, informed by digital tools and a shift towards experiential spending, defines their behaviour in a post-inflation world.

This evolving consumer profile presents both challenges and opportunities for brands and retailers, shaping the future of the retail landscape.

A young woman crouched down beside a full shopping cart, looking at the label on a can in a grocery store aisle

How retailers can cope

In an era where digital commerce continues to grow, physical retail stores are being forced to reinvent themselves, moving away from transaction points to vibrant hubs of brand experience. For instance, fuelled by the COVID-19 pandemic, retail e-commerce sales increased 67.9 per cent in Canada from February 2020 to July 2022.

This shift underscores the evolving role of physical stores, which are becoming places where consumers can learn, experience and play. As retailers adapt to changing consumer expectations, the notion that a store must be more than a place to transact is becoming a fundamental aspect of retail strategy.

A prime example of this trend is the Nike store in Manhattan , which epitomizes the concept of the store as a medium rather than just a marketplace. Far from the traditional retail setup, this location serves as a “playground” centred around experience.

The store includes a basketball half-court with adjustable hoops and digital screens, an enclosed soccer trial area, a treadmill facing a jumbotron for simulated outdoor runs, a customization shoes bar, touchscreens throughout and dedicated coaches to assist customers testing new sneakers.

The transformation of stores into experience-rich environments reflects a broader trend in retail where the value of a physical location is measured not just by traditional sales per square foot, but by the ability to engage consumers in a more meaningful ways. Retailers who invest in making their stores true extensions of their brand are primed to set themselves apart in an increasingly competitive marketplace.

Loyalty first

To thrive in this new retail landscape, leveraging loyalty programs is essential for retailers . These programs can help bridge the gap between digital and physical retail experiences by offering personalized rewards and exclusive deals that drive both online and in-store traffic.

Retailers should focus on creating loyalty programs that not only reward purchases but also enhance the overall customer experience.

For instance, integrating mobile apps that provide real-time notifications on deals and events, offering exclusive in-store experiences for members and using data analytics to tailor rewards to individual consumer preferences can significantly enhance engagement and retention.

In essence, the future of retail lies in these dynamic, personalized and interactive spaces where shopping is only part of the appeal.

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Adobe used hidden fee to trap people into paying for subscription plans, FTC says

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Maybe you want to try out a product for a little while before you make a long-term decision. So, you sign up for a monthly subscription plan. Everything is fine until you want to cancel and it turns out to be a yearly subscription with monthly payments. Surprise! That’s what the FTC says happened to people who signed up for monthly subscriptions with Adobe.

When people signed up on Adobe’s website for access to its software, the FTC says Adobe pre-selected the option for its “annual paid monthly” plan that put subscribers on the hook for a whole year of payments, paid in monthly increments — a fact that Adobe failed to explain or properly disclose. The lawsuit says Adobe used similar tactics when people signed up for a free trial and didn’t cancel before the trial ended. Adobe automatically placed them on the “annual paid monthly” plan without making it clear they were entering a one-year contract.

When people tried to cancel before the year was up, they had to pay a hefty early termination fee (which was hidden during the signup process). The fee, along with other hurdles Adobe uses in its cancellation processes, made it difficult to cancel the subscription. Some subscribers who had contacted customer service even thought they had successfully canceled, only to find out later that Adobe was still charging them.

When you’re thinking about a subscription:

  • See what others are saying online. Search for the company’s name and the word “subscription” plus words like “complaint,” “problem,” “cancel,” and “fee” to see if people are having trouble with their subscription.
  • Check the terms and conditions for  free trial offers . If the subscription includes auto-renewals, you’ll be charged unless you cancel before the end of the free trial period.

The law says businesses have to give you a simple way to cancel a paid subscription with automatic billing . If you have trouble canceling a subscription service:

  • Dispute unauthorized  credit card charges.  If you’re in a subscription, you’ve tried to cancel, and the company won’t stop charging your account, dispute it with your credit or debit card company.
  • Tell the FTC at ReportFraud.ftc.gov .

Cancel subscriptions

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This is really excellent info.

This is happened to me excatly. I ended up having to pay $215.90 in February.

In reply to This is happened to me… by Rezella McDonald

This will certainly result in a class action lawsuit so watch out for an email notification! Unfortunately, you'll likely only get a fraction of your money back and it'll take a couple of years for it to make it's way through the system.

Thank you for the excellent work you are doing; and, yes, the automatic charging of bank accounts and credit cards for hard to cancel "subscription" services are a growing problem. We must think too of the problem for heirs trying to cancel subscriptions for deceased relatives.

THOUSANDS OF PEOPLE FELL FOR ADOBE TRICKERY AND FAILURE TO BE REPUTABLE.

This is something I have been looking for regarding a monthly subscription that is hard to cancel.

Home delivery for prescriptions. I opted into this, and when an order came up missing, I then tried to opt out, this situation is totally still going on. The home delivery system for pharmacy is: in my opinion, messed up! Finally exhausted trying to cancel because, they keep texting me and emails never stop, even if you call them, it never stops.

The FTC should enforce consumer protection laws on the books. Can it in this case?

Thank you so much. I subscribed in 2021. You are absolutely necessary. Thanks for all you do. IRS agent told me my account was sold on black web. Canon sold me via Walmart, an pixma MG 3620 printer that cannot be used with any newer Apple IOS. Mine is 17.5.1, iPhone 13. There was no way to know except to buy it

I just spent an afternoon on the phone with Adobe after they were double billing me for a high end monthly/yearly subscription that I never signed up for and was noted in their accounts as "never used." The Adobe policy is "they will only go back six months" on billing issues; I received some of my money back but since they were pulling from my PayPal account, funds were taken from almost all my credit cards for close to two years. $34 a month with double billing for close to two years is no small chunk of change that they won't refund to my credit cards. On top of the financial loss, this is Adobe...everyone uses them. They are supposed to be a trusted company. In the past, there were certain companies that a consumer knew they could trust, and it was shocking when there was a diversion from the trusted practices, ex. Wells Fargo. These days I'm shocked when I hear you can trust anyone...any vendor or retailer. At what point do we create a true checks and balances holding companies accountable for this "integrity theft." That's what this is...integrity is defined as telling the truth when no one is looking. When a consumer sits at their computer alone and signs up for a product and isn't told the entire truth or the "extra" truths are on a separate page connected to a tiny link at the bottom of the site, this is integrity theft. It's your word against theirs and no one is really looking at specifics. When will this be confronted and then addressed? I work with clients every day that pay huge fines, receive felony charges and go to jail for much, much less. Maybe Adobe's executives need to lose a weekend to a cement cell and baloney sandwiches; maybe if we begin to hold the people accountable for the decisions made in companies, we might see a return to decency, integrity and respect for the consumer and truth in advertising. This is just one person's opinion, but it is worth consideration...Thank you, FTC, for validating my concerns over a company that I wish I never had to use again but have to use almost every day. Best, Mickie Lewis

In reply to I just spent an afternoon on… by Mickie Lewis

Mickie, I definitely feel your pain! As an aside, PayPal is another one to be extremely careful with. I see more and more things available with a PayPal account. IMO, it is much easier to deal with one reputable credit card. Then you can have all of your transactions in one place. It has been my experience in the past that PayPal has too many hoops to jump through in order to resolve a charge done through them.

In reply to Mickie, I definitely feel… by Doreen Burkey

Yes, and the problem is people use PayPal like a bank. It's not. Don't leave money in there. It is not protected afaik. Not like a real bank, anyway. It's for transactions only in my mind. If I have to, one and done. No recurring.

Thank you for helping us fight those big corporations,

Great information!! Thank you FTC Sonny

I think I fell prey to this. Is there a class action suit regarding this unfair practice of Adobe? If so, where do I get information about joining it?

In reply to I think I fell prey to this… by Kelly Musick

Ditto. Would like to know what action is being taken since Adobe pulled a fast one. Adobe also included an early cancellation fee too.

Thank you for this valuable research and good news! It's horrible that a well-known company would resort to this sort of trickery. We're encouraged to read all the terms and conditions, but companies tend to bury things in fine print, and it becomes overwhelming. You'd think one could trust an established company like Adobe, but then this news underlines that no company can truly be trusted. I'm glad that the FTC is being more aggressive on behalf of all consumers.

I signed up for a free trial and canceled within the indicated time frame, then was charged a cancellation fee. Waiting to see if another charge appears on my bank account.

Thank you.. very informative!

Exactly what happened, plus this year I thought I was paying for Adobe Pro, getting basic adobe.

Thank you. I was told 3 free months and was charged the same month. It is scandalous.

It happened to me. Now I'm on the hook until Feb 2025 @$19.99/mo. Canceling now (Jun 24) would cost me an early cancellation fee of $69.99 in July. I called to cancel my annual subscription at the end of the term in Feb 2025, and was told that I would get a notice by email in Jan 2025 that I should cancel or renew. Do you believe them? I don't. It's now on my own calendar to contact Adobe to cancel. I feel ashamed at 63 years old to have been talen like this. Shame on you too, Adobe!

In reply to It happened to me. Now I'm… by TruthInAdvertising

If you HAVE to pay that " cancelation fee" , just do so and get out of it completely now. Otherwise you are paying a ton more if you wait till the end. That 69.99 fee is for nothing for 4 months, yes but if you wait through till Feb. of 25, you will be paying double that. Yes, it's unfair but it will save you half again If you just end it with them now.

This behavior has become more and more aggravating and you are constantly auditing. It is illegal and now credit cards do not always wish to back it up. Grear

Yes! Thank you! This is unethical and I’m so thankful that it’s being investigated and Adobe has to answer for their deceitful business practices.

I have fallen into that trap! I signed up for a seven-day free trial. A day or two before the end of the trial, I went online to cancel and was told that, if I wanted more time to decide, I could sign up for a month-to-month plan and cancel at the end of the month if I no longer wished to subscribe. NO MENTION of a penalty if I did so. Now, I've come to the end of the one-month and signed in to Adobe.com to cancel and was informed that I would be charged $109.95 as a fee for doing so. I have one day remaining on my month. Adobe's salesmen make used car dealers look like saints!!! Please add me to any lawsuit being pursued against Adobe.

I have experienced this as an admin for my customer's Adobe accounts. Adobe makes it impossible to cancel a business account online or remove licenses for users that have left the company. You have to call Adobe to cancel which takes additional time and they will stall you and try to sell you a new subscription even though you have told them that you need to cancel the account for very clear and obvious reasons, i.e. the company is closing. I am grateful for this news and hope that it prompts Adobe to make changes.

They have been doing this for decades. This happened to me about 12 years ago. I had been a loyal customer since the early 1990s but no longer use Adobe products because the issue made me so mad.

Thanks. I was about to sign up, now I will be sure to check the correct box!

Excellent work! Thank you for taking the time to defend innocent people!

Too clever for their own good Adobe crooks playing gotcha with customers just because they think ethics only apply when they are legal statutes. This speaks volumes about their lack of character. Some people will do anything for a buck.

Inflation's sting: Will you become a more savvy shopper?

consumer behavior for thesis

Inflation finally pushed Mark Hawkes to a breaking point.

So a few months ago, he canceled his gym membership.

“I can do workouts at home,” especially isometric exercises, says Hawkes, 62, of Madison, South Dakota.

He also plans to downgrade his family’s cable TV service significantly and might even cut the cord, relying on over-the-air TV and streaming services.

At the same time, he’s spending $2,500 to remodel his bathroom, a project that wasn’t exactly a must-do.

“We really didn’t need to, but my wife wanted to,” he says. “It’s a little dated.”

Two years after pandemic-related product and labor shortages pushed inflation to a 40-year high of 9.1%, the American consumer has become a study in contradictions. Households are broadly cutting their discretionary spending and making a decided turn toward the practical. But they’re still buying things they really want, analysts say.

Out? Clothing, furniture and dining out.

In? Vacations, concerts and jewelry.

Yes, jewelry.

“For categories where they find less expensive alternatives that fulfill their needs … they are doing that,” says Tamara Charm, a partner at McKinsey & Co., which surveys consumers and analyzes retail sales data.

At the same time, she says, “they have the economic means” to open their pocketbooks when they feel the compulsion.

What are consumers buying the most?

Americans are paring back the kinds of goods purchases that dominated their outlays while they hunkered down at home during the pandemic and cutting loose for experiences. But “they are particular about what (experiences) they are spending on,” Charm says.

While all age and income groups are scrimping and following these patterns to some extent, Charm says, lower-income households have been hit harder by inflation and are making basic choices as they juggle rent and other essentials. Credit card debt hit a record high late last year, though consumers paid off some of it in the first quarter. Delinquencies, mostly among lower-income segments, are at the highest level since 2011, according to the Federal Reserve.

Meanwhile, those less affluent households have largely depleted their pandemic stimulus checks and other savings.

Middle- to upper-income groups, by contrast, have seen their wages keep pace with inflation the past year but are being more discerning about how they spend those dollars, McKinsey says.

“The customer at the lower tier has to make choices based on rent and family obligations,” Macy’s CEO Tony Spring said during an earnings call late last month, according to an excerpt cited by Barclays. “The customer at the higher tier is going to do it based on where she has interest or they have interest and passion."

Hawkes, who dropped his gym membership and is downgrading his cable service, says the moves were sparked by sharp increases in his car insurance and cable bills as well as a 15% jump in his property tax. He also plans to retire in five years and wants to ensure that he and his wife have an ample nest egg.

And while Hawkes is spending $2,500 on materials for the bathroom project, he’s doing the work himself to save on labor costs.

He and his wife are also planning a rare exotic trip this fall to Costa Rica or Hawaii, but they’ll likely stay at an extended-stay hotel with a kitchen in the room to avoid pricey restaurant meals.

“We’re feeling the (price) pressure … a lot of ways,” he says.

Is inflation improving?

Annual inflation has fallen sharply from its 2022 peak, but progress has stagnated since fall and a report Wednesday is expected to show it held steady at 3.4% in May. Although the rate of yearly inflation is down sharply, that’s not providing much solace to consumers who continue to see prices climb and remember what they were before the run-up began in 2021.

“It’s the cumulative effect,” says Gregory Daco, chief economist at EY-Parthenon, adding that Americans are wrestling with “cost fatigue.”

Consumer sentiment fell sharply to a five-month low last month, according to a University of Michigan survey.

Is US consumer spending increasing?

Consumer spending , after adjusting for inflation, dipped in April after a solid first quarter and some economists wonder if that marked the beginning of a more sustained slowdown. Since consumption makes up about 70% of economic activity, such a scenario could jeopardize forecasts for a “soft landing” in which the Federal Reserve’s high interest rates slow inflation without causing a recession.

With lower-income groups struggling, it will likely be up to higher-income households to keep the economy afloat. The top 40% of income earners account for about 60% of all spending, Daco says. And in the first quarter, households with at least $100,000 in income were the only ones to increase their discretionary spending, according to Circana, which researches consumer behavior.

Overall, 40% of Americans say they’re splurging, down from 51% in 2021, McKinsey says.

How is inflation changing consumer behavior?

More affluent households, however, are showing some chinks in their financial armor. Even as they’re splurging many are also “trading down,” meaning they’re shopping at big-box discount stores or online to save on groceries and other staples, Charm says. Higher-income groups drove Walmart’s strong profits in the first quarter, company officials said.

And Americans in various groups are shelling out less on discretionary purchases to pay for essentials, Circana says.

“Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they’re spending more of their paychecks on nondiscretionary categories and less on general merchandise,” Walmart Chief Financial Officer John David Rainey said during a call with analysts last month.

In grocery stores, shoppers are increasingly buying generic items instead of name brands, says Marshal Cohen, Circana’s chief retail industry adviser.

And they’re putting off buying some discretionary items as long as possible. That means they’re not purchasing sweaters until the temperature drops. Even then, “they’re saying, ‘Maybe I can get by without it’ if it’s a mild winter,” Cohen says.

Similarly, he says, they’re not replacing a recliner simply because it’s fraying. “If the chair breaks,” then they’ll buy a new one, he says.

Are people eating out less now?

Americans are also not dining out with abandon as they did when the pandemic faded, especially those in households with less than $75,000 in income. At least some of the time, 68% of people are switching from restaurant meals – whose bills are up 5.1% annually - to groceries, which have edged up an average of 1.2% in price, according to a recent survey by Vericast, a marketing technology company. Others are trading down from nice restaurants to casual dining or from the latter to fast food, according to McKinsey and Barclays.

Mike Jacobs, of Alexandria, Virginia, is a retired federal government worker who earns a six-figure pension, but he has scaled back from eating out a few times a week to once every few weeks. Prices, he says, have jumped more than 50% in the past few years.

Costco changes it up Costco is switching up how it sells books. What it means for shoppers.

“The service is lackluster,” he says. “Food portions have gotten smaller.”

So what are people buying?

Experiences such as vacations, concerts and some movies (think blockbusters like "Barbie" and "Oppenheimer"). Even jewelry qualifies as an experience because it enhances how a person looks when they’re out, Charm says. Jewelry, she adds, fell out of favor for a while, but then consumers realized how much they still enjoy wearing it.

“If there is something they want that is at the right value, they will buy it.”

A thrown pie hitting a man's face, knocking off his glasses

When inflicting misfortune on others pays off

Insights provided on when ‘schadenfreude’ boosts charitable donations

consumer behavior for thesis

Oh, the joy of inflicting pain upon others. The Germans have a word for it: schadenfreude , meaning “malicious pleasure.” And tapping into its sentiment properly can, ironically, do a lot of good by raising money for charity.

Professor Thomas Kramer

In a groundbreaking paper published in the Journal of Consumer Psychology, UC Riverside School of Business marketing professor and associate dean Thomas Kramer and co-authors articulate and quantify the appeal of schadenfreude ( pronounced Sha-den-froid-e) through the lens of marketing psychology.

Through a series of behavioral scenario studies, their paper provides insights for the highly competitive charitable fundraising industry, which gathers some $485 billion in the United States annually.

Firstly, those organizing fundraisers appealing to schadenfreude shouldn’t get too carried away. Schadenfreude is about inflicting mild misfortune that falls comfortably short of sadism on those seen as deserving of the misfortune. We’re talking about pies thrown into faces and plunges into water tanks – not anything too painful or damaging.

In fact, when participants of Kramer’s studies imagined celebrities they disliked getting shocked with a taser gun, the fundraising potential wasn’t as strong as seeing the same celebrities receive the milder misfortune of getting drenched with a bucket of ice water.

“If a disliked person gets more than their just desserts, and they’re severely punished, you no longer feel happy about that punishment, and donations go down,” explained Kramer, who applies his expertise in behavioral psychology to marketing science.

Kramer’s other key findings include:

Former BET executive Stephen Hill on a dunk tank seat.

• To maximize donations, the donor can inflict or observe the mild misfortune, and those who inflict donate roughly the same as those who watch.

• The donors also must have disdain for the person receiving the misfortune, which elicits pleasure when they see that person get their punishment.

The study was conducted by having hundreds of participants at the University of Florida and those recruited through a crowdsourcing service called Amazon Mechanical Turk imagine various Schadenfreude scenarios.

In one example, they rated levels of dislike and deservingness of the person receiving the misfortune and how much they would donate (between zero and $10) to throw a pie into that person’s face. Higher levels of deservingness resulted in higher payments. In another scenario, more mild misfortune paid better than severe misfortune..

The paper ’s title is “The Ironic Impact of Schadenfreude: When the Joy of Inflicting Pain Leads to Increased Prosocial Behavior.” Its co-authors are Yael Zemack-Rugar of University of Central Florida, Orlando, and Laura Boman of Kennesaw State University, Georgia.

Header photo by Getty Images

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social media

The power of TikTok continues to hold strong, even as a ban of the social media platform looms.

In its third annual TikTok advertising report, Disqo, the brand experience platform , conducted a consumer survey of more than 6,500 U.S. residents, finding that the brand’s engagement on the app is only growing. In fact, 63 percent of consumers have positive perceptions of TikTok ads, with 14 percent reporting making purchases from TikTok recommendations on a weekly basis.

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“The TikTok advertising opportunity is undeniable, but the platform’s brand experiences are evolving at a record pace,” said Stacy Perrus, director of brand communications at Disqo. “The need to stay on top of consumer attitudes and measure the effectiveness — from awareness all the way through to purchase — of social media campaigns has never been greater. Frequent innovations and optimizations are crucial for keeping pace with TikTok’s dynamic evolution and maximizing the ROI of ad spend.”

Importantly, in its evaluation of TikTok, Disqo’s report points to the content being produced on the platform today in stark contrast to just a few years ago. The shift, which has included the integration of ads into the scrolling experience alongside influencer content has changed the way that users engage with the platform. Entertainment remains TikTok’s primary use accounting for 73 percent, survey respondents said they also use TikTok for information gathering (36 percent), product discovery (35 percent) and keeping up with trends (34 percent).

The authors of Disqo’s report said that “TikTok’s true power lies in the platform’s ability to influence consumer attitudes and behaviors,” with consumers admitting to liking ads on TikTok and even taking action from them. Even as ads have grown on the platform as companies use TikTok to build their brand, consumer perception of TikTok ads has remained consistent when compared to last year at 63 percent. The most common actions that consumers report making after watching a TikTok video are to share the content (64 percent), research a project (42 percent) and purchase a product (27 percent).

Notably, while TikTok Shop is still somewhat new , Disqo’s data suggests that it has had influence on e-commerce activity through in-feed integrations and shoppable ads. Fourteen percent of consumers told the company they make purchases from TikTok recommendations weekly while another 15 percent said they do so monthly. Unsurprisingly, Gen Z has made the most purchases through the TikTok Shop. Within the Disqo audience, the authors of the report said, the shopping cart value of TikTok users is also 21 percent higher than non-TikTok users.

Disqo’s experts advised marketers to monitor how TikTok ads are working individually and in tandem with other social media platforms, saying that TikTok should be considered as more than just a social media platform. Consumers trust TikTok, but there is no doubt that should the platform go away, they will quickly settle into use of other social media channels.

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consumer behavior for thesis

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  28. When inflicting pain on others pays off

    Thomas Kramer. In a groundbreaking paper published in the Journal of Consumer Psychology, UC Riverside School of Business marketing professor and associate dean Thomas Kramer and co-authors articulate and quantify the appeal of schadenfreude (pronounced Sha-den-froid-e) through the lens of marketing psychology.. Through a series of behavioral scenario studies, their paper provides insights for ...

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