THE BEST OF INTIMA – 02/2010 - 124

Expert

The Consumer
A bright new decade is starting, and among the new challenges retailers and manufacturers are facing after the recent economic recession is the understanding of the new consumer mentalities. The targets have changed, and the consumer behaviors too. Global Purchasing Director Mercedes Gonzales shares her insights on the consumers’ post-recession purchasing attitudes.
The Recession Aftermath
Resetting consumer behavior after the global recession has been a top priority for retailers. During the economic downturn, customers became more value conscious and less likely to purchase expensive, discretionary items, signaling a change on the horizon. Many economists and retail experts believe this frugal consumer behavior will be sustained even after the economic recovery takes place. This will apply directly to those markets in which consumer spending had been excessive and fueled by credit in the past. day, however, have less predictable purchasing habits than ever before. It is more difficult to understand their motivations and lifestyles, which describe the way people live, work, play and spend their money. Society is more enlightened, media influence has intensified and the internet has added a new dimension to shopping and lifestyle behaviors. The fields of psychology and sociology can provide insights into the human behavior of the US Consumer. Every purchase is based on individual needs or wants of a human being. Biogenic and psychogenic needs of the human also affect the way we buy . Biogenic needs are physiological needs for food, warmth, shelter and sex. Psychogenic needs, on the other hand, stem from the socialization processes and involve intangible aspects, such as status, acquisition, or love. Psychogenic needs are often the basis for advertising campaigns as they reach consumers at the emotional level. There are three psychogenic needs that provide more insight regarding human behavior: • Affection: the need to love and be loved and to form relationships • Ego-bolstering: the need to build oneself up in the mind or in the eyes of others, develop self-esteem and desire status • Ego-defensive: the need to protect ourselves, our families and our fragile ego
MERCEDES GONZALEZ, DIRECTOR OF GLOBAL PURCHASING COMPANIES

To encourage spending, retailers will have to offer the consumers a favorable value proposition
To encourage spending, retailers will have to offer the consumers a favorable value proposition exclusive brands or unique offerings. To most effectively target consumers with the right offerings, retailers must have an extensive understanding of their customers’ behaviors, wants and needs.

Psychologically Speaking

In the past, understanding consumer behavior could be translated as knowing the products she is looking for and offering what she expects to find in the market. Customers to-

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THE BEST OF INTIMA – 02/2010

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