Consumer Behavior - The paradox : Instant Gratification vs Delayed Buying
We are in the day and age of the Digital Consumer. Where you like a song you hear, you download it on your smartphone/tablets/computers. Games, Books are available on your fingertips. The ideal world to promote impulse buying leading to instant gratification. However, the other end of the spectrum is the buying behavior that delays this impulse buying or instant gratification. Consumers no longer walk into a store and buy things. They need to do comparison shopping and buy online if they find better pricing. They are willing to wait for the item to be shipped. I am sure the retailers would be very interested in cracking this paradox: what makes it a consumer who is so used to gratifying his needs, willing to wait a few days (by ordering online) for an item that he could have picked up in the store. The manufacturers are also keen to understand this as a delayed buying could imply more brand choices leading the consumers away from their brands.
Of course, there are various considerations that could explain this 'delayed instant gratification' in a physical store. Some of them being:
1. Categories: You would never do an impulse buy of a large item (a washing machine, a computer, a tablet). And you would not think twice about buying groceries. However, there are certain categories on the borderline - especially Apparel which give instant gratification but also could be delayed.
2. Price/Value: Closely related to categories - but is also based on the price. Usually the things being brought in store are of a higher price than what consumers buy online. Its easy to buy a 99 cent song on itunes than to decide in an instant on a $50 shirt in store.
3. Pricing differential : The difference in pricing between B&M stores and online stores could be quite high for the same item. For obvious reasons, the difference between stores and online world exists today due to the difference in models.
The big question is that what price and price differential does it become significant to the consumer to delay the buy. How do you get into the mind of the consumer to determine how this decision could be made instantaneous benefitting the retailer and the manufacturer.
Any thoughts/feedback on the consumer behavior - how does this affect you in your daily buying behavior.
