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Deciphering Consumer Psychology during the Festive Season in South Africa

By Shaheen Khan – Senior Lecturer (Commerce and Management) at Regent Business School

by Tia

In this in-depth exploration of consumer psychology during the South African festive season, Shaheen Khan from Regent Business School unravels the intricacies of consumer behaviour, offering valuable insights into how businesses can effectively influence consumer choices and shape trends during this critical holiday period.

As the year draws to a close, the festive season emerges as a pivotal juncture for both South African businesses and consumers, laden with anticipation and opportunity. With South African consumers facing financial hardships in the form of multiple interest rate hikes and fuel price increases, research indicates that South Africans are still projected to spend over R200-billion this festive season. Key sectors of festive expenditure in South Africa revolve around food, travel, and Christmas gifting. During this season, the average South African allocates an additional R6000 to their budget, representing over one-third of their annual income. Many South Africans rely on year-end bonuses and 13th cheques to fuel this supplementary spending (Bankserv Africa, 2023).

To fully capture this period of increased sales activity, it is essential that business understand the factors that impact consumer psychology during this boom period. Gaining insight into consumer behaviour aids business in increasing sales through effective target marketing, identifying core needs as well as the development of products and services that meet those consumer needs (EHL Insights 2023). Consumer behaviour determines what channels appeal to the consumer which in turn influences their buying patterns. However, it is interesting to note that each consumer tends to arrive at the purchase decision in their own unique way (EHL Insights, 2023). Factors such as what consumers think, and feel will influence their buying journey.

Consumer behaviour is intricately woven with psychological and social elements. Psychological factors encompass motivation, perception, learning, and attitude, all of which shape consumer choices. Understanding a consumer’s motivational needs, be they social, security, esteem, or self-actualisation, presents an avenue to exert a positive influence. Elements like advertisements, social media content, and customer reviews play a pivotal role in shaping a consumer’s perception of an organisation and its brand. The consumer experience, a product of their learning through interaction, serves to reinforce their beliefs about a product or service. Importantly a consumer’s attitude towards a brand holds paramount significance and fundamentally defines the brand’s image for the product or service (Clootrack 2023). Likewise, the impact of social factors, including family dynamics, reference groups, roles, and social status, cannot be underestimated. Given that humans are inherently social beings, the influence of those in their proximity reverberates through their purchasing decisions.

Businesses can leverage these psychological factors in their marketing strategies to drive behavioural change. There are four actions that could be employed to influence consumer behaviour:

Reinforce new positive beliefs

Consumer belief systems wield significant influence over their purchasing decisions. When businesses challenge or disregard these beliefs, they often encounter resistance. Rather than confront consumer convictions head-on, companies should strategically design novel consumer experiences that foster positive influences, ultimately driving behavioural change. To effectively strengthen these affirmative consumer beliefs, businesses must concentrate on those memorable moments etched into the consumer’s psyche (McKinsey, 2023). A prime example of this strategy’s efficacy can be found in Coca-Cola’s emotionally resonant storytelling. This approach established a deep emotional connection between the brand and consumers, associating moments of happiness with Coca-Cola. In turn, this emotional bond spurred consumers to engage in social sharing on various platforms, amplifying the brand’s reach and impact.

Shape emerging behaviour with new market offerings

Innovative product offerings have the power to inspire consumers to adopt new habits. A compelling illustration of this phenomenon is evident in Unilever’s introduction of Lipton Immune Support Tea, fortified with zinc and vitamin C. This innovation surged in popularity amidst the COVID-19 crisis, as consumers placed a heightened emphasis on health and wellness considerations (McKinsey, 2023).

Tailoring strategies for consumer engagement

Contextual cues, whether tied to time, task, or object placement, play a pivotal role in reinforcing consumer behaviour. In the realm of online marketing, they are harnessed for behavioural targeting to deliver tailored advertisements aligned with consumer interests (TechTarget, 2023). Digital marketing organisations leverage diverse tools, such as keyword targeting, category targeting, and semantic targeting, which employs artificial intelligence to discern relevant keywords and phrases from web page content. An illustrative case is Johnson & Johnson’s Clean & Clear context marketing strategy in New Zealand. This initiative centred on shareable electronic postcards, empowering teenage girls to send them to friends. The postcards included links to a free skin analysis and Clean & Clear samples, fostering viral engagement and positioning the brand effectively to the target audience (Hellofyllo, 2023).

Align messages to consumer mindsets.

Research indicates that empathetic brand communication enhances resonance with the target market, emphasising the importance of message alignment and monitoring consumer behaviour on social media platforms (Marketing Pro-Series, 2023). With Black Friday and the Festive season approaching, consumers are experiencing ‘fear of missing out’ (FOMO). This presents an opportunity for brands to go beyond showcasing products and services by offering in-depth experiences to meet consumer expectations.

The festive season in South Africa is a pivotal time for businesses and consumers. Understanding consumer psychology during this period is essential for success. By reinforcing positive beliefs, shaping new behaviours, tailoring engagement strategies, and aligning messages with consumer mindsets, businesses can thrive in the holiday season and beyond. Consumer psychology is not just theory; it’s the roadmap to better connect with customers and drive meaningful change.

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