Articles

Marketing analytics: Understanding the customer journey

  • Pawan

    Sir, very well written article.
    As usual, I have a question.
    How this consumer decision journey is impacted by discounts and sale and what bearing it is having on the mindset of a consumer. Does it affects the purchase decision only or has it become a relevant variable for consumers while searching information about the product?

    • Umashankar Venkatesh

      Pawan, in the midst of the current jostling for foothold and market share (which is waning a bit as governments are intervening variously in the name of antitrust to monopolies and unfair trade or plain predatory pricing) especially in the e-commerce space in India, one cannot forget the basic premise of discounting (or sales promotions of any kind). They are meant to be ‘short-term’ incentives to move inventory from one point to the other in the outbound distribution pipeline. ‘Short-term’ being the operative word here…! Persisting with this will, in the long run, first shape consumer perception and the their attitude towards the brand and/or the retailer. Inevitably, it will have a salutary downward effect on price expectation. In an oligopolistic market, this will mean only one thing- marketers will have a degraded ability to charge ‘full’ price or a premium pricing. If one is a ‘discounter’ or price warrior, then their business model and value-chain, will have to be engineered differently and they cannot/ should not target the same segment as full-cost retailers, even with same brands overlapping both categories of marketers….!