Ever stopped to wonder why you’re willing to shell out a few extra bucks for your favorite coffee or treat? It’s not just about the caffeine kick or the sugar rush—it’s about something deeper, something that marketers have been studying for ages: purchase frequency.
In this dive into the world of consumer behavior, we’re unpacking how often we buy something and how it influences our sensitivity to price changes. It’s a fascinating subject that’s as complex as it is important. Especially for your brand’s performance marketing efforts.
Bottom Line Up Front
Consumers are less price sensitive to the brands they love. In other words, we’re willing to pay more for what we love.
Now, “brand love” is a concept so vast and multifaceted that it deserves its own series of articles. But for today, our focus is on the frequency of purchases—specifically, the items we buy regularly.
Take coffee, for instance. Suppose your daily cup costs $5, and a sudden 20% price increase takes it up to $6. As a regular consumer, you’re bound to notice. The question then becomes: how do you respond?
Perhaps you believed the coffee was undervalued to begin with and are content with the new price. Maybe you cherish your morning interactions at the coffee shop or enjoy its convenient location next to your office—both of which could justify an extra dollar. Or you might consider seeking cheaper alternatives, brewing your own coffee at home, or even giving up coffee altogether.
The scenario shifts if coffee is an occasional treat rather than a daily necessity. For infrequent purchases, consumers are less likely to notice or react to price changes immediately. They may adjust their behavior in the future but are generally more likely to pay the higher price when caught off-guard.
The Pattern of Purchase Frequency
This pattern extends beyond coffee to big-ticket items like furniture, cars, or high-end electronics. The infrequency of these purchases makes it challenging for consumers to evaluate price changes. Consequently, their focus shifts towards the product’s perceived value, quality, and relevance over its price.
In essence, the frequency of purchase shapes our sensitivity to price changes.
Purchase Frequency for Performance Marketing
Understanding the relationship between price sensitivity and purchase frequency is paramount for brands. It not only informs pricing strategies but also influences how products or services are marketed – that’s where the magic of performance marketing comes into play.
For infrequent purchases, brands may find direct response advertising most effective. While price is a factor, the emphasis should be on building perceived value and distinguishing the brand from competitors. On the other hand, for frequently purchased items, brands should focus on building and reinforcing memory structures that establish brand equity, thereby reducing price sensitivity.
Navigating the delicate balance between price sensitivity and purchase frequency is a fascinating aspect of consumer behavior that holds crucial implications for performance marketing.
