Why do women drive Hilux, and Men drink Guinness

Key takeaways

§? Consumer behaviour insights are at the heart of marketing strategy

§? Even large firms get it wrong about customer purchasing decision

§? Coke got it wrong when they launched New Coke, despite research

§? Buyers of products such as 4 x 4s and beer may have hidden motivations

§? At times, customers may not know what they want, creating a dilemma for companies

?

The core purpose of any business or non-profit organization is to meet its customers' requirements. Understanding customer behaviour, therefore, is the challenge to achieving higher performance. What goes on in the consumer's black box is a mystery, even though we have made significant progress in understanding choice-making. And entrepreneurs have a psychological puzzle to solve.

The field of consumer behaviour is a mix of different disciplines: psychology, social psychology, sociology, anthropology, management and others. This interdisciplinary approach to peering into the human mind and seeking to understand how we make decisions with financial resources has been around since the birth of marketing. It is the foundation of any marketing strategy.

It is a common myth that customers know what they want, and if we ask them, it would reveal how they make decisions. If they always make the right choices, why do we have so many customer refunds and dissatisfaction despite a vast amount of product information?

However, the myth is dual; sometimes firms think they understand the customer, and they (the buyer) think they comprehend how to make a purchasing decision.

Consumer Misbehaviour

SME entrepreneurs may think that larger firms have excellent customer insights and that smaller firms are disadvantaged by their fewer marketing research competencies. There is the classic case of the almighty Coca-Cola beverage company that was under intense competitive pressure from its arch-rival, Pepsi. Coke's brand was losing to the sweeter-tasting Pepsi in the 1980s, and market research in blind testing supported this belief. Coke thought it could win the cola wars by reformulating the secret recipe.

This change in Coke's formula was the first since 1903, when it removed cocaine. Things did not go as planned as customers rejected the New Coke in mass in April 1985. When I lived in Florida studying marketing, I was quite puzzled. Fans of Coke were dumping the improved brand down the sewers in protest, and others were selling the "old Coke" at exorbitant prices.

What is happening here is the classic misunderstanding of customer's perception of the brand. Coke is not just sugar, water and carbon dioxide. Coke is much more. Coke is like Levi's jeans or Mustang (Ford) sports car. Coke is an American icon—like doubles, Crix biscuits or Carib beer to Trinidadians. While you might say that Crix has several brand extensions and Mustang does model changes, the brand's essence stays the same.

After 77 days, the Coca-Cola company relented and returned the original Coke. New Coke continued for a few more years and became Coke 2 but was later discontinued in 2002. The view from Pepsi came from CEO Roger Enrico: "I think, by the end of their nightmare, they figured out who they really are. Caretakers. They can't change the taste of their flagship brand. They can't change its imagery. All they can do is defend the heritage they nearly abandoned in 1985."

Some say Pepsi secretly changed its sugar content and did not tell its buyers. Americans had a weakness for sweetness. At the end of the debacle, Coke may have inadvertently strengthened its core brand. Some conspiracy theorists claimed this was the plan all along. CEO Roberto Goizueta denied the charge, claiming, "We are not that smart, and we're not that dumb."

Warped Minds

What happens in our minds may be a mystery for some of us. Why do I buy Puff N Stuff coconut bake and pay a premium price? Is it because it has more coconut? It certainly does. When I sink my teeth into the bread, the bursting flavour enters my mind and triggers memories of my grandmother's coconut bake. While it is not the same, no one at the bakery is dressed in an Indian Orhni, but it comes close. Human taste is one of our most primitive senses, and it can be easily tricked if you know how to pull the right psychological levers. ?

Hilux and Guinness brains

Women and men often buy for different reasons. Why would a female purchase a 4 x 4 when she never drives off the road or knows (most men, too) how to use the four-wheel drive mode? If you ask why they bought the high rider, the answers will revolve around the following: It is cheaper to drive a diesel, avoid the potholes, navigate through flood waters, and carry the kid's bike at the back.

We may never know, but I am willing to take a guess. The 4 x 4 pick-up offers something psychological despite parking challenges and tight turning space. Most women like high heels, and this makes them more prominent. A Hilux is probably another form of high heels, and they can tower above their male counterparts, which is essential in the mating game.

Is Guinness really good for you? Long ago, women were advised to drink this stout during pregnancy. Later, research showed that alcohol during pregnancy was not advisable. With its unmalted burnt barley, Guinness has more fibre and folate (which helps cell division). But most men probably do not care about boosting their DNA. Men may be drinking the Irish beverage due to its marketing image—it can enhance your sexual performance. The aphrodisiac image might be the subliminal marketing image to prime the pump (beware, double meaning!) and drinking a Guinness in a bar may signal you are in the game. According to anthropologists, we are here for only one reason—to pass on our genes, and Guinness is the modern way to do so. ?

Airplane black boxes record data from an aircraft's flight. The human black box is more than that; it can make decisions and act in ways we cannot explain. Can the human brain explain the human mind? Maybe with artificial intelligence, we have another tool to unlock the mystery of our neural networks.

This book combines entrepreneurship and family enterprise like no other. Sajjad is an SME and Family Business Advisor who supports entrepreneurs in scaling their ventures. In his spare time in Trinidad and Tobago, he tries to produce organic tropical fruits and vegetables and practise sustainable farming in his home garden.

You can contact him at [email protected] or visit www.entrepreneurtnt.com.

?