Which marketing strategies are appropriate for nominal decision making?
Nominal what? Yeah that was my exact reaction when I heard this phrase years ago. While we marketers often like to boast about our amazing marketing strategies, there is another reality that is often overlooked. The goal of each marketing strategy is to effectively communicate the value of a product or service to the target audience, with the aim of influencing their purchasing decisions.
However, not every strategy involves a lot cognitive effort from your target audience. This is where nominal decision making comes into place. In this blog post we’ll delve into this concept and explore its implications for both consumers and markets.
1. What is Nominal Decision Making?
Nominal decision making, often referred to as habitual or routine decision making, is a consumer decision-making process marked by low involvement and minimal cognitive effort. Typically, this process is associated with the purchase of low-cost, low-risk products or services that are bought frequently.
A classic example of a product that typically involves a nominal decision-making process is toothpaste. For most consumers, purchasing toothpaste is a routine activity characterized by low involvement and minimal effort in decision making. People often choose a brand they are familiar with or have used before, relying on habit rather than extensive research or comparison of alternatives. The decision is usually quick, influenced by factors like brand loyalty, familiarity, and perhaps minor considerations like flavor or specific features (e.g., whitening, cavity protection).
2. Characteristics of Nominal Decision Making
2.1 Limited Information Search
The search for information is notably limited in this process. Consumers rely more on their prior knowledge or the immediate options available at the point of purchase. The routine nature of the purchases and the low perceived risk associated with them simplify the decision process. Since these products or services are usually low-cost and familiar, the financial and social risks involved are minimal.
2.2 The Role of Brand Loyalty
Brand loyalty is a pivotal element in the realm of nominal decision making. It refers to a consumer's preference to purchase a particular brand over others, often driven by a positive experience or a sense of familiarity and trust with the brand. This loyalty is less about making a conscious choice each time and more about falling into a pattern of repeat purchases due to the comfort and ease associated with a known brand.
2.2.1 How Brand Loyalty Influences Nominal Decision Making
Reduction in Search Effort: When consumers are loyal to a brand, they spend less time searching for alternatives. This is particularly significant in nominal decision making, where the effort and time invested in evaluating options are minimal.
Trust and Reliability: Brand loyalty often stems from a trust that the product will consistently meet the consumer’s needs. This trust reduces the perceived risk of purchase, making the decision process smoother and quicker.
Emotional Connection: Sometimes, brand loyalty is reinforced by an emotional connection. This can be due to past experiences, personal identification with the brand, or the values the brand represents.
Habit Formation: Over time, purchasing a favored brand becomes a habit. This habitual purchase behavior is a key characteristic of nominal decision making, where decisions are made almost automatically.
2.2.2 Example: Apple's Brand Loyalty
A classic example of brand loyalty influencing nominal decision making is seen with Apple Inc. Consumers who are loyal to Apple often exhibit a strong preference for its products, like iPhones, iPads, and MacBooks. Here’s how brand loyalty plays out:
Consistent Quality and Innovation: Apple has built a reputation for quality and innovation. Consumers trust that each new product will deliver a certain standard of performance and user experience.
Ecosystem Integration: Apple’s integrated ecosystem, where all devices and services work seamlessly together, creates a sense of convenience and reliability. Once consumers buy into this ecosystem, they are more likely to continue purchasing Apple products for the sake of compatibility and ease of use.
Brand Identity: Apple has cultivated a strong brand identity that resonates with consumers. For many, owning an Apple product is not just about functionality but also about what the brand represents in terms of status, design, and innovation.
Customer Experience: Apple’s focus on customer experience, both in terms of product design and customer service, enhances consumer satisfaction and loyalty.
In the case of Apple, when a new product is released, many loyal customers make the purchase decision with minimal deliberation. They trust the brand to deliver, and their previous positive experiences reduce the need for extensive research or consideration of alternatives. This is a clear demonstration of how brand loyalty intertwines with nominal decision making, leading to quick, habitual purchase decisions based on trust and familiarity.
2.3 Minimal Post-Purchase Evaluation
Post-purchase evaluation in nominal decision making is usually minimal. Unless the product falls significantly short of expectations, consumers are unlikely to engage in a detailed evaluation. If the product meets the basic criteria of what they were seeking, they move on without much further thought.
3. Strategies for Marketers
Understanding nominal decision making is crucial for marketers, as it guides the development of strategies tailored to consumers who make routine, low-involvement purchases. Here are some key implications and strategies for marketers:
1. Focus on Brand Awareness and Recognition
Consistent Branding: Ensure that the brand is easily recognizable through consistent logos, color schemes, and messaging across all platforms.
Repetitive Advertising: Use frequent and repetitive advertising to keep the brand top-of-mind for consumers.
2. Enhance Convenience and Accessibility
Wide Distribution: Make products available in as many locations as possible, both in physical stores and online.
Streamlined Purchasing Process: Simplify the purchasing process to minimize effort for the consumer, such as through easy navigation on websites or efficient checkout processes in stores.
3. Leverage Point-of-Purchase Marketing
Effective In-Store Displays: Use eye-catching displays and strategic shelf placement to attract consumers at the point of purchase.
Promotional Offers: Implement in-store promotions or discounts to encourage impulse buys or reinforce habitual purchases.
4. Build and Maintain Brand Loyalty
Quality and Consistency: Ensure that the product consistently meets or exceeds customer expectations to build trust and loyalty.
Loyalty Programs: Develop loyalty programs that reward repeat purchases, further encouraging habitual buying behavior.
5. Utilize Targeted Marketing Techniques
Personalized Marketing: Use data analytics to understand consumer preferences and tailor marketing messages accordingly.
Digital Retargeting: Implement retargeting strategies online to remind consumers of the brand and products they have shown interest in.
6. Emphasize Social Proof and Influencer Marketing
Customer Reviews and Testimonials: Showcase positive customer reviews and testimonials to provide social proof and encourage trust.
Influencer Partnerships: Collaborate with influencers who can sway nominal decisions, especially in categories where consumers look for quick validation.
7. Create a Strong Emotional Connection
Brand Storytelling: Use storytelling to create an emotional connection with the brand, making it more memorable and relatable.
Corporate Social Responsibility (CSR): Engage in CSR activities that resonate with the target audience’s values, enhancing brand image and loyalty.
8. Monitor Consumer Behavior and Feedback
Feedback Mechanisms: Implement and monitor feedback channels to understand consumer satisfaction and areas for improvement.
Market Research: Continuously conduct market research to stay informed about changing consumer preferences and behaviors.
By focusing on these areas, marketers can effectively cater to consumers engaged in nominal decision making. The goal is to make the brand the default choice by ensuring it is familiar, accessible, and trusted, thereby simplifying the consumer's decision-making process and fostering brand loyalty.
Conclusion
Nominal decision making represents a fundamental aspect of consumer behavior, particularly in the context of routine, low-cost, and low-risk purchases. This process, characterized by low involvement and minimal cognitive effort, underscores the importance of brand familiarity, ease of access, and habitual buying patterns. For marketers, understanding and strategically responding to this type of decision making is crucial. It involves creating and maintaining strong brand visibility, fostering loyalty through consistent quality and customer engagement, and ensuring that the purchasing process is as convenient and straightforward as possible.
The essence of nominal decision making lies in its simplicity and the comfort consumers find in the familiar. Brands that successfully embed themselves into the daily lives of consumers, becoming the go-to choice without necessitating extensive deliberation, achieve a significant competitive advantage. This is not just about capturing market share; it's about becoming a seamless part of the consumer's routine, a trusted companion in their daily lives.
Moreover, the subtlety of nominal decision making should not be underestimated. It requires a delicate balance of maintaining brand presence without overwhelming the consumer, of being a reliable standby that consumers reach for almost instinctively. In a world where consumer choices are vast and varied, the ability to be the default choice, the habitual pick, is a powerful position.
Ultimately, nominal decision making highlights the nuanced interplay between consumer habits, brand loyalty, and marketing strategies. It's a reminder that sometimes the most impactful consumer decisions are those that are made with the least amount of fanfare, quietly but consistently driving the wheels of commerce. For businesses, mastering the art of catering to this decision-making process can lead to enduring success and a lasting relationship with their customer base.
