Chapter 6: Consumer Decision Making

Importance of understanding cosumers behavior.

• A CHANGING CONSUMER MINDSET 

When people think of Godiva, the words that come to mind first are “WOW,” “LUXURY” and “EXPENSIVE.” Because of the ailing economy, consumers were more likely to give up things that they felt were luxuries and, as a result, Godiva’s sales were soft. Through various exercises and assignments members completed, the community brought to life the changes in behavior such as shopping habits, gifting patterns and “self-treating” in the midst of the recession. From this work, it was clear there were two key themes at play that were changing how members were interacting with the brand-accessibility and affordability.

Cultural Influences on Consumer Buying Decisions.

Understanding Consumer behavior and Consumer Decision-Making Process.

(During the Recession Era) 

Accessibility: While members love eating Godiva, they were reducing their visits to the mall, where the majority of Godiva Boutiques are located. At the same time, competitors were making premium chocolate available in more locations where consumers shopped often such as Grocery and Drug Stores. This allowed members to self-treat with other premium chocolate brands more often. 

Affordability: Members were budgeting more than ever before and therefore seeking premium chocolate at a value. The majority of Godiva consumers gift the signature Godiva Gold Ballotin for “Special” Occasions to people they have an intimate relationship with (Valentine’s Day, Birthdays, etc.)the Gold Box communicates that they spent money on the recipient because they are worth it. However, members were also starting to seek more affordable premium chocolate to gift to people they were not close with, but still wanted to impress (e.g., Mail Carriers, Teachers, and Co-workers). The members helped Godiva uncover this “Casual Gifting” behavior that was a gap in their portfolio, especially in the accessible channels where they were not participating.

Listening further to community members, Godiva’s big “ah-ha” came “wrapped” in a small package. Their members’ interaction with Lindt and Ghirardelli uncovered the biggest growth engine in their portfolio—individually wrapped chocolates. Community members talked about how often they like to share Lindor Truffles and Ghirardelli Squares with everyone at home, at work, at parties etc. In-depth discussions revealed that members don’t always like to share the unwrapped chocolates in the Gold Ballotin with people not close to them. By wrapping Godiva chocolates individually, Godiva could now tap into a common behavior already happening in the category sharing. Importantly, Godiva then took the bold move of putting these individually wrapped chocolates in the Channels where consumers habitually buy them most often Grocery and Drug Stores. And because Godiva Gems are more affordable, they allow consumers to not only self-treat daily, but also “casually” gift to people they are not as close with but want to impress.With the community validating their ideas about how to meet consumers’ needs, Godiva had the confidence to move ahead.

The Godiva Gems platform was launched globally in September 2009. In North America the launch took place in Boutiques, Department Stores, and for the first time ever in Grocery and Drug Stores, and in all of Godiva’s Boutiques in Japan, Europe, Pacific Rim, and China. Gems are little Truffles, Caramels and Solid Chocolates that are individually wrapped to enjoy anytime, anywhere. Perfect for savvy shoppers who appreciate the highest quality chocolate at an affordable price, Godiva Gems are delivered in a Godiva-worthy way—quality chocolate, in vibrant packaging with colorful wrappers that have a “Touch of Gold” to remind consumers that it is the Godiva quality they know and love. Godiva Gems not only meet consumers’ affordability and accessibility needs