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Q U A L I TAT I V E R E S E A R C H C O N S U LTA N T S A S S O C I AT I O N 41 • A polarized and more demanding shopper base has grown increasingly aware of prices and competitive offers; • Diversified, specified, and more capable competition has developed in almost every trading area and category; • The digital ecosystem is not only reshaping how and where shoppers buy, but also illuminating their path-to- purchase, irrespective of where the sales happen. More and more, companies are seeking a roadmap of action from researchers, supported not only by consumer insights but also by shopper insights as a critical foundation for their business practices. The following are some critical starting points in identifying the power of shopper insights vs. consumer insights, in our cur- rent retail landscape: 1. It's important to make a distinction between consumer and shopper insights. It is true that in a lot of categories, the individuals doing the consuming are also doing the shopping. Nevertheless, when it comes to collecting data as well as the ultimate uses of such research, it is important to distinguish between con- sumer insights and shopper insights, based on the questions asked and the resulting actions. These can differ, depending on whether these companies are seeking intelligence to better under- stand consumers' needs or shoppers' needs at a given moment. Indeed, qualitative and quantitative market research, can be conducted among consumers to learn about how, how often, when, and why consumers use a product or service, and/or to ask about their perceptions about brands – their attitudes, needs, and problems they have that a product or service in the category can address. Research provides guidance on marketing and communications issues and may even lend insights into related concepts or new product development. Similarly, companies are also opting to conduct more targeted research on shop- pers to learn more about how, when, where, why they shop/buy in the category, and what drives them into the store. This type of research focuses around shoppers' attitudes about the in-the-moment shop- ping experience – the path-to-purchase – to understand what fosters loyalty to the brand as shoppers purchase from a chan- nel. The result of this research provides better guidance for companies on the best target for programming in a particular channel or retailer, and the best messaging and tactics to use to drive traffic and sales in-store. 2. Great insight can come from relating consumer and shopper insights. Actionable insights come from the intersection of understanding consumer motivations and exploring shopper behav- ior as it relates to the category and brands. Great shopper insight is not developed in isolation. The more input that goes into insights development, the richer and more actionable the outcome will be. It is very important to understand what inspires or is a barrier to shoppers' actions. One example comes from the cookies category. We found the likelihood of cook- ies going in the shopping cart, or even drawing the shopper into the aisle, was lower if other indulgent snack categories were stocked in the same aisle. Shoppers vacillate when they approach the aisle, viewing the products as indulgent pur- chases. This "wall of guilt" stops shoppers in their tracks, or certainly makes them think twice about buying anything in this aisle. Our shopper insights challenge was to eliminate that barrier and switch the programming back into cookie-consider- ation mode. Cookies markedly displayed away from other sugary treats stand a bet- ter chance of garnering shoppers' discov- ery and delight than those located in the expected aisle. The intersection of consumer and shopper insights can help guide a variety of marketing areas. For example, by understanding the reasons for purchasing a product or service in the category, com- panies can do a better job of informing various levels of product/service develop- ment, communications planning, and in- store programming with more holistic considerations. 3. Set-up a shopper insights framework to ensure strategic focus and actionability. Developing a good insights-based path- to-purchase framework can be helpful to structure a shopper insights learning plan. A well-known example of an insights framework is Procter & Gamble's (P&G) "Great shopper insight is not developed in isolation… It is very important to understand what inspires or is a barrier to shoppers' actions." A s volatility in the marketplace has become the new normal, retailers and manufacturers in the United States are making efforts to tighten their relationships. These joint efforts are becoming an integral compo- nent of their partnerships and goals to remain relevant, as:

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