Consumer values driven purchasing behaviour: a practical approach for market potential assessment

Abstract

Consumer purchasing behaviour is driven by complex social behaviours which influence the choice of brands, products or distribution channels.

The objective of the paper is to analyse consumer social value dynamics in Latvia and develop consumer values based approach to explain purchasing behaviour and assess future market trends and potential on a case of the Latvian insurance market.

Analysis is based on empirical sociological data from representative national value surveys which is used to segment customers and identify the relationship between their values and future preferences for insurance consumption.

The paper reveals an empirical evidence of values being a determinant in choice among propositions, describes a simple and practical approach of applying values based segmentation to explain consumer preferences and behaviour as well as suggests strategic directions for market players to gain competitive advantages.