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This article examines consumer behaviour and also considers some of these influences that shape consumer behaviour, with the hope of providing you with a comprehensive understanding of Nigerian consumer behaviour.
What is Consumer Behaviour and Why is it Important?
Consumer behaviour refers to how individuals, groups, or organizations select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and desires. Understanding consumer behaviour is crucial for several reasons: First, it allows you to divide the market into distinct segments or groups of consumers with similar needs or characteristics, allowing you to tailor your products and marketing efforts to meet the specific needs of each segment. Second, it provides insights into consumer preferences and pain points that can help you develop products that better meet the needs and preferences of consumers. Third, Businesses that understand consumer behaviour can gain a competitive edge by anticipating market trends and customer needs. Knowing how your target market behaves helps to craft messages that resonate with them, ensuring effective communication. And fourth, understanding what influences consumer loyalty can help you retain customers and build long-term relationships.Factors That Shape Consumer Behaviour in Nigeria
The Diverse Culture of Nigeria
Nigeria is a heterogeneous country. This means that with over 250 ethnic groups, Nigeria has a rich but diverse culture. Each of the over 250 ethnic groups has its unique traditions and values that play significant roles in shaping their behaviours as consumers. As an entrepreneur doing business in Nigeria, understanding these cultural differences will ensure the success of your marketing efforts.Family and Social Influence
Family members and the larger community influence decisions. In Nigeria, family and social networks are valued above all else. This communal culture means that word-of-mouth and personal recommendations from trusted individuals can significantly impact purchasing decisions. In his book, “How To Sell To Nigerians”, Akin Alabi emphasizes the importance of leveraging these social networks. You should focus on building relationships and trust within communities, as these are vital in the Nigerian context.Respect for Tradition
Respect for tradition and elders is a core value in Nigerian society. This respect extends to consumer behaviour, where traditional methods and products are often preferred. As a business, you should consider integrating elements of Nigerian tradition into your branding and marketing strategies. For instance, using local languages and cultural symbols can create a sense of familiarity and trust among consumers.Economic Influences on Consumer Behaviour
There is a wide gap in the income of Nigerians. A significant portion of the population are those living below the poverty line, while a small but growing middle and upper class has considerable purchasing power. Given this wide income gap and other economic challenges faced by many Nigerians, price sensitivity is a critical factor in consumer behaviour. Most consumers are always on the lookout for value-for-money products. Brian Tracy in his book, “The Psychology of Selling”, highlights the importance of demonstrating value in sales. You should communicate the benefits and value of your products to appeal to price-sensitive consumers.Aspirational Buying
Interestingly, despite the economic constraints, Nigerians are aspirational consumers. There is a strong desire for products that signify status and success. This is why it is common to see a young lady who is struggling to pay her bills show up at public functions with the latest wig and trendy dress while dangling the latest iPhone. You may also see a young man with no regular inflow of income riding the latest car or living in the priciest part of a city. Brands that position themselves as aspirational yet accessible can tap into this desire. For instance, offering affordable luxury products or instalment payment plans can attract aspirational buyers.Technological Impact on Consumer Behaviour
The rapid adoption of technology in Nigeria has transformed consumer behaviour significantly. With increasing internet penetration and mobile phone usage, digital channels are becoming a primary means of reaching consumers. E-commerce is booming in Nigeria. Most consumers in Nigeria now prefer shopping online from the comfort of their homes to visiting a local market. For some, they do this for convenience and many others, it allows them to compare prices and read reviews before making a purchase. As a business, you can take advantage of this by optimizing your online presence and ensuring your websites are user-friendly and mobile-optimized. Also, offering multiple payment options, including mobile transfer, enhances the shopping experience. In addition, social media platforms like Facebook, Instagram, and Twitter have become essential tools for influencing consumer behaviour in Nigeria. Most Nigerian consumers often search through social media to buy a product or service. As a business, it is important to actively engage with consumers on these platforms, providing valuable content and prompt customer service. Social media also offers an opportunity for targeted advertising, allowing you to reach specific demographics with tailored messages.Sign up for the Connect Nigeria daily newsletter
Psychological Drivers of Nigerian Consumers
Consumer behaviour in Nigeria is also driven by several psychological factors. Understanding these psychological drivers behind consumer behaviour is crucial for effective marketing. These drivers often stem from deeper needs and desires that transcend cultural and economic influences and they include:1. Trust and Credibility
Trust is a significant factor among Nigerians. During the pre-colonial and colonial periods, most Nigerian local markets were structured and operated in a manner that allowed traders to display their wares and the prices for them without being physically present to watch over them. When a customer wishes to buy a good, he or she picks the good and pays the full price as displayed by the seller, without interfacing with them. However, many years later, with the rise in theft and other social vices, this market structure is no longer obtainable in the country. Also, in recent years there has been an influx of substandard products in Nigeria and various forms of scams. And due to past experiences with these, Nigerian consumers are wary of new brands. Brands and businesses that will succeed in the Nigerian market must understand this important aspect of the Nigerian consumers and ensure they build trust and credibility. Building trust involves consistently delivering on promises and maintaining high-quality standards. Brian Tracy emphasizes the role of credibility in sales, suggesting that you should highlight testimonials, reviews, and endorsements to build trust with potential customers.2. Emotional Appeal
Humans are emotional beings and as such emotions play a crucial role in their decision-making. Marketers who can connect with consumers on an emotional level are more likely to succeed. This could involve storytelling that resonates with the Nigerian experience, using humour, nostalgia, or addressing common pain points. For instance, when Vicks launched its menthol candy, “Blue”, into the Nigerian market in the early 2000s, it soon gained market entry and dominance by consistently running adverts mirroring everyday Nigerian life. One such advertisement featured a bus conductor of the popular danfo buses in the vibrant Lagos trying to call passengers but couldn’t shout because he had a cough and catarrh. Then, “Baba Blue” came along and offered him a Blue candy and as soon as he took it, his throat cleared and he started calling out loudly to passengers. This advert resonated with the Nigerian population because they understood the scenario and what it means when a bus conductor can’t call out the routes.Strategies for Engaging Nigerian Consumers
Now that we have considered what consumer behaviour is and the various factors that shape it in Nigeria, we will now look at some practical strategies you can adopt as a business in engaging Nigerian consumers:1. Offer Value-Driven Promotions
When you create marketing promotions for your brand and products, ensure they highlight the value and benefits of your products. This could include discounts, loyalty programs, and free trials.2. Build Community Relationships
Given the communal nature of Nigeria and how these influence consumer behaviour, engage with local communities through events, sponsorships, and collaborations. This can help build trust and loyalty. I once attended an event where a popular dishwashing liquid was given out as souvenirs to the attendees. I have since bought more than 10 bottles of the same brand since I finished that particular bottle that was given to me as a souvenir.3. Utilize Local Languages and Symbols
Find ways to incorporate local languages and cultural symbols in your marketing materials. Nigerians have an interesting allegiance to their culture and heritage. When you fuse local languages and symbols into your marketing materials, it shows respect for the culture and can make your brand more relatable. A popular beer brand in southeast Nigeria, “Hero Lager Beer” was able to gain market entry and dominance by incorporating historical symbols and stories that resonated with the nationalist sentiments of the Igbo people of the region. Launched into the market in 2012, less than a year after the death of the leader of defunct Biafra, Chukwuemeka Odumegwu Ojukwu, the beer was named “Hero”, which resonated with the perceptions of the Igbo people about the person of Ojukwu. In addition, the beer was nicknamed “Oh Mpa”, an Igbo expression that translates to “Oh, my father!” Also, the beer’s logo is a series of star beams that are symbolical to the rising sun on the Biafran flag. Most of the marketing campaigns of the brand are centred around the Biafran nationalist sentiments and this has helped the brand remain a market leader in the region.4. Leverage Influencer Marketing
Another strategy you can use to influence the purchasing behaviour of Nigerians is the use of influencer marketing. Influencers can bridge the trust gap and provide social proof. The betting company 1xBet uses this strategically. It partners with popular Nigerian skit makers, who always find ways to mention the brand in each of their productions and mention their referral codes alongside. So, as a business, you can partner with local influencers who have a strong following and can authentically endorse your products.5. Optimize Your Digital Channels
There has been a significant rise in mobile and internet usage in Nigeria. As of January 2024, 21.6% of the Nigerian population were reported to be registered users of Facebook while half of that are Instagram users. What does this mean for your business? You can gain a lot by optimizing your digital channels and reaching out to your target audience through social media platforms. So, ensure your online presence is robust. This includes having a user-friendly website, active social media profiles, and positive online reviews.Register to attend the CN Business Mixer