Consumer Buying Behavior

By Kaitlyn Reyes

In 2009, cosmetician Sunday Riley founded her own skincare brand, Sunday Riley. The company markets itself as using “green technology,” which means it uses ingredients that do not cause skin irritation. Sunday Riley used social media marketing to advertise its products using TikTok and its content creators. In early 2020, Sunday Riley blew up after popular influencers promoted its products. It soon became an “It Girl” brand and was included in several popular TikTok videos. This came to a halt when it was revealed that its CEO faked multiple positive reviews.

The Federal Trade Commission settled charges against Sunday Riley and its CEO, stating that it used fake reviews to mislead consumers (Chesnes, 2020). This settlement was disclosed in November 2020. CEO Sunday Riley encouraged its employees to post fake positive reviews on Sephora under private accounts and using fake VPNs (Chesnes, 2020). The CEO often reminded its staff to dislike negative reviews to boost the positive ones (Elassar, 2020). This discovery negatively impacted the brand’s reputation. Consumers no longer trusted Sunday Riley’s products, as they could no longer deem any positive reviews as genuine.

The significant lack of trust significantly impacted sales following the settlement. Content creators no longer wanted to work with the brand because of its poor reputation. Any influencer who worked with the brand was deemed untrustworthy and seen as looking for a cash grab. Sunday Riley’s brand was tainted, but it was also tainting the people associated with it. It soon lost its high TikTok engagement, and each TikTok post about Sunday Riley raised concerns about its unethical marketing.

The brand should have used its popularity to gain trustworthy reviews. Sunday Riley could have offered special discounts to consumers who purchased its products through email marketing. The brand could have offered special giveaway entries to consumers who left reviews on their recent purchases as well. Outside of email marketing, the brand could have partnered with content creators to push the giveaways that require reviews for entry. Sunday Riley could have leveraged its virality for longer while boosting social media engagement. Rather than having its employees write false reviews, it could have had employees ask real consumers for their feedback. Another way to display its positive reviews is to link its website’s reviews to Sephora’s website as well. It is an easy way to attract consumers who exclusively use Sephora’s website, while promoting real consumer reviews. There are multiple ways for brands to collect consumer reviews without resorting to unethical practices.

References:

Chesnes, M., & Nguyen, S. T. (2020, November 6). FTC approves final consent agreement with Sunday Riley modern skincare, LLC. Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2020/11/ftc-approves-final-consent-agreement-sunday-riley-modern-skincare-llc

Elassar, A. (2020, October 23). Skin care brand Sunday riley wrote fake Sephora reviews for almost two years, FTC says. CNN. https://www.cnn.com/2019/10/22/us/sunday-riley-fake-reviews-trnd

By Kaitlyn Reyes

With the streaming services takeover, HBO Max has been a key player in the industry since May 2020. HBO had built an incredible reputation with the television shows it produced. Those shows, including Game of Thrones, The Sopranos, and even a Generation Z favorite, Euphoria. When people thought of HBO, they thought of the prestigious and highly celebrated programs it produced. HBO Max’s vision was to allow its consumers to stream any of their classics and newer shows at any time on any smart device. The mission was to strengthen their community by introducing their consumers to other shows and films they might also appreciate.

The Failure of HBO Max to Max

In May 2023, Warner Bros. released a statement that they would be renaming “HBO Max” to just “Max”. The rebranding included adding Discovery’s reality content alongside the original HBO Max content (Edits, 2025). Consumers were confused by the renovations to their applications and did not appreciate them. Consumers felt that the indredible reputation of HBO was instantly erased by the removal of the name in the title. The simple name “Max” was not well received by the general public. Potential new consumers were confused about what Max would offer and did not want to learn more on their own. The renaming stopped millions of subscribers from resubscribing after the revamp. HBO Max lost several million dollars and had to cut and cancel tons of their shows. Stakeholders were losing money, and potential stakeholders had disappeared. HBO Max missed the mark entirely by taking away what its consumers resonated with the most. Removing the HBO from the name removed the heart of the streaming service.

Brand Naming Strategies

HBO had established an excellent brand standing and a significant loyal following. Using HBO in the name of their new streaming service was the best approach to choosing a title. Consumers and critics knew exactly what HBO Max entailed from the name alone. They expected incredible television and films to be available on the streaming service, and that is precisely what is offered. Being able to grasp consumers and stakeholders with just a brand name will help the business financially in a significant way. This strategy will allow consumers to feel comfortable spending their money on this service over leading competitors. It will also help attract investors, as HBO has a strong 5-decade-long reputation. For a brand to build on itself, it is crucial to make it clear to the public that it is connected.

Reference

Edits, W. (2025, May 15). The $43 billion mistake: How Warner Bros.. Discovery’s HBO Max rebrand exposes late capitalism’s fatal flaw | by Wesley edits | write your world | medium. Medium. https://medium.com/write-your-world/the-43-billion-mistake-how-warner-bros-ecd94a50d253

By Kaitlyn Reyes

Gathering Data and Observing Three Main Cycles

Every brand must be aware of where it stands in the brand life cycle. Not every brand will live throughout an entire cycle. It is crucial for the brand’s prosperity to understand where it stands and how to promote itself effectively to improve customer perception and brand equity. The three life-cycle stages that will be highlighted are development, growth, and maturity. Customer perception is relatively straightforward: it is the opinions and judgments consumers have of the brand. Brand equity is the reputation the brand holds and the weight of its name. The three brands I researched for the life cycle phases are Haus Labs, Rhode Skin, and Lululemon.

Haus Labs: Brand Development

Haus Labs is a cosmetic brand that offers vegan, cruelty-free makeup products. It was founded in 2019 by Lady Gaga. Haus Labs is still considered to be in the development stage. This is due to the limited number of product releases and launches. Haus Labs prides itself on inclusion and diversity. These efforts have created a positive consumer perception by enabling them to support a clean, inclusive brand. The inclusion of consumers of all genders and races has raised its brand equity by creating a loyal following.

Product: Makeup Products

Price: The beauty products range from $20- $50 per product

Place: Each product is available on its primary website, Sephora’s website, and in stores.

Promotion: Haus Labs uses advertisements on social media platforms.

Rhode Skin: Brand Growth

Rhode Skin, a skincare brand founded in 2022 by celebrity Hailey Rhode Bieber. The initial launch consisted solely of skin care, but has since grown. They now also produce makeup products with skin benefits. Rhode Skin is in the growth phase following its massive success, having sold the brand to E.L.F Beauty for $1 billion. Rhode collaborates with successful content creators to expand its audience. With the sale of Rhode to a respected company, Rhode holds a strong reputation and brand equity.

Product: Skincare products, Lip care products, and Makeup products

Price: It is considered an affordable luxury, ranging from $20 to $40 per product.

Place: Rhode Skin can be purchased through its primary online website. It has now collaborated with Sephora so that it can be found on its website and in physical stores.

Promotion: Rhode partners with several content creators and is primarily promoted through social media platforms.

Lululemon: Brand Maturity

Lululemon is one of the leading competitors in the athleisure wear industry. Lululemon is an excellent example of a brand within the maturity phase. It has grown from a brand that started with yoga pants into one with over 700 stores worldwide. Lululemon is a brand recognized by its logo alone. Its marketing strategy is to partner with decorated, highly followed athletes. It has a strong brand reputation and a loyal following. Lululemon has its own community.

Product: Althesuirewear, accessories, and workout classes.

Price: Lululemon is an affordable luxury brand with products ranging from $30 to over $200.

Place: Lululemon products can be purchased through its website and in its stores.

Promotion: Lululemon partners with professional athletes and athletic influencers. It uses advertisements through podcasts, social media platforms, and billboards.

By Kaitlyn Reyes

Many companies have turned to social media to market their promotions and interact with their loyal following. In many cases, we have seen brands congratulate and praise their rivals on their successes. Wendy’s Twitter account is infamous for its specialty in congratulating other competitors. However, it is what lies beneath the surface that Wendy is actually getting at. Wendy’s approach of enhancing its image by praising competitors is unlike that of many others. Wendy’s and McDonald’s have had a long-standing feud for years. In 2018, McDonald’s announced that a majority of its locations would use fresh beef for its quarter-pounders (Cosby, 2024). Wendy went to Twitter to congratulate McDonald’s by wishing them a happy National Frozen Food Day. Although this tweet was written as a positive appraisal of McDonald’s, Wendy’s did not genuinely mean it. This tactic received a strong consumer response, encouraging them to show their support and admiration for Wendy’s.

In traditional scenarios, consumers are more likely to favor competitor praise because it signals brand security. A brand that is secure in its business will have no issue sharing the limelight with its competitors. It shows that a company is loyal and devoted to its following and can also share them with other brands without worry. The thin-slicing theory enables consumers to make quick, positive connections with those who praise other brands. Consumers would rather support brands that have a positive reputation.

Brands must be careful with how they release their statements of praise. For rival brands to quickly change and show appreciation and support for one another, it may come off as ingenious. Many consumers may not appreciate the fakery and may judge that brand and its motives. For Wendy’s faceitious remarks, the fake praise works in their favor as it is an apparent underlying attack. Brands must be clear with what they are communicating to ensure consumer loyalty.

References:

Cosby, D. (2024, December 16). The One McDonald’s burger that’s never frozen. Tasting Table. https://www.tastingtable.com/1728405/mcdonalds-quarter-pounder-burger-never-frozen/

By Kaitlyn Reyes

Haus Labs is a cosmetic brand founded by Lady Gaga. It offers clean makeup that fosters creativity and artistry. Haus Labs’ mission is to encourage its consumers to express their individuality and empower themselves.

Haus Labs’ Market Segments

Haus Labs’ demographic is Generation Z and Millennials. Their target market is ages 18-35. The brand prides itself on inclusivity for diverse skin tones and gender expression (Bavaresco, 2024). Haus Lab is available online and in stores through its personal website and Sephora. It is headquartered in the United States, with its primary geographic location being the United States. Haus Labs has strong psychographic segmentation strategies as its values are clean beauty and inclusivity. Haus Labs is cruelty-free and vegan. It supports diversity and creativity. The behavioral segmentation is not as prominent with Haus Labs, but through its partnered retailer, Sephora. Sephora has a rewards program for customers who purchase Haus Labs through them, allowing them to collect points that can be redeemed for store credit.

Key Points for Market Segmentation Strategies

A successful business must be able to adapt and change each of its market segments throughout its career. It is crucial not to stay stuck in ways that trap your business and keep it stuck in time. Without welcoming appropriate change, consumers may outgrow their business and take their loyalty elsewhere. Although change is good, a company must not change its values and morals unless it is for the better. Customers align themselves with the brands they purchase from. If a company swiftly changes its beliefs and ethics, it will lead to a significant drop in customer retention. A company needs to have strong ethics and morals. A demographic segmentation can be altered at any time. A company might see benefit in growing with its initial audience. On the contrary, a company may not yield the amount of profit it needs from the original demographic. Tailoring the demographic over time can improve sales and increase customer loyalty. A behavioral segmentation strategy is often overlooked in newer companies. Offering promotional codes and a loyalty program can foster a strong customer-company relationship. It will create a community around the brand and a strong brand reputation.

A New Market Segment

A market segment worth exploring is refillable makeup products. Most makeup does not last over a few months and is packaged in tons of plastic. Almost all of the packaging is meant for single-use; once the makeup runs out, it is trash. Brands should develop refillable packaging to reduce waste. The refills will come in smaller cartridges or pans that can be placed within the larger package. These refill cartridges and pans can also be sent back for cleaning and recycling for other orders. Companies can adopt a recycling program that offers points for store credit or discounts, encouraging sustainable practices. Refillable makeup is environmentally conscious by reducing waste and lowering the carbon footprint.

Reference

Bavaresco, R. (2024). Promoting inclusivity through makeup: Haus Labs’ social media strategy. Promoting Inclusivity Through Makeup: Haus Labs’ Social Media Strategy. https://www.dtcpatterns.com/dtc-patterns-articles/promoting-inclusivity-through-makeup-haus-labs-social-media-strategy#:~:text=Haus%20Labs%20utilizes%20their%20Instagram,and%20nurtures%20an%20inclusive%20community.

Over the past few years, I have noticed a change in my buying habits. With returning to school and all the expenses that come with it, I have become more conservative with my spending. When using VALS, I would now classify myself as a maker, while before I was an experiencer. Before having to pay for school and the many expenses, I would spend my paychecks on trips and concerts. I no longer have the freedom to spend my money on experiences; instead, I have to be picky with my choices. My hobbies now include baking, painting, and gardening, and my spending is now centered around these activities. I would rather spend on a craft that I could share with others than on a one-time experience. 

My Purchasing Influences

There are several factors that I now must consider before I make a purchase. I must decide how much value the item would bring to my every day life. I tend to lean towards items that can be used on a daily basis rather than a one time use. If I am not comfortable making a large purchase, I tend to wait a few days to see if I am still thinking about the item. If I have forgotten about it and had to be reminded of it, I know that I do not need to make that purchase. I am very particular about the items I purchase as I do not have the room to buy items I do not need. 

The Purchasing Stage

The stage of evaluation of alternatives is when I decide which product to purchase. With a need to be mindful of my spending habits, I always try to find the best deal for the product I want. Reviews are my favorite thing to consider when comparing different products. Having real customers’ opinions and feedback helps me choose the correct option for myself. I like to compare prices and check other stores to see if they offer special prices. 

Buying Decision Influences

With market research, I tend to look for consumer-based opinions. I like to consider products that have a great customer-to-business relationship and loyalty. Another thing I research for is ingredients. I prefer to use clean and environmentally conscious products and brands. If a brand does not share the same morals and values as I do, I will not be purchasing from them. It is crucial to buy from ethical companies.