The number of caffeinated beverages a consumer drinks before shopping will directly influence their buying decisions, according to a recent study published in the Journal of Marketing. Apparently, consuming caffeine can even influence the type of products that a consumer will purchase, as well as whether or not they'll make an impulsive purchasing decision while shopping.
Here's one way caffeine influences decision-making: consumers under the influence of caffeine (a stimulant which can be found in foods such as chocolate, soft drinks like Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP), energy drinks like Monster (MNST), and coffee) are more likely to make "hedonistic" purchases. More hedonistic items would include products like scented candles, whereas less hedonistic includes the like of kitchen silverware.
"Caffeine, as a powerful stimulant, releases dopamine in the brain, which excites the mind and the body." That's according to Professor Dipayan Biswas of the University of South Florida. "This leads to a higher energetic state, which in turn enhances impulsivity and decreases self-control."
Consumers may wish to adjust their caffeine intake accordingly, except many likely won't since caffeine has addictive properties. Not surprisingly, then, more caffeine in a consumer's system will statistically result in more impulsive spending, which may very well include more caffeine.
Coffee manufacturers, coffee producers, coffee shops and chains, baristas and drive-thru attendants, all then can be said to indirectly influence a culture of spending that focuses more on "pleasure" than "necessity." And that's just the power and influential hand of coffee, such as that served by giant chains like Starbucks (NASDAQ: SBUX) and Tim Horton's (NYSE: QSR), not to mention all caffeine products.
This study suggests that a consumer is more likely to impulsively buy that new scented soap on the endcap of the grocery store after visiting Dunkin' Donuts (NASDAQ: DNKN) that morning, instead of just going in for paper towels as originally planned. Since this would translate to a different consumer landscape, with many interconnected parts, the implications of this study seem far-reaching and noteworthy.
For example, when Walmart (NYSE: WMT) has Subway inside while Target (NYSE: TGT) has Starbucks, and therefore more caffeine readily available to consumers, consumer, corporate, and investor interplay in this market assuredly widens and deepens with great interest.
The total global caffeinated beverage industry alone, as of 2018, was valued over $202 billion, with 85% of Americans consuming caffeinated beverages.