Consumer Behavior Is Anything but Predictable: Insights from Katie Thomas of Kearney Consumer Institute

In this conversation, Christine Russo, host and creator of What Just Happened, sits with Katie Thomas from the Kearney Consumer Institute. Thomas enlightens a spin on current-day perspectives suggesting that businesses can shift away from rigid, category-based views of shoppers and age-based demographics; and instead focus on the full psychological and lifestyle context of consumers. She explains that uncertainty, lingering from the pandemic and ongoing economic challenges, has made consumers more sensitive, selective, and frustrated, leading to brand skepticism and new behaviors even boycotts. While data and need states can offer valuable insights, Katie warns that brands often underestimate consumer irrationality and should avoid relying too heavily on structured analysis instead of qualitative human understanding. Modern brands must stay grounded in the emotional realities of their consumers if they hope to remain relevant and trusted.

5 Key Takeaways:

1. Consumers do not shop in strict category lines; they shop based on lifestyles, emotions, and immediate needs.

2. Brand loyalty is fragile — consumers feel more frustrated and disconnected than ever, especially as prices rise without perceived added value.

3. Psychological insights are crucial, but brands sometimes misuse data by ignoring consumer irrationality.

4. Entertainment and engagement must be authentic and thoughtful — not sensory overload or gimmicky experiences that neglect fundamentals.

5. Brands that want lasting trust must focus less on short-term wins and more on consistent, meaningful relationships rooted in true consumer understanding.