Consumer decision-making in the real world can be murky, constantly impacted, clouded, and shifted by fast-changing macro economic forces. And even as we continually search for tangible leading indicators as to consumer sentiment and behavior, they remain scarce.
Years ago, Wall Street analyst Nik Modi challenged us to apply our measures to create and demonstrate a leading indicator — a way to diagnose and even predict brand performance in the effort to find a predictive lens, vs. lagging indicators that are backward-looking.
The science of consumer psychology reveals a strong force at play in the marketplace. More importantly, we recently overlaid sales volume and household penetration data from the past couple of years demonstrating the correlation between psychological sentiment and real-world business performance.
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