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The Group Managing Director of Black Pelican Group, a leading name in Nigeria’s premium lifestyle and interior solutions sector, Michael Owolabi, has shared his perspective on the changing dynamics of consumer behaviour, noting that while price remains an important consideration, consumer confidence is increasingly becoming a decisive factor in purchasing decisions.
Owolabi, who has spent decades operating within the Nigerian business landscape and engaging directly with changing consumer preferences, describes this shift as a movement from simply competing for customers on price to earning their confidence in the value and outcome of their purchasing decisions.
That understanding has also shaped Black Pelican Group’s customer-first philosophy, influencing its approach to product quality and customer experience across every touchpoint, from initial engagement and consultation through purchase, delivery and after-sales support.
According to him, consumers have always purchased products because they need or want them. What is changing is the basis on which they decide which product, brand or business deserves their money.
The modern consumer is increasingly evaluating the broader value of a purchase – the quality of the expected outcome, reliability, convenience, service experience and the credibility of the business behind the product.
“Customers are not simply evaluating what a product costs. They are evaluating what they believe that purchase will deliver and whether they can trust the business to deliver on that expectation.”
Owolabi noted that this shift has significant implications for businesses, particularly as consumers now have greater access to information, alternatives and the experiences of other customers. They can compare products, examine reviews, seek recommendations and form opinions about a brand long before engaging with its sales team.
This, he said, has fundamentally changed the relationship between businesses and consumers.
“The customer has more information and more choices, and that means businesses have to do more than make a compelling offer. They have to give the customer a reason to believe that choosing them is the right decision.”
He describes this growing importance of confidence as a form of commercial currency – one that businesses accumulate through consistent product quality, professional service, credible expertise, reliable delivery and the ability to stand behind their commitments.
“Confidence is an asset that businesses accumulate over time. A company that has consistently delivered for its customers does not approach every new transaction from zero. Its reputation has already done part of the selling.”
The shift is particularly evident in the premium market, where consumers are becoming more deliberate about what justifies a higher price.
“Premium is no longer simply about having something that costs more. Customers increasingly want to understand what the premium represents, which could range from better performance, greater longevity, superior expertise, better service, convenience, to the assurance that the business will stand behind what it has sold.”
A business may have an excellent product and a strong marketing campaign, but if the experience consistently contradicts the promise, confidence will eventually be eroded.
“Every interaction either strengthens confidence or weakens it.”
He believes this should influence how businesses assess their commercial strength. Beyond revenue, market share and customer acquisition, businesses should consider how many customers trust their recommendations, return without extensive persuasion, recommend them to others and remain confident that issues will be resolved when things do not go according to plan.
“These are not soft measures. They have very real commercial consequences. They influence conversion, retention, referrals, pricing power and the cost of acquiring the next customer.”
As consumers become more informed and have more choices, Owolabi asserts that businesses will increasingly compete not only on what they sell, but on the confidence they create around the decision to buy from them.
“The market is not becoming less price-conscious. It is becoming more sophisticated about value. And in that environment, the businesses that understand how to earn, protect and compound consumer confidence will have an advantage that is hard to replicate.”
