Episode Overview

Podcast: DTC Podcast
Episode: #557: Why People Buy: CPG & DTC Brand Growth with Seth Waite
Date: November 3, 2025
Main Theme:
A deep dive into the real reasons people buy consumer products, exploring the psychology, science, and practical tactics behind consumer decision-making. Seth Waite—CPG growth strategist—shares frameworks, case studies, and actionable advice for DTC and CPG brands looking to unlock growth by understanding their customers’ true motivations.

Key Discussion Points and Insights

1. The Core Question: "Why Do People Buy?"

• Consumer Understanding: Founders often assume they know their customer (“My mom likes this, my friends like this…”), but real data shows otherwise.
• Product-Market Fit Redefined:

  “Product market fit is when the only reason why you’re not selling more is money.”
  — Seth Waite [00:00, 26:00]

• Scaling Success: True insights come from pinpointing the VIP customers—those obsessed with the product—and reverse-engineering their motivations.

2. Seth Waite’s Background & Aha Moment

• Early CPG career at Sam’s Club—launched their first mobile app (including on BlackBerry).
• Realization: Most brands operate on assumptions, not active, up-to-date data.
• “Everybody’s operating off of three-year-old decks...those were built on assumptions also.”
  — Seth Waite [02:52]
• The science behind purchasing decisions exists, but most don’t leverage it.

3. Moving Beyond Demographics

• Demographics vs. Motivations:
  Demographics (“Millennial mom,” “Gen Z”) are interesting but “not always insightful.”
• Motivation Segmentation:
  Focus on actual behaviors and motivations—what people do and why—rather than grouping by surface-level traits.
• See-Through Shopping Carts:

  “There’s a reason why shopping carts are see-through….a lot of products are influenced by how we’re seen by others.”
  — Seth Waite [05:05]

4. The “Why People Buy” Pyramid Framework ([07:35])

• Modeled after Maslow’s Hierarchy of Needs, tailored for CPG (especially food & beverage):
  • Basic Needs: Taste, texture, satiation, price.
  • Emotional Values: Nostalgia, indulgence, social signaling (“Does this make me look better?”)
  • Personal Growth: Functional foods—energy, health, weight loss.
  • Beyond Self: Belonging to a bigger community, cause, or mission.
• Example:
  It’s not just about “what’s in the package”—but also the feelings and aspirations the product taps into.

5. Oreo: Case Study of Mastering the Motivation Ladder ([12:08])

• Baseline: Nails basic needs (great taste, texture), then moves up:
  • Emotional: Nostalgia-laden brand rituals (twist, lick, dunk in milk).
  • Category Domination: 80% of cookie aisle shelf space belongs to Oreo.
  • Indulgence and Shareability: Product occasion versatility.
  • Innovation: 231 limited flavors & regular “scarcity” drops drive excitement.
• Memorable Quote:

  “You can eat a whole sleeve of those things in a single sitting. And they’re very shareable…”
  — Seth Waite [14:27]

6. Subconscious Drives, Branding, and Storytelling ([18:14])

• Brands unlock powerful, subconscious drivers (e.g., adding an egg to cake mix to feel “homemade”).
• Rebranding Risks:

  “Are you going to mess up something that’s working?”
  — Seth Waite [20:10]

• Deep brand value can sit in subtle, often overlooked cues—logos, colors, rituals.

7. Knowing Your Customer: Research and Experimentation ([20:10], [39:21])

• Don’t just guess—talk to real customers.
• Use surveys, interviews, and listen to when and why products are bought, what they replace.
• IRL (“in real life”) use-cases reveal true occasions and motivations, often missed by assumptions.

8. The Psychological “Job to Be Done” ([23:59])

• Understand the problems your product solves (“two-inch hole, not a two-inch drill bit”).
• Real competition isn’t just other brands, but any product/service that solves the consumer’s deeper need emotionally, practically, or socially.

9. Product-Market Fit & The “Kingpin” Strategy ([25:56]-[31:32])

• True Product-Market Fit: “When the only reason you’re not selling more is money/capacity.”
• Measure fit by how upset customers get if the product disappears.
• VIPs Over Masses: Focus first on the obsessed fans—not everyone (the “kingpin” in bowling)—and scale from there.
• Multi-Year Planning: Knowing your core segment unlocks proactive, layered marketing strategy, rather than “firefighting” campaigns.

10. Unlocking Emotional Connection: Brand Storytelling ([32:40])

• Customer’s Story, Not Yours:

  “The real story you should be telling is what’s their story, the customer’s story. You’re trying to show for them these are the moments, the occasions…connecting the dots to this very emotional experience early on.”
  — Seth Waite [32:40]

• Show aspirational or relatable product occasions.

• Examples:

  • "Hot girls eat tinned fish" (Fishwife) makes an old category aspirational and cool, letting women “raise their hand” and self-identify with the brand ([34:38]).
  • Brands that “get weird” (e.g., Liquid Death, Flamin' Hot Cheetos) create tribal identities and make decisions easier for consumers.

11. Risk, Creativity, and Category-Breakouts ([37:06])

• Flamin’ Hot Cheetos ($3B brand): Outrageous positioning, taking creative risks.
• Liquid Death: Media company masquerading as a beverage, driven by lifestyle association more than product taste.

12. Practical Steps for Brands ([39:21]-[43:26])

• Budget for Customer Research:
  If you aren’t investing time/effort into customer understanding, you’re missing the mark.
• Start Small:
  Use surveys, 1:1 interviews, social listening; today’s tools (Zoom, transcription, ChatGPT) make this accessible—not a $150K project.
• Key Question for Interviews:

  “If this product disappeared today, what would you do?”
  — Seth Waite [41:02]

• Ask open, probing follow-ups to reveal real usage, replacement, and occasion insights.

Notable Quotes & Memorable Moments

• On the Limits of Demographics:

  “If I put 100 Gen Zers into a room, they’re definitely not the same…”
  — Seth Waite [05:05]

• On Product-Market Fit:

  “Product market fit is when the only reason why you’re not selling more is money.”
  — Seth Waite [26:00]

• On VIP Customers:

  “You’re really looking to say, there’s this segment here. There’s a motivation and psychology behind these VIPs, and my goal is to scale those.”
  — Seth Waite [27:38]

• On Brand Storytelling:

  “The real story you should be telling is what’s their story, the customer’s story…”
  — Seth Waite [32:40]

• On Research:

  “No one’s above it…and there’s no amount of product market fit that justifies not continuing to do that kind of research and asking those questions.”
  — Seth Waite [43:19]

Segment Timestamps

• Intro & The “Why” [00:00 – 02:44]
• Seth’s CPG Journey [01:04 – 04:59]
• Motivations vs. Demographics [05:05 – 07:32]
• The Why People Buy Pyramid [07:35 – 11:56]
• Oreo Case Study [12:08 – 17:15]
• Subconscious Brand Triggers [18:14 – 23:59]
• Product Market Fit/Kingpin Strategy [25:56 – 31:32]
• Emotional Brand Building; Hot Girls Eat Tinned Fish [32:40 – 37:06]
• Creativity, Risk & Category-Breakouts [37:06 – 39:08]
• Customer Research & DIY Tactics [39:21 – 43:26]

Takeaways for DTC & CPG Brands

• Understanding the deep motivations—beyond demographics—fuels faster, stickier growth.
• Focus product market fit on creating “panic” when you run out; obsess over VIPs.
• Develop brand stories that paint the customer’s aspirations, not just your own origin.
• Budget and prioritize direct conversations with real users—consistently, not just at launch.
• Get bold and creative: Success today favors brands willing to take risks and “get weird,” making memorable brand moments that drive community and loyalty.