Research on Digital Brand Positioning from the Perspective of

Consumer Psychology

Wendi Zhang

Business School, University of Nottingham Ningbo, Taikang East Road, Yinzhou District, China

Keywords: Digitization, Brand Positioning, Consumer Psychology.

Abstract: Digital technology is reshaping the global economic landscape and social lifestyle at an unprecedented speed.

New digital business forms or models will emerge, and various industries and enterprises are bound to

accelerate the application of digital technologies, reposition themselves with digital technologies, and use

digital drivers to reconstruct decisions related to consumers. For brands, it is extremely important to establish

meaningful and valuable digital interactions with consumers. This article focuses on discussing the correlation

between brand positioning and data-driven decision-making mechanisms and consumers in the digital

environment. This article integrates data-driven marketing into the brand positioning theory. The study

analyze the impact of digital technology on brands and consumers. Study the approaches and methods for

brands to make decisions and reposition themselves based on collected receipts, as well as reflect the

reconstruction of brand impressions in a digital way. The conclusion will demonstrate the positive effect of

data-driven decision-making on repositioning and the influence of this positioning in the minds of consumers.

1 INTRODUCTION

In many cases, digitalization is recognized as a major

trend and an important driver that can transform the

business community and create business

opportunities (Jukka et al., 2023). In today's rapidly

accelerating business environment, the use of data

technology for analytics drives decisions that are

more informed and correct, and it is of great

importance to maintain a sustained and stable

strategic advantage (Cristofaro et al., 2025). At the

same time, under the impact of digital technology, the

traditional brand positioning and consumer

psychological decision-making are also facing new

challenges. AI and big data technology are

profoundly reconstructing the logic of brand

positioning, shifting from traditional experience-

driven to real-time data-driven, forming a more

dynamic and accurate positioning system. Digital

transformation is already a strategic priority for all

companies, and effective data-driven decision

making is essential for successful competition

(Zaitseva et al., 2022). Digital technology provides

personalization, instant tracking and control, as well

as data analysis about the effectiveness of online

https://orcid.org/0009-0005-3970-6064

campaigns to engage a variety of consumers by

providing knowledge to their prospects by matching

their needs (Tang et al., 2023).

Previous studies on digital technology and the

consumer psychology of brands have sufficient

experience, so it is necessary to combine and

summarize. The existing literature on brand

positioning focuses on one or more unique

advantages that enable a brand to stand out in the

memory of competitors' brands and consumers

(Erling et al., 2022). Repositioning requires the use of

advanced analytical techniques, the ability to put

information to use in decision-making environments

and data-driven decisions. With the help of

mathematical statistics techniques to continuously

improve information processing capabilities and

collect ever-increasing amounts of data (Szukits,

2023). In another dimension, the rapid development

of digital technology has profoundly changed the

psychological decision-making process of

consumers, from information acquisition to the final

purchase behavior, every link is reshaped by

technology. From the perspective of consumer

psychological decision-making, the existing research

on the role of digital technology is from the

Zhang, W.

Research on Digital Brand Positioning from the Perspective of Consumer Psychology.

DOI: 10.5220/0013850400004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 599-603

ISBN: 978-989-758-775-7

599

perspective of the company itself to analyze the ways

they improve their digital marketing capabilities to

attract consumers, and the perspective of consumer

psychology is relatively small (Tang et al., 2023).

With digital empowerment, data becomes a new

factor of production and participates in the production

process. This generative factor must be combined

with other production factors to play a role (Zhang

and Duan, 2024). The change of information

dissemination and interactive environment drives the

change of consumption behavior in reverse. This

study will combine data as a new production factor

with brand positioning and consumer psychology for

a comprehensive discussion. Data-driven marketing

combined with brand positioning theory is reviewed.

It then makes case studies of Uniqlo and Red Note

recommendations and solutions are provided after

literature review and case analysis. In the last

paragraph, the paper concludes with suggestions for

future research.

2 LITERATURE REVIEW

2.1 Data-Driven Marketing (DDM)

Data-driven marketing refers to optimizing practices

and brand communication based on customer

information. Collect, analyze and use data to tailor

marketing efforts to improve the effectiveness and

efficiency of marketing campaigns based on

individual preferences, behaviors and needs of

consumers. Integrates big data, predictive analytics,

and consumer behavior analytics to drive marketing

decisions and strategies. Rooted in the convergence

of information technology and advanced analytics, it

leverages large amounts of data to provide informed

information marketing decisions. According to some

research, data-driven marketing has helped expand

the scope and role of marketing in terms of creativity,

relevance, analytical capabilities, accountability, and

technology (Shah and Murthi, 2021). DDM has a

critical impact on user demand and satisfaction and

plays a vital role in accurately grasping user trends

and improving user demand. It can even accurately

discover users' purchasing preferences,

revolutionizing decision management (Xing et al.,

2023). The data collected for the use of DDM must

conform to the data strategy of the company's primary

objectives, the data provides key information about

the company's needs related to its objectives, is

retrieved through a specialized platform for precise

analysis, and must be protected by the company

collecting it. The use of data information and the

integration of functions improve the ability of

marketing decision makers to respond to and adapt to

changes, and constantly enhance the ability to absorb

new information, becoming the help of data-driven

decision-making. In turn, it adds decision-making

power to data-driven marketing (Sleep et al., 2023).

Perform data analytics, techniques and methods to

discover patterns, correlations and trends to inform

business strategy, turning raw data into actionable

insights. Data-driven marketing is an important part

of modern marketing strategies that impact marketing

efforts by achieving a more precise and effective way

to provide a significant competitive advantage

(Cristofaro and Giardino, 2025).

2.2 Brand Positioning Theory

Brand positioning has become a key strategy to

achieve competitive differentiation in the existing

market, and the brand creates a unique memory of the

brand in the customer's mind by communicating its

visual and non-visual attributes (Leeford Edem,

2023). Positioning theory advocates focusing,

sending a signal about the focus value proposition to

the mind of the target consumer, creating a focus

cognition in the mind of the consumer, and providing

them with a reason to establish an exchange

relationship with the focus seller (Iyer et al., 2023).

The effective communication between brand

positioning and consumers' minds can shape

customers' opinions to a certain extent, occupy a place

in consumers' minds, and then promote consumers'

purchase decisions (Casidy and Lie., 2023). Brand

positioning is not about creating something new but

replacing and occupying what already exists in the

minds of consumers to distinguish the goods and

services offered by sellers from those of competitors

(Goestiawan and Anastasia, 2025). The core of brand

positioning lies in focus, consumers' memory is

limited, and brands focusing on narrow positioning

strategies are easier to obtain memory capacity from

consumers' memories and occupy consumers' minds

(Olsen et al., 2022).

In the book New Positioning, the mental model of

consumers is summarized as receiving only limited

information, preferring simple rather than complex

information. Lack of security, the impression of the

brand will not easily change, the mind is easy to lose

focus. Positioning is the battle of consumers' minds,

and brands form advantages through constant focus

and refinement. The traditional positioning four-step

method is the four-step method, developed by Jack

Trout and Al Ries. It is divided into analyzing the

external environment, establishing the advantageous

ICEML 2025 - International Conference on E-commerce and Modern Logistics

600

position of the brand, providing trust, and planting the

positioning into the minds of customers.

Data-driven marketing provides precise digital

support for brand positioning and strengthens the

dissemination and consolidation of brand positioning.

Enterprises must define the position that customers

can accept in the external market competition

(Kääriäinen et al., 2023).

3 CASE ANALYSIS

3.1 The Case of Uniqlo

Uniqlo is a classic case of digital technology, digital-

driven decision-making to reposition the brand.

Uniqlo is not just a fashion company, it's a technology

company. Uniqlo's leading brand promotes its

clothing as LifeWear with the positioning slogan

"Simple is better". According to Uniqlo's data, more

consumers are more inclined to equal-priced, simple

and high-quality products (Lascity, 2022). Design

and develop products from the perspective of ecology

and environmental protection, leave an impression in

the mind of consumers, and integrate into the brand

positioning. Uniqlo is leveraging data drive through

digital marketing, brand image, price awareness

campaigns and brand loyalty. According to some

researches, consumers will increase their interest in

products through digital channels. Using intensive

digital marketing campaigns to promote the Uniqlo

brand, updating the brand image will increase the

purchase intention, so that the psychological

cognition of the good quality of the product is

engraved in the hearts of local consumers

(Arindaputri and Santoso, 2023). At the same time,

the relatively high price is linked with high quality in

consumers' cognition and generally forms a brand

image and brand positioning of affordable and high-

quality.

In fact, in this series of changes, Uniqlo re-

positioned its brand through data-driven decision-

making, established the cognition of consumers'

minds, conveyed brand information to consumers,

and encouraged consumers to make more decisions

about choosing Uniqlo products. It is not difficult to

realize that DDM plays a very critical role in this task.

In the research of Azuma et al, the collected data

show that the personalized characteristics of

consumers are increasingly prominent in the clothing

industry (Azuma et al., 2024). Uniqlo made the

decision to use Our motto is 'made for all 'as a

promotional slogan for its positioning. People -

oriented thoughts with very Oriental culture are

embedded in it. In the process of data transmission,

the spread of information and images on the Internet

and worldwide makes the products with the same

characteristics able to meet consumers' cognition and

sell well (Richford, 2024). Also, because consumers'

pursuit of self and technological progress, firmly

counter the trend, relying on new technology and

longevity to create value this concept has become

Uniqlo’s new brand values. It also updates

consumers' perceptions of Uniqlo from clothing

brands to technology brands. Uniqlo's original work,

Lifeware, promotes sustainability by reusing,

recycling and upcycling clothing, in line with Japan's

core values. This is to summarize the brand concept

after receiving data feedback from consumers

(Harrell, 2024).

Uniqlo is strengthening the application of AI

applications to promote data-driven decision-making.

Through AI analysis of a large number of data such

as weather and fashion trends, analysis of climate,

fashion trends and other information to predict the

demand for goods, and adjust the supply chain and

inventory, which is conducive to avoiding the

production of redundant products, as soon as possible

to distribute the goods that consumers need. From the

traditional private label specialty retailer to a new

business model that uses information. This

forecasting mechanism helps Uniqlo reduce supply

and demand deviations and reduce the impact of

weather on production and sales. Uniqlo realizes the

closed loop of product feedback and user information

acquisition through digitalization, making the

operation efficiency more efficient than that of its

peers. In inventory management is also managed

through digital drive, Uniqlo stores fully use the

RFID system, each piece of clothing is equivalent to

an ID card record, greatly reducing the cost of

inventory management, improving the convenience

of inventory management, and ultimately convenient

for consumers to buy. Let the convenient brand image

also engraved into the mind of consumers.

Uniqlo uses a "seasonal sense of urgency" to

promote behavioral change. Seasonal urgency is a

way to tailor marketing strategies to different seasons

and special times, and to use urgency and scarcity to

push consumers to act. Urgency marketing in the

digital age is more powerful than ever. Pay close

attention to seasonal and consumer demand changes

through big data computing, flexibly adjust marketing

strategies, use low inventory alerts and seasonal

limited-edition products to create a sense of urgency,

reduce consumer procrastination, and promote

conversion (Aaker, 2015). Therefore, the timely and

changing psychological impression and brand

Research on Digital Brand Positioning from the Perspective of Consumer Psychology

601

positioning of Uniqlo in the minds of consumers are

fully formed.

In general, Uniqlo uses the digital-driven

marketing strategy to successfully grasp the cognition

in the minds of consumers, provide consumers with

accurate information, promote consumer decision-

making, and digitize its brand positioning.

3.2 The Case of RedNote

As one of the industries with the most extensive

application of data technology, social media needs

data-driven marketing to achieve brand

differentiation and positioning to capture the

psychology of consumers.

By applying collected data to accurately grasp the

new needs of user groups, it breaks through the

limitations of ad-driven algorithms, not only using

algorithm-driven feeds, but also adding online

communities that users need more, making peer

recommendations to the center of the community.

Increase user motivation and engagement to replace

the passive scrolling information cocoon

(Zaczkiewicz, 2025). RedNote made this decision

digitally driven, in line with the trend of fostering real

connections online and offline, prioritizing user

choice and more authentic interactions, and

repositioning a community-like social media

platform in the minds of consumers to drive more

consumers to join the RedNote community.

RedNote has created an exclusive brand RedNote

model based on its own user data records, and UGC

content planting community model. It means that

through the sharing, dissemination and interaction of

UGC content, users' cognition and attitude towards

the brand are affected, and ultimately the connection

between the brand and the consumer is being

redefined under this model. The core values of this

data model are a content-driven shopping experience,

digital platforms that enhance user interaction and

engagement, point-based incentives, and content

diversification and personalized recommendations.

The digital technologies used in this pattern include

AI semantic analysis, user portrait system and scene

algorithm recommendation. The psychological

mechanism involved is trust transmission,

strengthening user interaction design, promoting the

formation of brand community atmosphere, and users

can feel a sense of belonging and achievement when

shopping. The real attribute of UGC reduces the risk

of decision making, and the sense of belonging of the

group, strengthens the identity through similar user

content, promotes the conversion rate of customers,

and increases the time of users using Remote. Within

the UGC content community, big data analysis is

conducted to form a closed loop, tracking the data of

users' behavior of browsing, favorites and liking

comments to understand the changes in user

preferences and needs. Based on data feedback, the

content recommendation algorithm is constantly

optimized to improve the accuracy and attractiveness

of the content. To improve its brand positioning in the

online community, attract and promote consumers to

make decisions.

4 SUGGESTIONS

From the case analysis, it can be found that using

data-driven marketing for brand positioning can, to a

certain extent, re-establish cognition in consumers'

psychology and provide information to promote

consumers' decision-making. However, the

challenges of relying solely on data for brand

positioning can lead to inflexible brand positioning.

Data collection often has a time lag trap, with

consumer behavior data lagging real changes in the

market by 3-6 months on average. Blindly following

data, completely data driven may lead to positioning

myopia. Close positioning often makes companies

only see their own narrow model and ignore the entire

market. The data itself may have limitations and

algorithmic biases. Over-reliance on data can also

lead to over-positioning, positioning a brand too

narrowly or broadly. It may also change the

positioning too much, resulting in a decline in the

reputation of the entire brand. It leads to confusion in

the minds of consumers.

5 CONCLUSION

This essay highlights the data-driven impact and

change on brand positioning and consumer

psychological decision-making. Using theories of

data-driven decision making and brand positioning.

The study examined strategies that Uniqlo and

RedNote use data to retarget and engage consumers,

such as using weather data to predict demand

seasonality and a sense of urgency to promote

behavioral transformation, and a precision grass

planting mechanism based on UGC to promote

conversion rates. To promote and ensure more

effective digitalized brand positioning, advanced

prediction and category segmentation are needed to

avoid blind reliance on data.

ICEML 2025 - International Conference on E-commerce and Modern Logistics

602

The limitation of this paper mainly lies in the lack

of data and sample statistics. Future research will

focus more on the collection and analysis of the data

itself, specific analysis of what kind of data to make

and what kind of decisions, and how to influence

brands and consumers. Despite the limitations of the

current research, it is hoped that this article will

contribute to the data-driven and positioning theory

of better brands.

REFERENCES

Aaker, D. (2015). Why Uniqlo Is Winning. Marketing

News, 49(1), 24.

Ameyibor, L. E. K., Anabila, P., & Saini, Y. K. (2022).

Brand positioning and business performance of

alcoholic beverage firms in an emerging market

context: the mediation effect of brand equity.

International Journal of Wine Business Research,

34(1), 133–154.

Arindaputri, N. B., & Santoso, S. (2023). Analysis of the

influence of digital marketing, brand image, and price

perception on purchase intention and brand loyalty in

Uniqlo apparel products. International Journal of

Research in Business and Social Science, 12(4), 57–65.

Casidy, R., & Lie, D. S. (2023). The effects of B2B

sustainable brand positioning on relationship outcomes.

Industrial Marketing Management, 109, 245–256.

Cristofaro, M., Giardino, P. L., & Barboni, L. (2025).

Growth hacking: A scientific approach for data-driven

decision making. Journal of Business Research, 186,

115030.

Goestiawan, G., & Anastasia, N. (2025). The green effect:

how brand positioning fuels sustainable purchasing.

Property Management, 43(2), 305–321.

Hadi, R., Melumad, S., & Park, E. S. (2024). The

Metaverse: A new digital frontier for consumer

behavior. Journal of Consumer Psychology, 34(1),

142–166.

Harrell, A. (2024). Clothing With a Conscience: Uniqlo

Stays True to Japanese Roots. WWD, 22–22.

Iyer, P., Rokonuzzaman, M., Paswan, A., & Alhidari, A.

(2023). B2B brand positioning – A capability

(exploration x exploitation) based typology: Cases from

the Middle East. Industrial Marketing Management,

108, 178–189. h

Jukka Kääriäinen, Leila Saari, Maarit Tihinen, Sari

Perätalo, & Timo Koivumäki. (2023). Supporting the

digital transformation of SMEs — trained digital

evangelists facilitating the positioning phase

Supporting the digital transformation of SMEs —

trained digital evangelists facilitating the positioning

phase. International Journal of Information Systems

and Project Management, 11(1).

Kunst, K., & Vatrapu, R. (2019). Understanding electronic

word of behavior: conceptualization of the observable

digital traces of consumers’ behaviors. Electronic

Markets, 29(3), 323–336.

Lascity, M. E. (2022). Anti-Fashion Branding: Framing

Technology in Uniqlo and Allbirds. Fashion Theory,

26(6), 881–898.

Olsen, L. E., Meling Samuelsen, B., Pappas, I., & Warlop,

L. (2022). Broad vs narrow brand positioning: effects

on competitive brand performance. European Journal

of Marketing, 56(3), 799–816.

Shah, D., & Murthi, B. P. S. (2021). Marketing in a data-

driven digital world: Implications for the role and scope

of marketing. Journal of Business Research, 125, 772–

779.

Sleep, S., Gala, P., & Harrison, D. E. (2023). Removing

silos to enable data-driven decisions: The importance of

marketing and IT knowledge, cooperation, and

information quality. Journal of Business Research, 156,

113471.

Szukits, Á. (2022). The illusion of data-driven decision

making – The mediating effect of digital orientation and

controllers’ added value in explaining organizational

implications of advanced analytics. Journal of

Management Control, 33(3), 403–446.

Tang, Y. M., Lau, Y., & Ho, U. L. (2023). Empowering

Digital Marketing with Interactive Virtual Reality

(IVR) in Interior Design: Effects on Customer

Satisfaction and Behaviour Intention. Journal of

Theoretical and Applied Electronic Commerce

Research, 18(2), 889–907.

Xing, P., Jiang, G., Zhao, X., & Wang, M. (2023). Quality

effort strategies of video service supply chain

considering fans preference and data-driven marketing

under derived demand. Electronic Commerce Research

and Applications, 62, 101338.

Zaitsava, M., Marku, E., & Di Guardo, M. C. (2022). Is

data-driven decision-making driven only by data?

When cognition meets data. European Management

Journal, 40(5), 656–670.

Zaczkiewicz, A. (2025). In Focus: Business Insights:

Consumer Behavior: Consumer Index Reveals

Dramatic Shifts In Shopper Behavior. WWD, 25.

Zhang, Q., & Duan, Y. (2024). Digital empowerment and

export quality: The moderate effect of market

segmentation. Finance Research Letters, 63, 105334.

Research on Digital Brand Positioning from the Perspective of Consumer Psychology

603