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Brain Game: Behavioural economics - the complete picture?
Darren Bhattachary, Mark Francas, George Kyriakopoulos, Adhil Patel and Anjali Puri, TNS, In Focus, November 2013
This article describes behavioural economics as a collection of insights that has much to add to traditional consumer research, but is far from a complete, self-contained answer to why people behave the way they do.
This article describes behavioural economics as a collection of insights that has much to add to traditional consumer research, but is far from a complete, self-contained answer to why people behave the way they do. Through the example of a newly engaged couple buying a ring, it discusses different factors that can influence decisions. These include the use of heuristics, which provide ways of deliberately simplifying choices to make them more manageable; the influence of contextual factors; the relationship between available products; distinction bias and affect. The authors warn against reducing decision-making to a set of contextual triggers and instead encourage marketers to integrate behavioural economics with other forms of insight to get a holistic view of human decision-making.
How behavioural insight can boost effectiveness
Matthew Carlton, Event Reports, IPA Eff Fest, October 2013
This report examines new insights into consumer behaviour and discusses how they could inform marketing.
This report examines new insights into consumer behaviour and discusses how they could inform marketing. Marketers need to be aware that human decisions are shaped by emotion, expert advice and peers, more often than rational thought, and that different categories are guided by different decision-making methods. The report also looks at the 'pilot and autopilot modes' of our brains, with most functions being carried out in autopilot. It includes the Decode Goal Map, which highlights six goals as a framework to create the desire to purchase: adventure, autonomy, discipline, security, enjoyment and excitement.
Mu Xiang, Steven Hu, with Fish Huang and Theresa Loo, Admap, July/August 2013, pp. 39-41
This paper discusses research from China that looks into habits of online gamers. It finds that most choose an online role-playing personality similar to their own.
This paper discusses research from China that looks into habits of online gamers. It finds that most choose an online role-playing personality similar to their own. This gives brands the opportunity to target these gamers by finding matches with their own brand personalities. The authors discuss certain types of online gamer archetype personalities - from close combatant to healer - before arguing that the games can be powerful platforms for enhancing brand relevancy, preference and loyalty. The paper concludes by suggesting examples of how brands can be matched with gamer archetypes.
The skincare consumer journey
Linda Liberg, Admap, July/August 2013, pp. 36-38
This article applies new behavioural research into how American women buy skincare products and identifies five key stages in the process.
This article applies new behavioural research into how American women buy skincare products and identifies five key stages in the process. For one in four women, addressing a specific problem or issue is the key motivator for changing skincare products. The five stages are Open to possibility, Decision to change, Evaluating, Shopping and finally, Experiencing. These stages correspond to specific need-states that drive each step, and gaining a deep understanding of each of these decision phases will help marketers to navigate their consumers smoothly through the path to purchase and instruct brand owners on where to invest for optimal impact.
Point of View: Buffeting loyalties with advertising
Byron Sharp, Admap, June 2013, pp. 13-13
This brief article challenges the notion that advertising has a strong persuasive influence on the brand purchasing habits of consumers, who typically have a repertoire of brands from which they choose.
This brief article challenges the notion that advertising has a strong persuasive influence on the brand purchasing habits of consumers, who typically have a repertoire of brands from which they choose. Rather, it argues that advertising exposure freshens consumers' memories of a particular brand, interferes with recall of rival brands and can therefore "temporarily nudge up the chance" that the advertised brand is purchased soon. Overall, advertising has a more powerful role in helping to maintain loyalties and preventing memories and behaviours from fading.
Researching implicit memory: Deep dive through trance
Lisa Morgan, Admap, May 2013, pp. 36-37
This article describes how brands can use hypnosis or trance techniques to better understand consumers' thought-processes and unconscious purchase choices.
This article describes how brands can use hypnosis or trance techniques to better understand consumers' thought-processes and unconscious purchase choices. A dual-method research project that involved trance and standard qualitative interviewing revealed the sub-conscious influences on supermarket shopping. For example, in-store discount messaging resonated with consumers, as did additional sensory factors such as smell, taste and touch. The research also showed the significance of strong first impressions that can lure customers away from familiar brands in favour of new ones. By contrast, brand advertising messages rarely feature in trance interviews; possible reasons for this are discussed.
Researching implicit memory: The quest for research precision
Ali Perry and Phil Sutcliffe, Admap, May 2013, pp. 28-30
This paper argues that without a clear understanding of individual decision-making and with too much of a focus on the collective behaviour of demographic groups, much research will simply lead marketers astray.
This paper argues that without a clear understanding of individual decision-making and with too much of a focus on the collective behaviour of demographic groups, much research will simply lead marketers astray. Instead, companies can gain direct, practical plans to drive growth by embracing precision research that recognises the difference between stated intent and actual behaviour. Part of this process involves a restructuring of research approaches around the way the human brain actually works and the crucial distinction between the unconscious decision-making part of the brain and the rational survey-completing part. The paper advises market researchers to avoid inviting respondents to explain subconscious actions rationally. Instead, they should use far shorter surveys that focus on questions that are relevant to the way individuals make decisions and that don't actually encourage vague or inaccurate answers.
How to justify 'premium' for the emerging affluent Chinese consumers?
Sirius Wang and Troy Hakansson, Millward Brown Asia, Point of View, April 2013
This article examines the rise of the affluent class in China - the top third of the population by income - and how marketers can engage with them.
This article examines the rise of the affluent class in China - the top third of the population by income - and how marketers can engage with them. It examines whether brands can provide unique functional and emotional values to meet more than just the basic functional demands of consumers to effectively balance "high premium" and "high attractiveness" and become a "justified premium brand". Only 7% of the 600 brands in Millward Brown’s 2011 and 2012 BrandZ Chinese database earn this label, with loyalty driven by their dynamism and salience. These brands are influential in their innovation and media communication, and seen as being creative, in control, assertive and trustworthy. To achieve this status, a brand should grasp relevant market opportunities and position itself accurately, avoiding a positioning that is too extreme while maintaining uniqueness. Examples of brands that have achieved this are Septwolves, a men's apparel brand, and Blue Moon, a laundry care brand.
Mobile shoppers: More discerning and brand-conscious
Polly Christie, Global TGI, Dispatches 12, April 2013
This article looks at how the global boom in smartphone ownership is changing the retail landscape and the way consumers shop.
This article looks at how the global boom in smartphone ownership is changing the retail landscape and the way consumers shop. Insights reveal that men are more likely than women to shop via their mobiles and that mobile shoppers can be far more discriminating than the average shopper when it comes to factors such as quality and brand name. They are also more likely to make impulse purchases, are more likely to be frequent credit card users and more likely to participate in a wide range of leisure activities. In order to stand out, retailers must not only utilise the new innovations that have allowed consumers to look up reviews and make price comparisons in real-time, but also understand how consumers engage with them to create highly customer-centric shopping experiences.
How brands drive value growth
Nigel Hollis and Gordon Pincott, Research on Warc, Millward Brown, March 2013
This article describes a framework called ValueDrivers, which is intended to help businesses understand how to grow the value of their brands.
This article describes a framework called ValueDrivers, which is intended to help businesses understand how to grow the value of their brands. It proposes that brands maximise their potential for growth by delivering a brand experience that is meaningfully different from others, by determining its purpose. Then brands must amplify that differentiation through findability, credibility, vitality, affordability and extendibility.
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