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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.
Point of view: Brand-washed
Byron Sharp, Admap, November 2013, pp. 7-7
This article discusses the hype around the behavioural economics, arguing that the idea that advertising can work a 'hidden magic' on consumers is difficult to substantiate.
This article discusses the hype around the behavioural economics, arguing that the idea that advertising can work a 'hidden magic' on consumers is difficult to substantiate. Research into the psychological effects of advertising has been difficult to repeat in lab experiments, and even harder to substantiate in real-life conditions. It is argued that the idea that consumers are not entirely rational decision makers is not new as limitations in time and resources lead them to make 'good enough' decisions. The shortcuts used to make these decisions present opportunities for marketers to 'frame' and 'nudge' consumers, but marketers should properly test methods rather than believing hype.
Reaching risk-averse shoppers: Insights from the Future Foundation
Emily Barley, Event Reports, nVision Global Client Conference, October 2013
This event report discusses one of the primary themes from the Future Foundation's Global Client Conference: that of growing risk-aversion among shoppers.
This event report discusses one of the primary themes from the Future Foundation's Global Client Conference: that of growing risk-aversion among shoppers. While this habit began to manifest itself during the financial crisis, it appears set to remain a feature of the consumer mindset, offering opportunities for brands able to position themselves as helping customers overcome worries and difficulties in everyday life. Generating deeper insights, and using new technologies, will also be important to engage this new breed of consumer.
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.
Getting to the Truth: The Holy Grail of Implicit Decision Making
Nichola Kent-Lemon, Warc Exclusive, Advertising Research, September 2013
This presentation discusses how traditional market research is seeking to understand implicit consumer motivations through observation of behaviour.
This presentation discusses how traditional market research is seeking to understand implicit consumer motivations through observation of behaviour. It describes the role of implicit processing in decision making, and considers ways of measuring this response through new technologies, including the role of mobile technology. The presentation stresses the importance of context.
A revolution in ad testing
Ken Roberts, Admap, July/August 2013, pp. 10-12
This article argues that communications should change a business outcome, such as increasing market share, but strategies need to be measured on both buyers' rational and emotional drivers.
This article argues that communications should change a business outcome, such as increasing market share, but strategies need to be measured on both buyers' rational and emotional drivers. This is referred to as the "consumption drivers principle". Understanding the hierarchy of consumption drivers must inform the creative idea, and can be improved with quantitative predictive modelling of the rational driver (explicit driver) and emotions catalyst (implicit detonator) of consumption choice. Both these explicit and implicit drivers should be included in the brief. The explicit communications task is to convey the strongest 'reason to believe', while the implicit communications, which impact emotional response, must also be identified and quantified.
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.
The value of context, or what qualitative research can learn from behavioural economics
Anjali Puri, TNS, In Focus, June 2013
This article looks at how qualitative research can look beyond articulated wants and needs to illustrate why behavioural intention does not necessarily translate into actual behaviour.
This article looks at how qualitative research can look beyond articulated wants and needs to illustrate why behavioural intention does not necessarily translate into actual behaviour. Even though consumers may be able to provide explanations for why they make certain choices, these responses do not always provide the whole answer. Unconscious motivations can be determined from behaviour and, using techniques such as cognitive interviewing, can provide interviewers with the tools to access the details of habitual behaviour. This article includes a case study for Horlicks, the malted milk beverage.
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.
#ogilvychange, Yale University and the UK Cabinet Office: Perspectives on behavioural economics from Nudgestock 2013
Tom Bristow, Event Reports, Nudgestock, May 2013
This article summarises key insights from the Nudgestock conference held by #ogilvychange in London in May 2013, where speakers explored the science and practice of changing human behaviour.
This article summarises key insights from the Nudgestock conference held by #ogilvychange in London in May 2013, where speakers explored the science and practice of changing human behaviour. Subjects ranged from the latest research into primate psychology from the laboratories of Yale University, to the UK government’s pioneering use of behavioural economics to implement policy. Representatives of the advertising industry showed how they are using these findings to streamline product marketing.
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Consumer decision making
Behavioural economics, motivation
Buying and shopping
Consumer moods, feelings and choice
Fashions and trends
Price and pricing effects on consumers
Shopper marketing, path to purchase
Lifestyles and psychographics
Choice and behaviour modelling
Brands and branding
Brand and product choice
Planning and buying
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