Using Science and Psychology to Influence Shopping Behavior
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Why do humans show irrational brand preference? How do we respond to color? When do shopping behaviors go from unconscious to conscious? Today we’ll focus on the laws of shopper psychology and see what they can teach us about marketing.
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Using Science and Psychology to Influence Shopping Behavior
- 1. 1 © 2010 The Integer Group USING SCIENCE & PSYCHOLOGY TO INFLUENCE SHOPPING BEHAVIOR CRAIG ELSTON & ETHAN DECKER, THE INTEGER GROUP
- 2. 2 © 2010 The Integer Group We write 1,200 briefs a year
- 3. 3 © 2010 The Integer Group 90% of account planning focuses on changing attitudes 99% of account planning theory is about changing attitudes 90% of account planning is devoted to chasing the new, the latest, the next big trend Source: Analysis of planning stuff, The Integer Group
- 4. 4 © 2010 The Integer Group We wonder, how does Twitter work? When we should be asking, how do people work?
- 5. 5 © 2010 The Integer Group Think about your own ketchup habits. Which came first, attitude or behavior?
- 6. 6 © 2010 The Integer Group If we had a way of always being certain of how shopper’s made decisions? If we could translate that knowledge across any situation and any client brand? If what we had was an approved science validated through years of research and generally accepted by academics, marketers and advertisers? How great would it be to have the ‘Newtonian laws’ of marketing F = G m1m2 r2
- 7. 7 © 2010 The Integer Group Tropicana clearly broke the laws 30% sales decline after the redesign
- 8. 8 © 2010 The Integer Group It wasn’t a brand love issue. It was a brand shopability problem.
- 9. 9 © 2010 The Integer Group We’ll cover 3 sets of laws Cognitive information processing Psychological thought & feeling Social interaction Source: Analysis of planning stuff, The Integer Group
- 10. 10 © 2010 The Integer Group Cognitive: Schematic Navigation When does this stop being recognized as Heinz? As ketchup?
- 11. 11 © 2010 The Integer Group Cognitive: Habituation How often do you veer from your autopilot when shopping?
- 12. 12 © 2010 The Integer Group Cognitive: Contrast & Confusion Which stores switch things up to disorient you and make you see more?
- 13. 13 © 2010 The Integer Group Cognitive: Contrast or Habituation? How many trips did it take until you were fine at Ikea?
- 14. 14 © 2010 The Integer Group Cognitive laws Psychological laws
- 15. 15 © 2010 The Integer Group Psychological: Loss Aversion How much proof does it take for you to try something new?
- 16. 16 © 2010 The Integer Group Psychological: Loss Aversion 30% of women go down the aisle intending to buy and leave empty-handed.
- 17. 17 © 2010 The Integer Group Psychological: Availability Bias Aspirin Jelly bean Salt Pop quiz! Name a brand of each.
- 18. 18 © 2010 The Integer Group Psychological: Availability Bias Aspirin Jelly bean Salt Now name another brand of each.
- 19. 19 © 2010 The Integer Group Psychological: Discounting the Future Why doesn’t a $38 savings (over 5 years) trump a $15 savings on cheaper bulbs today?
- 20. 20 © 2010 The Integer Group Psychological: Discounting the Future Is future debt so much less painful than present debt?
- 21. 21 © 2010 The Integer Group Psychological: Anchoring Pop quiz! Which red wine is the “best”?
- 22. 22 © 2010 The Integer Group $7 / glass $10 / glass Psychological: Anchoring $12 / glass Now which red wine is the “best”?
- 23. 23 © 2010 The Integer Group Cognitive laws Psychological laws Social laws
- 24. 24 © 2010 The Integer Group Social: Reciprocation If they give you a nice bathroom in Times Square, will you give them a try at the supermarket?
- 25. 25 © 2010 The Integer Group Social: Proof by Authority
- 26. 26 © 2010 The Integer Group Social: Proof by Authority The new authority is your friend group. Now you can consult them.
- 27. 27 © 2010 The Integer Group Pretty Boy.Nerd. Social: Commitment & Consistency Once you identify yourself in a certain way, what products do you need to buy to be consistent with that image?
- 28. 28 © 2010 The Integer Group Social: Scarcity They leave the ‘sold out’ items on the page to show you what you’ve already missed out on. Doesn’t that make you nervous?
- 29. 29 © 2010 The Integer Group Social: Liking Duckies are cute.
- 30. 30 © 2010 The Integer Group Social: Social Proof What did other people do?
- 31. 31 © 2010 The Integer Group Social: Social Proof What did others think of my professor?
- 32. 32 © 2010 The Integer Group Social: Social Proof What do other people like to read these days?
- 33. 33 © 2010 The Integer Group Social: Social Proof Facebook likes are now showing up at retail.
- 34. 34 © 2010 The Integer Group Exercise time
- 35. 35 © 2010 The Integer Group 1. Currently 7 in 10 men use Brand X razors. The company wants to increase market share by 5%. 2. Brand Y salt is the original (est. 1906), but it’s threatened by private label competitors. Using laws of behavioral economics and technology, work one of these cases:
- 36. 36 © 2010 The Integer Group Cognitive Schematic navigation Habituation Contrast & confusion Source: Analysis of planning stuff, The Integer Group Psych Loss aversion Availability bias Discounting the future Anchoring Social Reciprocation Authority Commitment & consistency Scarcity Liking Social proof
- 37. 37 © 2010 The Integer Group
- 38. 38 © 2010 The Integer Group About Integer: we are one of the largest retail, promotion and shopper marketing agencies in the world Denver New York Dallas Des Moines Sao Paulo Paris Milan Hamburg Shanghai Singapore Tokyo Dubai Johannesburg
- 39. 39 © 2010 The Integer Group Craig Elston SVP, Insight & Strategy The Integer Group +1.303.393.3474 celston@integer.com @craigelston Download or subscribe to our presentations, white papers and editions of The Checkout at www.shopperculture.com Ethan Decker, PhD Group Director, Insight Strategy The Integer Group +1.303.393.3175 edecker@integer.com @ehdecker THANKS