Market research is often defined as the study of what people think to get to how people behave and why. predicting or influencing behaviorour heads--our biggest stumbling block in the process
what’s going on in our heads is very difficult to understand
we need to tear down what has been passed down to us from the 20C in terms of our understanding of human behavior.what we’ve inherited may be convenient, very limited model about mysteries and contradictions of human behavior
if I needed a thin, long table which should I choose?
What does this tell us?we’re human. Nobody could argue that the right table is thinner. It is as thin as the left one.It’s not our eyes that are not seeing properly; it’s our brain that processes what we see and creates a visual illusion. our mind that leads us astray.
…we shouldn’t believe everything that we think. mislead. what’s obvious to our mind is not always correct
our economic system and our business systems: based on Classical Economics and its assumptions about human behavior: that humans are driven by self-interest (that is, we’re selfish) and that humans are rational decision-makers (that is, we act consistently and rationally). best possible outcome in every situation and make the correct decisions. in our self-interest we will maximize outcomes for ourselves over the interest of others.But Classical Economics has one fatal flaw: the Economic Man, like Scrooge Mac Duck, never existed and was simply the product of our imagination.People have not behaved as expected.There is a gulf between the rational behavior the model predicts and the actual observed behavior we see in real life.
As far as self-interest/selfishness is concerned, we need to look no further than the internet where apart from simply communicating we are also cooperating. People are voluntarily forming natural hierarchies, solving problems, helping each other, building upon the contributions of others who do the same, we are being open. We are engaging in selfless acts of cooperation. Of our own free will.Now there is mounting evidence that we are genetically predisposed to cooperate….said simply, it’s in our DNA, and rigorous research in behavioral economics has proven this time and time again. The internet is just too big and impactful to not take notice.We must face the fact that we have the wrong model of who we are, and why we do what we do. Implications for marketing and the entire marketing & communications industry, including market research are immense. First and foremost, this essentially negates our entire top-down hierarchical model we’ve dragged into the 21C from the 20C
Humans are not always rational either. Behavioral economics and neuroscience have shown that the rational man theory is not sufficient to explain the all of human behavior. This has become widely acknowledged, and this knowledge makes it clear that the AIDA model (awareness, interest, desire, action) of communications based on its assumption that we can supply factual information on which individuals will then act, and that attitudes precede behavior, can also no longer be applied across the board without question.
Go into more detail on last four examples
Our reaction to marketing depends on individual channel preference.interface and the framework is very important, immediacy is almost everything. Digital: immediacy and how much closer to the point of decision we can reach people
This is the most mind-blowing of all. How can two very similar countries display such a huge difference? The reason behind this finding is absurdly simply:
Austria has an opt-out policy and Germany has an opt-in policy. And what is true for Germany and Austria has been proven true all across Europe. Wherever opt-in is used, there are low rates of organ donation and in the countries where opt-out policies are used, organ donation is high.In other words, throughout Europe there are either countries like Germany or countries like Austria. There is nothing in between.We don’t want to apply too much effort in making choices. Irony: designing something as simple as an application form can be more important than our messaging.The way we frame choice is therefore fundamental to the decisions we make. The difference between 12% and 99.9%
When it comes to explaining behavior or recalling from memory, we are spinning stories. We are monkeys riding tigers believing we are in control. 95% of our thinking takes place in our unconscious part of the brain. The emotional center of our brain. Decisions are made there before we act upon them. So what we then say about what we’ve done is post-rationalization. Said differently, emotional thought precedes rational. We feel then act.
the conscious brain is playing catch-up to what the unconscious brains was already doing. the monkey is making up a story about what the tiger had already done.when we recall from memory, we reconstruct the memory each and every time. very prone to changes. the opinion of others affects our memory. Because we are social animals, we bend facts to appeal, we revise the past in order to fit social pressures.The implications for how we market research is enormous. Simply put, we should consider that observing more and asking less may be a step in the right direction
Obama used a team of behavioral economists in his election campaign. And they knew that the most powerful motivator for action is the suggestion that everyone is doing it.
people want to do what others will do.we like to mimic the actions of people around us as a means to simplify our decisions and to adhere to social norms.songs that have become hits online.this is important for brands…
human behavior is difficult to understand. assumption that people are rational and act in their best interests, sensible but not true. just because we’re not rational doesn’t mean we can’t be understood. if we continue as we are, we will be heading the wrong way down a very lonely road. so instead of having theories about how each one of our disciplines work, how advertising works, how pr works, how digital works, maybe we should focus on a more fundamental question: how do humans work?understanding that will bring us one step closer …
to knowing what we need to know…
9th mktg director's conference oct. 20th 2011 - final
Helena Chari | TNS ICAP twitter: @helena_chari9th Marketing Directors’ Forum October 20th 2011 http://st4tik.deviantart.com/art/Talking-Heads-32971290
theres a party in my mind…and it never stopstheres a party up there all the time... talking heads – memories can’t wait http://st4tik.deviantart.com/art/Talking-Heads-32971290
irrational human traits are ingrained in ourbrainsanchor effect collecting social validation reciprocityconfabulation commitment placebo effect discovery fear ofloss concession scarcity endowment effect choice Hawthorneeffect clustering illusion keeping doors open availabilitycascade authority bias procrastination reciprocity competitionzero-risk bias
why do our headaches persist after taking a one-cent aspirin butdisappear when we take a 50-cent aspirin?why do we prefer €120 in 31 days over €100 in 28 days yet we prefer€100 today over €120 in 3 days?why do we prefer an 80% chance of success versus a 20% chance offailure?why will taxi drivers work long hours if business is slow and shorthours if business is good?why will we change stores to save €8 on a €25 purchase but won’t dothe same to save €8 on a €500 purchase?
why are we more likely to buy German wine if German music is playingin a wine store and French wine if French music is playing?why are youth notoriously not prone to charity yet when via sms theyhave proven to be very receptive?why is organ donation after death only 12% in Germany and 99.9% inAustria?why do we recall with accuracy a certain behavior yet when observedwe do something completely different?why was Obama’s simple use of “a record turnout is expected” as acommunication message 2 weeks before the election pivotal inwinning?
why are youth notoriously not prone to charity yet when via sms theyhave proven to be very receptive? http://culturelabcreative.blogspot.com/2008_08_01_archive.html
why is organ donation after death only 12% in Germany and 99.9% inAustria? 12% 99.9% Germany Austria