1.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Leigh Caldwell
Irra6onal Agency
Behavioural economics
gets real
Implicit measurement of
customer desires
7 December 2016
Lizzi Seear
InterCon6nental
Hotels Group

2.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
What is under the
surface
What we can’t
measure directly
What we feel…but don’t know
What is implicit?

3.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Background Your
Photo
When Kemmons Wilson
opened the first Holiday Inn in
1952, he knew exactly who his
customers were and what they
wanted.
Mum and Dad and two kids who
needed a swimming pool, an
affordable meal, and no hidden
charges.

4.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Your
Photo
Over the past sixty years, huge
social, economic, cultural and
demographic changes have
revolu2onised our business, our
industry, and indeed our world.
High levels of global recogni2on but both brands need
a clearer focus on customer needs to ensure growth
and revenue targets are met.
1,151 Holiday Inns and
2,406 Holiday Inn
Expresses around the
globe
Background

5.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Research ques6ons Your
Photo
What should each brand be
focusing on to create
differen2a2on in a compe22ve
and crowded market?
What elements of the guest
journey drive value - emo2onal
value and commercial value?

6.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Your
Photo
These were ques6ons that we could
not ask respondents directly.
Implicit methods were
the solu6on.

7.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Your
Photo
The whole research world
has a shared problem.
It turns out these aren’t only IHG’s problems

8.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Your
Photo
We don’t understand ourselves
…and we can’t tell the truth.
Because there’s a problem with people

9.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
The problem with people Your
Photo
• Image (and self-image)
management
• Introspec2ve ability
• Imagining behaviour in
hypothe2cal situa2ons
• Response biases
• Abstract ques2ons give bad
answers

10.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
This is why we need implicit methods. Your
Photo
• Making indirect deduc2ons
• Focused on measuring
unconscious processes
• Not telling respondents
what we are measuring
• Designed to mirror real-
world decision making

11.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Understanding how to get accurate responses Your
Photo
• Asking the right ques2ons
• Recrea2ng the in-the-
moment mindset
• Asking about tangible,
inferring the intangible
• Pacing and rhythm

12.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
A new genera6on of tools can help Your
Photo
• Behavioural Conjoint
• Provides the dimensionality of
tradi2onal conjoint
• The accuracy of implicit measures
• Measures intangible as well as
tangible drivers
• The ability to measure a huge depth of
detail in a sta2s2cally reliable way –
due to scale

13.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
30,000+ people Your
Photo

14.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
How we measured what customers really value
Your
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Asked people to think about their last hotel stay
Presented a series of choices between two hotel
experiences
Limited time to choose to access more intuitive, less
rationalised motives
Simulated journey through the hotel stay from
arrival to departure
Trade-offs with implicit ranking
+

15.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Your
Photo

16.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Why behavioural conjoint is different Your
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Tradi+onal conjoint:
• Assumes that respondents have unlimited 2me to
make a decision
• Assumes they take all factors into account, even if
some receive a low weigh2ng
• Produces a single u2lity weigh2ng across all customers
• Uses a fixed list of acributes and levels
• Is focused on product features and price
Behavioural conjoint:
• Mirrors the decision-making pace of real life by making
respondents choose quickly
• Finds out which are the 2-3 key factors that
respondents use in each decision
• Separately produces acribute rankings and acribute
weigh,ngs and clusters respondents into groups with
different u2lity weigh2ngs
• Adap2vely presents op2ons as it learns about each
respondent’s decision process
• Can test the impact of context, product features and
psychological pricing

17.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Mobile ethnography Your
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Please tell us the firstthing you did when yougot to your hotel room

18.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Implicit Ranking Your
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19.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Implicit Ranking Your
Photo

20.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
What maers to guests Your
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A rich database of feature values
• Some things we already knew that macered, but
could now finally put a dollar value on and
calculate ROI
Indirect calcula2ons of monetary worth
Poten2al damage from feature choice

21.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Same but different… Your
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22.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
What did respondents say? Your
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It really reminded me of the hotel experience I had during my last visit.
There was a lot of informa6on on choices so I tended to pick the most important things even if the rest weren't to my liking.
It was fun and enjoyable and
informa6ve too. Very different
and apt for travellers like me!
I liked the idea of choosing
between the 2 op6ons and
comparing which was beer/
worse.
It was challenging and
thought-provoking. Quite
different than the regular ones,
par2cularly the 2me bound
choice segment was really a very
enjoyable aspect.
The 2med part did get somewhat
nerve racking like I was taking a test
but not too bad. Survey help to read mind of
guests.
Good survey, easy to
understand....kept you busy
enough and focused
survey is very relevant to me. survey design is great, very user friendly thank you
I actually enjoyed this
one.

23.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
How implicit was it? Your
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Implicit reading Diff Explicit claim
Hospitality promise 1.00 +8 Ability to choose rooms 1.00
Essen2al travel accessories 0.94 +36 Help if arriving very early or very late 0.92
Register personal room preferences 0.79 +2
Brief descrip2on of hotel facili2es and layout at
checkin
0.92
Help if arriving very early or very late 0.52 -2 Op2ons to check you in faster 0.92
Confirma2on of room preference requests 0.51 +10 Register personal room preferences 0.83
Advance confirma2on of room upgrade if you
get one
0.51 +16 Scent and ambience 0.75
List of local events 0.49 +7
Email or mobile alert to confirm booking is
completed
0.67
Kids stay free 0.48 +15
Front desk person offers to arrange for
reserva2ons / transporta2on
0.67
Hotel opened/renovated 0.47 +23 Hospitality promise 0.67
Welcome gil for loyalty scheme members 0.43 +10 Time to get from arrival into your room 0.67

24.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Where has this insight taken IHG? Your
Photo
• Focused insight to build truly
differen2ated moments in the
customer journey with robust
evidence to gain support of the
business and hotel owners
• Focused brand plans for
Holiday Inn and Holiday Inn
Express over the next three
years.

25.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
What’s really important here Your
Photo
• Mirroring true decision-making
• Understanding the real meaning of
"value" and "choice"
• In a way that's ac2onable for business

26.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
The ul6mate impact of implicit tools?
To measure the intangible
To create new emo2onal,
experien2al value for everyone
To tap into the sources of true happiness.

27.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Thank You!
leigh@irra6onalagency.com
lizzi.seear@ihg.com
Your
Photo

28.
Behavioural Economics Gets Real– Research Innova6on
Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016
Q & A
Leigh Caldwell
Irra2onal Agency
Lizzi Seear
InterCon2nental
Hotels Group
Sue York
The Handbook of
Mobile Market Research