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Leigh Caldwell and Lizzi Seear Research Innovation 2016

Behavioural economics is increasingly accepted in MR as a tool for measuring unconscious, intangible aspects of consumer experience. It has progressed from qualitative exploration of biases, to online tools using reaction time or facial coding to measure brand associations and emotional response. These tools primarily answer tactical communications questions. Finally a generation of behavioural MR tools is emerging that can tackle the full range of questions researchers ask. IHG approached Irrational Agency to understand the future of its Holiday Inn business. An immersive 30,000-person Behavioural Conjoint survey successfully measured and valued 240 different aspects of Holiday Inn’s guest experience and shaped the brand’s 5-year strategy. Behavioural economics research in an ever-more-virtual economy can achieve not just higher brand profits, but a more human and more sustainable world.

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Leigh Caldwell and Lizzi Seear Research Innovation 2016

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 13. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 30,000+ people Your Photo
  14. 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 Photo 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. 15. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Your Photo
  16. 16. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Why behavioural conjoint is different Your Photo 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. 17. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Mobile ethnography Your Photo Please tell us the firstthing you did when yougot to your hotel room
  18. 18. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Implicit Ranking Your Photo
  19. 19. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Implicit Ranking Your Photo
  20. 20. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 What maers to guests Your Photo 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. 21. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 Same but different… Your Photo
  22. 22. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 What did respondents say? Your Photo 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. 23. Behavioural Economics Gets Real– Research Innova6on Leigh Caldwell & Lizzi Seear, Irra2onal Agency & InterCon2nental Hotels Group, 2016 How implicit was it? Your Photo 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. 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. 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. 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. 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. 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

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