1.
Interactive and Digital Marketing
5th of December 2014
Online consumer
behaviour
Dr Lukasz Piwek

2.
AVERAGE SPEND FOR XMAS GIFTS IN UK (2014)
£350
highest in European Union

3.
PROPORTION OF CONSUMERS
PUT IN DEBT AFTER LAST XMAS IN UK (2014)
14%
second highest in European Union (average 9%)

4.
ibtimes.co.uk

5.
vs
vs
vs

6.
(Wiseman, 2007)
RESOLUTIONS ENDING IN FAILURE
88%

7.
resisting temptation !
takes considerable effort and energy!
and after some time !
our capacity to resist is exhausted!
leading to
ego depletion
(Baumaister et al, 1998)

8.
complexity of consumer decisions !
can result in ego depletion!
depleted consumers !
are more likely to become passive!
and make more impulsive decisions !
that may not fall in line with their true values
Baumaister et al (2005)

9.
if you’re ego depleted!
you’re more likely to be !
selfish!
use sexist language!
make superficial judgements
Muraven et al (2003)
Baumaister et al (2005)
Gaillot et al (2007)

10.
judges grant more parole !
in the morning !
and just after lunchtime
Danziger et al (2011)

11.
fox.com

12.
behaviour economics
with quick introduction to:!
ego depletion!
dual process theory!
priming!
illusion of validity

13.
behaviour economics
“we are not always rational, !
and we often make mistakes”!
we are susceptible to influences!
from our immediate environment,!
irrelevant emotions, stereotypes,!
beliefs, norms, and many other factors

14.
wordpressphoto.org

15.
13 x 24

16.
system 1
system 2
automatic & unconscious
rapid & low effort
recognition, perception, orientation
nonverbal
control & conscious
slow & high effort
rule following, comparison
complex computations
linked to language
13 x 24
Dual process theory
Stanovich & West (2000)

17.
priming
implicit (automatic) memory effect !
in which exposure to one stimulus!
influences a response !
to another stimulus

18.
florida!
forgetful!
bald!
gray!
wrinkles
exercising!
rapidly!
send!
typical!
clears
Bargh et al. (2000)

19.
priming people with money!
makes them more selfish
Vochs (2006)

20.
support to increase !
funding for schools !
is higher !
if voting takes place in schools
Berger et al. (2008)

21.
people litter less in the train!
if there is a smell !
of cleaning product
De Lange et al (2012)

22.
women who were exposed !
to flowers!
perceived the man!
to be more attractive!
and sexier
Gueguen (2011)

23.
more donation made !
when word ‘love’!
was added to message
Gueguen (2011)

24.
children consumed !
45% more food !
when exposed to !
food advertising in cartoons
Harris et al (2009)

25.
illusion of validity
or illusion of skill
with example being!
stock traders

26.
shares sold by traders!
did better !
than those they bought!
by 3.2% per year
Barber & Odean (2002)
based on 10,000 accounts
and 163,000 stock trades

27.
most active traders !
had poorest results, !
while the investors !
who traded the least !
earned the highest returns
Barber & Odean (2002)
Trading is Hazardous to your Wealth

28.
the men acted !
on their useless ideas for trading!
significantly more often !
than women, !
and as a consequence !
women achieved !
better results in trading !
than men
Barber & Odean (2006)
Boys Will Be Boys
rifenews.com

29.
online consumption
changed our habits in
entertainment
shopping!
travel!
work

30.
mobile!
is the new !
shop window

31.
(2013)
NUMBER OF CONSUMERS USING THEIR
SMARTPHONE WHILE SHOPPING IN-STORE
70%
(2012)
NUMBER OF CONSUMERS WHO CALL OR VISIT
A BUSINESS AFTER LOOKING FOR LOCAL INFO
ON THEIR PHONE
77%

32.
consumers!
co-create!
advertising!
and branding

33.
(2014)
MORE VIDEOS UPLOADED TO
every 60 days
than the top three broadcasters produced
in 60 years
(2012)
ONLINE VIDEO ADS RECEIVED
18.3%
more viewer attention than TV commercials

34.
digital traces of!
online behaviour!
search!
click!
view!
like!
share!
follow!
save

35.
FOR $27* YOU CAN BUY
250
1000
5000
likes
followers
views
*boostlikes.com (2014)

36.
TOP 10 ONLINE RETAILERS
in UK, according to D&W (2014)

37.
Value of goods sold
in the last quarter of 2012
$150 bln +
$160 bln
kbcb.com (2013)

38.
physical retail!
is very alive!
and kicking
retaileconomics.co.uk (2014)

39.
CONVERSION RATES FROM GOING TO REAL STORE
TO BUYING SOMETHING
20% in fashion
50% in electronics
95% in groceries
Experian (2014)

40.
CONVERSION RATES FROM GOING TO WEBSITE
TO BUYING SOMETHING
1-5%
Experian (2014)

41.
AVERAGE NUMBER OF ONLINE CUSTOMERS
WHO ABANDON THEIR SHOPPING CART
68%
Experian (2014)

42.
online/offline split!
no longer matters

43.
online experience in offline retail
Apple

44.
online experience in offline retail
Burberry

45.
digital payment models

46.
The amount it costs
the United States Mint
to produce 1 cent coin
1.6 cents
US Mint (2014)

47.
wearable technology!
augmented reality
blippar.com

48.
wearable technology!
augmented reality
blippar.com

49.
new delivery models
DHL

50.
consumer “data science”

51.
other innovations!
augmented packaging!
intelligent displays and shelves!
radical transparency!
online viral advertising!
consumer-driven advertising!
crowdfunding

52.
examples of persuasive messages!
in campus !
or on your favourite websites!
twit image and description to
@motioninsocial
or e-mail to
lukasz.piwek@uwe.ac.uk

53.
online!
persuasion !
strategies
with examples related to!
Cialdini’s social influence!
Fogg’s persuasive technology

54.
judgement heuristics!
are mental shortcuts!
we employ in making!
our everyday judgements
Kahneman et al (1982)

55.
scarcity a perceived limitation of resources
will generate demand
scarce items are perceived as !
higher in value!
and more attractive !
especially if we compete for them
Ashmore et al (1971)
Worchel (1992)
Cialdini (2001)

56.
metro.co.uk

57.
ibtimes.co.uk

58.
scarcity a perceived limitation of resources
Ashmore et al (1971)
Worchel (1992)
will generate demand
example!
nightclub queue!
“deadline tactic”

59.
scarcity a perceived limitation of resources
will generate demand

60.
reciprocity people tend to return a favour
we may feel in debt !
by getting uninvited favour !
small initial favour !
can produce obligation to agree !
to much larger return favour
Pease & Gilin (2000)

61.
reciprocity people tend to return a favour
examples!
mail appeal for donation:!
18% success - mail only!
35% success - mail + gift!
free sample in supermarket
Cialdini (2001)
Wasko et al (2005)

62.
reciprocity people tend to return a favour

63.
Amount Twitter makes each
time you look at your feed
$0.0008

64.
reciprocity people tend to return a favour

65.
commitment!
consistency
people don’t like to be
self-contradictory
example!
“throwing a low-ball” in car sales!
by adding “surprise” costs !
at the end of transaction !
after initial agreements,!
and test drives
Cialdini (2001)

66.
commitment!
consistency
people don’t like to be
self-contradictory

67.
social proof people will be more open to things
example!
“canned laughter” in a comedy!
makes audience !
laugh longer and more often,!
rate material as funnier!
especially effective for poor jokes!
bystander effect
Provine (2000)
they see others doing
Nosanchuk & Lightstone (1974)
Darley & Lantane (1968)

68.
social proof people will be more open to things
they see others doing

69.
Average industry profit
per commercial-flight passenger
$4

70.
liking people are more easily swayed
by people they like
attractiveness!
attractive individuals are perceived as
talented, kind, honest, intelligent!
similarity!
even small similarities!
produce positive impression!
compliments!
good cop/bad cop
Langlois et al (2000)
Berscheider & Walster (1978)

71.
liking people are more easily swayed
by people they like

72.
personalised & timed
suggestions

73.
personalised & timed
suggestions

74.
personalised & timed
suggestions
scarcity

75.
one-click choice
easy commitment!
reduction & simplifying!
higher motivation to engage!
reduced cognitive effort!
quicker goal achievement !
& quick decision !
can be rewarding!
(but also regrettable)
Fogg (1998)
Bandura (1997)
Desphande et al (1983)

76.
thank you
lukasz.piwek@uwe.ac.uk
@motioninsocial
get those slides on
motioninsocial.com/consumer