Choice architecture or how a purchase choice is structured can have a dramatic impact of consumer behaviour and marketing budgets. It can cost nothing to structure a purchase choice in a way that drives sales - or conversely in a way that retards sales.

1. Leverage choice
architecture to
boost sales.
CONSUMER INSIGHTS

2. A 1995 study entitled – ‘The Art of Choosing’- considered two choice
options in a supermarket.
Choice option 1 comprised a display with 24 varieties of jam.
Choice option 2 comprised a display with 6 varieties of jam.
The findings of the study were competing:
When there were 24 varieties of jam - just 3% of customers purchased.
When there were 6 varieties of jam- 30% of customers purchased.
In other words –6 varieties only led to 10 times as many sales as 24
varieties. It was also cheaper to produce.

3. Studies of organ donation rates around the world have looked at the
impact on registration rates for two options.
Option 1 was opt-out – everyone is automatically enrolled but can opt
out of they want.
Option two was – opt-in – with people over 18 years having to actively
register as a donor – should they elect to
Perhaps unsurprisingly – opt-out in countries including Spain,
generated registration rates of up to 90% - while opt-in, in countries
including Australia, delivered registration rates of just 15%
Opt-out has consistently been found to generate significantly more
registrations – regardless of associated advertising campaigns.

4. These studies and many other like them highlight the importance of
choice architecture.
Sales and rates of behaviour change can significantly increase at no
additional cost – if a choice on offer is well designed.
Research also suggests that the presentation of a choice can impact
significantly on sales – or behaviour change.
Tversky and Thaler considered the responses of 600 patients to two
treatment options.

5. Treatment option 1 was presented as saving 33% of patients treated.
Treatment option 2 was presented as losing 66% of patients treated.
Clearly both options deliver the same outcome, but despite this:
Where the emphasis was on a 33% success rate 72% of patients agreed
to participate - where the emphasis was on the 66% failure rate 22% of
patients agreed to participate.
Similar findings have been found for - ‘
 ‘80% lean ground beef’ as opposed to just ‘20% fat ground beef’ &
 ‘Just 25% imported components’ as opposed to ‘75% Australian’

6. Individually - these findings also highlight the:
• Value of limiting the choices offered to consumers.
• Prioritise opt-out over opt-in.
• Frame choices a considered manner
Cumulatively these studies point to the importance of the science of
choice architecture – and framing purchase choices in a way that will
drive additional sales with no additional marketing cost.

7. To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com

8. Stop relying on
facts – or education
to drive sales.
CONSUMER INSIGHTS

9. Have you ever used facts to try and convince someone with opposing
political views that you are right, and they are wrong?
I imagine you have.
I also imagine that, like the rest of us who have tried to do this - you
have failed.
The fact is - it is very difficult indeed to change strongly held views
using facts alone.
Indeed, research suggests that when we try to do this – it is more
common than not - for existing beliefs to become further intrenched.

10. As stupid as this might sound - research suggests that opinions are very
difficult to change using facts alone.
This point is made forcefully in the book – ‘The Psychology of Stupidity.’
This point also is demonstrated in research into texting while driving.
One study found that despite 58% of road crashes being caused by
distractions and 97% of teens recognize this fact – some 43% still text
on a regular basis.

11. Further to this, a second study found that educating teens about the dangers of texting while
driving – no matter how comprehensive – has little or no effect on texting behaviour –
especially over the medium to long term.
The same was found to be true for drink driving, driving while under the influence of drugs
and driving while tired.
Presenting the facts or educating teens – or indeed adults – has at best a limited effect on
behaviour.
Research has found that sustainable behaviour change will not occur until an emotional
connection has been established.

12. Insights
1. Presenting facts is not an efficient way to change behaviour.
2. Education is not the silver bullet in managing consumer
behaviour.
3. An emotional connection is essential for sustainable behaviour
change.

13. Recommendations
1. To boost sales or indeed change behaviour in any way – first
establish an emotional connection.
2. Avoid simply presenting facts to change behaviour as this can
entrench existing views.
3. Establish an emotional connection and then educate to achieve
sustainable behaviour change.

14. To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com