Online Consumer Behaviour
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The document discusses several topics related to interactive and digital marketing, including: - Average holiday spending and debt levels in the UK from 2014. - Psychological concepts like ego depletion, dual process theory, priming, and illusion of validity that influence consumer decision making. - How online consumer behavior has changed habits related to entertainment, shopping, travel, and work. - The rise of mobile devices and their influence on in-store shopping behaviors. - Innovations in online video, digital marketing metrics, online and physical retail trends, and new delivery models.
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Online Consumer Behaviour
- 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%)
- 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)
- 9. 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)
- 10. 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)
- 11. judges grant more parole ! in the morning ! and just after lunchtime Danziger et al (2011)
- 12. fox.com
- 13. behaviour economics with quick introduction to:! ego depletion! dual process theory! priming! illusion of validity
- 14. 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
- 16. 13 x 24
- 17. 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)
- 18. priming implicit (automatic) memory effect ! in which exposure to one stimulus! influences a response ! to another stimulus
- 19. florida! forgetful! bald! gray! wrinkles exercising! rapidly! send! typical! clears Bargh et al. (2000)
- 20. priming people with money! makes them more selfish Vochs (2006)
- 21. support to increase ! funding for schools ! is higher ! if voting takes place in schools Berger et al. (2008)
- 22. people litter less in the train! if there is a smell ! of cleaning product De Lange et al (2012)
- 23. women who were exposed ! to flowers! perceived the man! to be more attractive! and sexier Gueguen (2011)
- 24. more donation made ! when word ‘love’! was added to message Gueguen (2011)
- 25. children consumed ! 45% more food ! when exposed to ! food advertising in cartoons Harris et al (2009)
- 26. illusion of validity or illusion of skill with example being! stock traders
- 27. 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
- 28. 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
- 29. 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
- 31. online consumption changed our habits in entertainment shopping! travel! work
- 32. mobile! is the new ! shop window
- 33. (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%
- 34. consumers! co-create! advertising! and branding
- 35. (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
- 36. digital traces of! online behaviour! search! click! view! like! share! follow! save
- 37. FOR $27* YOU CAN BUY 250 1000 5000 likes followers views *boostlikes.com (2014)
- 38. TOP 10 ONLINE RETAILERS in UK, according to D&W (2014)
- 39. Value of goods sold in the last quarter of 2012 $150 bln + $160 bln kbcb.com (2013)
- 40. physical retail! is very alive! and kicking retaileconomics.co.uk (2014)
- 41. CONVERSION RATES FROM GOING TO REAL STORE TO BUYING SOMETHING 20% in fashion 50% in electronics 95% in groceries Experian (2014)
- 42. CONVERSION RATES FROM GOING TO WEBSITE TO BUYING SOMETHING 1-5% Experian (2014)
- 43. AVERAGE NUMBER OF ONLINE CUSTOMERS WHO ABANDON THEIR SHOPPING CART 68% Experian (2014)
- 44. online/offline split! no longer matters
- 45. online experience in offline retail Apple
- 46. online experience in offline retail Burberry
- 48. The amount it costs the United States Mint to produce 1 cent coin 1.6 cents US Mint (2014)
- 49. wearable technology! augmented reality blippar.com
- 50. wearable technology! augmented reality blippar.com
- 51. new delivery models DHL
- 53. other innovations! augmented packaging! intelligent displays and shelves! radical transparency! online viral advertising! consumer-driven advertising! crowdfunding
- 54. 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
- 55. online! persuasion ! strategies with examples related to! Cialdini’s social influence! Fogg’s persuasive technology
- 56. judgement heuristics! are mental shortcuts! we employ in making! our everyday judgements Kahneman et al (1982)
- 57. 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)
- 58. metro.co.uk
- 59. ibtimes.co.uk
- 60. scarcity a perceived limitation of resources Ashmore et al (1971) Worchel (1992) will generate demand example! nightclub queue! “deadline tactic”
- 61. scarcity a perceived limitation of resources will generate demand
- 62. 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)
- 63. 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)
- 64. reciprocity people tend to return a favour
- 65. Amount Twitter makes each time you look at your feed $0.0008
- 66. reciprocity people tend to return a favour
- 67. 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)
- 68. commitment! consistency people don’t like to be self-contradictory
- 69. 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)
- 70. social proof people will be more open to things they see others doing
- 71. Average industry profit per commercial-flight passenger $4
- 72. 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)
- 73. liking people are more easily swayed by people they like
- 74. personalised & timed suggestions
- 75. personalised & timed suggestions
- 76. personalised & timed suggestions scarcity
- 77. 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)
- 78. thank you lukasz.piwek@uwe.ac.uk @motioninsocial get those slides on motioninsocial.com/consumer