The Psychology of Consumer Choices
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The document discusses word of mouth (WOM) and consumer decision making. It presents two key frameworks: 1) Six Decision Dynamics that explain the thought process leading to WOM engagement, including factors like effort, risk, and head vs heart decision making. 2) Thirteen "Jobs to be Won" in the consumer journey where WOM can play a role. It analyzes data on how WOM varies significantly across product categories in terms of digital vs non-digital, creation vs consumption, and timing in the consumer journey. The frameworks are meant to help understand why WOM engagement differs and apply insights immediately.
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The Psychology of Consumer Choices
- 1. HALVERSON GROUP proprietary and confidential.1 Decision Dynamics and the 2014 Jobs-To-Be-Won™ for Consumer Engagement Study excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM) Presented to WOMMA 2015 By Halverson Group
- 2. HALVERSON GROUP proprietary and confidential.2 We’re focusing on WHY We’re going to talk about WHY people engage in WOM
- 3. HALVERSON GROUP proprietary and confidential.3 What You’ll Walk Away With 2 key frameworks that you could apply immediately • 6 Decision Dynamics™ that explain the thought process leading consumers to WOM • 13 Jobs to Be Won™ in the consumer journey and the role of WOM SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 4. HALVERSON GROUP proprietary and confidential.4 WOM is important – not a surprise to anyone here “the most powerful force shaping consumer behavior” “the dominant decision clincher” “the ultimate test of the customer’s relationship” “a dominant force in the marketplace” “the gift that keeps on giving” 1954 1967 1997 1999 2009
- 5. HALVERSON GROUP proprietary and confidential.5 Understanding WHY prospects and consumers make the choices they do is critical for delivering the right experience, in the right format on the right devices when the consumer is ready
- 6. HALVERSON GROUP proprietary and confidential.6 The underlying Motives for WOM have largely remained the same over the millennia – even though digital has exploded the options for consuming, creating and sharing information and experiences.
- 7. HALVERSON GROUP proprietary and confidential.7 Our philosophy There are 3 principles that we believe fuel winning strategies Widen the aperture and shift perspectives Deconstruct the product or channel into its smallest parts Build it back up in ways that matter
- 8. HALVERSON GROUP proprietary and confidential.8 WOM in context of ALL journey Touchpoints 1 How do we uncover the Role of WOM in today’s Omni- Channel Journey? Critical to capture the digital and non- digital touchpoints and which combination and order consumers use each touchpoint
- 9. HALVERSON GROUP proprietary and confidential.9 need / want decide buy receive experience WOMacrosstheconsumerjourney 2 How do we uncover the Role of WOM in today’s Omni- Channel Journey? WOM in context of ALL journey Touchpoints 1 WOM plays a dramatically different role depending on your phase in the journey
- 10. HALVERSON GROUP proprietary and confidential.10 need / want decide buy receive experience WOMacrosstheconsumerjourney WOM in context of ALL journey Touchpoints High involment vs. low involment Long purchase cycles vs. short purchase cycles High price vs. low price Simple vs. complicated 2 1 3 How do we uncover the Role of WOM in today’s Omni- Channel Journey? Role of WOM shifts depending on product category
- 11. HALVERSON GROUP proprietary and confidential.11 A few facts and figures about WHAT types of WOM occur in WHICH categories
- 12. HALVERSON GROUP proprietary and confidential.12 of people engage in WOM in a consumer journey 64% SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 13. HALVERSON GROUP proprietary and confidential.13 We measured 70 discrete behaviors that could be considered WOM (plus an additional 80 that were not WOM) SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 14. HALVERSON GROUP proprietary and confidential.14 0 10 20 30 40 50 60 70 80 90 100 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue The presence of WOM varies greatly by category % people who engaged in WOM the last time they purchased the following categories… SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 15. HALVERSON GROUP proprietary and confidential.15 And compared to all other touchpoints consumers engage in, the weight of WOM varies 0 10 20 30 40 50 60 70 80 90 100 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue Share of WOM in the journey (last time they purchased category) % people who engaged in WOM the last time they purchased the following categories… SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 16. HALVERSON GROUP proprietary and confidential.16 And compared to all other touchpoints consumers engage in, the weight of WOM varies 0 5 10 15 20 25 30 35 40 45 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue Share of WOM in the journey (last time they purchased category) SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)% people who engaged in WOM the last time they purchased the following categories
- 17. HALVERSON GROUP proprietary and confidential.17 0 5 10 15 20 25 30 35 40 45 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue Digital WOM plays a much stronger role in vacations, digital music, cable service and jeans Share to Digital WOM Share to Non-Digital WOMCAR INSURANCE IS HEAVILY NON-DIGITAL SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)% people who engaged in WOM the last time they purchased the following categories
- 18. HALVERSON GROUP proprietary and confidential.18 0 5 10 15 20 25 30 35 40 45 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue The ratio of creating versus consuming WOM also shifts by category Share to Creating WOM Share to Consuming WOMNON-DIGITAL + CREATION SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)% people who engaged in WOM the last time they purchased the following categories
- 19. HALVERSON GROUP proprietary and confidential.19 0 5 10 15 20 25 30 35 40 45 vacation digitalmusic service television cabletv service movieticket beer carinsurance jeans make-up chewinggum groundcoffee glass/window cleaner facialtissue And some categories involve more one-to-one WOM Share to Broad WOM Share to One-To-One WOM NON-DIGITAL + CREATION + ONE-TO-ONE SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)% people who engaged in WOM the last time they purchased the following categories
- 20. HALVERSON GROUP proprietary and confidential.20 -30 -20 -10 0 10 20 30 Facial Tissue Glass Cleaner Ground Coffee Gum Make-up Jeans Car Insurance Beer Movie Tickets Cable Service Television Digital Music Service Vacation Share of WOM pre and post purchase pre post WOM occurs throughout consumer journeys with the majority happening prior to a purchase %peoplewhoengagedinWOMthelasttime theypurchasedthefollowingcategories VERY LITTLE POST-PURCHSAE SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 21. HALVERSON GROUP proprietary and confidential.21 Non-Digital (face-to-face, on the phone) Direct Digital (via text, email, etc.) Platform (social media, blogs, review sites, etc.) Consume (passive) Received recommendations Observed others Received recommendations Viewed status Read content Read reviews Viewed images/videos Engage/Create (active) Gave recommendations Discussed with others Gave recommendations Discussed with others Sent a photo/video Updated status Posted a comment, photo or video Asked a question Wrote a review Not all WOM is created equal Predominantly one-to-one Predominantly widespread SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 22. HALVERSON GROUP proprietary and confidential.22 Non-Digital (face-to-face, on the phone) Direct Digital (via text, email, etc.) Platform (social media, blogs, review sites, etc.) Consume (passive) 17% 4% 21% Engage/Create (active) 32% 13% 13% Predominantly one-to-one Predominantly widespread Creation of WOM happens to a greater degree in non-digital ways; consumption on platforms SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 23. HALVERSON GROUP proprietary and confidential.23 Not all categories are created equal Non-Digital Direct Digital Platform Consume 9% 7% 20% Engage/Cr eate 51% 6% 6% Car Insurance (65% pen) SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM) Personal Interactions and Recommendations: Talked in person or on the phone with a family member Talked in person or on the phone with someone I did not know personally Gave a recommendation in person or on the phone to a family member
- 24. HALVERSON GROUP proprietary and confidential.24 Why do people engage in WOM to various degrees and in different ways in different categories? 6 Decision Dynamics™ that explain the thought process leading consumers to WOM
- 25. 25 | HALVERSON GROUP It was a habitual purchase I tried all the options I did not explore many options I made a quick decision I put very little effort into it I paid a lot of attention It was more about thinking than doing It was a highly considered purchase I tried no other options It was more about doing than thinking I explored many options I put a lot of effort into the choice I did not pay attention It was an easy choice It was a simple choice It was a difficult choice It was the most convenient option I got all the options I wanted It was a complicated choice It was the least convenient option I compromised between attributes I went with the most familiar I stayed in my comfort zone I made an expected choice I played it safe I had a lot of info to support best option I tried something new I went outside my comfort zone I made an unexpected choice I took a risk I took a guess at which was best I considered the long-term consequences If chose the wrong brand, no big deal I did not much have much to lose if I didn’t make a good choice I did not consider the long-term consequences if I chose wrong brand, it could be a big deal I had a lot to lose if I didn’t make a good choice It was not an enjoyable decision I had a lot of fun I got very little out of the experience I did not have fun during the process It was an enjoyable decisionI got a lot out of the experience I went with my head I used logic and reasoning It was more about thinking than feeling It was more about doing than thinking I went with my heart I used instincts and intuition It was more about feeling than thinking It was more about feeling than doing SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 26. 26 | HALVERSON GROUP How much EFFORT is put in? Are you operating with the HEAD or the HEART? How COMPLEX is the decision? Is it a RISK to get it wrong? Do you want to stay in or get out of your COMFORT ZONE? Do you get ENJOYMENT out of it? Cross-Category Decision Dynamics Model SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 27. 27 | HALVERSON GROUP High Effort Low Effort was a habitual purchase tried all my options did not explore many optionsmade a quick decision Put very little effort into it paid a lot of attention more about thinking than doing a highly considered purchase tried no other options more about doing than thinking explored many options put a lot of effort into the choice did not pay attention Complex Simple was an easy choice was a simple choice was a difficult choice was the most convenient option got all the options I wanted was a complicated choice was the least convenient option compromised between attributes Open to Change Routine went with the most familiar stayed in my comfort zone made an expected choice played it safe had a lot of info to support best option tried something new went outside my comfort zone made an unexpected choice took a risk took a guess at which was best Low Risk High Risk considered the long-term consequences If chose the wrong brand, no big deal not much to lose if not a good choice did not consider the long-term consequences if I chose wrong brand, it could be a big deal had a lot to lose if not a good choice High Reward Low Reward not an enjoyable decision had a lot of fun got very little out of the experience did not have fun was an enjoyable decision got a lot out of the experience HeartHead went with my head used logic and reasoning more about thinking than feeling more about doing than thinking went with my heart used instincts and intuition more about feeling than thinking more about feeling than doing SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 28. 28 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner The Cross-Category Decision Dynamic Map Reveals the organizing principles of decisions in consumers’ minds SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 29. 29 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner Decision Dynamics predict the amount of time spent in the journey 26 days on average 9 days on average SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 30. 30 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner As well as the effort High effort decisions lead to longer journeys, but the ‘heart’ further intensifies the engagement 9 days on average 15 behaviors 9 days on average 23 behaviors 25 days on average 37 behaviors 26 days on average 63 behaviors SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 31. 31 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner Decision Dynamics predict WOM High Effort + High Heart Categories 81% use WOM High Effort + Low Heart Categories 76% use WOM Low Effort + High Heart Categories 62% use WOM SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM) Low Effort + Low Heart Categories 38% use WOM
- 32. 32 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner Decision Dynamics predict WOM 2.5x WOM SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 33. 33 | HALVERSON GROUP Effort + Heart Categories 3 x Social Media Effort + Head Categories 5 x Experts High Effort Categories 2.3 x Reviews High Heart Categories 1.6 x Direct WOM Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 34. HALVERSON GROUP proprietary and confidential.34 We know the Decision Dynamics that drive people to WOM at a macro level. But what are their motives for turning to it at various points within the consumer journey? 13 Jobs to Be Won™ in the consumer journey
- 35. HALVERSON GROUP for Tom, Dick & Harry Creative co. 35 Dream Fulfill a dream Spark my imagination Escape and take a mental break for awhile .................... Experience Enjoy my purchase Experience the product firsthand .................... Embrace Feel proud and accomplished Embrace my choice Celebrate .................... Share Give others support / advice… Tell others about my experience Show off my purchase .................... Receive/Solicit Check out what those in the know had purchased Learn from others experiences and/or mistakes .................... Make It Work Adjust or make changes Decide whether or not to keep the product Prevent others from making the same mistake .................... Discover the Big Picture See the bigger picture Figure out where to start Linger over all the options and choices .................... Ease Doubt Ease my skepticism Get comfortable with my choice Avoid having regrets or second thoughts .................... Explore Options Sort through all the options… Develop an initial set of options .................... Refine & Decide Re-evaluate my options Narrow down and refine my options .................... Simplify Find the easiest, most convenient way to purchase Avoid overthinking the decision Skip all the upfront work and research .................... Execute Buy the product Make my purchase Stick with what works .................... Find a Deal Look for deals or discounts… Get a deal or save money Compare prices .................... We’ve identified 13 ‘jobs to won’ for touch points *examples of key motives SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 36. HALVERSON GROUP proprietary and confidential.36 We’ve identified 13 ‘jobs to won’ for touch points Social Solo Connect MAKE IT WORK Get it done Investigate SIMPLIFY EXECUTE Big picture In the weeds FIND A DEAL With others Emotionally Imagine EXPERIENCE SHARE RECEIVE / SOLICIT DISCOVER THE BIG PICTURE EASE DOUBT EXPLORE OPTIONS REFINE & DECIDE EMBRACE DREAM SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 37. HALVERSON GROUP proprietary and confidential.37 need / want decide buy receive experience RECEIVE / SOLICIT DISCOVER THE BIG PICTURE EXPLORE OPTIONS EASE DOUBT REFINE & DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM We’veidentified13‘jobsto won’fortouchpoints SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 38. HALVERSON GROUP proprietary and confidential.38 need / want decide buy receive experience RECEIVE / SOLICIT DISCOVER THE BIG PICTURE EXPLORE OPTIONS EASE DOUBT REFINE & DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM We’veidentified13‘jobsto won’fortouchpoints WOM largely anchors the beginning and the end of the journey SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 39. HALVERSON GROUP proprietary and confidential.39 need / want decide buy receive experience RECEIVE / SOLICIT DISCOVER THE BIG PICTURE EXPLORE OPTIONS EASE DOUBT REFINE & DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM We’veidentified13‘jobsto won’fortouchpoints Prevent others from making the same mistakes that I did Get a response from friends or family Dream about owning the product Get the opinions of others I trust SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 40. HALVERSON GROUP proprietary and confidential.40 need / want decide buy receive experience RECEIVE / SOLICIT DISCOVER THE BIG PICTURE EXPLORE OPTIONS EASE DOUBT REFINE & DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM We’veidentified13‘jobsto won’fortouchpoints Non-Digital, Reviews, Blogs, YouTube Twitter, Consumer Reviews Facebook, Instagram, Pinterest Direct Digital, Facebook, Forums, Non-Digital SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 41. HALVERSON GROUP proprietary and confidential.41 DOES THE JOB TO BE WON™ CHANGE BY CATEGORY?
- 42. 42 | HALVERSON GROUP RECEIVE/SOLICIT DISCOVER THE BIG PICURE EXPLORE OPTIONS EASE DOUBT REFINE DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM RECEIVE/SOLICIT DISCOVER THE BIG PICURE EXPLORE OPTIONS EASE DOUBT REFINE DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM RECEIVE/SOLICIT DISCOVER THE BIG PICURE EXPLORE OPTIONS EASE DOUBT REFINE DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM RECEIVE/SOLICIT DISCOVER THE BIG PICURE EXPLORE OPTIONS EASE DOUBT REFINE DECIDE FIND A DEAL SIMPLIFY EXECUTE EXPERIENCE MAKE IT WORK EMBRACE SHARE DREAM For those that are complex and high risk, people are seeking rational engagements that help them decide For low reward, low effort categories, the lack of engagement is reflected in a lack of motivation to change and engage In highly rewarding categories, people are engaged in the full journey, celebrating, sharing and dreaming Low risk and simple categories are often driven by the anticipation of the experience itself – engaging in a lot in a short amount of time Decision Dynamics related to the ‘jobs to be won’ for any journey engagement High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 43. 43 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Televisions Cable TV Services Car Insurance Vacations Streaming/Digital Music Services Jeans Make-up Movie Tickets Chewing Gum Beer Ground Coffee Facial Tissue Glass/Window Cleaner However, certain segments or situations within a category may reveal different opportunities fro WOM The epicenter of category is fairly static SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 44. 44 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple AWAY FROM HOME BEVERAGES However, certain segments or situations within a category may reveal different opportunities fro WOM The epicenter of category is fairly static SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 45. 45 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple TRAVEL BUSINESS TRIP VACATION PLAYDATE KIDS ACTIVITIES COMMUTE WORK OUT ROAD TRIP SHOPPING MEET FRIENDS RUN ERRANDS FOOD/BEV RUNS MID-DAY BREAK However, certain segments or situations within a category may reveal different opportunities fro WOM The epicenter of category is fairly static SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 46. 46 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple JEANS However, certain segments or situations within a category may reveal different opportunities fro WOM The epicenter of category is fairly static SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 47. 47 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Jeans <=$25 Jeans $26-$40 Jeans $41-$79 Jeans $80 + However, certain segments or situations within a category may reveal different opportunities fro WOM The epicenter of category is fairly static SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 48. 48 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Jeans <=$25 Jeans $26-$40 Jeans $80 + More Time + Effort (20 days/92 behaviors) with a longer post-purchase (6 days) Slightly more in-store behaviors PLUS WOM, digital, direct, search, traditional 79% use some form of WOM (much more amplified) - 31% is non-digital - 40% is one-to-one Less Time + Effort (15 days/20 behaviors) almost all pre-purchase (13 days) Primarily reliant on in-store behaviors 43% use some form of WOM - 65% of WOM is non-digital - 72% is one-to-one Jeans $41-$79 SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 49. 49 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple Jeans <=$25 Jeans $26-$40 Jeans $80 + MULTI-FACETED AND AMPLIFIED Posted a status update or picture/video on Facebook get a response from friends and family Searched for or visited the YouTube channel of a company to discover or learn something new Talked in person to a co-worker show off my purchaseJeans $41-$79 SINGULAR IN FOCUS AND MUTED Talked in person or on the phone with a family member about jeans so they could skip all the upfront work and research SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 50. HALVERSON GROUP proprietary and confidential.50 IMPLICATIONS
- 51. 51 | HALVERSON GROUP High Effort Low Effort Open to Change Routine High Reward Low Reward HeartHead Low Risk High Risk Complex Simple The challenge/opportunity for WOM: Opportunity to optimize our WOM efforts and investments by understanding underlying motives WOM to continue the conversation WOM to extend and ignite passion, be in the know; several opportunities WOM as entertainment; appeal to emotional side WOM to amplify the fun/frivolity WOM to engage and entice a conversation WOM as breakthrough; limited opportunity to grab attention WOM as information; appeal to rational side WOM to simplify and ease doubt SOURCE: Halverson Group 2014 Jobs-To-Be-Won™ for Consumer Engagement Study Excerpts from Jobs-To-Be-Won™ Channel Insights Brief: Word of Mouth (WOM)
- 52. 52 | HALVERSON GROUP Opportunity to Optimize WOM efforts and investments by understanding underlying motives FUEL Content strategy and creation PINPOINT the optimal communication channel to target specific consumers to accomplish a specific goal IDENTIFY the best influencers DELIVER the right experience, in the right format on the right devices when the consumer is ready
- 53. HALVERSON GROUP proprietary and confidential.53
- 54. WHO WE ARE Halverson Group is a strategic research agency committed to helping clients and their agencies identify where to play and how to win. We unlock growth and competitive advantage by uncovering and quantifying insights into people’s lives and the behaviors, beliefs, attitudes, situations, and cultures that influence their choices. For nearly 20 years, we have armed executives, marketers, strategists, innovators, and agency partners with the consumer and business intelligence they need to more confidently make bold strategic decisions.
- 55. OUR TEAM We have assembled a highly specialized team of Social Scientists, Data Scientists, MBAs, and Marketing & Branding Veterans to provide our clients and partners with the deepest and most actionable insights in the industry to fuel game- changing strategies and tactics.
- 56. HALVERSON GROUP proprietary and confidential.56 CONTACT US Ron Halverson, Ph.D. President, Halverson Group ron.halverson@halversongroup.com Mindy Cultra Managing Director, Halverson Group mindy.cultra@halversongroup.com