Brainjuicer behavingeconomicallywiththtruth


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research method based on 7 different moods of humans

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  • Afternoon everyone. I’d like to open by telling you a quick story about Swedish drivers. Swedish learners have to undergo a rigorous driving test, which is taken in three parts in the following order: First, a slippery road test – 4hrs of theory and practical driving exercises in slippery or hazardous road conditions Second, a theory test of 65 questions requiring a pass rate of 80%. This can only be scheduled after you have taken 14 pre-tests. Finally, a 45 minute driving test , which includes three additional mini tests relating to your car – an engine check, an inside car check and a light check. This driving test can only be taken after you have driven at least once with an instructor and demonstrated that you are ready to take the test. So is it any wonder that Swedish drivers think that they are pretty good drivers? In actual fact, Swedish drivers are so confident, that when surveyed, 50% of them believe themselves to be in the best 10% of drivers in the country. It’s perfectly understandable that they should feel this way, but quite obviously an impossibility. And I’m similar stories could be told about how good we think we are as lovers. The truth is that we humans are self-deceit machines . We are very poor witnesses to our own behaviour and to our own motivations. But central to most of our market research tools is the belief that the best way to elicit the truth is to observe or ask individuals for their own opinions, motivations and predicted behaviour. At the same time, the latest social science and evolutionary psychology is showing the degree to which humans are a ‘we’ species with an incredibly well developed ability to observe others, quickly assess people and a situation and predict people’s future behaviour .
  • Brainjuicer behavingeconomicallywiththtruth

    1. 1. Behaving economically with the truth
    2. 2. All about understanding people and their behaviour <ul><li>Life </li></ul><ul><li>Business </li></ul><ul><li>Government </li></ul><ul><li>Society </li></ul><ul><li>Religion </li></ul>
    3. 3. Always start by calling your audience liars….
    4. 4. Social animals…
    5. 5. Oct 6, 2011 Month Yr
    6. 6. Oct 6, 2011 Month Yr
    7. 7. Oct 6, 2011 Month Yr  
    8. 8. Oct 6, 2011 Month Yr
    9. 9. Quick summary <ul><li>We are unreliable witnesses to our own behaviour and motivations </li></ul><ul><li>We think much less than we like to think we think </li></ul><ul><li>We are much more influenced by other people than we like to admit </li></ul>
    10. 10. Intuitive Judgement “ A bat and a ball cost $1.10 in total. The bat costs $1 more than the ball. How much does the ball cost?” “ People are not accustomed to thinking hard, and are often content to trust a plausible judgement that quickly comes to mind.” Daniel Kahnemann , Nobel Prize Winner
    11. 11. Human behaviour driven by two independent brain systems, 1 & 2 … Explicit Slow Analytical Learned Propositional Conscious System 2 Implicit Fast Intuitive Instinctive Metaphoric Unconscious System 1
    12. 12. Implicit has greater processing power (and is less effortful) System 2 System 1 11,000,000 bit/sec Zimmerman, M. (1989) &quot;The Nervous System in the Context of Information Theory&quot;. “ We are not thinking machines that feel; we are feeling machines that think” Antonio Damasio 50 bit/sec
    13. 13. Current view is that emotion simply helps message cut through…
    14. 14. Current view is that emotion simply helps message cut through…
    15. 15. But new evidence reveals that the most effective advertising draws people closer to the brand…
    16. 16. Paul Ekman – how to measure emotion?
    17. 17. As seen in ‘Lie To Me’ Hit TV Series based on Paul Ekman’s work
    18. 18. FaceTrace ® - Measuring Emotional Appeal “ Which of these faces best expresses how you feel about this ad?” “ To what degree did this ad make you feel [selected emotion]?” “ And what was it about this idea that made you feel this way?” Captures ‘Reasons for Emotion’ BrainJuicer ® 2006 Contempt Surprise Anger Disgust Happiness Sadness Fear Neutral
    19. 19. But none of this applies to me…. <ul><li>We are unreliable witnesses to our own behaviour and motivations </li></ul><ul><li>We think much less than we like to think we think </li></ul><ul><li>We are much more influenced by other people than we like to admit </li></ul><ul><li>Our emotions drive our behaviour much more than we like to think </li></ul>
    20. 20. How we make decisions
    21. 21. How we make decisions Case number across the day Proportion of favourable decisions Danziger et al, 2011
    22. 22. “ The performance of more effortful tasks will collapse under cognitive load. […] People are not accustomed to thinking hard, and are often content to trust a plausible judgement that quickly comes to mind.” Daniel Kahneman , Nobel Prize Winner
    23. 23. Local Environment Influences 5:1 1:2 A. North, D. Hargreaves and J. McKendrick (1997) Sales Sales
    24. 24. Choice Influences % of drivers donating organs Johnson & Goldstein (2003) Tick the box if you want to participate in the organ donor programme Tick the box if you don’t want to participate in the organ donor programme
    25. 25. Social Influences Bateson et al, 2006 People pay 2.76 times more on average when eyes are present
    26. 26. Behavioural Economics: How our decisions are guided <ul><li>Local & Choice Environment </li></ul><ul><li>Social Influences </li></ul><ul><li>Inherent Individual Biases </li></ul>
    27. 27. Wansink & Just, Cornell University Small nudges have been shown to work
    28. 28. Basics of Behavioural Economics <ul><li>Loss Aversion — h ow the desire to avoid losses crowds out gains </li></ul><ul><li>Endowment Effect — how owning something increases its apparent value </li></ul><ul><li>Chunking — the psychology behind why simple tasks are easier than complex ones </li></ul><ul><li>Prospect Theory — Kahenman & Tversky’s grand theory designed to bring their work on heuristics together </li></ul><ul><li>Status Quo Bias — the influence the desire to see things stay the same plays </li></ul><ul><li>Gambler’s Fallacy — the most famous example of poor probability reason and confusion over causation </li></ul><ul><li>Self-serving bias — the tendency to only notice evidence that supports one’s case, while conveniently over-looking evidence to the contrary </li></ul><ul><li>Money Illusion — the tendency to concentrate on nominal number values over real-spending power or economic value </li></ul><ul><li>Framing Effect — the central psychology effect that means that identical conditions can be made to ‘feel’ different. </li></ul><ul><li>Mental Accounting — the influence of ring-fencing, labeling and tagging certain funds of money for specific purposes. </li></ul>
    29. 29. Behavioural Economics <ul><li>People’s decisions are often influenced in ways they can’t really explain or articulate </li></ul><ul><li>Identifying “hidden” influences can offer real commercial advantage and provide answers to social and cultural problems </li></ul><ul><li>An appreciation of Behavioural Economics can inspire approaches that help us see, understand and predict behaviour better </li></ul>
    30. 30. How Behavioural Economics challenges traditional research assumptions <ul><li>We are socially isolated individuals with relatively stable preferences </li></ul><ul><li>All our choices are the result of a deliberative, linear and controlled thought processes </li></ul><ul><li>People are benefit-maximising and cost-minimising </li></ul><ul><li>Behaviour change is brought about through: </li></ul><ul><ul><li>Increased awareness of the issue </li></ul></ul><ul><ul><li>Better information </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><li>The right incentives will help people change their actions </li></ul><ul><li>We are socially connected with very malleable preferences </li></ul><ul><li>People are motivated by factors beyond benefit-maximisation and cost-minimisation </li></ul><ul><li>There are more effective ways to bring about behaviour-change than through: </li></ul><ul><ul><li>Raising awareness </li></ul></ul><ul><ul><li>Providing better information </li></ul></ul><ul><ul><li>‘ Educating’ people </li></ul></ul><ul><li>Monetary incentives are not always necessary to get people to change their actions </li></ul><ul><li>Our choices are often impulsive and the result of non-linear thought processes </li></ul>Traditional perspective Behavioural Economic perspective
    31. 31. Behavioural Economics (Human Heuristics) A New Social Science Discipline We go with flow We’re present-biased We behave in the moment We maintain a positive self-regard & consistent self-image We copy We do what’s expected of us We’re altruistic We reciprocate We’re influenced by our environment Choices are relative – behaviour depends on options available and how they are presented Our decisions are based on what we can store and mental short-cuts We perceive ‘ value’ inconsistently Individual Factors Social Factors Environment (Physical & Choice Environments) Messenger stronger than message We’re much more likely to do something if we make a public commitment
    32. 32. What do we believe in? “ Market research at its best is mind expanding & profit enhancing, not just risk reducing. At best, it’s full of insight & illumination that informs & inspires great marketing . At worst, it’s a 120 page insurance policy heavy on numbers, light on insight and usually dead-on-arrival. BrainJuicer’s mission is simple. To significantly improve quantitative research, by translating a generation of breakthroughs in psychology, behaviourial economics & social sciences into Juicy tools that better explain & predict human behaviour . Great researchers, applying Juicy tools on behalf of brave clients makes for better marketing, bigger brands & a rapidly growing business with potential to change the way research is done . John Kearon, Chief Juicer
    33. 33. Have fun with your knowledge and tools Contempt Surprise Anger Disgust Happiness Sadness Fear Neutral
    34. 34. Sometimes <ul><li>We ask the wrong people </li></ul><ul><li>We ask them the wrong questions </li></ul><ul><li>We ask them in the wrong way </li></ul>
    35. 35. But all is not lost…… <ul><li>Companies have more data on the actual behaviour of their customers than ever before </li></ul><ul><li>Companies can conduct more experiments on claimed and actual behaviour than were ever possible before </li></ul><ul><li>Companies can use different methods to understand their consumers and to build their businesses </li></ul>
    36. 37. Thank you Contact me on :- and +44 7710 943140