Five things you need to know about how people make decisions


To engage today’s consumers, we must embrace unfamiliar ways of understanding and communicating with them.
Jon Wright, regional director of analytics and insight at MEC Asia-Pacific, tells us five things about reaching consumers.

Five things you need to know about how people make decisions

Jon Wright, MEC

The digital era has brought about two major changes. First, consumer behaviour is more irrational than we used to think. Second, changes in the immediacy of media, use of the internet and the availability of data mean we can get closer to consumer decisions than ever before.

1. Understanding human behaviour by applying behavioural economics.

Sounds heavy, but behavioural economics is the theory (and not a very new one) behind why people behave as they do, for financial or social gain.

Consumer decision making has never been completely rational or conscious. We are learning why people regularly make decisions that appear irrational, why communication should focus on changing behaviour rather than attitude and why the context in which consumers make decisions is so important.

Why, for example, does adding one highly expensive purchasing option increase average order value? Because people base decisions on relative, rather than absolute, information – context is everything. Behavioural economics can help brands understand how consumers make decisions and inform their approach to product development, marketing and communications.

2. First example – Chunking.

Parts are easier than wholes. The way a task is presented affects people’s willingness to take it on and complete it. Something presented as one long task to be conducted in a single act will be less likely to attract people than something ‘chunked’ into bite-sized stages. Think how much more inclined you are to fill in forms with clear divisions and directions or, when online, you can save and quit part-way through.

3. Second example – Social herding.

People are more likely to do things they think others do and more likely to do something if they think they are being observed or monitored. For example, governments are discovering that the most effective way to get people to reduce energy consumption is not to show them how much money they can save, but to show them how much more energy they use than the average.

4. Third example – Choice architecture.

Choosing is relative to what you can have, not absolutely about what you want. We are all ‘choice architects’ because there is no neutral way to present a choice. For example, presenting something first on a list can influence the likelihood of it being chosen (the ‘primacy’ effect), as can presenting it last (the ‘recency’ effect).

Price framing is an example of this, where context is hugely important. We recently found an example where response rates for a banner campaign selling $1,000 TVs were highest when placed in upscale holiday and travel sites. This worked because if you spent $3,000+ on a holiday, a $1,000 TV seems relatively cheap.

5. The way forward.

Traditional market research, which relies mainly on people reporting their behaviour and attitudes, does not reveal these types of insight because of the unconscious nature of many of the decisions consumers take.

In future, we will rely less on claimed attitudinal research and there will be greater use of ‘behavioural’ information – observational research, search and digital data which provide us with consumer ‘footprints’. We will apply ‘test and learn’ approaches more often and put greater focus on consumer data and consumer psychology.

With this knowledge, we have the potential to revolutionize the way we actively engage audiences in the future.

Source:

http://www.campaignasia.com/Article/220640,five-things-you-need-to-know-about-how-people-make-decisions.aspx

Enhanced by Zemanta
About these ads

Etiquetado:, , , , , , , , , , ,

Cruces, Sol y La Imaginación

Cuando la imaginación y la creatividad suman infinito

MarketingActivo

el mundo del marketing se activa para ti

tranquicomix

fanzine bejarano de historietas hecho en los 80

A Stairway To Fashion

contact: ralucastoica23@gmail.com

Vinod833's Blog

This WordPress.com site is the bee's knees

Apasionada de las Redes Sociales

Compartir conocimientos 2.0 y Marketing Online

Zona de Promesas

Tecnología - Internet - Redes Sociales - Entrepreneurship - Música - Economía - Innovación

Top Master | Blog

LOS PROGRAMAS DE MBA Y POSTGRADO MAS INFLUYENTES DE TODO EL MUNDO

La realidad alterna

Diario de sueños, cuentos, poesías y una novela en proceso

TechCrunch

Startup and Technology News

Unencumbered by Facts

Taking unsubstantiation to new levels

Carlos Cordero

Blog de tecnología

PsicoEmocions Blog

Un Pont entre la Psique i les Emocions

TEA PTLS NACHO

AUTISMO.TEA..PTLS

Comunicación & Marketing

De Lilian Lanzieri

Xtratexia

Dirección estratégica para la vida

Silvia Altamirano

An editorial designer that writes

StellarHIRE Partners

Founding Partner, StellarHire Partners - Executive Search Consultants. Recent engagements include Eloqua, SFDC, Tibco and Veeam.

ivanbrunpr's Blog

4 out of 5 dentists recommend this WordPress.com site

Matt on Not-WordPress

Stuff and things.

BLOGTEC

Noticias de Tecnologia.

Talento en Expansión

Tendencias y Mejores Prácticas en la Gestión de Personas de la Empresa 2.0

Two Leaves Tea SPAIN

Great Organic Tea! ✫✫✫✫✫ Te Organico en Piramides

Escuela de Dinero

El mejor Sitio en Español sobre lo básico para entender el Dinero y sus matemáticas relacionadas.

Intentando dejar huella...

...en cada uno de los visitantes

Ideas Para la Clase.com

Portafolio de experiencias en la clase de español para Middle School.

littlegreybox

Travel & Lifestyle Blog

déborah rueda

Un sitio más pero diferente sobre marketing on line

No solo los 80's

La mejor música de la historia

Molly Balloon's Blog

Identity + Dressing + Colour

El OJO PUBLICO. / Глаз общественности

Ver para contar & contar para ver. / Чтобы рассказать

Think Creative Idea

Marketing, publicidad, web y negocios

Social Media y más

Social Media, Redes Sociales, Marketing, SEO

The Coaching Alliance

El camino hacia el éxito

Luces y sombras de las marcas

Social Media, Marketing y Comunicación

CNN en Español: Ultimas Noticias de Estados Unidos, Latinoamérica y el Mundo, Opinión y Videos

Ultimas Noticias de Estados Unidos, Latinoamérica y el Mundo, Opinión y Videos

Javier GM Photography - México y más.

“Un fotógrafo tiene que ser auténtico y en su obra, debe expresar emociones, provocar reacciones y despertar pasiones.” ~ Javier García-Moreno E.

Natalia Gómez del Pozuelo

Experta en comunicación y oratoria

aloyn

Alimentación, ocio y negocios, ALOYN, es un Grupo dirigido a Directivos y Propietarios de empresas, interesados en el mundo de la industria de alimentación y bebidas. Tanto por la parte de la industria productora como por la parte de la industria consumidora y/o distribuidora (Distribución Comercial, Horeca, Vending, Venta Directa, etc). También nos interesan las actividades ligadas al agroturismo y el enoturismo como magníficas actividades de promoción y difusión de la cultura gastronómica.

Blog de Jack Moreno

Un blog de Joaquín Moreno sobre recursos, literatura y ciencia ficción

Mashamour

Ensalada de Manjares

Infographic List

For those who love Infographics - www.infographiclist.com

URieLaRtE

hay que ser libre para ser uno mismo

Seguir

Recibe cada nueva publicación en tu buzón de correo electrónico.

Únete a otros 1.683 seguidores

%d personas les gusta esto: