Applying Behavioral Economics How Small Nudges Can Have a Big - - PowerPoint PPT Presentation
Applying Behavioral Economics How Small Nudges Can Have a Big Impact on Behavior TMRE October 2016 1 Perception Research Services (PRS) At PRS, our mission is to help our clients "win at retail" in the global marketplace.
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At PRS, our mission is to help our clients "win at retail" in the global marketplace. Since 1972, PRS Has Conducted Over 12,000 Studies to Help Clients Improve Their Packaging & Shopper Marketing
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Mini-Store Environments for Developing, Screening & Assessing New Products, Packs & Shopper Marketing Efforts
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My purchases are pre-planned
My purchases are pre-planned.
My purchases are driven by features, benefits & pricing.
When Asked, Shoppers Typically Cite Rational Factors…
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…But at the Shelf, They Encounter Overwhelming Choice…
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…and The Shopping Process is Largely About De-Selection.
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Autonomic, unconscious, lightening fast, leverages emotion and generates strong feelings of certainty. Rational, conscious, requires effort, works slowly, examines, calculates and weighs evidence.
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How Options are Framed (the “Choice Architecture”) Often Determines The Decisions We Make.
(Duke University) “Most people don’t know what they want unless they see it in context.”
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We are not rational agents maximizing self-interest… … but humans driven by impulse, habits and context…
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Some Stores Had a Sign: “No More Than 12 Cans per Person” …and Some Stores Did Not.
Purchase Rate Without the Sign:
3.3 units/shopper
Purchase Rate With the Sign:
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More Effective Promotions Better Pricing Strategies Improved Store Traffic & Category Management
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VS. The Need to Emphasize Purchase Behavior in Shelf Context (vs. Claimed PI in Isolation)
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A Change in the Utility Bill Led to Millions in Savings! (By Applying Social Norms)
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Eric Singler of PRS IN VIVO Has Pioneered the Adoption of Nudge to Consumer Marketing. Eric, Pauline and the Nudge Unit Have Conducted 40+ Nudge Studies with Consumer Marketers.
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Encouraging New Usage Occasions Adopting a New Product Form Encouraging Healthier or More Earth-Friendly Behaviors Linking Digital & Physical Shopping
Nudge is Essentially About Changing People’s Habits
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The goal is BEHAVIORAL CHANGE The business question is STRATEGIC Rational approaches have PROVEN LIMITS The desired behavior is GOOD FOR THE CONSUMER (A Win-Win situation)
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“What we firmly believe is that if we focus our
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SELLING EDUCATING ENCOURAGING
RATIONAL PERSUASION NUDGE Information Feature/Benefit Reason-to-Believe Situational drivers System 1 goals Social influences Choice architecture
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A Proven & Proprietary 4-Step Nudge Methodology, Which Has Won Several ESOMAR Awards.
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Uncovering the Habits That Drive (or Impede) The Desired Behavior
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Industrial Image (not fresh)
Poor On-Shelf Appearance A Bad Smell when Opening
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An Immersive Workshop, with Ideation Driven By Behavioral Science Principles & Learnings
(With Client teams, Nudge unit experts, Sector experts, Consumers, Creative People, Designers, etc.)
Activating “Levers of Influence” to Develop 100+ Potential Nudges
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TOUCHPOINT DRIVER OF INFLUENCE BEHAVIORAL INSIGHT
Poor appearance
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To Optimize Nudges, Gauge Feasibility and Rank the Best Ideas to Test or Apply
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Leveraging ShopperLabs to Refine and Pre-Test “In-Store” Nudges
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A Workshop with PRS IN VIVO Nudge Specialists, Cross-Functional Client Teams & Creative Consumers
Qualitative Professionals
Identifying Opportunities to “Nudge” Shoppers
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Optimizing Packaging for Online Shopping Gauging Emotion in Pack & Shopper Research Thinking from the “Outside-In” for NPD Success Making Packaging & POS Work Together Designing for the System 1 Shopper Connecting with Hispanic Shoppers
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www.prs-invivo.com
Global CEO
T: 201.720.2701 Scott.Young@prs-invivo.com