1. 1. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 APresenta*onfrom TheFes*valofNewMRMainStage 5December2012 The Quick and the Dead A manifesto for change in the market research industry AllcopyrightownedbyTheFuturePlaceandthepresentersofthematerial Formoreinforma:onaboutNewMReventsvisitNewMR.org ElinaHalonen TheIrra:onalAgency
2. 2. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Take your consumers to a shrink Profiling consumer motivation for influencing their behaviour Elina Halonen | The Irrational Agency
3. 3. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Once upon a time the results of a research project are wildly different from a project conducted by another agency for the client youve felt confident about your recommendations to a client (internal or external), yet implementation falls short of expectations Seem familiar?
4. 4. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Our job as researchers is to understand consumers and help our clients to influence their behaviour We know consumers are not all the same so we get under their skin by using Are we missing something? demographic, socioeconomic psychographic measures Were often still left guessing how to influence their behaviour, and predict their reactions to marketers attempts to persuade them
5. 5. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 So, what do we do? We measure things that we think are important factors in the consumers decision making attitudes values tastes Important! We still assume the way in which consumers make decisions is the same but is it? 20 years of consumer psychology research suggests that there are significant individual differences when it comes to the way in which we make purchase decisions
6. 6. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Ok, so what do we need to do? To persuade consumers we need to understand their deeper goals and motivations Discovering these deeper needs will help us understand how much information consumers seek before a purchase how they interpret the information they find, and what types of marketing tactics are likely to be most effective It helps us uncover the most effective triggers for influencing their behaviour These are characteristics of the way in which they make decisions, regardless of category or product, and consistent with the way in which they act in all their decisions.
7. 7. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 And why do we need to understand this? When consumers are making a purchase decision, they select a decision strategy based on what best meets their personal goals for that situation, guided by individual motivational traits Affects how much they think about the purchase how they think about it how confident they need to feel with their decision how they use the information available to them In other words how much/in what ways they think about products/ marketing messages how they use cues/arguments in their decision making how marketers can influence purchase decisions
8. 8. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Four motivational traits drive decisions Need for cognition 1 Need for cognitive closure 2 Need for affect 3 Need for uniqueness 4 How much you enjoy thinking How quickly you want to make a decision How much emotion you want to experience How unique you need to feel
9. 9. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Thinking is my idea of fun Need for cognition 1 How much you enjoy thinking How it affects purchase behaviour High NFC consumers more likely to carefully consider their purchases and less swayed by heuristic cues like celebrity endorsement in advertising more likely to base attitudes on evaluation of product attributes Low NFC consumers more sensitive to the mere presence of a promotion without carefully considering the actual discount positive effects on value perceptions and shopping intentions Humorous advertising generates more favourable responses from low NFC
10. 10. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 I cant wait to decide! Need for cognitive closure 2 How quickly you want to make a decision How it affects purchase behaviour High NFCL consumers want to make a decision quickly and limit their information search rely more on heuristics and tangible benefits to make a decision (e.g. stereotypical judgments based on country of origin of product) High NFCL prefer well-known brands confidence in their decision Price is a stronger quality cue for high NFCL consumers
11. 11. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Im just not feeling it Need for affect 3 How much emotion you want to feel How it affects purchase behaviour High NFA consumers will be more affected by emotional advertising they want to experience strong emotional states Consumers high in NFA prefer visual information over verbal information More likely to have extreme attitudes, impulse shopping, preference for brand names with strong emotional cues
12. 12. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Im different, just like everyone else. Need for uniqueness 4 How unique you need to feel How it affects purchase behaviour Tendency to pursue uniqueness through consumption Desire for scarce, innovative and customised products High NFU consumers more likely to make unconventional choices Opinion leadership, market mavenism
13. 13. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 How do we use this? Established and scientifically validated scales available in the academic literature Scales can be used for profiling in segmentations, U&As, ad testing etc. predicting consumer reactions to marketing activities more accurately recruitment screeners to avoid psychologically biased samples or ensure specific target audiences achieving a higher level of consistency over projects
14. 14. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 On reflection Current ways of profiling consumers are not enough to accurately measure and predict their reactions to marketing actions We need to uncover consumers deeper needs and goals crucial for us as researchers and especially for our clients to understand if we want to figure out the most effective triggers to influence their behaviour Motivational profiling adds a deeper layer of understanding of consumers needs in addition to demographic and psychographic measures helps us predict more accurately how different groups of consumers will react to marketing activities such as advertising and pricing, and provide genuinely actionable recommendations for our clients.
15. 15. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Thank you! Elina Halonen
16. 16. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Q & A LeonardMurphy Greenbook ElinaHalonen TheIrra:onalAgency
17. 17. Elina Halonen, The Irrational Agency, UK Festival of NewMR 2012 - Main Stage - Session 5 Elina Halonen Company website @ http://www.theirrationalagency.com Read The Irrational Agency blog @ http://theirrationalagency.wordpress.com Follow IA tweets at @ http://twitter.com/irrationalagcy Connect with Elina on LinkedIn @ http://uk.linkedin.com/in/elina.halonen