the psychology behind shopper's online decisions 6 1145...source: karimi, sahar (2013): a...
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The Psychology Behind Shopper's Online DecisionsLiraz Margalit (PhD)
Web Psychologist & Head of Behavioral Research
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Are we in control of our (online) decisions?
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80% of our every day decisions are done with little or no conscious
thought”
Wood and Neal, 2007
“
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TMI
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TMI
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“The only way that human beings could ever have
survived as a species for as long as we have is that
we’ve developed another kind of decision-making
apparatus that’s capable of making very quick
judgments based on very little information”
Malcolm Gladwell
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The year of personalization
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In order to understand people – we have to “think people”
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Does “personalization” address the person?
Personalization methods
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Does “personalization” address the person?
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Item - Item approach User - User approach
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Does “personalization” address the person?
Item-Item approach
If a user likes Item A he might also like Item B which is similar to item A
SIMILAR RECOMMEND
LIKES
A
B
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Does “personalization” address the person?
BOUGHT
BOUGHTSIMILAR
RECOMMEND
User-User approach
If two visitors A & B like the same items so if visitor A like a new item, we’ll offer it to visitor B
A B
X X
YY
Z
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DOES “PERSONALIZATION” ADDRESS THE PERSON?
Today, online personalization is anything but personal
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Doesn’t account for visitor mindset
Lacks context
What’s the problem with personalization today?
DOES “PERSONALIZATION” ADDRESS THE PERSON?
Past behavior = future behavior
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Psychology-based personalization
Theory of Online Behavior
Mindset
Context Personality
BEHAVIOR
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Mindset
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Intent
MINDSET
17*24=?
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MINDSET
Deliberate
Rational
Automatic
Emotional
System 2• Deliberate• Rational
System 1• Automatic• Emotional
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MINDSET
Rational vs Emotional brain
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Content engagement case study
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MINDSET
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MINDSET
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Two ways to arrive from the home page
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Mindset
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Different modes, different engagement
Next Page: Featured articles/colorful images/video
4.25 / pageview
Unintentionally
1.79 / pageview
Directly
EngagementClicks
1 min. 6 sec.
Unintentionally
Directly
Next Page: Search elements
Next Page:Featured articles/colorful
images/video
Next Page:Search elements
20 sec.
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MINDSET
Engagement analysis Arrived directly Arrived unintentionally
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Which of the two brain systems is dominant in each behavioral pattern ?
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MINDSET
EEG - recording of electrical signal Goal Oriented Browsers
0
2
4
6
8
10
12
14
16
0
20
40
60
80
100
120
NES FREE = 6.82 NES TASK = 10.46 EVS FREE = 63.75 EVS TASK = 14.13
Pink - Attention - brain areas involved in higher level processingGreen - Emotion - brain areas involved in lower level processing
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MINDSET
Human behavior is not the product of a
single process, but rather reflects the
interaction of different specialized
emotional and rational processes
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MINDSET
How can you apply these findings to personalize the customer experience?Offer paths that suit all mindsets
System 2
• Make it easy for visitors to find what they want
• Optimize search and navigation
• Do not interrupt them
System 1
• Track association path
• Provide a stimulating environment
• Use catchy headlines, colorful images and video to engage visitors
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PSYCHOLOGY-BASED PERSONALIZATION
Mindset
Context Personality
BEHAVIOR
Theory of Online Behavior
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PERSONALITY
Personality traits
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PERSONALITY
Personality traits play important role in online consumer purchase decisions
Maximizers vs Satisficers
Source: Karimi, Sahar (2013): A purchase decision-making process model of online consumers and its influential factor. A cross sector analysis
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PERSONALITY
Maximizers
• Only the best will do
• Constantly worry that another option might be better than their current choice
• Avid comparison shopper
Satisficer
• Good enough is fine
• Not concerned that a different choice that might be better
• Happy with first option that meets basic criteria
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PERSONALITY
Criteria for a potential partner
• Handsome
• Smart
• Owns a home
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PERSONALITY
Satisficers
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PERSONALITY
Maximizers
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PERSONALITY
Satisficer
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PERSONALITY
Maximizer
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For Maximizers
• Limit options to reduce frustration and avoid overwhelming them
• Use suggestions to signal best choices.
PERSONALITY
How can you apply these findings to personalize the customer experience?
For Satisficers
• Offer filtering for fast drill-down to relevant options.
• Provide a digital customer service rep to “bring” color and size visitor needs
Read and respond to the customer “digital body language” to reveal personality traits
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PSYCHOLOGY-BASED PERSONALIZATION
Mindset
Context Personality
BEHAVIOR
Theory of Online Behavior
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Context
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CONTEXT
The prevalent assumption regarding ecommerce product pages dictates that exposure to reviews, product details and technical specifications increase the likelihood of purchasing the product
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CONTEXT
Minimal product details versus rich product details
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CONTEXT
Different context, different behavior
23%
Added to Cart
14%
Conversion
Detailed Info Only Size & Color
17%
Added to Cart
Conversion
8%
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Research shows that purchase of ‘nice to have’ products is driven by emotion
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CONTEXT
How can you apply these findings to personalize the customer experience?For items with high emotional resonance, aim for customer hearts, not for their minds
Distinct between ‘nice to have’ and functional products
Avoid specifications that trigger rational analysis of product & price.
Put product and technical info behind tabs for those who really want it
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If we want to succeed in the digital world, we need to adapt technology to the way our brains work, not the other way around.
Summary
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Thank YouLiraz Margalit (PhD)Web Psychologist & Director of Behavioral AnalyticsMail: [email protected]: @LirazMargalit