BREAKING UP IS HARD TO DOUsingBehavioralEconomicstoSpeedNewProductAdoption

Produced by Ipsos Marketing

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WhenNeilSedakawrote“BreakingUpIsHardtoDo,”littledidheknowhe’dwrittenatreatiseforthemodern shopper.

ByapplyingthelearningsfromBehavioralEconomics,youcanintroducenewproductsthataremoresuccessfulin-market.

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WhyBreakingUpIsHardtoDo1

SingingANewResearchSong2

WHY BREAKING UPIS HARD TO DO

Ingeneral,therearetwoprimarymotivatorsthatleadpeopletopurchaseanewproduct.

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However,evenwhenbothmotivatorsarepresent,consumersdon’talwaysswitchproducts.BehavioralEconomicsprovidesmultipleexplanations.

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ENDOWMENTEFFECT STATUSQUOBIASPROSPECTTHEORY

GainLoss

Pain

Joy

- 50 +50

OurproposedAdoptionEquilibriumFrameworkseekstocreateconceptsthatbalancemotivatorsforswitchingwithovercomingbarrierstoswitching.

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EXISTINGPR

ODU

CT NEW

PRODUCT

IMPACTOFINERTIA

PROBLEMSOFCURRENT

NEGATIVESOFNEW

ATTRACTIONOFNEW

BARRIERS

MOTIVATORS

PRODUCTCHOICE

Today,companiesfocusmostlyonthoseelementsintheirnewproductstheybelieveconsumerswillfindappealing.

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NEW

PRODUCT

PROBLEMSOFCURRENT

ATTRACTIONOFNEW

MOTIVATORS

PRODUCTCHOICE

Payingmoreattentiontothenegativeforcesthatkeepuswithexistingproductsiswherethegreatestopportunityexiststoimproveproductadoption.

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EXISTINGPR

ODU

CT

IMPACTOFINERTIA

NEGATIVESOFNEW BARRIERS

PRODUCTCHOICE

Todemonstratethesebarrierstoadoption,aswellashowtoovercomethem,weleveragefourrecentresearchprojectsalongwithtextanalytics.

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LifeInsurance Cereal BeautyCareWiFi

Consumerreactionstonewproductsareinsomecasesactuallymorenegativethanpositive.

EXISTINGPRO

DUCT N

EWPRO

DUCT

17% 29% 24%41% 47%61% 19%

LifeInsurance Cereal BeautyCareWiFi

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Evenwithinthesamedimension,wesawthatthenegativeswerestrongerthanthepositivesatimpactingpurchaseinterest.

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ImpactonPurchaseInterest

EXISTINGPR

ODU

CT NEW

PRODUCT

Likehighlightedingredient

HealthyUnhealthy

Donotwanthighlightedingredient

Alltheconceptstestedevidencedbarrierstoadoption,butthereweredifferencesseendependingontheconcepttested.

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INERTIA(HappywithwhatIhave,

Idon’tneedthis)

NEGATIVES(e.g.,Expensive,

don’tlikefeatures)

SYSTEM2(e.g.,Ineedmore

information,Iwouldcompare)

19%

15%

19%

42%

12%

28%

19%

41%

SYSTEM2goldmeaningslowdownthedecision

ByusingtheAdoptionEquilibriumFramework,wewereabletoidentifyclearwaystoovercomebarrierstoadoptionbywritingbetterconcepts.

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System2Thinking Side-by-sideguide Simplify

policy

ImpactofInertia

Targetmales

FocusonnoisereductionIncreaseemotional appeal

NegativesofNew Simplify

policy

Ingredienteducation

Improvesecurity

Manualoverride

LifeInsurance Cereal BeautyCareWiFi

SINGING A NEWRESEARCH SONG

It’snotenoughtoleverageaBE-basedAdoptionEquilibriumFramework.Ourapproachtotestingconceptsshouldalsoreflecttheselearnings.

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ConceptTesting

Adoption EquilibriumFramework

PRODUCTCHOICE

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1 Qualitativelypretestingconcepts

Thentextanalyzing results2

Allowsustoputthestrongestofferintothestage-gateprocess.

Makeaconsciouschoicewhenwritingconceptsregardingthedegree towhichyouareaskingforSystem1vs.System2thinking.

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2

StartingPrice $1,499 $1,299

CPU 6th-Gen Corei5 2.7-GHz,5th-GenIntelCore i5

GPU IntelGraphicsHD520 IntelIrisGraphics 6100

Display 13.5inches, 3000x2000 13.3inches, 2560x1600

RAM 8GB/16GB 8GB/16GB

Ports USB3.0(2),Mini DisplayPort, SDCard USB3.0(2),HDMI SDCard,Thunderbolt 2(2)

Size 12.3x9.14x0.51-0.9inches 12.35x8.62x0.71inches

Weight 3.34pounds(3.48withNividia GPU)

3.48pounds

Testingconceptswithinadirectcompetitivecontextwillforceconsumerstomostrealisticallyrespondtoadoptionbarriers.

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ExistingProduct

NewProduct

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MEETSYOURNEEDS

Leveragingnaturalconsumerlanguageatleastasmuchasattributeswillprovideagreaterunderstandingofmotivatorsandbarriers.

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4

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WHAT’SNOW

WHAT’S NEXT

BALANCED INNOVATION PIPELINEINCREMENTAL INNOVATION

TEXT ANALYSIS OF OPEN ENDSANALYSIS OF ATTRIBUTES

FOCUS ON MOTIVATORS AND BARRIERSFOCUS ON MOTIVATORS

DIRECT COMPARISON TO DEFAULT OPTIONMONADIC CONCEPT TESTING

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WHAT’SNEXT

WHAT’SNOW

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THANK YOU