Consumer Behaviour

You know how it is, you think about something for so long that it gets harder to do it not easier!

Today I had a couple of hours free and decided to tackle the long overdue consumer behaviour website make-over.  Of course, once I got started it took considerably longer than a couple of hours, but once you get started it only gets easier to keep going: that first step is always the longest!

I’ve taken note of feedback from the blog; now articles will all appear on one page, but I’ll still link them from the front page too so that visitors to the site can get an immediate indication that there are frequent updates.  I’ll also be changing the main box from time to time as new products come out.

I decided that the video had had so much positive reaction – and I know it has already contributed to increased demand for my services – that it deserved a higher profile position, at least for a while.

Please do pop back here and let me know what you think.

Philip

Philip Graves consumer behaviour consumer behaviour

When it comes to understanding consumers it’s always important to consider the issues from a rational perspective, and then completely ignore what you conclude.

Why?

Because consumer behaviour isn’t, for the most part, rationally based.

Recently I happened across a great example.

The UK supermarket chain Waitrose has always operated at the higher end of the market, catering to customers who are willing to pay a little more for higher quality produce.  Waitrose’s marketing makes much of the fact that they source their products carefully; some of their packaging will state which farm meat has come from for instance.

With the economic downturn all of the supermarkets have been keen to communicate low price messages; which isn’t easy since most of them operated on a low price platform anyway.  Indeed, the big two supermarkets (Asda who are owned by Wal Mart) and Tesco frequently squeeze suppliers brutally hard in order to drive down prices.  With such large shares of the grocery market, an efficient supplier has to decide between saying goodbye to most of their profit, down-grading their product, or losing a large proportion of their sales in an instant.

With most suppliers already squeezed the supermarkets have created new products, sometimes positioned below their already lower-priced own-label offerings, to sell more cheaply.  Sometimes they create new brands for these products, and sometimes they package them as new own-brand offerings.

Waitrose introduced an ‘Essentials’ own-label range and it seemed to be selling well.

I looked at the pizzas.

The ‘Essentials’ pizzas were more expensive than the regular own-label equivalents!

Looking on the company’s website I also notice that, even when the per pizza price is lower, the price per kilogram is higher on their ‘budget’ pizzas.

But they still sell.

Because customers buy the concept.  If the first instance primes them to believe that the product is cheaper, and in particular if that first experience isn’t bad from a quality perspective, then future purchases are made as an emotional reaction: seeing an ‘Essentials’ product is an opportunity to make a worthy purchase – a purchase that feels like a good, money-saving decision in these difficult times.

Few people will check what the actual cost is or how it lines up against alternatives – let’s face it that would make shopping extremely time-consuming.  And so the company can make a greater profit from a lower-priced product!

And to add to their prize the supermarkets, having drawn people in with the promise of lower-priced options, have the opportunity to influence the customers visiting their stores.  Feeling good about the money they believe they’ve saved, some customers will indulge in small ways elsewhere in the store.

Multi-buys will feel like great value, but lead to more products being purchased and, once sitting their on the shelf, the likelihood of their being consumed is high.  Consumption increases because of the constant visual prompt and feeling that a plentiful supply is available. It may even lead to feeling that a similar quantity of purchase is required next time, even if the offer is no longer present.

I’m not suggesting that such practices are admirable, desirable or morally justifiable.  But they provide a useful insight into the workings of the consumer mind.

Philip Graves

P.S. If you want to learn more about consumer behaviour take a look at my eBook, The Secret of Selling: How to Sell to Your Customer’s Unconscious Mind.

Philip Graves consumer behaviour consumer behaviour, priming, psychology, why customers buy

Continuing from yesterday’s post it seems my customer satisfaction is developing into a series.  I really appreciate the questions and comments, I sense an eBook coming on!

Today’s gratitude is due to babysitting maestro Lisa McLellan.  You may wonder what link there could possibly be between someone who is so focused on children and babysitting, and a consumer behaviour expert.  Well, as Lisa’s comment demonstrates, there is a link if you open your mind to it.

Here’s what Lisa said:

“I have found myself giving different answers to basically the same question depending on the wording of the question. I have also found through babysitting children of all ages, that at a particular age, (usually younger children age 2-4)children will choose the last choice they are given when you ask a question giving them a few answers to choose from. For example, you ask, “How did you get that scratch, did you fall down, did you scratch it on the corner of the bookcase, or did the cat scratch you?” 99% of the time, the child will say the cat scratched them simply because it was the last option.”

The great thing about studying children as consumers or, as in this case, as “respondents”, is that they are susceptible to all the same unconscious influences that adults are, but are far less skilled at concealing how they’ve been influenced with conscious filtering. 

Part of the innocence of childhood is the absence of the capacity to process what you’re about to say in advance, to check for social acceptability and, just as critically, self-perception.  In other words, “Is it OK to express this to this group of people?” and, “How will I look to them if I do?”

We soon learn not to repeat the last thing someone says to us, and it’s good we do or we would be too easy to manipulate; but we don’t learn not to let the options determine how we reply. 

Let me ask you a question: “What will you do this weekend? Play with the kids, watch a movie, sit down and relax?”.

You may not answer any of those things – although there’s quite a high possibility that you’ll mention one.  But almost anyone answering will be talking about leisure activity of some kind.

But if I’d asked you: “What will you do this weekend?” Some domestic paperwork, a supermarket shop, cut the grass?” you would probably have talked about chores and duties first. 

Studies have shown that if you ask people “How happy are you?” you will get a totally different response from asking the question “How unhappy are you?”  And if you ask which of two divorcing parties should get custody of a child you will get a different answer than if you ask which of those two parties shouldn’t get custody.

For my dissertation at university I looked at schoolchildrens’ attitudes to statistics.  Following the accepted protocol I used a battery of attitudinal questions (you know the “strongly agree, agree, disagree, strongly disagree type). 

I discovered that even children as old as fifteen were influenced by the orientation of the statement (i.e. whether it was framed positively or negatively).

Another revealing element of human psychology you can see quite easily in young children is emotional misattribution.  In fact, it’s a great way to appreciate that we humans are emotional creatures who retrofit rational explanations after the fact.

A child between the ages of two and seven (and possibly beyond) will often make a totally incongruent responses like: “Shall we get ready for school?” “No, I hate school!” or “Are you going to eat your sandwiches?” “No, I can’t stand cheese!” when you know perfectly well that they have enjoyed their time at school each day for the past year, or that they eat cheese frequently without a fuss.

What they’re revealing is that something has made them feel bad and they are directing that feeling at whatever target seems to fit the circumstances.  This could be an argument with a sibling, tiredness, a lost toy, resentment at having been disciplined for something a few minutes earlier, or any of a thousand other things.  As adults we learn to pick a more fitting target so we don’t get ridiculed, and so that we get to express our bad feeling; but it’s frequently just as misdirected.

Similarly, a toy will lie untouched for a week.  But once one child has it their sibling wants it too; more than anything else in the world.  This is an example of so-called “mirror neurons” in action and reflects (no pun intended) how we can all react by wanting to copy what we see others doing.  Ever yawned because someone else has yawned even though you didn’t feel tired?

So children reveal a lot about what we all do.  If you’re interested in the consumer research process you would do well to observe their inconsistencies and the influence that environment, frame and question wording have on them.

Next time I’ll tell you how you can analyse customer satisfaction.

Philip Graves

Philip Graves consumer behaviour, consumer research consumer research, customer satisfaction, priming, psychology

Following on from yesterday’s post, fitness expert Daryl Pace asked:

That a customer’s answer to a satisfaction survey depends upon the context in which the questions were framed, as well as other possible factors, does seem to make sense. However, if a business did a survey that just asked the question, “are you satisfied overall with the service this business provides you”, it seems that they would get a decent gauge on the general customer sentiment about the business. What do you think?

It’s a great question, and I’m happy to tell you what I think as it gets right to the heart of one of my favourite subjects, consumer research.

The first thing to say is that, if you were going to ask this question, Daryl’s implicit suggestion that you JUST ask this one question (so as to remove the risk of inadvertent framing) would definitely be the best option. 

However, in all my years of consumer research and marketing I’ve never seen a one question questionnaire (although I do use this approach myself sometimes in a slightly different context).  Instead people want to break down an issue into its logical constituent parts or, at the very least, ask people why they think what they do.

In both cases, the fact that you’ve asked other questions or asked ‘why?’ changes the way the brain works, what the person thinks and what they go on to say in reply.

But there are other problems with asking even the single question on satisfaction:

• Asking a question creates a context and influences the respondent’s mindset; different ways of asking produce different results.  How do you know if what you’re getting is a legitimate appraisal of that customer’s satisfaction and not one that is shaped by the dynamic of questioning?  You don’t.
• Asking people to explain what they like and don’t like has been shown to change the overall rating that they give.
• Where you ask and who is asking will change the response.  As will whatever the person was doing immediately prior to your having asked them.  Understanding what is ‘in play’ in terms of response influence is extremely difficult.
• Asking about satisfaction presupposes that satisfaction is a salient issue for the consumer.  If you ask you will get an answer, but customers may very well not be processing the experience in a way that reflects our conscious notion of satisfying or dissatisfying experiences.

Supposing you go ahead and ask and learn that 80% of people are satisfied; how do you interpret that data.  OK, you could look at how that number has changed, but does a drop of 20% mean you have a problem, or are people just becoming accustomed to something that was previously perceived as satisfying?  Over time you have created your own context and people have unconsciously moved the satisfaction goal posts because of what you’ve done for them!

What if satisfaction scores increase but sales decline?  Does that mean you shouldn’t look at your product or service because it’s satisfying people?

I’ve conducted research where people were satisfied with a customer service help desk.  But I knew that they weren’t satisfied at all.

How?

I’d watched them have their customer experience.  It was unpleasant.  They were unhappy and uncomfortable throughout the interaction that was taking place.

I told my client the good news, “Everyone’s satisfied with your customer help desk.”  And then the bad news, “They’re only satisfied because their expectations of you are so low that, provided they get a positive outcome in the end, they’ll accept it.”

So, I think the whole concept of measuring customer satisfaction is misjudged.  Yes you get a number and companies love numbers, but it’s a meaningless one and it doesn’t, or more to the point shouldn’t, make any difference to how a company appraises what it’s offering to customers.

There are better ways of gauging satisfaction.

Philip Graves

Philip Graves consumer research, Customer Service consumer behaviour, consumer research, customer satisfaction

In my recent (very short) consumer behaviour video I made a reference to how unhelpful it can be to ask someone how satisfied they are with their consumer experience.  My point was that, given you don’t know what frame of reference someone has in mind when they respond, it’s really not that useful to know.

Are they satisfied because their expectations are so low that, when nothing terrible happens, they’re grateful?

Are they satisfied because what’s on offer is so formulaic that all they could do is be very dissatisfied if the delivery was below the standard?

Are they satisfied because they have such little interest in whatever it is that “yes” is all they can think to say; they’ve forgotten what happened and assume, because it wasn’t memorably bad, that it must have been OK at the time?

It turns out a recent study has found that people’s ratings of satisfaction change according to the nature of the alternatives they were considering at the time they made their choice.  So satisfaction, rather than being an absolute measure, is going to depend on what the person was thinking at the time they made their choice and, in the case of research, what you’ve framed the question with (particularly if you’ve been asking about other brands that operate in the same category).

You can read my full article here,  and make comments below if you’d like to. 

Philip Graves

Philip Graves consumer research consumer research, influence