Consumer Behaviour

As I mentioned last time, I’ve only once found an impromptu use for my understanding of consumer behaviour and consumer psychology, and I certainly never anticipated that a situation might arise where market research might make a difference between life and death.

But that just shows how little I know.

Recently, the UK government has announced that 10% of hospital (NHS Trust) funding will be dependent on patient satisfaction levels.  To put that in financial terms, that could mean around £10billion of expenditure will be dependent on patient satisfaction.

And here’s the thing.  This is, in my opinion, the most profoundly stupid example of using market research that I have ever encountered: it’s going to result in lives being lost.

Let’s go back a few years, before any of us had heard of MRSA or any of the other so-called super-bugs that are resistant to antibiotics and kill people.

How many patients would have walked out of a hospital thinking, “There was a risk of me contracting a life-threatening bacterial infection in that hospital, I’d better market them down to a 5 out of 10.”

Ah, you may say, but people might have said the hospital wasn’t very clean.

That’s true.  But against what standard of cleanliness are patients judging the hospital?  Most of us are fortunate enough not to visit hospitals too often, so can we really judge what properly, hygienically clean looks like?

Of course, now that we’ve been primed to think about something as important as super-bugs we’re very sensitive to how clean a hospital looks.  But we don’t know how effectively they are controlling this type of infection from what we see; that requires expert testing.

It might be useful to know what people are actually doing in the hospital.  Are they reporting toilets that they find are dirty?  Are they cleaning up after themselves effectively where they can?  Are they washing their hands properly?  Are they using the special sanitising products provided?  Are they only coming to the hospital as visitors when they know they aren’t carrying a cold or stomach bug?

There is no shortage of evidence to show that people are hopelessly poor at reporting this sort of information accurately – not that, as far as I know, anyone is proposing to ask them what they are doing.  It’s all about what  they think.

I don’t think the NHS is perfect – far from it.  But I don’t think that I know how to judge how it’s performing in totality.

If someone happens to go for an out-patient appointment and is kept waiting for two hours they would feel bad.  In completing a survey they would probably exhibit be a ‘halo effect’ whereby they misattribute that bad feeling to many aspects of their experience.  Now if the delay was caused because the doctor in question was saving a life elsewhere would the patient realise?

Individual patients don’t have the perspective or the expertise to judge how well a hospital is performing.  But these inexpert, myopic opinions, when collected in their thousands and pressed together in a report, take on a gravity that is totally out of proportion to the base data.

And people will almost certainly die as a result.

Money will be wasted.  It will be wasted on the survey process itself.  It will be wasted on implementing the wrong solutions.  It will be wasted because the hospitals will invest in playing the game – anticipating what they think patients will want to see and hear to give them good scores.

All of these will drive money away from the expert evaluation of hospital effectiveness, drug funding and objective decision-making that should be taking place on the basis of managers doing the best job they can, as experts in the hospitals they are tasked to run.

You may never hear someone say, “Market research saved my life”, but if you’re unfortunate enough to need the UK’s National Health Service and not get the care you need, market research might just be responsible for you not living.

Philip Graves

Philip Graves consumer behaviour, consumer research, market research 10%, consumer behaviour, consumer psychology, market research, National Health Service, NHS, patient satisfaction

Be honest, how many of you thought you would ever read that as a headline?

As someone who has worked in and around what is generally known as “market research” for twenty years I was always slightly disappointed that I didn’t have a job that might be called upon dramatically.

“Help!!! Is there a market researcher on the plane?” Is not a phrase I ever expected to hear.

As a brief aside, I was once able to put my consumer behaviour skills to good use with strangers: I was taking a train with a friend and a number had been cancelled, resulting in the sorts of over-crowding that’s not permitted for the transportation of any other mammal.

We’d failed to get on two trains and watched two passengers almost come to blows as one attempted to compress an over-crowded carriage.

When the third train arrived we saw a tiny space, possibly only an illusion based on sixty people inhaling simultaneously, but decided we had to go for it.  Just then two people started fighting their way OFF the train that we wanted to get on.  They were at their intended station and were struggling to get through the packed groups of people between their place and the train doors.

As they made it through they were defiantly angry at the people they felt were blocking their route – in fact they just had no space to move into to get out of their way, and no one was planning on stepping off this train that they had worked so hard to get on to.

My friend and I, emboldened by a sense of mathematical justice – two people had now got off the train, their hadto be room for two more – pushed into the crowd.  Whilst the people we were now pressed against weren’t exactly happy about it, they also had seen the people get off and were, I suspect, torn between personal discomfort and resignation at the fact we were only re-balancing a distasteful equation.

After my friend broke the silence with a cheery “Hello” a conversation sprang up in our area of the carriage – an extraordinarily rare event on any form of London public transport.  After laughing about the fact that a train operator wouldn’t think to have drivers for all the trains they were operating the conversation turned to contrasting the general bonhomie of my friend and I with the couple who had only moments earlier escaped the packed carriage: why, one of my travelling companions asked, had they been unhappy to leave a crowded train whilst we were happy to be on it.

“Ah ah,” I said, pleased that my consumer psychology skills were at last coming in handy in an impromptu situation, “it’s the psychology of loss aversion!  The people getting off the train were anxious about losing out because they want to get home by getting off the train.  My friend and  I were afraid we would lose out by not getting onto a train and not getting home.  So the same psychological mechanism that makes us happy makes them unhappy because of the context.”

So, personally, I’ve been slightly useful but not saved any lives.  Which brings me back to the title of this blog: Market Research Saved My Life!  Has that happened?  Could it happen?  What would you spend on it if it could?

I’ll tell you next time!

Philip Graves

Philip Graves consumer behaviour, Uncategorized consumer behaviour, loss aversion, market research, train travel

There’s no escaping the fact that Tiger Woods’ personal life has become very public in the last couple of  days.

But what, you may well ask, could his “transgressions” possibly have to do with consumer behaviour or market research?

The answer is in Tiger’s statement after his private life became monumentally public.  Here’s what he said on his website:

“I have let my family down and I regret those transgressions with all of my heart. I have not been true to my values and the behavior my family deserves.”

Now none of us can say whether this is what Tiger Woods really feels, or whether this is just the best thing he can think to say in the position he has found himself.  But for the purposes of this post, let’s take Tiger at his word.

He has not been true to his values.

Market research is frequently preoccupied with asking people what they think.  What are their attitudes (something very closely linked to their values)?

And here is classic example of something we all are manifestly capable of: our behaviour not matching our values.  Our attitudes and values are what we like to tell ourselves about how we are; our behaviour is how we actually are.

When it comes to understanding consumers what would you rather know?  What people like to tell themselves or what they really do?  I promise you there is, more often than not, a world of difference between the two.

I believe it’s a very important distinction.  I suspect Tiger Woods’ wife might be struggling to reconcile the two because most people like to think that there is a strong connection between values, attitudes and behaviour.

I’m not criticising Tiger Woods’ actions because I have no idea what he did or what circumstances surrounded it (and, frankly, it’s none of my business), but if Mrs Woods wants to know what Tiger’s values are she will find out from his behaviour not his words.

Philip Graves

Philip Graves consumer behaviour, consumer research consumer behaviour, market research, Tiger Woods, Transgressions