Bureau West

Recent research has underscored the important role emotion plays in customers’ decision-making process.  Our rational brains typically have a very large amount of input to consider for every decision.  It can’t process all of that information quickly, and therefore uses emotion to come to a decision.  Science writer Jonah Lehrer says:

“Our emotional brain is actually much better at taking in lots and lots of information. Summarizing lots of data very efficiently, and saying, ‘Here’s a feeling. Don’t worry about all the details. Here’s a feeling. We’ve already taken those details into account.'”

A study at Harvard found that when people are either happy or angry, they’re more likely to make risky decisions than when they’re not feeling strong emotions.  Another study demonstrated that while people were more attracted to a supermarket display with many choices, they were far more likely to actually make a purchase when confronted with fewer choices.

For marketers, this means we should not ignore emotions. Market research frequently relies on rational answers.  However, focus group discussions can uncover people’s feelings.  This is done in a variety of ways.  We can make people feel comfortable to have a conversation where they say what they really feel and not just the answers they think are most appropriate (as soon as one participant opens up, that gives others “permission” to follow).  And we use specific exercises to get around rational, intellectualized answers, with techniques such as story-telling and metaphor elicitation.

To learn how your prospects and customers really feel, give us a call at (818) 752-7210.

Source: “Decisions, Decisions . . .,” CBS Sunday Morning News, April 25, 2010

Much has been said about utilizing social media for market research, such as mining tweets for customer input.  But companies can use the concept of a social network to conduct market research more actively, with market research online communities (MROC’s).  Also referred to as “focus groups on steroids,” MROC’s consist of a large group of people recruited to a private online platform to participate in research activities over time.

Companies use MROC’s in a variety of ways:

• Co-innovation: involving customers in the product development process.
• Longitudinal input: obtain information over the whole course of the decision-making process, or input about product use over time.
• Speed: since MROC’s are on-going, when companies need consumer input on a question, there’s no need to start recruiting research participants.  Answers can be available in days rather than weeks.
• Identifying trends: participants recruited for MROC’s are engaged, creative types of people who tend to be at the forefront of trends.

MROC’s are usually comprised of a few hundred people.  They require an on-going commitment, since participants need to be kept engaged.  This is done with a variety of online activities, such as online discussions, photo diaries, blogs, contests and surveys.  And these online communities may actually save on a company’s market research expenditures, since all of the company’s formerly disparate research efforts can be folded into one ongoing MROC.

To learn more and discuss the best ways to obtain input from your prospects and customers, give us a call at (818) 752-7210.

In our last Research Tidbit, we talked about the recession’s impact on consumers.  Wharton recently held a Marketing Conference, “Connecting with the Evolving Consumer,” which included some great insights on the topic.  Among them:

• Consumers’ tendency to do a mental calculation of value, that is, quality divided by price, has trickled down from major purchases like cars and refrigerators to minor ones, like cans of soup.  Companies like Campbell Soup have looked for ways to reassure customers they’re indeed getting quality, such as highlighting nutritional information.

• Consumers are willing to spend more for an assurance of quality.  In uncertain times, they don’t want to run the risk of buying an inferior product that won’t get used.  Calphalon has capitalized on this trend by emphasizing its technological improvements.

There is no doubt that consumers are making trade-offs in some areas and trading down in some others.  It’s still hard to say to what extent these changes will last as the economy emerges from the recession… but we’ll keep you posted!  In the meantime, to figure out where your customers stand, give us a call at (818) 752-7210.

Source: “Marketing In A Weak Economy,” Knowledge@Wharton, February 5, 2010