CATALYSTS DRIVING SUCCESSFUL DECISIONS IN LIFE SCIENCES QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS

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1 CATALYSTS DRIVING SUCCESSFUL DECISIONS IN LIFE SCIENCES QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS JEANETTE HODGSON & SARAH SMITH DECEMBER 2017

2 QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS PAGE 2 OUR RESEARCH PHILOSOPHY HIGHLIGHTS THE NEED TO ADDRESS BEHAVIOR FROM THE PERSPECTIVE OF NOT ONLY THE INDIVIDUAL, BUT ALSO FROM A SOCIO-CULTURAL AND ENVIRONMENTAL CONTEXT. Healthcare is changing at a rapid pace, and for us to get closer to what really drives behavior and decision making, we need to think more laterally and extend our focus beyond the individual in isolation. Recent research in behavioral psychology has explored and developed theories about human decision making. The field of Behavioral Economics has challenged the way we ve traditionally thought about people s perception of value, expressed preference and how decisions are reached. It s popularized the idea that behavior is not the result of careful deliberation and perfect logic, but instead often driven by intuition, emotion and a myriad of other subconscious factors, some of which we have started to understand better. It s also clearly demonstrated that we, as social beings, are highly influenced by those around us and our physical environment, and as researchers, we ve paid less attention to these elements than they deserve. While we may sometimes make rational decisions, our tendency to do so is limited by our ability to work things out, copious amounts of information available, limited relevant knowledge, and a lack of time and energy. In these cases, we make decisions based on mental short cuts, or heuristics. However, heuristics can lead to biases and errors in judgment and that s where many of the theories of Behavioral Economics come into play. THE MULTI-FACETED INFLUENCES ON BEHAVIOR One of the core tenets of Behavioral Economics is that behavior is context dependent and is also influenced by how we perceive ourselves and others in that context and the physical limitations imposed by it. Our research philosophy highlights the need to address behavior from the perspective of not only the individual, but also from a socio-cultural and environmental context. We recently conducted a Patient Ecosystem landmark study that provided depth and insight about Irritable Bowel Syndrome (IBS) from a holistic understanding of the multi-faceted influences on IBS patient behavior. The research comprised in-person patient interviews utilizing a variety of enabling techniques, patient online blog exercises, candid conversations taking place on social media, cultural narratives surrounding the condition, primary and secondary health data, and perspectives from growing pools of patient advocates.

3 BEHAVIOR IS CONTEXT DEPENDENT.

4 QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS PAGE 4 Understanding behavior means understanding all the factors that influence it. In our framework to explore and understand behavior, this means seeing the world from the point of view of the individual - the who I am, from a socio-cultural perspective, the where I belong, and from a contextual point of view, the where I am. WHO I AM We are heavily influenced by our own personal attitudes, perceptions, beliefs and emotions rational or irrational, conscious or sub-conscious. Our emotional responses to words, images, experiences and events can be rapid and automatic, we know, and have all probably experienced a behavioral reaction triggered by emotion before our conscious minds process what we are reacting to. It s the equivalent of going with your gut. The impact of emotion must not be underestimated. States of high emotion are often referred to as hot states. More rational, calmer states can be referred to as cold states. A hot-cold empathy gap occurs when people underestimate the influence of visceral states on their behavior, e.g. being angry, in pain or embarrassed. In our research we found that by layering insights from multiple sources and incorporating a variety of lateral questioning approaches we can mitigate the effects of a one-sided perspective of reality. Similarly, we included a mix of questioning approaches to accommodate both systems, with System 1 being fast, instinctive and emotional, and System 2 being slower, more deliberative and logical. In our IBS research, these approaches combined rapid fire responses, image selection and metaphors with more reflective exercises, such as writing a letter to the condition during a blog exercise and narrative interviewing. WHERE I BELONG Our sense of belonging and alignment to a certain group of people or values, or lack of alignment with those we reject, has a considerable influence on how we behave. People make decisions based on what they observe in the behavior of others. Whether it be respected authority figures or peers with behavioral or demographic similarities to our own, this phenomenon is equally true of healthcare professionals. More subliminal influences through the media, promotion and the words and imagery chosen to surround the condition further reinforce perceptions of desirable behavior or impressions of conditions, which in turn influence the beliefs we form and what we do as a result. In our IBS study, despite the social, emotional, practical and economic impact of IBS being very clear, the cultural narrative minimizes the seriousness of the condition, thereby exacerbating a negative spiral for sufferers. WHERE I AM Likewise, our physical context impacts our behavior. We re all a composite of multiple me s the me I am when I m making a presentation at work, counseling my kids through a relationship breakup or sitting in the pub with my friends on a Saturday night all trigger different sides of my personality to come to the fore. In the same vein, the way someone relates to, discusses and behaves in the context of their illness will differ according to the context in which they find themselves. To assume that relationships with illness are anything other than multi-faceted means only seeing a fraction of the story. In our research, we saw and heard the varying impact of IBS, depending on the role the person is playing in any given context. Similarly, the personality of healthcare professionals and the side of themselves they bring to a consultation will be determined by the interaction they have in the moment, and will differ from patient to patient depending on the content, context and nature of the dialogue. From a healthcare prescriber s perspective, decisions are also affected by context, not just by what is available on formulary but by other sensory and emotional factors associated with that environment.

5 QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS PAGE 5 IDENTIFY LEVERS FOR CHANGE Where our decisions are made, what resources are available, how easy behavior is as a result, and how we feel in each context all have impact on what we do. In our research design, we need to consider the broader environment in which decisions are made and where behavior takes place. All too often we overlook the importance of context in our research either from a prescribing perspective or from the point of view of living with illness. WE UNCOVERED RICH INSIGHTS TO DRIVE BUSINESS STRATEGIES AND INTERVENTIONS TO BREAK THE NEGATIVE CYCLE OF EXPERIENCE EDUCATE CHALLENGE LEVERAGE TARGET ADOPT physicians about the significant impact of the condition on day to day life the social narrative that s been formed the power of patient advocates and bloggers specific social media sites to listen to conversations and to provide information and support appropriate language patterns to frame the condition in a positive light As researchers, we gain maximum benefit by embracing Behavioral Economists theories and explanations of seemingly irrational behaviors and layering insights from a variety of perspectives. This allows us to form a deeper understanding of the drivers of behavior and identify levers for change. In our multi-faceted approach, we uncovered rich insights in our IBS research that will drive business strategies and interventions to break the negative cycle of experience. For more information, please visit patient-ecosystems-edge-of-insight

6 QUALITATIVE RESEARCH THROUGH A BEHAVIORAL ECONOMIC LENS PAGE 6 ABOUT THE AUTHORS JEANETTE HODGSON GLOBAL HEAD OF QUALITATIVE STRATEGY SARAH SMITH QUALITATIVE DIRECTOR The magic of great qualitative research still exerts its power to excite and engage Jeanette. Figuring out what makes people tick, uncovering illusive insights and making meaning from them for brand strategy is at the heart of what Jeanette has done for 25+ years. She has experience of global, strategic market research and brand consultancy, mostly from a healthcare perspective but also from a consumer environment so has a good understanding of marketing strategy. She has business leadership experience and is a trained Master NLP practitioner, and a specialist qualitative researcher. She has recently taken on the role of Global Head of Qualitative Strategy at Kantar Health with the remit of consolidating, developing and promoting the qualitative expertise within KH. Sarah is a Qualitative Methodologist, specialising in international pharmaceutical qualitative research for the last 19 years. Sarah first joined Kantar Health in 1999 after completing a BSc in Social Psychology. She spent 9 years in the International Specialist Qualitative Unit before exploring life elsewhere and returning to Kantar Health in Sarah is fascinated by people, what makes them tick and the factors that influence their behaviour. She is passionate about qualitative research and firmly believes that successful research should inspire, enrich and/or challenge. FOR MORE INFORMATION WHY KANTAR HEALTH? Please contact info@kantarhealth.com, or visit us at Kantar Health is a leading global healthcare consulting firm and trusted advisor to many of the world s leading pharmaceutical, biotech and medical device and diagnostic companies. It combines evidence-based research capabilities with deep scientific, therapeutic and clinical knowledge, commercial development know-how, and brand and marketing expertise to help clients evaluate opportunities, launch products and maintain brand and market leadership. Our advisory services span three areas critical to bringing new medicines and pharmaceutical products to market commercial development, clinical strategies and marketing effectiveness.

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