Behavioral Science II: Gentle Nudges: Influencing Behavior Unconsciously JESSE ITZKOWITZ, PHD
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1 Behavioral Science II: Gentle Nudges: Influencing Behavior Unconsciously JESSE ITZKOWITZ, PHD Behavioral Scientist Behavioral Science Center, NA Ipsos. All rights reserved Ipsos 1
2 Your Presenters Today Eda Cetinok Senior Vice President, Ipsos Loyalty Financial Services Team Jesse Itzkowitz, PhD Behavioral Scientist Ipsos Behavioral Science Center, NA Ipsos 2
3 2017 Ipsos 3
4 Contents 1 Introduction to Behavioral Science 2 What is Non-Conscious Influence? 3 Store Atmospherics 4 Consumer Goals 5 Social Cues 2017 Ipsos 4
5 A (very brief) INTRODUCTION TO BEHAVIORAL SCIENCE What is Behavioral Science? 2 Systems of Cognition 2017 Ipsos 5
6 What is Behavioral Science? Behavioral Science is an interdisciplinary approach to understanding how consumers behave, why they do so, and what causes behavioral change Chief Behavioral Officer: It's the new must-have role. ~ Crawford Hollingworth 2017 Ipsos 6
7 What is Behavioral Science? Traditional Economics Rational Resources available and used to make the best and informed decisions Know what s best Predictive models based on mathematics. Behavioral Economics Irrational Bounded resources and willpower Heuristics Don t Know What s Best Or What We Want Interested In How? & Why? Conduct Experiments To Learn About Human Behaviors How we should behave How we actually behave 2017 Ipsos 7
8 2017 Ipsos 8
9 A (very brief) INTRODUCTION TO BEHAVIORAL SCIENCE What is Behavioral Science? 2 Systems of Cognition 2017 Ipsos 9
10 Two-System Models of Cognition Soul vs. Mind (Aristotle) Id vs. Ego (Freud) Lizard brain vs. Monkey brain (pop psychology) Heart vs. Mind (Your mom, offering advice) Tacit vs. Deliberate (Hogarth 2001) Experiential vs. Rational (Epstein 1994) Associative vs. Rule Based (Sloman 1996) System 1 vs. System 2 (Stanovich & West 2002) 2017 Ipsos
11 Two-System Models of Cognition SYSTEM 1 Fast, parallel, automatic, associative, intuitive, effortless, perceptual Good at rough estimates, noting correlations, logging incidences Slow to learn SYSTEM 2 Slow, serial, controlled, flexible, effortful, resourceconsuming Good at precise calculations, forming and following rules, making tradeoffs Self-aware 2017 Ipsos 11
12 Two-System Models of Cognition Fast Process Unconscious Non-logical Automatic Low Effort High capacity Source of Intuition and Emotion System 1 Slow Process Conscious Logical Controlled High effort Small capacity Linked language Provides reasons System Ipsos 12
13 NON-CONSCIOUS / SYSTEM 1 INFLUENCES 2017 Ipsos 13
14 Types of Perception Stimuli enters conscious awareness Subjective threshold Stimuli is detected by the senses but does not enter conscious awareness Objective threshold SUPRALIMINAL SUBLIMINAL Subjective threshold a function of attention and motivation Stimuli is not detected by the senses 2017 Ipsos
15 Types of Perception Stimuli enters conscious awareness Subjective threshold SUPRALIMINAL Conscious (S2) OR Non-Conscious (S1) Stimuli is detected by the senses but does not enter conscious awareness Objective threshold SUBLIMINAL Non-Conscious (S1) Stimuli is not detected by the senses 2017 Ipsos
16 Subliminal or Supraliminal? 2017 Ipsos 16
17 Gentle Nudges Prime Mental Networks Blue Yellow Power Status Green Reward Control $$$ United States Freedom Bill Gates 2017 Ipsos 17
18 PRIMING MENTAL ACTIVATION Subliminal Perception and Consumer Response First Conclusive Evidence People Did Not Believe Him! Established the Link Between Subliminal Perception and Consumer Behavior (Marcel 1983) Cognitive Psychology 2017 Ipsos 18
19 2017 Ipsos XXXXX
20 2017 Ipsos NURSE
21 2017 Ipsos XXXXX
22 Select the Word That You Just Saw NURSE STOUT 2017 Ipsos
23 PRIMING MENTAL ACTIVATION Marcel s Second Experiment Subliminal Priming Activates Mental Networks Blue Yellow Green Power Status Control Priming a Concept or Word Should Activate Associated Nodes This Facilitates Response United States $$$ Reward Freedom (Quicker Response Time) Bill Gates (Marcel 1983) Cognitive Psychology 2017 Ipsos 23
24 2017 Ipsos XXXXX
25 2017 Ipsos NURSE
26 2017 Ipsos XXXXX
27 Is This a Word or Not? DOCTOR 2017 Ipsos
28 Is This a Word or Not? BANK 2017 Ipsos
29 Is This a Word or Not? HENKOR 2017 Ipsos
30 Reaction Time (ms) Related Word Unrelated Word Non-Word 2017 Ipsos Facilitation of Related Word Recognition is Evidence of Subliminal Priming (Marcel 1983) Cognitive Psychology
31 Three Types of Supraliminal Effects STORE ATMOSPHERICS CONSUMER GOALS SOCIAL CUES 2017 Ipsos 31
32 Gentle Nudges: STORE ATMOSPHERICS 32
33 STORE ATMOSPHERICS Temperature Temperature has been shown to non-consciously influence customer decisions There is a link between the ambient temperature and individuals feelings of inclusion Cold and alone, Cold shoulder vs. Warm welcome, The warmth of a friend Scientists have linked Temperature to Feeling Alone When we are excluded, we feel cold! (Zhong and Leonardelli 2008) Psych Sci 2017 Ipsos 33
34 STORE ATMOSPHERICS: TEMPERATURE Temperature Affects Product Evaluation OR Please Rate The Following 12 Movies (Romance, Action, Comedy, Thriller) Hong & Sun (2012) JCR 2017 Ipsos 34
35 STORE ATMOSPHERICS: TEMPERATURE Cold Customers Look to Warm Things Up $55 $50 $45 $40 $35 $30 $25 $20 Willingness to Pay (HK$) Romance Action Thriller Comedy Room temp: F Room temp: F Hong & Sun (2012) JCR 2017 Ipsos 35
36 IPSOS CASE STUDY: AUTOMOTIVE WE WORKED WITH A LARGE AUTO MANUFACTURER TO CHANGE CUSTOMERS: ENGAGEMENT WITH SALES STAFF RECOMMENDED WARM DRINKS PERCEPTIONS OF TECHNOLOGICAL/PROCESS EXPERTISE PRIMES FOR TECH: SHOWROOM TABLETS AND MOBILE INTERFACES 2017 Ipsos
37 STORE ATMOSPHERICS Priming Consumer Mindsets Processing Type Affects Everything Consumer Do Consumers Have 2 Processing Types: Analytic vs. Abstract 2017 Ipsos 37
38 ANALYTIC PROCESSING DETAILS CONTRASTS SURFACE FEATURES 2017 Ipsos 38
39 ABSTRACT PROCESSING RELATIONSHIPS FUNCTIONALITY MEANING 2017 Ipsos 39
40 STORE ATMOSPHERICS Ceiling Height 12 Feet 8 Feet 2017 Ipsos 40 Meyers-Levy & Zhu (2007) JCR
41 STORE ATMOSPHERICS: CEILING HEIGHT Tasks Volleyball Diving Table Tennis Rally Racing Judo Swimming Baseball Lacrosse Curling Golf Cycling Soccer 2017 Ipsos Meyers-Levy & Zhu (2007) JCR
42 STORE ATMOSPHERICS: CEILING HEIGHT High Ceiling: Abstract Thinkers Listed More Shared Attributes Listed Deeper Attributes Overlooked Design Flaws 2017 Ipsos Meyers-Levy & Zhu (2007) JCR
43 STORE ATMOSPHERICS: CEILING HEIGHT Low Ceiling: Analytics 2017 Ipsos Meyers-Levy & Zhu (2007) JCR
44 STORE ATMOSPHERICS: CEILING HEIGHT Marketing Implications 2017 Ipsos Assortment Choice
45 STORE ATMOSPHERICS: CEILING HEIGHT Marketing Implications 2017 Ipsos Perceptions of Variety
46 Gentle Nudges: CONSUMER GOALS 46
47 Triggering Consumer Goals Like Concepts, Goals can also be Primed Primes Actions Related to Goal Achievement Primes Senses/Perceptual Effects Goal Based Primes Persist Until They Don t 2017 Ipsos
48 CONSUMER GOALS Indulgence (Laran and Janiszewski 2008) JCR 2017 Ipsos 48
49 CONSUMER GOALS Indulgence (Laran and Janiszewski 2008) JCR 2017 Ipsos 49
50 CONSUMER GOALS Indulgence (Laran and Janiszewski 2008) JCR 2017 Ipsos 50
51 CONSUMER GOALS Indulgence (Laran and Janiszewski 2008) JCR 2017 Ipsos 51
52 CONSUMER GOALS Marketing Implication: Perceived Goal Progress Individuals are motivated to increase goal-consistient behaviors as they approach goals Creating a perception of progress towards a goal creates consumer motivation and sustains focus on goal achievement because the goal seems within reach First card Second card As customers accumulated more stamps their speed of consumption accelerated 20% decrease in purchase times from first to last stamp implies that in a typical month, members purchased two more coffees than they would have without the program (Kivetz, Urminsky & Zheng 2006) JMR 2017 Ipsos 52
53 CONSUMER GOALS Artificial Goal Progress Control Group (10 Stamps) Exp Group (12 Stamps, 2 filled) Both Cards Need 10 Stamps to Reach the Goal Illusions of progress toward a goal speeds consumption Regular Card = 15.6 Days Fake Progress Card = 12.7 Days (Kivetz, Urminsky & Zheng 2006) JMR 2017 Ipsos 53
54 CONSUMER GOALS Indulgence (Laran and Janiszewski 2008) JCR 2017 Ipsos 54
55 STORE ATMOSPHERICS: CONSUMER GOALS Marketing Implications 2017 Ipsos Activating Indulgence
56 STORE ATMOSPHERICS: CONSUMER GOALS Marketing Implications 2017 Ipsos Activating Impatience (Van den Bergh, Dewitte, and Warlop 2008) JCR
57 CONSUMER GOALS Takeaways Activating Goals Leads to Goal Pursuit: We behave in ways that attempt to fulfill the goal. This leads to Goal-Prime consistent decisions UNTIL THE GOAL IS ACHEIVED 2017 Ipsos 57
58 Gentle Nudges: SOCIAL CUES 58
59 SOCIAL CUES Nudging us Back to Ourselves We define ourselves in many ways but all are CONTEXTUAL When and Where we Are Who is Around Us 2017 Ipsos 59
60 SOCIAL CUES We All Have Multiple Identities 2017 Ipsos
61 SOCIAL CUES Identity is Contextual 2017 Ipsos Situations and Environments Prime Different Identities
62 SOCIAL CUES Identity Affects Choice Scholars Socialites 2017 Ipsos LeBoeuf, Shafir, Belyavsky (2010)
63 SOCIAL CUES How do world issues affect the University? How do men/women feel about campus issues? 2017 Ipsos LeBoeuf, Shafir, Belyavsky (2010)
64 2017 Ipsos 17.5% Difference LeBoeuf, Shafir, Belyavsky (2010)
65 SOCIAL CUES Marketing Implications 2017 Ipsos Information Processing Ability Overconfidence Duttle & Shichijo (2015) Ability Impairment Steele & Ambady (2006) Memory Retrieval Wang and Ross (2010)
66 SOCIAL CUES Close The Identity Gap: Match It! 2017 Ipsos
67 WRAP-UP AND TAKEAWAYS Generalities and Practicalities 2017 Ipsos 67
68 WRAP-UP Gentle Nudges Much Behavior is Non-Conscious Gentle Nudges Provide a Way of Engaging System 1 without System 2 Awareness These Nudges Work By Priming Cognitive Structures Small Environmental Changes and Cues Can Have Large Behavioral Effects BUT Malleability Means Context and Salience Are Key AND- Consumer Awareness Makes Them All Go Away 2017 Ipsos 68
69 Thank You! Eda Cetinok Senior Vice President, Ipsos Loyalty Financial Services Team Jesse Itzkowitz, PhD Behavioral Scientist Ipsos Behavioral Science Center, NA Ipsos 69
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