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Behavioural Economics: demystifying and diving in

Last week we held a BE masterclass for the insight team of one of our lovely clients to help them, and us, demystify the mystery.  We wanted to immerse, learn and walk away with at least a few practical nuggets to help us be better, right away, at understanding and influencing consumer behaviour.  This isn’t the first time we’ve held such an event, second in fact, and it was a great success.

We’re not experts in BE ourselves, so we called on a good friend, Nick Southgate, to help us out.  He’s one of the IPA’s BE experts and great in this area.  He most definitely knows a thing or two and took us on a journey from theory, to commercial examples, to practical application.

BE is actually a very accessible discipline.  We can all borrow from it to be better researchers and strategists.  I might say that given my history in academic Psychology!  But given we spend our days trying to make sense of consumer behaviour and put this at the heart of brands and strategy, we’d be pretty crazy not to learn and practice what ever little nuggets we can.

Our brains are amazing.  Super charged hot houses of impulsive irrationality, highly dependent on context, culture and personality.  Not that rational, not that consciously transparent, but something we can go some way to understand.  We have the ologies, Neuroscience, Semiotics, Material Culture and BE of course, amongst others.

BE helps us to understand that:

- Common heuristics and biases pervade our thought.

- We’re largely driven by intuition and context.

- Intentions may well change in the heat of the moment.

- We can’t consciously recall all in our memory.

- We respond to things then post-rationalize and confabulate.

- Our inner miser is bursting to get out.

- Our brains couldn’t cope with making every decision rationally.

- We mentally account, often without much rationality in sight.

And as well as offering a really relevant academic framework for what we do, BE is really inspiring.  It sparks the imagination and throws up different ideas for approaching proposals, developing methods, facilitating consumer discussion, analysing and interpreting what we’ve seen and ultimately helping to shape client strategy.

I’ve got some interesting ideas floating around in my mind today!  I’m thinking about: defining all core objectives behaviourally; comparisons, framing and re-framing; using the bystander perspective more in methodology; questioning techniques; good examples of mental accounting in recent projects I’ve completed; the importance of point of purchase and research methods here; not to frame things as losses when trying to avoid sense of loss; how I am the world’s biggest miser and have to have things NOW; how I can better chunk pretty much everything I do… and so the list goes on…!

Thanks Nick.

Elle

Putting the Va Va Voom into the Razor boardroom

We’re an enthusiastic and inquisitive bunch when it comes to the world of research and the galaxy of life.  We like to be Razor sharp for our clients and agency partners, and commercial with a big C.  To help whip us into shape, we run a series of Big Picture Sessions where we all get together and invite interesting folk from related fields in to help us understand:

a) What the hell it is that they do

and

b) How we can be even better for them and our clients in this area

Insight managers, planners, buyers, category managers, brand managers, pack designers, entrepreneurs, we want to get to know them all.

This week we entered the world of planning in advertising.  John Clark from M&C Saatchi came in to enlighten us to his world and to help us understand how we can deliver even more effectively here.  Our sincere thanks go out to him for a great session.

Without giving too many trade secrets away, here’s a little taster of things we discussed in the mix:

The HOW question… HOW is it intended to work?  HOW do you want to drive behaviour change?  HOW will you measure success?  HOW do conventions in the category play out?  We ask a lot of HOW questions already, like HOW can we make your day and HOW can we be as actionable as possible, but we’ll definitely be digging even deeper into the HOW with creative agencies / clients from now on.

How (notice that?!) we’re increasingly having to consider a tangible behavioural element in campaign development as well as the more cerebral creative idea.  The…

‘They’ll see an ad on TV, then go to the brand website, upload a video, share photos on Facebook, sing into their iphone and send a link to a friend, and we’ll use all the content we get from this to drive the rest of the campaign ATL’ factor.

… This is enough to make even Simon Cowell dizzy and throws up new challenges for us.  It certainly raises questions about what is actually possible to develop and predict in the qualitative research process, and quite possibly means we need to tear up the rule book… at least a bit.

And finally for now, the 1: 9: 90 rule for social media contribution – 1% being creators, 9% being editors and 90% the audience.  Pretty useful thing to remember as a behavioural reality check.

So, if you’re out there reading this thinking you could teach us a trick or two, we’d love to hear from you!

Till next time

Elle