Understanding Human Psychology - Marketing Research

7/30/2019 Understanding Human Psychology - Marketing Research

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MARKETING

RESEARCH -UNDERSTANDING

HUMAN PSYCHOLOGY


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Agenda

Introduction

Basic Principles

1. Reciprocity

2. Scarcity

3. Authority

4. Consistency

5. Liking

6. Consensus


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A successful marketer should possess :

INDUSTRY SPECIFIC KNOWLEDGE

+

KNOWLEDGE OF HUMAN

BEHAVIOUR


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There are six basic principle that influence

human psychology :1. Reciprocity

2. Scarcity

3. Authority

4. Consistency

5. Liking

6. Consensus


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Reciprocity

Norm of Reciprocity Obligates people to

return in kind what they have received from

others.

Reciprocity ofGifts

- Increased compliance when few dollars

included along with a questionnaire.

- Not effective when offered at the completion

of Survey.


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Questionnaire Study

52%

23%

Compliance

$5

$50


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Reciprocity

Reciprocity to return perceived debts :

- Pharma companies spend millions of dollars

to support medical researcher and also

provide gifts to individual physicians.

These activities subtly influence researchers

findings and physicians recommendations.


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Reciprocity

Reciprocate Concessions :

Presenting the subsequent request as a

concession to the earlier request engages the

participants to reciprocate with a concession

of their own.


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Research Studies

0%

10%

20%

30%

40%

50%

60%

Compliance Compliance

Zoo Request Survey Request


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Scarcity

It works on the principle that when our

freedom to have something is limited, we

experience an increased desire for it.

Application : Marketers many times use

strategies like Limited Supply and Limited

Time to attract customers.


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Cookie Consumption Study

0

1

2

3

4

5

6

0 2 4 6 8 10 12

RATING

RATING


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The Ordinance Test

0

0.5

1

1.5

2

2.5

3

3.5

4

Miami(B)Tampa

Miami(A)Tampa

Likeness

Likeness


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Authority

Authority is looked for information and

guidance.

Authority can be described as the legitimacy

to use power; conversely, power is the ability

(either by force, persuasion, etc.) to impose

one's will on another.


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Authority should have following

values:

1. Responsibility

2. Credibility

3. Convincing power4. Trustworthiness

5. Established


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Authority

1.Responsibilty :

Great importance

2. Credibility :

Is the key to successful, influential authority.

A credible source should be expert.E.g.. Babies are our business, our only business ,

Serving the public since 1895 and so on.


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Authority

3. Convincing power :

The communicators must be able to convince

audiences that they are trustworthy sources

of information.

Actors play authorities in TV commercials all

the time


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Authority

4. Trustworthiness :

This refers to communicators honesty and lack

of bias.

Known personally for a long period of time.

Ads that depict frank and honest discussion.

Both sides argument (pros and cons)


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Authority

E.g. Expensive, but worth it.

The taste you hate three times a day.

We are number two, but we try harder. This helps in gaining and building trust in

consumers and there by achieve goal of

becoming trustworthy authority.


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Authority

5. Established

The authorities which are well known and

established.

Research suggests that if the person feels like

an authorityto you, messages from them

would be really effective.


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Consistency

Innate human tendency to seek out stimuli that

are consistent with one's beliefs and attitudes.

Public commitments Petition supporting the

handicapped.


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Consistency

Influence develop tapping commitments

already in place.

Drawing connections between products andpre-existing commitmentspowerful and

effective technique used by marketing

professionals.


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Consistency

Laddering technique.

- Product shoes :

Shoes have elegant high heels High heels make you look taller,

slimmer and more exotic

Being taller makes you morepowerful, younger, and more

alive.


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Liking

People prefer to say yes to those they like and

prone to like those who display certain

congenial characteristics like..

1. Physical Attractiveness

2. Cooperation

3. Similarity


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Physical Attractiveness

Fund raising for American Heart Association,

Good-looking fundraisers vs. other requesters

(42% vs. 23%)

In 1970s, Canadian researchers found that

voters in Canadian federal elections gave

physically attractive candidates several times

as many votes as unattractive candidates.


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Physical Attractiveness

Hiring situations A study showed that in the

employment interviews, physical

attractiveness influenced hiring decision more

than did job qualification.

Economists examining US and Canadian

samples found that attractive individuals got

paid 12% to 14% more than unattractivecoworkers.


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Cooperation

Enhances positive feelings and behaviortoward those who appear to collaborate.

Automobile sales people are coached to cast

their sales managers are villains -> customersbelieve that sales person is doing battle forthem -> Hence liking towards sales person ->Increase in Sales

Good Cop Bad Cop play for getting theconfession during police investigations


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Similarity

If you are genuine and kind person, whom

would you donate money to in following

cases?

1. Somebody who asks you to donate money

without any details.

2. Somebody who says I am a student too at XYZ

college and I dont have money to pay the fees.


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Similarity

Research has shown that by saying a simpleline which would bring a sense of similarity (inprevious example I am a student too), the

contribution to charity was doubled. Sales training program Trainees are urged to

mirror and match customers body posture,mood, verbal style etc. which generate moresubtle form of similarity. It has shown to leadto positive results.


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Consensus

These days I hear somebody or the other

asking to many people Hey, *** Company is

coming to campus, are you applying?

If all our friends are raving about a new best-

selling book, new movie, some course or

certification, we probably like those things

too.


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Consensus

So what are we trying to do here?

Through a cursory examination of what others

(like us) are doing, we usually make quick and

satisfactory decisions.

We use actions of others to locate and

validate correct choices.

This is nothing Consensus Next principle of

influence.


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Consensus

During Ganesh Festival while collecting

contributions from people, didnt you tell

them, Kya uncle, Ram uncle ne to itna diya,

Sham uncle ne utna so on and so forth.

It does help increase contributions. Also,

longer the list greater the effect.

So, this is the tip for marketers..!!


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Consensus

However, sometimes there may be

circumstances that cause social validation to

backfire.

Information campaigns may worry excessively

upon

1. Alcohol use being intolerably high

2. Suicides rates are alarming

3. Many polluters spoiling environments etc.


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Consensus

Although these claims may be true and well

intentioned, it may have unintended results.

Eg. A suicide intervention program

administered teenagers informed them of the

high number of suicides till date, however the

participants exposed to this message became

significantly more like to seek suicide as apotential solution to their problem.


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Understanding Human Psychology - Marketing Research

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