How to Apply Behavioural Science in the Supermarket
? Phillip Adcock CMRS
I explain how customers think & make decisions so that you can engage with them more effectively.
Behavioural Science is the study of why we do what we do. Its aim is to understand as best as possible, the ways we make the judgments and decisions which inform our behaviour.
More specifically, Behavioural science is the study human behaviour, specifically how humans really make decisions in the real-world: Decisions including retail channel, store & brand choice, for example.
Let's begin by explaining that decision making often runs on autopilot. When studying human behaviour, Behavioural Scientists have found that humans make around 95% of their decisions using mental shortcuts, or heuristics. So, when making judgements, we often ignore information, preferring to use simple rules of thumb, to help us reach a decision faster and more easily. Some of these are hardwired through evolutionary processes and others are learned via experience.
An example of a heuristic or shortcut is as availability bias or affect bias that help us make decisions (rightly or wrongly). Availability bias occurs when we believe that whatever most easily comes to mind is most likely to happen. For example, Terrorism, air crashes and homicide almost always feel more likely causes of death and tragedy than car accidents and the diseases of today such as heart disease.
In this price label, it's often more effective to frame the discount using whichever number is bigger (￡ or %). Why because the rule of 100 says that under 100, percentage discounts seem larger than absolute ones.?But over 100, things reverse.?Over 100, absolute discounts seem larger than percentage ones.
So next time you’re looking at a special offer, pay attention to how it’s presented.?The way changes are represented can have a big impact on how they’re perceived.
Although as a species, humans often make what appear to be “irrational” decisions, importantly, when it comes to these human actions, there is a definite method behind the apparent madness of some decision making.
We now know there are “predictable” patterns to human irrationality, and once you & your team understand these patterns of human behaviour, you can use them to design environments & communications that help shoppers & consumers make better decisions. As a result, applying behavioural science can have a positive influence on decision making, whether it be related to retail channel preference, brand preference choices or internal team dynamics and organisational performance.
Behavioural Science embraces the inherent cognitive biases that often characterise human judgement and decision making. It recognises the importance of habits in our everyday lives, immediate context and how choices and information are presented to us.
Concepts such as framing and anchoring, illustrate how tiny, subtle, differences in how questions or choices are described, can drastically affect our decisions. Anchoring describes how we use a particular piece of information as a reference point (or anchor). Framing shows how much we are influenced by how information is presented and made relevant to us. A simple example is the way fat content is communicated in foods: ‘90% fat free’ is preferred to ‘10% fat’
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We don’t always have the time or inclination to analyse everything systematically. Research has also highlighted how communicating what are known as descriptive social norms causes us to have a common tendency to conform and to adopt the opinions and follow the behaviours of the majority. For example, in a 2008 study, the message “Join your fellow guests in helping to save the environment” helped to encourage more hotel guests to reuse their towels during their stay.
No matter how you design your communications, you will be influencing people’s decision making, intentionally or not. Anytime you design a space where a human must make a choice, whether it be an online landing page, or a category layout in-store, or a hotel bathroom, you are creating what Behavioral Scientists call the “choice architecture.”
Once you & your team better understand how & why, as shoppers and consumers, we make decisions, you can deliver better communications and brand performance. Knowledge of Behavioural Science helps you improve many aspects of your customer facing messaging, including:
Applying Behavioural Science allows you & your organisation to deploy solutions that are backed by solid scientific evidence. This helps you to know exactly?why?your last communication succeeded (or perhaps failed) in influencing shopper & consumer decision making. This in turn results in you and your team being able to deliver more optimal communication solutions going forwards.
Adcock Solutions?have been improving the marketing communications of leading brands and retailers for more than 25 years. We explain how your customers think and make decisions so that you can engage with them more effectively.
Come to us for Behavioural Science insights and expertise that improve your brand's visibility, appeal, engagement, and sales.
Why not Enhance your brand performance by incorporating the principles of psychology and behavioural science with the help of a dedicated Chief Behavioral Science Officer (CBSO) from Adcock Solutions Ltd: Your own resident expert available for 1-off assignments, daily, weekly or bespoke periods to suit your needs.