What People Say vs What They Do: Stated vs Revealed Preferences

When doing market research, there's an important distinction between what people say they want and what they actually choose in real life. This is the difference between 'stated preferences' and 'revealed preferences'.

Stated preferences come from direct questioning – surveys, interviews, focus groups. People tell you their opinions, attitudes, desires and intentions. But what they say isn't always how they act.

Revealed preferences show people's actual behaviors and choices when confronted with real options and constraints. For example, monitoring sales data reveals what products they buy over competitors. Eye tracking heatmaps show what webpage elements capture attention.

The gap between stated and revealed preferences frequently occurs because people don't have perfect self-knowledge. Social pressures also make them more likely to give "correct" answers rather than honest ones. Plus, people often convey aspirational preferences that don't match their real-world actions.

Smart market researchers leverage both sources of insight in combination. Stated preferences offer a window into people's thinking and motives. Revealed preferences show what people really respond to once constraints like price and availability come into play.

Understanding both the aspirational ideals and practical truths is key to connecting with audiences. So take a layered approach for a nuanced perspective on what your market seeks and how they behave. With these complementary lenses, you'll create more resonant messaging and on-target product offerings.