Another Look at Consumer Eccentricities
I received such positive feedback from savvy subscribers on my recent newsletter on consumer behavior that I thought I would give this topic an encore performance! Today’s issue delves into a sequel, as recapped below…
Of all the newer releases in my stacks of fascinating summer reading, Dan Ariely’s “Predictably Irrational: The Hidden Forces that Shape Our Decisions” still tops my list of the most compelling bodies of research to be published in 2008.
Ariely, an MIT professor, has studied the seemingly “irrational” idiosyncrasies and impulses that subconsciously guide our social and consumer-based actions, regardless of the industries, markets, or “niches” in which we find ourselves. I summarized some of this research in my last newsletter, and am covering another set of his findings today.
I’ve also come across some great new research on the rational ways in which we make buying decisions. Having all of this insight into what makes our fellow human beings “tick” is worth its weight in gold for anyone in business!
For these reasons, I hope you enjoy today’s features, including “More Ways to Tap Your Audience’s Predictable Peculiarities,” and please join the conversation by leaving your comments below!
August 7th, 2008 at 12:22 pm
Hello Adele,
I enjoyed your August 7 Boosting Business Performance newsletter topic, “More Ways to Tap Your Audience’s Predictable Peculiarities,” and wanted to add a couple of comments.
Although customer-buying psychology is very interesting and certainly worthy of study, the more compelling issue is how we use that information to our advantage. I think it’s save to say that most of us today are involved in technology and information whether developing and marketing a product or contemplating their purchase. As such, further studies indicate that we are also suffering from a chronic case of “information overload.” That is, there is so much readily available information today—which is often in conflict—that we are unable to make truly informed decisions not only about one product over another, but what we actually need and want. The results are increasing distrust of information, analysis paralysis, general disdain for anything resembling hype, and an overall dumbing down of consumers. Thus, the principles of predictable peculiarity certainly apply.
From the viewpoint of marketing, the question becomes should we responsibly play on those tenets or should we endeavor to provide credible information that potential customers can use to confidently make their decisions.
As a product manager and communications specialist, I’m experiencing a rapidly growing trend in the use of white papers and use cases to promote products. Unlike typical marketing fluff, these collaterals are (or should be) based on thorough market analysis that has accurately identified customer needs and wants, as well as the solutions that they would be willing to spend money to solve. White papers and use cases provide scenarios under which potential buyers can identify. Hey, I have that problem and need that solution! And, there is no need to entertain one-sided versus two-sided presentations; here’s the problem, here’s the solution, and here’s our product.
Likewise, many product portfolios address multiple target markets and problems. In this case, savvy industries are providing separate white papers and use cases for each situation. It is not uncommon to see a number of downloadable papers covering a variety of product applications.
According to Maketing Sherpa [http://www.marketingsherpa.com/index.html], 45% of IT professionals read white papers, and 67% of those readers will pass a copy on to their colleagues. They also estimated that during the last two years some 3.5 million white papers were downloaded … by the people most likely to be your best customers.
The real issue is that most white papers miss their mark. The topics are uninteresting, the titles are blah, and the content is far too salesy or just plain dull. Technologists don’t need another crass, self-serving sales pitch, but rather the tools for making informed decisions or to present their case to other stakeholders within the organization.
If you truly want to attract customers in a responsible manner then provide them with adequate education to make their decision or business case … without the hype.
Finally, as concerns the perceived value of money, I recall this interesting comparison from an unrecalled source. Mike takes the afternoon off to shop for a new business suit. When he gets to the mall he decides to treat himself to a nice cup of coffee. Standing in line, he decides on a $4 super-duper, double latte with all the goodies. When he reaches the counter and gives his order, the clerk bends over and whispers that he can get the exact same thing at the other end of the mall for $2 less. Mike excuses himself and heads to the other vendor. He feels very good about his decision. Later, Mike is at the haberdasher and selects the perfect suit and it’s only $249. Just as he’s ready to take it to the counter, the salesperson quietly mentions that he can get the same suit down the hall at their competitor for $2 less. However, Mike is pleased with his decision and buys their suit. Hmm. Two buck is two bucks, right? Why is he pleased to save $2 on the coffee, but not on the suit?
Again, thanks for the great articles, Adele!
John Pfost
http://JPfost.com