It’s time market research got real: How beer and banking show us how

I don’t drink beer. I don’t follow rugby. I am not into gaming. So why on earth have I become addicted to the Heineken Rugby World Cup iPhone game?

Gap between intended and actual behaviour

Sure, addicted is probably putting it too strongly, but my affair with the Heineken game has got me thinking about the gap between intended and actual behaviour.

You see, had I been invited to a market research group and asked about my gaming, beer and rugby behaviours, there is absolutely no way I would have predicted my own slavish usage of the final product. I mean, who has the time or interest in pretending to punt a ball over an imaginary goal post? It just doesn’t make rational sense.

And that’s the rub for product marketers. We spend a lot of time researching what our market thinks of our widget or brand, but we often get results based on intended rather than real behaviour.

Here’s where behavioural economics comes in.

Behavioural economics gets to the truth of behaviour

Behavioural economics is based on behavioural studies rather than attitudinal ones, so in my scenario the research would have tested the efficacy of different techniques to stimulate download – from memory, I downloaded from an ad on a news site, the user flow for download, any inhibitors to sign-up (eg. asking for date of birth might have been too sensitive), and so on. Traditional market research would more likely have spent time defining the target market (ie. not me) and predicted take-up based on reported intent.

As to uncovering what would influence me to download the game, common theories would revolve around the creative’s call to action, the perceived value of the user benefit, maybe even personal recommendation. If I had been asked, I probably would have said a combination of these factors. But what really influenced me?

While of course I had to see and understand the ad, I could have ignored it like I have every other. What made me download the app was that I was looking for examples of how brands were applying social media to engage their customers. That’s right, a virtuous professional reason! Behavioural economics would have used tested techniques to influence downloads – herding (doing what others do) and completion (my willingness to step up and kick for Australia) amongst them.

How Westpac NZ has used behavioural economics

An example that’s fast becoming a classic illustration of closing the gap between intended and real behaviour is the Westpac New Zealand Impulse Saver App.

Developed on the insight that people have until now had the mechanisms to impulse buy (money, credit cards), but not impulse save, and with the commercial objective of growing savings account penetration beyond 49% of population, the app allows customers to add money to their savings at the touch of a very prominent red button on their screen.

Did the insight come from discussions with a focus group? I don’t believe so. While market research quantified the volume of savings accounts and no doubt other market sizing elements, the key insight was instead based on observation of actual behaviour. New Zealanders impulse spend $16.1 million every day.

Behavioural economics can overcome shortcomings of market research

So am I bagging market research? No, I think the more time we can spend understanding our market the better. But I do believe market research techniques that concentrate solely on intended and predicted behaviours have serious shortcomings.

Sophisticated researchers use different techniques to try and dig beneath hyperbole (I particularly like image based metaphors to untap emotional and cognitive associations, and there’s some merit in ethnographic observation), but behavioural economics can take it so much further by translating insights about actual behaviour into… well, actual behaviour. And as a marketer, that’s our goal!

Bri Williams is a marketer, presenter and author who specialises in behavioural economics. Her book, “22 Minutes to a Better Business; how behavioural economics can help you tackle everyday business issues” is available through the Blurb bookstore and you can follow Bri @peoplepatterns.