What Makes Customers Tick by Lewis P. Carbone Torrey Jacobson

Back In the Day During the mid-20 th century, the prevailing business mindset was Sales-Oriented During the mid-20 th century, the prevailing business mindset was Sales-Oriented The theory was that if existing products were pushed hard enough, sales would increase The theory was that if existing products were pushed hard enough, sales would increase

The Birth of Marketing Research Later years brought a customer orientation Later years brought a customer orientation Products should be designed around customers’ needs Products should be designed around customers’ needs Q: How do we know what customers want? Q: How do we know what customers want? A: Ask them—through marketing research A: Ask them—through marketing research

Traditional Marketing Research Customer Interviews Customer Interviews Customers were directly asked about their thoughts and preferences Customers were directly asked about their thoughts and preferences Assumption: The consumer decision making process takes place at a conscious level of the mind Assumption: The consumer decision making process takes place at a conscious level of the mind This would imply an understanding and awareness of one’s own psychological processes This would imply an understanding and awareness of one’s own psychological processes

The Need For Change Problems with traditional methods: Problems with traditional methods: Most of a consumer’s decision making process takes place at a subconscious level Most of a consumer’s decision making process takes place at a subconscious level Therefore, consumers may give researchers inaccurate responses Therefore, consumers may give researchers inaccurate responses Since subconscious activity is just that, it may be impossible for consumers to explain the actual reasons for their buying behavior Since subconscious activity is just that, it may be impossible for consumers to explain the actual reasons for their buying behavior

Unconscious Processes Much more significant than previously thought Much more significant than previously thought Up to 95% of the consumer decision making process is unconscious Up to 95% of the consumer decision making process is unconscious Carbone likens conscious processes to the tip of an iceberg Carbone likens conscious processes to the tip of an iceberg

Accessing the Subconscious Researchers must use an array of indirect methods to draw conclusions about underlying beliefs and attitudes Researchers must use an array of indirect methods to draw conclusions about underlying beliefs and attitudes

New Research Methods Metaphor Elicitation Metaphor Elicitation People tend to think primarily in images rather than in words People tend to think primarily in images rather than in words Pay attention to the type of metaphors used to draw inferences about thoughts and feelings Pay attention to the type of metaphors used to draw inferences about thoughts and feelings

New Research Methods Observation Observation Not actually new Not actually new Used in a slightly different way than before Used in a slightly different way than before Look beyond “hard” data—numbers and stats Look beyond “hard” data—numbers and stats Creative ways to implement Creative ways to implement Watching people use the product at home Watching people use the product at home Video observation Video observation Example of often-overlooked “soft data”—dog treats Example of often-overlooked “soft data”—dog treats

New Research Methods Word Choice Word Choice Seemingly insignificant differences can register subconsciously Seemingly insignificant differences can register subconsciously Example: Car rental: a car vs. the car Example: Car rental: a car vs. the car Contextual linguistic software is being developed to “analyze” conversations Contextual linguistic software is being developed to “analyze” conversations What will we learn when it is perfected? What will we learn when it is perfected?

What’s Next? Time will tell Time will tell The implications of exploring the subconscious of consumers have not been fully revealed to us yet The implications of exploring the subconscious of consumers have not been fully revealed to us yet If these new methods are properly implemented, we could see a significant change in marketing and marketing research If these new methods are properly implemented, we could see a significant change in marketing and marketing research