By - Neal Cole

How Do Social Networks Influence Consumer Behaviour?

    Do People Act in Isolation? People do not act in isolation because they are connected with many people though highly complex social networks which influence our behaviour. In ‘I’ll have what she’s having’; Mark Earls and his co-authors explain how social learning (i.e. imitating other people) acts as the engine for the spread of culture, human behaviour and

The AIDA model is still widely used by marketers and reinforces a common myth about human behaviour
By - Neal Cole

4 Common Myths About Consumer Behaviour

What Drives Consumer Behaviour? Consumer behaviour is a complex process which behavioural economics is now helping us to better understand. However, most marketing theory about consumer behaviour is based around simplified models which are increasingly being shown up as not fit for purpose. As a result a number of myths have grown up about consumer behaviour and decision making that

By - Neal Cole

The Psychology of Loss Aversion

Why do people suffer from loss aversion? As anyone who has bought stocks during a bull market will know, making a quick profit is great, but making a loss is difficult to stomach!  Behavioural scientists call this loss aversion. People are intrinsically afraid of losses. When compared against each other people hate losing more than they enjoy winning. Thus losses

By - Neal Cole

Is Financial Decision Making Rational?

  Updated 16/1/18: There is a perception that decision making in financial services (FS) is far more rational than with fast moving consumer goods because  FS products have more long-term consequences.  Decision making in other sectors is often seen as more emotional and impulsive.  This view is strongly held among FS professionals but is there any evidence to support this

The margin of error is an indication
By - Neal Cole

Does The Law of Small Numbers Explain Many Myths?

  What Is The Law of Small Numbers? The psychologist  Daniel Kahneman points out that many social scientists, psychologists and market researchers often fall foul of a common human bias – the law of small numbers! Is this bias to blame for many modern day myths and the inability to replicate many well known psychological studies? What is the Law of

By - Neal Cole

The Psychology of CAPTCHA

How Does The Brain See A CAPTCHA? CAPTCHA’s are a popular way of stopping bots or machines interact with certain elements on a website. But how does a person’s brain react to a CAPTCHA? To understand this we need to consider how people make decisions. In his book Thinking, fast and slow, Daniel Kahneman outlines how the human brain uses

By - Neal Cole

17 Psychological Conversion Optimisation Tips

How To Apply Psychology To Conversion Optimisation: Conversion rate optimisation is about persuading visitors to convert. Persuasive content that  utilises psychological triggers can help you significantly improve your conversion rate. Outlined below are 17 ways you can use such techniques to more effectively engage your visitors to increase your conversions. 1. Ownership focuses our attention on what we might lose!

Not invented here bias can slow down the adoption of good new ideas
By - Neal Cole

Is Not Invented Here Bias Undermining Your Growth?

What is not invented here bias? Even in the digital age new ideas and innovations can take a long time to be adopted by organisations that could benefit from them. Why is this? Not invented here bias refers to where “If I (or we) didn’t invent it, then it’s not worth much.” The behavioural economist Dan Ariely conducted experiments to

By - Neal Cole

Why Should You Stop Using Focus Groups?

Why are focus groups problematic? When I first set out as a client-side Customer Insight Manager focus groups were frequently suggested to me as a suitable exploratory method of research. Initially this wasn’t a problem. I was new to the industry. However, over the years I gradually become more aware of their frailties. I have come across some excellent moderators. But

Our behaviour is influenced by connections through out social networks
By - Neal Cole

Unlocking Insights With Behavioural Economics

Can Behavioural Economics Save Market Research? When I first started working in market research I realised that people frequently don’t say what they mean and don’t do what they say. Behavioural economics suggests that this is because our decisions are heavily influenced by cognitive biases, we post-rationalise (see Choice Supportive bias) the reasons for decisions and behaviour is strongly influenced

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