NEURO-VATION STEPHEN YAP | June 2014

SHOPPER

Two Operating Systems in the Brain

Daniel Kahneman

Both Impact Decisions

Fast Unconscious

Emotional

System 1

Thoughtful Conscious Rational

System 2

Shopper behaviour is instinctive Shopper marketing is more than simply price and promotions.

Neuroscience capabilities enable a richer understanding of the shopper experience, in order to reduce the friction in shopping

System 1

I want it

System 2

No!

Why is neuroscience becoming more relevant to shopper insights?

Growing understanding of

the benefits

Neuro tools have become scalable and affordable

Emotional response continuum

System 2

Implicit

Self-complete surveys Interviewing

System 1

Facial coding

Biometrics

Eye tracking

EEG

fMRI

Least sensitive Least expensive Most Scalable

Most sensitive Most expensive

Least Scalable

Projective Techniques

Implicit Networks Intricate brain networks form the foundation for associations of images, feelings and intentions.

Implicit Reaction Time approximates how closely attributes are aligned.

The faster we respond, the stronger or more EMPHATIC the associations

Valentine’s Day

Gift

Need to Buy

Treat

Fattening

LOVE!

Craving

Peanut Butter

Implicit Reaction Time IRT™ Method

The essence of implicit or “emphatic”: measures strength of system 1

associations. Based upon speed of reaction time

Uniquely measures unconscious brand

or ad impact

Implicit goes beyond stated response - measures

unconscious strength of association for attitudes,

perceptions and intentions.

Why Implicit?

0

2 -2

1 -1

Completely disagree

Completely agree

Disagree Agree

Hard to tell

Measuring Unconscious Consumer Commitment With IRT

8% 13%

32%

55%

Brand A Brand B Brand C Brand D

“For Me”

Not on the Radar

Doubt/ Lip service

Niche Appeal

Confidence/ Owned

14%

70%

44%

72%

Implicit/ Emphatic Average Range

Explicit T2B

Implicit/ Emphatic

Rating Indicators

Low implicit

High implicit

High explicit

Low explicit

Niche Appeal

Confidence/Owned

Not on the Radar

Lip service

Hillary Clinton

Hillary Clinton

Emphatic Average Range +250 to -250

CARING

CHARMING

DIPLOMATIC

INTELLIGENT LEADER

MODERATE

PATRIOTIC POWERFUL

SHARES MY VALUES

TOUGH

TRUSTWORTHY VISIONARY

WOULD VOTE FOR

-700

-500

-300

-100

100

300

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

T2B EXPLICIT

IMP

LIC

IT I

ND

EX

Niche Appeal

Confidence/Owned

Not on the Radar

Lip service

Winning with

Case study from Spain heart and mind

Main approach

Main learnings

Surveys carried out in recent years show that Mercadona customers state a high degree of affinity to the brand

53% (T2B)

“Proud to shop here”

but…

When asked via IRT™ …

Emphatic 29% 53% Uncommitted 24%

Main learnings

Main learnings

Main learnings

20

What about the future?

Around the corner: In-store facial coding, touchscreen shopping, virtual shelves

To reduce the stress of shopping

Bringing us closer to delighting, predicting and influencing the shopper

Stephen Yap THANK

YOU Stephen.Yap@ipsos.com

Head of Ipsos MarketQuest