Leigh Caldwell and Lizzi Seear Research Innovation 2016

BehaviouralEconomicsGetsReal–ResearchInnova6onLeighCaldwell&LizziSeear,Irra2onalAgency&InterCon2nentalHotelsGroup,2016

LeighCaldwellIrra6onalAgency

Behaviouraleconomicsgetsreal

Implicitmeasurementofcustomerdesires

7December2016

LizziSeearInterCon6nentalHotelsGroup


Whatisunderthesurface

Whatwecan’tmeasuredirectly

Whatwefeel…butdon’tknow

Whatisimplicit?


Background YourPhotoWhenKemmonsWilson

openedthefirstHolidayInnin1952,heknewexactlywhohiscustomerswereandwhattheywanted.

MumandDadandtwokidswhoneededaswimmingpool,anaffordablemeal,andnohiddencharges.


YourPhotoOverthepastsixtyyears,huge

social,economic,culturalanddemographicchangeshaverevolu2onisedourbusiness,ourindustry,andindeedourworld.

Highlevelsofglobalrecogni2onbutbothbrandsneedaclearerfocusoncustomerneedstoensuregrowth

andrevenuetargetsaremet.

1,151HolidayInnsand2,406HolidayInn

Expressesaroundtheglobe

Background


Researchques6ons YourPhotoWhatshouldeachbrandbe

focusingontocreatedifferen2a2oninacompe22veandcrowdedmarket?Whatelementsoftheguestjourneydrivevalue-emo2onalvalueandcommercialvalue?


YourPhoto

Thesewereques6onsthatwecouldnotaskrespondentsdirectly.

Implicitmethodswere

thesolu6on.


YourPhoto

Thewholeresearchworldhasasharedproblem.

Itturnsoutthesearen’tonlyIHG’sproblems


YourPhoto

Wedon’tunderstandourselves

…andwecan’ttellthetruth.

Because there’s a problem with people


Theproblemwithpeople YourPhoto

•  Image(andself-image)management

•  Introspec2veability

•  Imaginingbehaviourinhypothe2calsitua2ons

•  Responsebiases

•  Abstractques2onsgivebadanswers


Thisiswhyweneedimplicitmethods. YourPhoto

• Makingindirectdeduc2ons

•  Focusedonmeasuringunconsciousprocesses

• Nottellingrespondentswhatwearemeasuring

•  Designedtomirrorreal-worlddecisionmaking


UnderstandinghowtogetaccurateresponsesYourPhoto

•  Askingtherightques2ons•  Recrea2ngthein-the-

momentmindset•  Askingabouttangible,

inferringtheintangible•  Pacingandrhythm


Anewgenera6onoftoolscanhelp YourPhoto

•  BehaviouralConjoint•  Providesthedimensionalityoftradi2onalconjoint

•  Theaccuracyofimplicitmeasures•  Measuresintangibleaswellastangibledrivers

•  Theabilitytomeasureahugedepthofdetailinasta2s2callyreliableway–duetoscale


30,000+people YourPhoto


HowwemeasuredwhatcustomersreallyvalueYourPhoto

Asked people to think about their last hotel stay

Presented a series of choices between two hotel experiences

Limited time to choose to access more intuitive, less rationalised motives

Simulated journey through the hotel stay from arrival to departure

Trade-offs with implicit ranking

+


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Whybehaviouralconjointisdifferent YourPhoto

Tradi+onalconjoint:

•  Assumesthatrespondentshaveunlimited2metomakeadecision

•  Assumestheytakeallfactorsintoaccount,evenifsomereceivealowweigh2ng

•  Producesasingleu2lityweigh2ngacrossallcustomers

•  Usesafixedlistofacributesandlevels

•  Isfocusedonproductfeaturesandprice

Behaviouralconjoint:

•  Mirrorsthedecision-makingpaceofreallifebymakingrespondentschoosequickly

•  Findsoutwhicharethe2-3keyfactorsthatrespondentsuseineachdecision

•  Separatelyproducesacributerankingsandacributeweigh,ngsandclustersrespondentsintogroupswithdifferentu2lityweigh2ngs

•  Adap2velypresentsop2onsasitlearnsabouteachrespondent’sdecisionprocess

•  Cantesttheimpactofcontext,productfeaturesandpsychologicalpricing


Mobileethnography YourPhoto

Please tell us the first thing you did when you got to your hotel room


ImplicitRanking YourPhoto


Whatma\erstoguests YourPhoto

Arichdatabaseoffeaturevalues• Somethingswealreadyknewthatmacered,butcouldnowfinallyputadollarvalueonandcalculateROI

Indirectcalcula2onsofmonetaryworthPoten2aldamagefromfeaturechoice


Samebutdifferent… YourPhoto


Whatdidrespondentssay? YourPhoto

ItreallyremindedmeofthehotelexperienceIhadduringmylastvisit.

Therewasalotofinforma6ononchoicessoItendedtopickthemostimportantthingseveniftherestweren'ttomyliking.

Itwasfunandenjoyableand

informa6vetoo.Verydifferent

andaptfortravellerslikeme!

Ilikedtheideaofchoosing

betweenthe2op6onsand

comparingwhichwasbe\er/

worse.

Itwaschallengingand

thought-provoking.Quitedifferentthantheregularone

s,

par2cularlythe2mebound

choicesegmentwasreallyavery

enjoyableaspect.

The2medpartdidgetsomewhatnerverackinglikeIwastakingatest

butnottoobad. Surveyhelptoreadmindof

guests.

Goodsurvey,easyto

understand....keptyoubusy

enoughandfocused

surveyisveryrelevanttome.surveydesignisgreat,veryuserfriendlythankyouIactuallyenjoyedthis

one.


Howimplicitwasit? YourPhoto

Implicitreading Diff Explicitclaim

Hospitalitypromise 1.00 +8 Abilitytochooserooms 1.00

Essen2altravelaccessories 0.94 +36 Helpifarrivingveryearlyorverylate 0.92

Registerpersonalroompreferences 0.79 +2 Briefdescrip2onofhotelfacili2esandlayoutatcheckin 0.92

Helpifarrivingveryearlyorverylate 0.52 -2 Op2onstocheckyouinfaster 0.92

Confirma2onofroompreferencerequests 0.51 +10 Registerpersonalroompreferences 0.83Advanceconfirma2onofroomupgradeifyou

getone 0.51 +16 Scentandambience 0.75

Listoflocalevents 0.49 +7 Emailormobilealerttoconfirmbookingiscompleted 0.67

Kidsstayfree 0.48 +15 Frontdeskpersonofferstoarrangeforreserva2ons/transporta2on 0.67

Hotelopened/renovated 0.47 +23 Hospitalitypromise 0.67

Welcomegilforloyaltyschememembers 0.43 +10 Timetogetfromarrivalintoyourroom 0.67


WherehasthisinsighttakenIHG? YourPhoto

• Focusedinsighttobuildtrulydifferen2atedmomentsinthecustomerjourneywithrobustevidencetogainsupportofthebusinessandhotelowners

• FocusedbrandplansforHolidayInnandHolidayInnExpressoverthenextthreeyears.


What’sreallyimportanthere YourPhoto

•  Mirroringtruedecision-making•  Understandingtherealmeaningof"value"and"choice"

•  Inawaythat'sac2onableforbusiness


Theul6mateimpactofimplicittools?TomeasuretheintangibleTocreatenewemo2onal,experien2alvalueforeveryoneTotapintothesourcesoftruehappiness.


ThankYou!

[email protected]@ihg.com

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Q&A

LeighCaldwellIrra2onalAgency

LizziSeearInterCon2nentalHotelsGroup

SueYorkTheHandbookof

MobileMarketResearch

Leigh Caldwell and Lizzi Seear Research Innovation 2016

Education

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