Posts Tagged ‘in-store decision-making’

TNS Magasin combines EEG and eye tracking in pioneering study

Tuesday, May 26th, 2009

TNS Magasin has once again raised the bar of shopper research by combining EEG and eye tracking.  A highly confidential project has just been completed for a blue chip retailer: the results reveal the power of this groundbreaking approach and the potential of bio-sensory research.

With this development TNS Magasin is building on its vast in-store expertise and years of experience in genuine eye tracking – as opposed to field of vision recording – to deliver unparalleled shopper insight.

The new technique uses EEG (electroencephalography) from EmSense and Magasin’s own eye tracking technology to investigate shopper behaviour at an unprecedented level of detail.  EEG measures the brain’s electrical activity via electrodes placed on the scalp.  Combined with respiration, heart rate, temperature and head motion measurements, this captures shoppers’ emotional and cognitive responses.

Magasin’s eye tracking enables every single eye fixation of every individual shopper to be recorded and analysed.  A fixation in this context is defined as 3/25th of a second.  This is the point at which the brain registers a piece of information.  So in contrast to merely recording what was in front of shoppers it measures precisely what attracts each one and which elements are being used at what stage in the decision-making process.

The company is also working with fMRI techniques to understand more about the role of memory in store.

Siemon Scamell-Katz, Founder of TNS Magasin, explains ‘The combination of these two powerful methodologies is fundamentally challenging many received ideas about in-store decision-making.  At last we are able to gain insight into responses to the visual stimuli that the shopper actually looks at, as well as prefrontal cortex responses.  This enables us to gauge the relative roles of emotion and cognition at each and every stage of the shopping journey to understand, literally, what is going on in shoppers’ minds. 

‘This has the most fundamental ramifications for marketing and new product development alike.  Brands really need to go back to basics and redefine what they are trying to achieve in the light of what is nothing less than a whole new dimension of knowledge about their customers.’

However, he cautions ‘As the importance of shopper research is being increasingly recognised, a lot of companies are trying to jump on the bandwagon without any experience in the field or knowledge of the most appropriate tools.’ He cites the example of Galvanic Skin Response (GSR).

‘We judge that GSR is unsuitable for FMCG shopper research.  GSR measures physiological responses such as skin conductivity and temperature in an attempt to gauge emotional reactions.  But in so many FMCG categories there is little or no shopper involvement as their purchases are habituated: much the same week in, week out.  Because there is insufficient difference in emotional arousal between these categories, GSR is simply not sensitive enough.’

For further information contact TNS Magasin on +44 (0)01858 461461 or visit www.tns-magasin.com

Changing the habits of a lifetime by Siemon Scamell-Katz

Monday, April 20th, 2009

What percentage of decisions do you think are made in-store? 75%? 70%? 40%? If you’ve got a vested interest, you’ll probably plump for whichever number suits your purposes best. If you’re an innocent bystander, then the chances are that you’re very confused.

So, to ask yet another question, does it really matter? After all, arbitrary ‘statistics’ are quoted as facts for all sorts of reasons every day. Some of these are meant to be manipulative but many are based on simple misapprehension or error.

However, this particular clutch is downright dangerous. It bears no relation to the complex realities of shopper behaviour that it supposedly seeks to describe; instead it reflects a widespread and profound confusion about the nature of shopper decision-making.

Let’s get a fundamental fallacy out of the way first. Shoppers’ decisions, whether in-store, at home or on the Clapham omnibus, aren’t based on the decision tree model. Despite the traditional approach to category management, merchandising and marketing, real-life people don’t behave like this at all.

The fact is that, however exciting industry insiders may find them, shoppers themselves are pretty bored by most categories. This means that the typical shopper has very low involvement with the vast majority of categories so spends very little time thinking about them or interacting with them.

In reality, purchases from all but a few categories are habituated. The majority of shoppers buy the same things every week, fortnight or month without fail. So when they got to the store, they know where the categories are and where, within them, their familiar items are. There is little or no active decision making in-store.

I can’t stress enough how important this is.  The traditional approach to in-store activation is based on the canard of widespread in-store decision making. But it’s time that we abandoned ill-advised attempts to influence shoppers’ at-fixture decisions – ‘buy this instead of that’ – and instead developed strategies that aim to develop different scripted behaviours.

As well as shopper marketing, this has fundamental implications for new product development, packaging, 360° marketing, promotions and advertising. It means that we need to go back to basics, examining the very purpose of our marketing strategy and asking ourselves precisely what our persuasion is trying to achieve.

None of this is to undermine the importance of the store or deny that it is the new battleground. It’s now generally accepted – certainly by readers of this magazine – that the influence of mass advertising is dwindling in the face of increasing media fragmentation and that shoppers constitute an audience. In-store activity is crucial for success in the drive to build brands through the line.

But we really do need to leave misinformation behind us and get wise to how shoppers use the store. By understanding why shoppers buy – and how their choices are influenced by the interplay of rational reasoning, emotions and memories – we can gain genuine influence over their purchasing decisions. The challenge for the in-store community, along with brands, retailers and other marketers, is to develop in-store activation based on a true understanding of shopper behaviour. Their rewards will be seen on the bottom line.

Siemon Scamell-Katz is Founder of TNS Magasin, the international shopper strategy consultancy.  This article first appeared in DDR, April /May 2009, issue 2, volume 6.