Sidestep Stroop Interference

Do you want your customers to sidestep mental thunderstorms of indecision when they’re shopping with you? Your understanding of the Stroop Test is one tool to help you help those indecisive customers.
     The Stroop Test, which you can take yourself online, is used by psychologists to assess conflicts among beliefs, emotions, and intentions. These three are what a consumer is trying to blend as they shop:

• What do they consciously and logically believe to be the best course of action?
• What are their feelings—often experienced at a subconscious level—as to what’s best?
• What do they say they intend to do, and in what direction is their subconscious steering their purchase behavior?

     When everything is in line, the shopper makes the purchase decision quickly and is satisfied with the decision. When there are conflicts among the beliefs, emotions, consciously experienced intentions, and subconscious drivers, then the shopper feels uncomfortable. They are, after all, experiencing the equivalent of a thunderstorm inside their heads.
     The Stroop Test measures the extent of this interference by having a person look at words, each word the name of a color. The tricky part is that most of the words are written in a color different from the color the word names. The word GOLD might appear in green, for instance. The person is asked not to read the word, but to name the color.
     People find it much easier to read the words—a behavior which corresponds to the logical beliefs we have—than to attend to the colors—a behavior which corresponds to emotions because of the emotional arousal colors cause. The time it takes a person to complete the test and the number of errors made are used to calculate a measure called Stroop Interference. That corresponds to shopper indecision.
     How to reduce Stroop Interference? One way is to cultivate a positive mood in the test taker. For example, researchers at Germany’s University of Osnabrück pretty much eliminated Stroop Interference by having people read through words—in black ink—describing positive emotions.
     You almost surely won’t be administering the Stroop Test to indecisive shoppers in your store. But I do suggest that you create a positive mood in the indecisive shopper so their indecision will be sidestepped. Simply saying positive words and flashing a genuine smile could be enough.

Click below for more:
Profit from Shoppers’ Positive Moods
Know How Much Emotion to Deliver
Dislodge Indecision with New Choice

Set Moderately High Purchase Thresholds

What irritates your customers the most? When DailyFinance recently asked their readers, 350 people responded. At the top of the list of “Retailer’s 15 Most Annoying Habits” were complaints that retailers require shoppers to buy unneeded products in order to receive a discount. You must buy ten packages of pasta for the cut-rate price. Who wants to miss out on the discount? On the other hand, who wants ten packages when all you’ll be using for a while is one package?
     But what if your customer was planning to buy one package and you offer a great discount on the three-package purchase? The research evidence indicates this will encourage your shoppers to spend more money with you sooner than they would have otherwise.
     Consumers dislike a feeling that you’re forcing them to buy. In general, they don’t object at all to being tempted, coaxed, or even challenged by purchase thresholds. When setting purchase thresholds for discounts or loyalty programs, go for what is out of grasp for the shopper, but within reach. Set moderately high purchase thresholds that shoppers feel they can achieve and that they’ve earned.
     Researchers at University of Pennsylvania and University of Southern California explored what happens when a retailer introduces new award levels in a loyalty program. Up to now, there’s been a gold level at the top. Now we’re adding a platinum level above for which only some gold members will qualify because the purchase thresholds are higher. The researchers found that consumers actually prefer retailers that offer elite loyalty program tiers, even when those consumers know they’re unlikely to themselves qualify.
     It’s the same theme when it comes to thresholds for price discounts. Researchers at Bryant University and University of Illinois tracked the thoughts and emotions of customers who chose to come close to fulfilling the terms of an offer in the form “15% off all purchases when you spend at least $75.” These customers actually reported higher satisfaction levels than did those who received the discount. The customers who chose to spend toward the threshold, but hold back, generated thoughts of empowerment.
     Whatever the purchase thresholds, though, be clear and consistent about the terms. In second place on the DailyFinance list were complaints like, “The sign said ten packages for a discount price of $10, but you could actually buy one package for $1.”

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Give Loyalty Program Participants Prestige
Tailor Loyalty Programs to Customer Culture
Keep Discount Conditions Strict Enough

Generate WOM in the Right Places

People look to others for advice before making purchases. That’s why we encourage customers to talk to friends and post online reviews. But a report from marketing consultancy Harbinger gives reason for caution in word-of-mouth campaigns: The ways in which consumers access and use recommendations differ by product category.
     Harbinger specializes in marketing research and communications with women consumers. This study surveyed 2,134 women in Canada and the United States through the Ipsos online panel. I believe that many of the study conclusions would also hold for men in principle. My advice to retailers is to find out from your customers where they’re looking for recommendations and then encourage them to furnish their recommendations in those sorts of places. Verbal encouragement will come from mentioning to the customers reasons important to them for giving specific, balanced information to others.

• The frequencies with which the women read and write reviews differ by product category. With a toy, about 20% will read reviews when shopping and about 10% will write a review after purchase. On the other hand, with an automobile, about 40% will read reviews when shopping, but only about 5% will write a review after purchase. With automobile-related products, your encouragement to women to give reviews will need to be more vigorous.
• For almost all product and services categories, family and friends were the most popular sources for recommendations. But for restaurants, casual acquaintances were the second most popular source, and for financial products, family and friends took second place to expert and professional reviews.
• For almost all product and service categories, the consumers were motivated to give and post recommendations in order to help other people make smart purchases. With automobiles and with entertainment, a distinctive motivator was for the consumer to display her expertise. With the home furnishings and food/beverages categories, a distinctive motivator for sharing was the opportunity to help improve the products.

     With some consumers—such as market mavens—you might choose to go beyond verbal encouragement. Market mavens are a special type of opinion leader who counsel others about the whole shopping experience and recommend specific stores. When you’ve identified a market maven, offer gifts to encourage them to consider your store. A study based at Providence College and University of Connecticut indicates that the confidence with which market mavens issue their recommendations means they can be influential for you.

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Attend to Face-to-Face Word-of-Mouth
Encourage Specifics & Criticism in Word-of-Mouth
Build Buzz with Market Mavens

Produce Aha Experiences for Shoppers

Can you guess what the following sentence means?
     “The haystack was important because the cloth would rip.”
     Researchers at State University of New York-Stony Brook, University of Minnesota, and Vanderbilt University asked people to remember sentences like that, which at first hearing seem to be nonsense.
     It’s the sort of thing your customer might experience when they ask you a question and you assume they have knowledge they don’t have. You’d be requiring your customer to make a guess, to fill in the blanks. The customer might do this for you or might say, “I don’t understand what you mean. Please tell me more.” But there’s also a good chance they’ll turn around and walk away from the sale you’d like to make.
     Sometimes it is only one word that makes all the difference. In my guessing game, I’ll make a guess. I think that if I say to you the word “parachute,” the sentence “The haystack was important because the cloth would rip” not only makes sense, but also produces a memorable mental image.
     This is the sort of phenomenon we’d like to produce when answering a customer’s question. An aha experience in which what you’ve said to the customer brings things together for them.
     Want another example from the research study? The sentence is “The notes were sour because the seam was split.”
     Again, one word can make all the difference, turning nonsense into perfect sense. In your retailing, it often will take more than one word to produce the aha experience as you explain an answer you’ve given to a customer. But in this case, the word “bagpipe” should do it.
     Am I recommending that you give encyclopedic answers to each question a customer asks? No, actually I’m recommending the opposite. If you assess that the customer is an expert, you might actually hold back on a comprehensive answer to signal respect for the person’s knowledge. With all customers, keep each answer brief and to the point. Finish it off with the item of information that brings it all together. The punch line.
     That’s how the best stories produce the aha experience. An example? With credit to Reader’s Digest and emailsanta.com, here’s what seven-year-old Bri wrote to the big guy: “I’m sorry for putting all that Ex-lax in your milk last year, but I wasn’t sure if you were real. My dad was really mad.”

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Give a Vocabulary for Richer Shopping
Respect Customers Who Claim Expertise
Offer Aspirational Shoppers Subtle Signals
Joke Around to Facilitate the Sale
Use Humor in Unexpected Ways

Appeal to Holiday Shoppers’ Ecommerce Brains

The Christmas shopping season is underway.

• The New York Times reports that Sears has started running “Black Friday” ads, and the week before Halloween, Abercrombie & Fitch sent e-mails to customers with the subject line: “We’re feeling naughty and sneaking Christmas in early!”
• Ecommerce retailers are even further along. According to the latest eHoliday survey sponsored by the National Retail Federation’s Shop.org, about 80% of online stores have already launched their holiday promotions.

     Recognize that ecommerce has changed the mentality of the shopper. Here are a few consumer psychology tips on appealing to holiday shoppers’ ecommerce brains:

• Help shoppers avoid unwanted crowds. Yes, many people find enjoyment in the busy bustle of holiday shopping. The ecommerce brain—especially the female ecommerce brain—finds that being with others who are in a holiday mood gives a sense of community energy. But although these women love the bustle, they hate to be jostled. It’s the unwanted crowds which make the shopper want to run home to their computer to finish the purchases. In the bricks-and-mortar store, establish store operating hours that spread out any crowds. Up the merchandise density for the holidays, but leave spaces—such as pristine restrooms—to which shoppers can retreat from crowds for a few minutes.
• Let customers say thank you. Customers wish to deal with retailers who help them out, and one way customers express this wish is to say thanks to store staff. Research findings from Università Commerciale Luigi Bocconi and another set from University of Maryland and Yale University together suggest that giving the customer an opportunity to express gratitude to staff facilitates loyalty to the retailer. This seems to become more important during the holiday season because of the spirit of giving. Where are the opportunities for the purchaser to say thanks to a salesperson or cashier when online? On some sites, the answer comes with “click to chat online” features. It is the opportunity to say thank you rather than an obligation to say it which makes the difference. Lots of shoppers want to complete their transaction as quickly as possible.
• Give shopper rewards right now. The ecommerce brain expects speed. JCPenney predicts their holiday JCPca$h promotion—which offers 20% instant rebates—will have a clear advantage for shoppers over programs such as Kohl’s Cash—which rewards with a 20% discount for the customer’s next shopping trip.

Click below for more:
Design Store Operations for Ecommerce Brains
Set Store Searches for Ecommerce Mentalities
Help Ecommerce Customers Thank You

Attend to Genetic Influences in Selling

When selling to a family shopping together, do you have a sense the family’s preferences are so strong they’re attributable more to genes than experience? Researchers at Stanford University and University of Florida-Gainesville say you’re on to something.
     The reason? Adenine, guanine, cytosine, and thymine. AGCT are the four bases in each strand of DNA, our genetics, and some consumer tendencies have a strong genetic component. If you find that tendency in one family member shopping with you, expect to find it in others:

• Whether to select a compromise option or go for the choices further out. Given the choice among the $10, $20, and $30 sizes, some people will select the $20. If the choice is presented as among $20, $30, and $40, they will tend to choose the $30. When having the $30 version would serve the needs of the consumer well, present the alternatives to favor that selection.
• Whether the shopper is prevention-focused or promotion-focused. Prevention-focused shoppers put top priority on purchases which help them avoid losing what they have now. Promotion-focused shoppers put top priority on items which help them gain more than they have now. Because this tendency is genetic, a person is usually either protection-focused or promotion-focused over the course of their lifetime as a shopper. And if one member of the family is prevention-focused, other members of the family are likely to be, too.
• Whether the shopper is a satisficer or a maximizer. When considering a purchase, people will gather information until they reach a point where the effort to gather more information isn’t worth it to them because of the weight of evidence they’ve already gathered. For satisficers, this balance point is substantially lower than it is for maximizers. When you’re selling to a family of maximizers, be ready to keep feeding more information and then anticipate a series of visits to the store or website.

     The researchers also found that likings for specific products have a genetic component, such that if one member of the family likes it, there’s a good chance others in the family will, too. This can be helpful in guiding gift selections. Those product categories include chocolate, mustard, hybrid cars, science fiction movies, and jazz.
     On the other hand, there was no evidence for a genetic component in liking tattoos. Even if Caitlin is itching to get some ink, it could be tough to sell Mom on the idea.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more:
Identify Influencers in Family Decision Making
Move the Customer to Accept Higher Prices
Sell Either Protection or Promotion