7 Ways to Hack the Mind of the Online Shopper: A Visual Guide for Retailers and Ecommerce Companies

7 Ways to Hack the Mind
of the Online Shopper
Presented by:
Jennie Wong, Ph.D.
7 Ways to Hack the Mind of the Online Shopper © 2016 ABorC, Inc., All
Rights Reserved | www.ShoppingQuizzes.com
1

Why Now
• Ecommerce is eating the economy
• Mobile is eating ecommerce
• The answer is not in the device, but rather in the shopper’s
mind
7 Ways to Hack the Mind of the Online Shopper
© 2016 ABorC, Inc., All Rights Reserved | www.ShoppingQuizzes.com
2

Why Me
Education
• Ph.D. from the Annenberg School for Communication at USC at the age of 22
Management Consulting
• Certifications in psychological typing and brain-based behavior change
Entrepreneur
• Owner/operator of Limelight Web Development (custom ecommerce)
• CEO and Co-founder of Shopping Quizzes
Mission
• Synthesize the academic research into tools and practices for retailers and beyond
3

TL:DR
The human brain likes
• Fewer, better choices
• Easy-to-process visuals
• Freedom
• Happy mediums
The human brain hates
• Overwhelming options
• Processing lots of text
• Being told what to do
• Extremes
4

The Disclaimer
• Every seller, website, product, and shopper is different
• Depending on the seller, website, product, and shopper, some
of these principles may not be effective or appropriate
• These cognitive principles should be used to generate specific
hypothesis, which should then be rigorously tested
5

The 7 Ways
1. The Paradox of Choice
2. Processing Fluency
3. Just-in-time Information
4. Micro-commitments
5. Simultaneous Choice Presentation
6. The Compromise Effect
7. Reactance Theory
6

COGNITIVE PRINCIPLE #1:
The Paradox of Choice
7

In a Nutshell
The more choices we have, the less likely we are to buy anything.
Also known as:
• Analysis Paralysis
• Decision Fatigue
• Ego Depletion
• “System 1” and “System 2” Thinking
8

Key Experiment: The Jam Study
9

Ecommerce Application #1:
Use Expandable Sections
DON’T:
Show long, scrolling pages of
thumbnail images.
10

Use Expandable Sections
DO: Show the most popular
options for a segment with the
option to “See More.”
11
see more…

Avoid Duplicate Thumbnails
DON’T: Show multiple
thumbnail images of the same
item.
12

Avoid Duplicate Thumbnails
DO: Show that an item is
available in multiple colors.
13

Practice Deep Linking
14
DON’T: When promoting a product segment, DON’T link to the
top-level category (e.g., All Bras).

Practice Deep Linking
15
DO: Use the appropriate deep link (e.g., Wireless Bras).

The Paradox of Choice
16

In a Nutshell
When information is faster and easier to process, we feel happier, like
it better, and are more likely to take action.
Also known as:
• Brain Cycles
• Conceptual Fluency
• Processing Speed
• Rhyme as Reason Bias
17

Key Experiment: The Cordless Phone
Study
18

Technical Jargon
19
DON’T use technical terms that your average shopper can’t
define.

Rhyming and Alliteration
20
DO use alliterative names and slogans for products and
campaigns.

Rhyming and Alliteration
21
DO use rhyming names and slogans for products and
campaigns.

Speed Sells
22
• DON’T let shoppers abandon
your site due to slow page
load times.
• DO make sure your page
loads in 2 seconds or less to
maximize conversions.
1-2 Seconds:
Best
2-3 Seconds:
OK
3+ Seconds:
Too Slow

Just-In-Time Information
23

In a Nutshell
People don’t absorb information very well until they have an immediate
need for the information.
Also known as:
• Flipped classroom
• Interactive-engagement
• Just In Time theory of user behavior and Just In Time Teaching (JiTT)
• Why people don’t read on the web
24

Key Experiment: The Physics Study
25

Product Category Navigation
26
DO use visuals to reinforce
definitions at the moment of
choice or action.

Product Category Navigation
27
DON’T expect your shoppers to
read a separate page about
differences between product
categories.

Detailed Product Information and Help
28
DO provide detailed product info only after the shopper’s curiosity
has been aroused.

29
DO give purchasing help right next to where the information is
needed.

Conversation Converts
30
• DO, if possible, offer the option
of live, human interaction via
chat window.
• Many retailers report boosted
conversions and average order
value with this technique.

Micro-Commitments
31

In a Nutshell
Starting with seemingly small commitments can greatly increase the
odds of a larger commitment later.
Also known as:
• Commitment and Consistency
• Endowment Effect
• Foot-in-the-door Technique
• Hoop Theory
32

Key Experiment: The Soap Study
With Ini al Micro-Commitment
Monday Thursday
53% agreed to the large request
(141% increase)
33

34
DO build commitment to a first
purchase by offering free,
value-added content, like a
buying guide or how-to video.

Carting for Commitment
35
DO encourage shoppers to add products to their cart.

The Micro-Purchase
36
DO offer the option of low-cost
samples.

DO capitalize on commitment
momentum from a first
purchase with membership
benefits.
From Customer to Member
37

Simultaneous Choice
Presentation
38

In a Nutshell
People are more comfortable making a decision and are more satisfied
with that decision when their choices are presented simultaneously
rather than sequentially.
Also known as:
• Choice closure
• Maximizing vs. “satisficing”
• Option attachment
• Quest for the best
39

Key Experiment: The Chocolate Study
40

Side-by-Side Segment Comparison
41
DO enable customers to see
broad product segments or
categories at-a-glance.

Side-by-Side Product Comparisons
42
Within a product category, DO
enable customers to see their
product options at-a-glance.

The Endless Sequence
43
DON’T present an endless sequence of
products.
In this example, even after filtering by “Size
7, Black, and Flats,” there are 734 options,
presented in an endless sequence. Not
only does this discourage conversions, it
also leads to dissatisfaction (and possibly
more product returns).

The Compromise Effect
44

In a Nutshell
Given a set of options, people tend to choose the “happy medium.”
Also known as:
• Asymmetric dominance effect
• Decision field theory
• Decoy effect
• Extremeness aversion
45

Key Experiment: The Paper Shredder
Study
46

Competitive Positioning
47
DO position your business between competitors.

Explicit Triggers
48
DO reinforce the compromise
effect with explicit triggers.

Implicit Triggers
49
DO implicitly trigger the compromise
effect with any “short list” of products.
This technique enables shoppers to
impose their own reasoning onto the
“short list.” Some may seek the middle
price, while others pick the middle skirt
length as a compromise between “sexy”
and “comfortable.”

Reactance Theory
50

In a Nutshell
People react negatively to restrictions on their freedom. By the same
token, people respond positively to affirmations of their free will and
ability to choose.
Also known as:
• But You are Free (BYAF) technique
• Rebelliousness
• Reverse psychology
51

Key Experiment: The “Change for the
Bus” Study
52

Number of Product Recommendations
53
DON’T trigger reactance with a
single product recommendation.

Number of Product Recommendations
54
DO provide a manageable
choice set, so shoppers retain
a feeling of freedom to choose.

Customer Labels
55
DON’T label your customers with
a persona or profile.
What if someone thinks “New
Traditional” is an oxymoron, or
doesn’t like the word “Eclectic?”

Customer Labels
56
DO consider asking shoppers
objective questions about their
preferences, for example,
“Leather or Fabric?”

But You Are Free (To Change Your Mind)
57
DO affirm shoppers’ ability to change
their minds later with a reassuring
return policy.
A recent meta-analysis of 21
different studies concluded that
leniency in return policies increased
purchases more than returns.

Using Reactance
58
DO consider how you can use
the “reverse psychology”
aspect of reactance to your
advantage.

Conclusion – The What vs. The Why
The What
• There will always be new trends in ecommerce, such as flash sales, chat bots, and subscription
boxes
• Some work, some work for a while, and some don’t work at all
The Why
• Through it all, the buyer’s brain remains essentially human
• These core cognitive principles are stable, universal, and powerful
• And they are the invisible reasons behind what works and what doesn’t
59

Sell Much and Prosper
60

Bonus Material
61

Engaging Questions
62

Engaging Content
63
“The 6 Types of Social Media Content That Will Give You the Greatest Value”
by Neil Patel, co-founder of Crazy Egg, Hello Bar, QuickSprout
1. Infographics
2. Interactive content (most viral is the quiz)
3. Positively emotional
4. Images
5. Lists
6. Newsworthy

Engaging Subject Lines
• In March/April 2016, luxury
accessories retailer Louis Jane
sent half of their marketing
emails with the word “Quiz” in
the subject line, and half without
• Over the course of 2 months,
the Scarf Quiz improved their
email open rates by 24%
64

Applications
You can use these engagement principles across all major
marketing channels
• Email - increase open rates and click throughs
• PPC – increase CTR and return on ad spend
• Social media - increase likes, click throughs, and shares
• Websites – decrease bounce rate, increase time on site
65

Bibliography
Plus ways to learn more
66

Bibliography
CHAPTER 1: THE PARADOX OF CHOICE
Watch The Paradox of Choice TED Talk by Dr. Barry Schwartz.
Iyengar, S. S., & Lepper, M. R. (2000). When choice is demotivating: Can one desire too much of a good thing? Journal of Personality and
Social Psychology, 79(6), 995–1006. http://doi.org/10.1037/0022-3514.79.6.995
Kahneman, D. (2011). Thinking , Fast and Slow (Abstract). Book. http://doi.org/10.1007/s13398-014-0173-7.2
Schwartz, B. (2004). The tyranny of choice. Scientific American, 290(4), 70–75. http://doi.org/10.1038/scientificamerican0404-70
Tierney, J. (2011). Do You Suffer From Decision Fatigue ? New York Times, 1–11. http://doi.org/10.1037/e638912011-004
Vohs, K. D., Baumeister, R. F., Schmeichel, B. J., Twenge, J. M., Nelson, N. M., & Tice, D. M. (2008). Making choices impairs
subsequent self-control: a limited-resource account of decision making, self-regulation, and active initiative. Journal of
Personality and Social Psychology, 94(5), 883–898. http://doi.org/10.1037/0022-3514.94.5.883
67

Bibliography
CHAPTER 2: PROCESSING FLUENCY
Read “How Processing Fluency Impacts Web Marketing” at Moz.com.
Alter, A. L., & Oppenheimer, D. M. (2006). Predicting short-term stock fluctuations by using processing fluency. Proc Natl Acad Sci U S A,
103(24), 9369–9372. http://doi.org/10.1073/pnas.0601071103
Dooley, R. (2012). Don’t Let a Slow Website Kill Your Bottom Line - Forbes. Retrieved March 31, 2016, from
http://www.forbes.com/sites/rogerdooley/2012/12/04/fast-sites/#1248e44410ae
McGlone, M. S., & Tofighbakhsh, J. (2000). Birds of a Feather flock Conjointly (?): Rhyme as Reason in Aphorisms. Psychological Science,
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Novemsky, N., Dhar, R., Schwarz, N., & Simonson, I. (2007). Preference Fluency in Choice. Journal of Marketing Research, 44(3), 347–356.
http://doi.org/10.1509/jmkr.44.3.347
Reber, R., Schwarz, N., & Winkielman, P. (2004). Processing fluency and aesthetic pleasure: is beauty in the perceiver’s processing
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68

Bibliography
CHAPTER 3: JUST-IN-TIME INFORMATION
Read “The ‘Just In Time’ Theory of User Behavior,” by Jeff Atwood, co-founder of Stack Overflow, on his blog Coding Horror.
Hake, R. R. (1998a). Interactive-engagement methods in introductory mechanics courses. Journal of Physics Education Research, 74,
Prépublication. http://doi.org/10.1.1.39.1789
Hake, R. R. (1998b). Interactive-engagement versus traditional methods: A six-thousand-student survey of mechanics test data for
introductory physics courses. American Journal of Physics, 66(1), 64. http://doi.org/10.1119/1.18809
Lowell Bishop, J., & Verleger, M. (2013). The Flipped Classroom : A Survey of the Research. Proccedings of the Annual Conference of the
American Society for Engineering Education, 6219. http://doi.org/10.1109/FIE.2013.6684807
Novak, G. M. (1999a). Just in time teaching. American Journal of Physics, 67(10), 937. Retrieved from
http://link.aip.org/link/?AJP/67/937/1&Agg=doi
Novak, G. M. (1999b). Just-in-time teaching : blending active learning with web technology. Prentice Hall series in educational innovation.
69

Bibliography
CHAPTER 4: MICRO-COMMITMENTS
Read “The Science of Micro-Commitments: Transform Prospects into Buyers with 5 Small Steps,” by Ryan Levesque, bestselling author of the book w, on the Crazy
Egg blog.
Cialdini, R. B. (2007). Influence: The Psychology of Persuasion. Collins (Vol. 55). http://doi.org/10.1146/annurev.ps.56.121004.100003
Forer, B. R. (1949). Forer_The fallacy of personal validation_1949.pdf. The Journal of Abnormal and Social Psychology. http://doi.org/10.1037/h0059240
Freedman, J. L., & Fraser, S. C. (1966). Compliance without pressure: the foot-in-the-door technique. Journal of Personality and Social Psychology, 4(2),
195–202. http://doi.org/10.1037/h0023552
Morewedge, C. K., & Giblin, C. E. (2015). Explanations of the endowment effect: An integrative review. Trends in Cognitive Sciences.
http://doi.org/10.1016/j.tics.2015.04.004
Patel, N. (2013). The Hoop Theory: How Getting Your Visitors to Invest a Little Will Turn Them Into Customers. Retrieved April 14, 2016, from
https://www.quicksprout.com/2013/09/23/the-hoop-theory-how-getting-your-visitors-to-invest-a-little-will-turn-them-into-customers/
70

Bibliography
CHAPTER 5: SIMULTANEOUS CHOICE PRESENTATION
Watch “The Decoy Effect,” clip from National Geographic Channel’s Brain Games.
Carmon, Z., Wertenbroch, K., & Zeelenberg, M. (2003). Option Attachment: When Deliberating Makes Choosing Feel like Losing. Journal
of Consumer Research, 30(1), 15–29. http://doi.org/10.1086/374701
Gu, Y., Botti, S., & Faro, D. (2013). Turning the Page: The Impact of Choice Closure on Satisfaction. Journal of Consumer Research,
40(2), 268–283. http://doi.org/10.1086/670252
Mogilner, C., Shiv, B., & Iyengar, S. S. (2013). Eternal Quest for the Best: Sequential (vs. Simultaneous) Option Presentation Undermines
Choice Commitment. Journal of Consumer Research, 39(6), 1300–1312. http://doi.org/10.1086/668534
Roets, A., Schwartz, B., & Guan, Y. (2012). The tyranny of choice: A cross-cultural investigation of maximizing-satisficing effects on well-
being. Judgment and Decision Making, 7(6), 689–704
71

Bibliography
CHAPTER 6: THE COMPROMISE EFFECT
Read “Appealing to Satisficers,” by Paul Wood, on the White.net digital marketing blog.
Chernev, A. (2004). Extremeness Aversion and Attribute-Balance Effects in Choice. Journal of Consumer Research, 31(2), 249–263. http://doi.org/10.1086/422105
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Cognitive Science, 33(5), 911–939. http://doi.org/10.1111/j.1551-6709.2009.01034.x
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Bibliography
CHAPTER 7: REACTANCE THEORY
Read “Four Words That Double Persuasion,” by Roger Dooley on his blog.
Bhattacharjee, A., Berger, J., & Menon, G. (2011). Escaping the Crosshairs: Reactance to Identity Marketing. Working Paper, The Wharton School, University of
Pennsylvania, Philadelphia.
Carpenter, C. J. (2013). A Meta-Analysis of the Effectiveness of the “But You Are Free” Compliance-Gaining Technique. Communication Studies, 64(1), 6–17.
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