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F E ATURE

THE SCIENCE OF

M-COMMERCE

Diana Lucaci

In the “good old days,” marketers thought of the customer as a
logica...
F EATUR E

and P&G with a competitive advantage. The key is in the way
neuroscientists view the customer: not as rational,...
F E ATURE

Figure 2: The Most- and Least-Liked Stages in the App
Navigation Process

Figure 3: Participant Expression of I...
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The Science of M-Commerce

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True Impact conducted a neuromarketing study of m-commerce applications, in partnership with Plastic Mobile. The applications included Pizza Pizza, Best Buy and Hyatt.

While it will always remain important to measure explicit responses through surveys or focus groups, we must not underestimate the power of emotions in driving decision making. They are automatic, instant gut feelings that we are often unaware of, yet they are the best indicators of behaviour. When paired with traditional marketing research methodologies, neuroscience helps measure these feelings and provides a more complete, colourful and interesting picture of the customer – one that portrays him as much more than data.

Publié dans : Business, Technologie
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The Science of M-Commerce

  1. 1. F E ATURE THE SCIENCE OF M-COMMERCE Diana Lucaci In the “good old days,” marketers thought of the customer as a logical information processor, running virtually emotion-free. It was assumed that he thinks in terms of information and can accurately retrieve this information at any point in time. He uses cost-benefit calculations that rationally determine his preferences. Sounds like the customer is Mr. Spock, doesn’t it? This model – the rational consumer model – was developed in light of traditional marketing research methodologies. In accord with this model, focus groups, interviews and surveys have primarily dominated the marketing research industry over the past century, relying on two primary assumptions: that people can identify their preferences, and that they can accurately remember the past. However, almost everyone in the marketing research industry knows that self-reporting measures can be misleading and unreliable, and that they send researchers in the wrong direction. 22 vue December 2013 The simple action of asking a question can influence the answer. Similarly, offering a cue to help retrieve an emotion can alter the truth. For example, when you hear the word airport, you will probably imagine aircraft and big buildings. If you’re then asked to spell the word plain, you will most likely spell it plane (as in airplane) because of the priming effect of the word airport. Although marketing research technologies have been improving their techniques and controls, the underlying challenge of relying on explicit assessments can lead to overrationalization of answers and an incomplete view of the customers. To help complete the picture, neuroscience has gone from the lab to the boardroom in an effort to provide implicit measures of emotion and to deliver predictions of behaviour. Neuromarketing Introduction The innovative field that evolved is called neuromarketing, and it refers to the application of neuroscience technologies to solving marketing and advertising challenges. Initially conceived around 2002 by Nobel laureate Ale Smidts, neuromarketing has been increasingly applied to retail, consumer packaged goods, and entertainment industries, among many others. Customer understanding enhanced through neuroscience has provided major companies such as Coca-Cola, Campbell’s
  2. 2. F EATUR E and P&G with a competitive advantage. The key is in the way neuroscientists view the customer: not as rational, but as highly emotional. In contrast to the rational consumer model, the intuitive consumer model states that people make decisions based on their responses to certain situations. In fact, as much as 90 per cent of decision-making occurs at an emotional level. For example, the customer does not do a lot of deliberate thinking about brands he purchases on a regular basis. He retrieves information from the past in a loose manner, and his preferences are highly influenced by his friends’ opinions. He is not persuaded by logical arguments, but by repetition, positive themes, and good imagery. The consumer may not be like Mr. Spock after all, but more like Dr. McCoy. The notion that emotions drive behaviour has been at the centre of many debates in the boardroom. It’s important to note that, in addition to challenging the status quo, neuromarketing research is being successfully implemented by major companies every day. In the past decade, neuroscience has contributed to a deeper understanding of the customer, offering never-beforeseen insights that improve marketing effectiveness. In addition, studies have shown that measurements of brain and body reactions are much better predictors of behaviour. The truth is that people may say what they think; however, they’ll always act on how they feel. With all of this in mind, True Impact Marketing partnered with Plastic Mobile to understand how users truly feel about the mobile commerce, or m-commerce, experience. Plastic Mobile is a New York and Toronto–based mobile agency focused on helping top brands build their businesses through mobile. The agency is the first to admit that delivering successful commerce capabilities in a mobile application is not as easy as one may think. Mobile phones have become ubiquitous and highly personal, if not intimate, pieces of technology. As is the case with other channels of communications, brands that set up a commerce environment within an app face the challenges of (a) being seen, (b) being seen as relevant, and (c) being contacted. To meet these challenges, the two firms teamed up to apply neuroscience to user experience, and to spark a revitalized understanding of usability and of design preferences. How critical are usability and design to users’ emotional experience? What can m-commerce professionals learn from the implicit reactions of people using mobile apps? What are the key factors that define a successful m-commerce app? The best way to answer these questions was to go directly to the source of emotion, the brain. The most portable and affordable technology to measure brain activity is electroencephalography (EEG). Much improved since its beginnings in the 1960s, the EEG uses a light, wireless headset that records the brain’s electrical activity. By knowing how to filter and interpret the considerable data collected, neuromarketers are able to derive emotional states related to attention, emotional engagement, motivation, and more. Knowing how the brain reacts to m-commerce apps was critical; however, we also wanted to understand what grabs the user’s attention. To address this need, we paired EEG with eye-tracking technology, allowing us to learn what the users are attracted to visually and what sort of emotional reactions they are experiencing. Conducted in A study participant sho wing some of the March 2013, the study technology used in the study included thirty mobilesavvy participants who brought their own iPhone (iPhone 4, 4s or 5) to navigate three mobile applications in the m-commerce category: Pizza Pizza, Best Buy, and Hyatt. We outlined a single user journey, a five-step navigation process consistent across all three mobile applications, in order to get a better understanding of how users navigate mobile commerce, and what contributes to a positive or negative user engagement. It was important to keep the stages consistent in order to be able to compare the effectiveness of each app. In addition to using brain imaging technology and eye tracking, we surveyed the participants before and after exposure to the app. Doing so helped us compare what they said with how they truly felt; and the findings were impressive. Figure 1: EEG Metrics: Emotional Engagement (blue) and Attentional Activation (red) vue December 2013 23
  3. 3. F E ATURE Figure 2: The Most- and Least-Liked Stages in the App Navigation Process Figure 3: Participant Expression of Intention to Use the Pizza Pizza Mobile App in the Near Future When the Brain and Mouth Disagree Pizza Pizza wins at checkout, with a simple and straightforward user experience. When the immediacy of the reward (i.e., food delivered within an hour) is factored in, the user is both emotionally invested and keenly interested. The bottom line is that, once a customer is interested, it’s imperative that delivery be as quick and as easy as possible. Also, among the three apps, this one is the most downloaded and the most positively reviewed in the App Store. The full report of this study can be downloaded by going to www.trueimpact.ca or www.plasticmobile.com One of the seven key findings of this study highlights the importance of diving below the surface of spoken assessments in order to understand the consumer’s true opinion. The Pizza Pizza navigation process included opening the app, choosing a pizza, customizing the toppings, proceeding to checkout, and finally entering personal information. When asked, 62 per cent said they preferred the selection stage, which included choosing the pizza and its toppings. Also, 55 per cent said they disliked the checkout stage, including entering their personal and payment details. So far, this response makes perfect sense, since the most painful part of any transaction is actually paying for it. Upon reviewing the brain activities of this group, we learned that the checkout stage was, in fact, the most emotionally engaging. By setting the lowest values for emotion and attention for the entire study at 0 per cent and the highest values at 100 per cent, we saw 100 per cent emotional activation for the checkout stage and an impressive 76 per cent attentional activity. See figures 1 and 2. In the post-survey, 79 per cent of users said they would use the Pizza Pizza app again. See figure 3. 24 vue December 2013 The study described here is the first in the world to use neuroscience for understanding the usability of m-commence apps, and it opens the door to many future study directions. For example, future studies might pursue questions such as these: Are all food and beverage apps engaging at checkout? What is the role of the immediacy of reward in the decisionmaking process on mobile? How do you facilitate the path to purchase and make it easy to order food through an app? While it will always remain important to measure explicit responses, we must not underestimate the power of emotions in driving decision making. They are automatic, instant gut feelings that we are often unaware of, yet they are the best indicators of behaviour. When paired with traditional marketing research methodologies, neuroscience helps measure these feelings and provides a more complete, colourful and interesting picture of the customer – one that portrays him as much more than data. Diana Lucaci is the founder and CEO of True Impact Marketing, an innovative neuromarketing research and strategy firm. Diana serves as Canadian chair on the Neuromarketing Science & Business Association (NMSBA) and was named one of the Top 30 Under Thirty by Marketing magazine in 2013. You can reach her at diana.lucaci@trueimpact.ca and follow her on Twitter (@dianalucaci).

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