Saturday, 2 May 2009

Why Do You Buy?

"A study by psychology researchers at Warwick has found a 50/50 split in how people decide ‘what makes two things seem similar’. This could mean that advertisers and marketers are failing to reach up to half of their potential audience...

The research, which was published in the journal Cognition and led by Dr Zachary Estes, found that people differ radically in their perceptions of similarity...

Some people base their similarity judgements on physical features; others based their judgements on more theme-based relations. For instance, some people thought a bee is more similar to a butterfly, whereas others thought a bee is more similar to honey.

We can use this as a springboard for thinking about our busineses.

How do people really see your business? Is your business "another local business" OR a "leader in its field"? "An online retailer" OR "a radically unique offering"?

Who do you compare your business with when you are communicating with clients (consciously or unconsciously)? And who do they compare your business with?

Mini Case Study

The Directors' Centre had a client (Company X) who thought he was Number Five in his industry (only 87 players in the UK). As such he thought of himself as one of the big boys. However the the Top Four represented probably 90% of all activity. When we talked to the key customers (only 10 in the UK) and the Top Four 'competitors', no-one mentioned Company X in the same sentence or paragraph as the Top Four... or as a serious 'Big Boy' - X was considered to be a nothing, a nobody.

Conclusion: X was presenting itself in a way which did not reflect anyone else's view of the world.

Outcome: Company X's real position in the market was reflected in a new approach to the marketplace... a campaign that saw sales increase exponentially.

study by psychology researchers at Warwick the article

Cognition the full article!
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