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DECISION DYNAMICS 1 Decision Dynamics Why and how people make decisions Halverson Group April, 2016

Halverson Group on Decision Dynamics

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Page 1: Halverson Group on Decision Dynamics

Decision Dynamics

Why and how people make decisions

Halverson Group April, 2016

Page 2: Halverson Group on Decision Dynamics

DECISION DYNAMICS

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DECISION DYNAMICS

Some decisions are easy. Some are painstakingly hard. The rest fall somewhere in between. Where does your category and brand fit in? And how can you influence a decision in your favor?

Halverson Group can help you find out.

Page 3: Halverson Group on Decision Dynamics

DECISION DYNAMICS

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How much EFFORT is put in?

Are you operating with the HEAD or the HEART?

How COMPLEX is the decision?

Is it a RISK to get it wrong?

Do you want to stay in or get out of your COMFORT ZONE?

Do you get ENJOYMENT out of it?

We identified six factors that drive every decision.

Page 4: Halverson Group on Decision Dynamics

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HighEffort

LowEffort

was a habitual purchase

tried all my options

did not explore many options

made a quick decision

Put very little effort into it

paid a lot of attention

more about thinking than doing

a highly considered purchase

tried no other options

more about doing than thinking

explored many options

put a lot of effort into the choice

did not pay attention

Complex

Simple

was an easy choicewas a simple choice

was a difficult choice

was the most convenient option

got all the options I wanted

was a complicated choice

was the least convenient option

compromised between attributes

Open toChange

Routine

went with the

most familiar

stayed in my comfort zone

made an expected choiceplayed it safe

had a lot of info to support best

option

tried something new

went outside my comfort zone

made an unexpected choicetook a

risk

took a guess at

which was best

LowRisk

HighRisk considered the

long-term consequences

If chose the wrong brand, no big deal

not much to lose if not

a good choice

did not consider the long-term consequences

if I chose wrong brand,

it could be a big deal

had a lot to lose if not a good choice

High Reward

LowReward

not an enjoyable decision

had a lot of fun

got very little out

of the experience

did not have fun

was an enjoyable decision

got a lot out of the experience

HeartHead went with my head

used logic and reasoning

more about thinking than feeling

more about doing than thinking

went with my heart

used instincts and intuition

more about feeling than thinking

more about feeling than doing

These charts show how people organize decisions in our minds. The map on the right shows how these dynamics play out across categories. High

Effort

LowEffort

Open toChange

Routine

High Reward

LowReward

HeartHead

LowRisk

HighRisk

Complex

Simple

Televisions

Cable TV Services

Car Insurance

Vacations

Streaming/Digital Music Services

Jeans

Make-up

Movie Tickets

Chewing Gum

BeerGround Coffee

Facial Tissue

Glass/Window Cleaner

Then we mapped the decision-making process.

Page 5: Halverson Group on Decision Dynamics

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HighEffort

LowEffort

Open toChange

Routine

High Reward

LowReward

HeartHead

LowRisk

HighRisk

Complex

Simple

Televisions

Cable TV Services

Car Insurance

Vacations

Streaming/Digital Music Services

Jeans

Make-up

Movie Tickets

Chewing Gum

BeerGround Coffee

Facial Tissue

Glass/Window Cleaner

Decision Dynamics define how people are feeling…

“I’m going to give this a try—if it doesn’t

work out, no big deal!”

“This is so exciting. I have to

discuss this with my friends!”

“The stakes are high. I don’t want

to screw this up.”

“I’m fine with doing

what I always do—not going to

overthink this.”

Page 6: Halverson Group on Decision Dynamics

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HighEffort

LowEffort

Open toChange

Routine

High Reward

LowReward

HeartHead

LowRisk

HighRisk

Complex

Simple

Televisions

Cable TV Services

Car Insurance

Vacations

Streaming/Digital Music Services

Jeans

Make-up

Movie Tickets

Chewing Gum

BeerGround Coffee

Facial Tissue

Glass/Window Cleaner

High heart + low-effort

= more likely to tell

a friend than post to

social

High effort + high heart

= more social media posts post-purchase

High effort + high head = actively seeking expert advice online

Low effort + low head =might be

swayed by a coupon

Understanding these moods and emotions is key to developing the right messaging.

And how people feel predicts touch-point engagement.

Page 7: Halverson Group on Decision Dynamics

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HighEffort

LowEffort

Open toChange

Routine

High Reward

LowReward

HeartHead

LowRisk

HighRisk

Complex

Simple

Televisions

Cable TV Services

Car Insurance

Vacations

Streaming/Digital Music Services

Jeans

Make-up

Movie Tickets

Chewing Gum

BeerGround Coffee

Facial Tissue

Glass/Window Cleaner

9 days on average

26 dayson average

Decision Dynamics also predict the amount of time spent in the journey.

Page 8: Halverson Group on Decision Dynamics

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HighEffort

LowEffort

Open toChange

Routine

High Reward

LowReward

HeartHead

LowRisk

HighRisk

Complex

Simple

Televisions

Cable TV Services

Car Insurance

Vacations

Streaming/Digital Music Services

Jeans

Make-up

Movie Tickets

Chewing Gum

BeerGround Coffee

Facial Tissue

Glass/Window Cleaner

9 days 23 behaviors

26 days63 behaviors

25 days 37 behaviors

9 days15 behaviors

High effort decisions lead to longer journeys, but the “heart” further intensifies the engagement.

Page 9: Halverson Group on Decision Dynamics

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DECISION DYNAMICSDECISION DYNAMICS

What this means for your brand…

Decision Dynamics provide our partners with insight into what makes their category tick – and what makes their customer journey different.• Organizing principles that define how decision are made in a category• Predictive touch-points• Benchmarks and adjacencies• An understand of the roles brands and channels play across the journey• Cross-category learnings that enhance touch-point engagement and

effectiveness

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DECISION DYNAMICSDECISION DYNAMICS

Interested in learning more? We’d love to hear from you.

193 North Marion StreetOak Park, Illinois 60301

[email protected]