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	<title>Marketing Taxi &#187; consumer behavior</title>
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		<title>Why New Product Research Can&#8217;t Always Be Trusted.</title>
		<link>http://www.marketingtaxi.com/why-new-product-research-cant-always-be-trusted/</link>
		<comments>http://www.marketingtaxi.com/why-new-product-research-cant-always-be-trusted/#comments</comments>
		<pubDate>Thu, 27 Aug 2009 20:13:53 +0000</pubDate>
		<dc:creator>Marketing Taxi</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[consumer behavior]]></category>
		<category><![CDATA[consumer research]]></category>
		<category><![CDATA[new product development]]></category>
		<category><![CDATA[product testing]]></category>

		<guid isPermaLink="false">http://www.marketingtaxi.com/?p=230</guid>
		<description><![CDATA[While many larger corporations often rely on consumer research to predict the response to new products, there are numerous pitfalls with such research. Here are some of the more significant problems:
1. Many consumers who respond to questions about new product concepts are indifferent because the product category is not important to them.
2. When consumers are [...]]]></description>
			<content:encoded><![CDATA[<p>While many larger corporations often rely on consumer research to predict the response to new products, there are numerous pitfalls with such research. Here are some of the more significant problems:</p>
<p>1. Many consumers who respond to questions about new product concepts are indifferent because the product category is not important to them.</p>
<p>2. When consumers are using their own money, they are more responsible in their decisions than when they are just offering an opinion.</p>
<p>3. Consumers tend to choose conventional and familiar ideas over truly innovative ones because of conservative attitudes. Most innovative products are adopted because of others&#8217; experiences.</p>
<p>4. Consumer motives for choices may be colored by vanity. For example, people may report choosing a small appliance to save space when they really want to save money.</p>
<p>5. Consumers may not have sufficient information to make informed choices in a research setting. They may, for example, have information on the price and physical characteristics of a new coffee maker, but they cannot pre-judge the benefits or problems that will arise in the course of actually using that coffee maker to make and pour coffee.</p>
<p>If consumer research cannot be designed to avoid these kinds of problems, the new product development team must learn to put themselves in the user&#8217;s place as best they can in order to develop products that the market will enthusiastically accept.</p>
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		<title>Marketing Your Services to &#8220;Invisible Buyers.&#8221;</title>
		<link>http://www.marketingtaxi.com/marketing-your-services-to-invisible-buyers/</link>
		<comments>http://www.marketingtaxi.com/marketing-your-services-to-invisible-buyers/#comments</comments>
		<pubDate>Tue, 18 Aug 2009 16:05:04 +0000</pubDate>
		<dc:creator>Marketing Taxi</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[business risk]]></category>
		<category><![CDATA[consumer behavior]]></category>
		<category><![CDATA[service marketing]]></category>

		<guid isPermaLink="false">http://www.marketingtaxi.com/?p=85</guid>
		<description><![CDATA[Whether we are offering coaching or consulting services, our clients and prospects are always trying to reduce the risks of using our services.
One way they try to reduce risk is to conform to the attitudes and preferences of others. Family, friends, coworkers, and other groups influence your prospects and their buying behavior. Sometimes called reference groups, I [...]]]></description>
			<content:encoded><![CDATA[<p>Whether we are offering coaching or consulting services, our clients and prospects are always trying to reduce the risks of using our services.</p>
<p>One way they try to reduce risk is to conform to the attitudes and preferences of others. Family, friends, coworkers, and other groups influence your prospects and their buying behavior. Sometimes called reference groups, I call them &#8220;invisible buyers.&#8221; Your invisible buyers are a point of comparison for your prospect&#8217;s own choices and attitudes. Sometimes the influence of others is subtle; other times it is quite apparent.</p>
<p>For example, if you are a coach, your invisible buyers can influence prospects by. . .</p>
<p>&#8211; Directly recommending a specific coach or training approach they already know about or have used themselves.</p>
<p>&#8211; Giving your prospect a frame of reference and an opportunity to compare your coaching service to what is acceptable to group members.</p>
<p>&#8211; Influencing the prospect to change his or her attitudes about using a coach so that they are consistent with those of the group.</p>
<p>&#8211; Providing reassurance and approval to the prospect&#8217;s decision to use your services.</p>
<p>Occupation, memberships, social class, and education are all good indicators of which groups are important to your prospect. The prospect may even mention having had a conversation about using your service with a friend or coworker.</p>
<p>By noting how others in the prospect&#8217;s reference groups have used similar services, you can reassure your prospect that working with you is a smart choice.</p>
<p>I would strongly suggest that in your first contact with a prospect that you ask if they or someone they know has used a service similar to yours before. Probe a little into that area if they say &#8220;yes.&#8221; What kind of service did they use? Was it a positive experience for them? Would they do it again? How much weight does your prospect give to their prior service experiences or those of friends and coworkers?</p>
<p>The next step is to adjust your conversation to respond to concerns or experiences that might negatively influence a sale. Similarly, you can reinforce positive experiences and subtly refer to them during your conversation to help establish the value of your service.</p>
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		<title>Why Are Customer Testimonials So Effective?</title>
		<link>http://www.marketingtaxi.com/why-are-customer-testimonials-so-effective/</link>
		<comments>http://www.marketingtaxi.com/why-are-customer-testimonials-so-effective/#comments</comments>
		<pubDate>Mon, 10 Aug 2009 04:35:23 +0000</pubDate>
		<dc:creator>Marketing Taxi</dc:creator>
				<category><![CDATA[Advertising]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[consumer behavior]]></category>
		<category><![CDATA[customer testimonials]]></category>

		<guid isPermaLink="false">http://www.marketingtaxi.com/?p=89</guid>
		<description><![CDATA[Some marketing pitches are so over-loaded with testimonials from &#8220;satisfied customers,&#8221; one wonders if the business is really that good, or if the owner has a long list of friends and family members who are willing to say nice things about the company.
In fact, most testimonials do create a favorable impression &#8212; that&#8217;s why we [...]]]></description>
			<content:encoded><![CDATA[<p>Some marketing pitches are so over-loaded with testimonials from &#8220;satisfied customers,&#8221; one wonders if the business is really that good, or if the owner has a long list of friends and family members who are willing to say nice things about the company.</p>
<p>In fact, most testimonials do create a favorable impression &#8212; that&#8217;s why we use them! The question is: why are they so effective? A recent article in <em>Scientific American</em> gives us an answer.</p>
<p>&#8220;How Anecdotal Evidence Can Undermine Scientific Results&#8221; explains why clients sometimes reject the &#8220;facts&#8221; you might mention during the course of a consultation and instead adhere to unscientific, subjective stories they have heard or experienced, such as customer testimonials. According to the authors, this tendency to reject factual evidence in favor of personal anecdotes has its roots in our primitive survival instincts:</p>
<p>&#8220;We have evolved brains that pay attention to anecdotes because false positives (believing there is a connection between A and B when there is not) are usually harmless, whereas false negatives (believing there is no connection between A and B when there is) may take you out of the gene pool. Our brains are belief engines that employ association learning to seek and find patterns. Superstition and belief in magic are millions of years old, whereas science, with its methods of controlling for intervening variables to circumvent false positives, is only a few hundred years old.&#8221;</p>
<p>In other words, this behavior reflects a primitive survival instinct. That&#8217;s not likely to change anytime soon.</p>
<p>There are several lessons here. If you are a consultant or coach trying to help a client &#8220;get real&#8221; about their business or personal circumstances, don&#8217;t take it personally if the client rejects your factual &#8220;evidence.&#8221; When they balk at letting go of attitudes or beliefs based on personal experiences or stories, they are just being insanely normal!</p>
<p>Second, you can alert your client to this very human behavior. Explain that your information might seem to contradict what the client has come to believe anecdotally. Having this explanation upfront might at least open up the client to considering information that contradicts what the client already &#8220;knows&#8221; to be true.</p>
<p>The third lesson actually uses this primitive instinct in a positive way.</p>
<p>There&#8217;s a reason why so many effective marketing programs rely on testimonials to &#8220;make a case&#8221; for a product or service: they engage our basic human instincts. We tend to pay attention and give high value to stories from other humans. That&#8217;s just the way most of us are wired.</p>
<p>Even though our rational, logical selves tells us that four or five positive testimonials from satisfied customers are not scientific proof that the service is good for us &#8212; perhaps there are, unknown to us, two hundred dissatisfied customers! &#8212; our primitive emotional side tends to place greater weight on the positive, anecdotal evidence we read in an ad or on a web site.</p>
<p>Although this <em>Scientific American </em>story seems to contradict other studies about the way humans process information &#8212; for example, high-risk, high-involvement decisions often drive consumers to seek factual information before they make a purchase &#8212; it explains a human characteristic that most of us have experienced as consultants (at least, anecdotally speaking!).</p>
<p>Bottom line: you can use this lesson to help clients come to terms with facts they might otherwise be reluctant to accept. As for all those testimonials on your web site or blog saying what a great business you have &#8212; keep them! Now you know the real reason they are so effective.</p>
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