Saturday , November 28 2020

How loyalty is formed by a brand and why it breaks




What makes us choose a brand or another when buying at the supermarket?

When you buy something in the supermarket, what one chooses
brand or product? Stores invest large amounts of money to try to understand or influence this decision making process.

Supermarkets can learn a lot from customers just by analyzing what they are buying. But research also suggests that personal relationships are formed with specific products over time while trying to justify why they buy one or the other.

In short, you not only buy what you prefer, but you end up preferring what you buy. And that means you are
more open to influence than you might think.

Therefore, studying the decisions in the supermarket can help understand the decisions made in other areas of life.

Selected by our choice

To explore buyer's decision-making, Brad Love, a member of the National Center for Data Science and Artificial Intelligence, collected Alan Turing Institute, more than a million more than a million receipts from one of the UK's leading supermarket chains. .

As expected, he discovered that people's purchases reveal what they value and what their goals are.

But relationships with products continue, according to another survey of customer loyalty cards.


What we buy provides traces to our goals: from what we have to do that evening to try to save on our monthly expenses
What we buy provides traces to our goals: from what we have to do that evening to try to save on our monthly expenses

The analysis of purchase decisions of 280,000 customers revealed that these people fell into a self-reinforcing cycle where they increasingly joined a product.

These cycles tend to stretch during consecutive visits to the store. Afterwards, the pattern is broken and the process begins again with another mark.

These range from very specific goals and prepare a sauteed dinner to general goals such as reducing your overall expenses.

Interestingly, when consumers break these self-reinforcing loops, they tend to do so in several products at once.

Thus, it is also likely that changing your coffee brand will change your yogurt and detergent brands, for example.

Blind loyalty

But why develop this loyalty? Another analysis of data ruled out that simpler factors such as price or power of habit were responsible for these habits.

One explanation is that people are going to like what they buy for a need to "make sense" and explain their choices for themselves and for others.

For example, after purchasing the ingredients for salad, a consumer could begin to value more healthy foods to justify the purchase.


Simple factors like price or custom are not the most important when it comes to developing loyalty to a product
Simple factors like price or custom are not the most important when it comes to developing loyalty to a product

This pattern of behavior can be exploited to try to create a relationship with a particular product.

In the fidelity card study, they sent coupons to supermarket customers who bought instant coffee to try another brand.

Those who were in the change phase were twice as likely to use the coupon as those still blocked in their preferred coffee product at that time.

This self-awareness in the decision-making process is not limited to weekly shopping, but probably extends to many areas of our lives.


The more reviews a restaurant has, the more reliable your rating will be
The more reviews a restaurant has, the more reliable your rating will be

Studies suggest that people defend what they choose in any setting, from the paper jam they buy to the politicians they choose to vote for in elections.

Once you have voted for a leader, you can end up adopting your opinions and opinions on many issues, including those with which you had some opposition.

In search of "hidden treasures"

Man's decision making can sometimes be more logical, for example when choosing a meal choice to go home.

A study examined users of a popular food delivery application in 197 cities to understand how they decided which restaurant to buy.

It is natural to believe that users of the app make their decision based on factors such as the company's popularity or the ratings they receive from customers.

But it was actually discovered that they were more interested in finding "hidden treasures" with less positive criticism.


What do you take into account when choosing the restaurant where you order your food at home?
What do you take into account when choosing the restaurant where you order your food at home?

This may seem counterintuitive and wrong, but that's how sophisticated machine learning systems face uncertainty. The more reviews a restaurant has, the more reliable your rating will be.

When a restaurant only has some comments, although they are not very positive, there is still a great possibility that the restaurant is excellent. After all, the few critics can be wrong.

On the other hand, when a restaurant has many good but not excellent reviews, the chances of the restaurant being exceptional are very low.

Or another way, customers prefer to risk discovering something good instead of having something mediocre guaranteed.


When we try a new restaurant and the result is disappointing, it is likely that we will return to simple and low-risk choices like hamburgers
When we try a new restaurant and the result is disappointing, it is likely that we will return to simple and low-risk choices like hamburgers

Thanks to the study, it was found that people ordering food at home in cities with better restaurants are more likely to take risks.

This is an intelligent movement as it is usually more likely that a good restaurant will be found in a city that has a wide and varied gastronomic offer.

However, research shows that when people explore and are disappointed with a bad experience, they return to traditional and unhealthy choices like hamburgers.

Decisions today to day

Although consumers may not be aware of it, their purchases show a lot about them. Although they seem to be sailing without thinking between the various options for sending food to the home, the traces of the data they leave behind can describe and anticipate part of their behavior.

Buyers could take advantage of this window to replace bad habits with better, but they could also be more susceptible to new product announcements.

Understanding human decision making is steadily improving. Combined with advances in artificial intelligence, this can help unlock not only food choices but all the decisions we make in our daily lives.

Now, we know that when you break loyalty to a particular product, it is likely that the consumer will also change brands or models in other products.


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