Friday, January 10, 2014

Emotion wins

I recently completed a study for a large airline which provided a perfect example of how emotions override our rational deliberations. While we all intuitively know that this is the case, here is a wonderful illustration.

The client was developing a new menu of salads and small plate items for purchase on flights. These new offers were great. They were contemporary, attractive, and healthy - somewhat of significant departure from what we might expect from airplane food.

Like any good business thinker, our client hypothesized that the purchase rate for the new items might depend on what they offer for free. That is, the more that is served for free, the less likely flyers will spend money to purchase something else. Well, that would be a good assumption if humans are totally rational.

In the study, we tested three options with three separate groups of flyers. The first group was offered a small sandwich and beverages for free. The second group was offered a bag of chips and beverages for free. The last group was offered water. In all cases, flyers were then offered the new menu for purchase.

Flyers in the first group, the one that would be served a small sandwich, were very interested in the up-sell. Many found the new menu items very appealing and wanted to find out more. The top two box purchase intent was quite high. Rationally, we would expect the other groups to be equally, if not more, interested in the new menu items. After all, it is exactly the same offering, and the contract against what is free is so much greater. Alas, the result was exactly opposite!

The flyers in the third group as example, the group that was served a glass of water, were so angered by perceived disrespect that they could not even focus on the new menu. How dare the airline think so little of their customers that all I get is a cheap glass of water? The water could not be a stronger symbol that customers are not appreciated, and are viewed simply as a source of revenue from which the airline wants to extract as much as possible. Not surprisingly, the interest and purchase intent for the new menu items was essentially nil. Emotions totally overwhelmed rational consideration.

Marketers need to seriously consider the emotion they are intentionally or unintentionally triggering. These emotions can easily make a very compelling offer a total dud.

No comments:

Post a Comment