Seeing Through New Eyes

New Services

SEEING THROUGH NEW EYES UNDERSTANDING REAL LIFE THROUGH THE COMBINED LENS OF BEHAVIORAL SCIENCE AND ETHNOGRAPHY MAY 16, 2018 1

ETHNOGRAPHY CENTER OF EXCELLENCE True Ethnography Requires Expertise Ipsos’ ECE is an award-winning team of ethnographers, anthropologists, market researchers and filmmakers dedicated to the understanding of consumer behavior. Multiple award-winner, including 2017 AQR Prosper Riley-Smith Qualitative Excellence Award, 2014 MRS Healthcare Research and Grand Prix Awards © 2018 Ipsos 5

UNDERSTANDING CONSUMERS, ONE HUMAN EXPERIENCE AT A TIME Ipsos Ethnography Centerof Excellence ✗ ✔ Projected self. To understand people’s Real People in Real Life DON’T SAY projections. DO We examine the tensions between what people say and what they actually do, as well as the emotions, ✔ ✔ Everyday life. To look at their behaviors and relationships, cultural norms, and environments that shape feelings. their beliefs and behaviors. DO SAY ✔ ✗ Cultural norms. To understand “learnt DON’T behaviors” that they forget to tell you, or © 2018 Ipsos DO SAY don’t realize that they do. 66

TOTAL PEOPLE UNDERSTANDING ECE Methodology We identify previously unseen opportunities for our clients by looking at people’s worlds in a new way. 1 2 3 EMBED IN REAL LIFE ANALYZE FILM FOOTAGE SHARE INSIGHTS Specially trained ethnographers Ipsos ECE experts review film, Our team produces production- immerse in a typical day with real forming preliminary quality film(s) to demonstrate key people. understandings, noticing key behavior insights discovered. • 5-7+ hours in situ moments, and identifying • Films and reports for • One-on-one hypotheses and themes. dissemination • Participant-led, not discussion • Rich, complete data • Final presentation or an guide-led • Collaborative analysis via activation workshop multiple lenses – including BSci! © 2018 Ipsos 7

Ethnography Learning Objectives RICHER INSIGHTS, GREATER IMPACT • Ideal for large-scale strategic studies. • Establish fundamental, contextual understanding of a population or situation. • Learn how a product or service is used. • Uncover unarticulated or unmet needs. • Bring human understanding to quantitative data, including emotional impact, relationships, and context. • Identify key questions to successfully drive subsequent research. © 2018 Ipsos 8

The Value of Ethnography Ipsos ECE ethnographies yield actionable insights that drive success in a variety of business functions. PENETRATION COMMUNICATION NEW PRODUCT Increase penetration of Inspire brand DEVELOPMENT products, understand how communication that Identify new product or to launch in new market. connects emotionally; service opportunities. understand how to commercialize products. UPGRADES CONSUMER CLOSENESS FUNDAMENTAL Determine improvement Build empathy for UNDERSTANDING areas for existing consumers among team, Develop foundation for products. agency partners. brand or initiative strategy. © 2018 Ipsos 9

Behavioral Science Tools Help Bridge The Say-Do Gap Behavioral Science is the application of psychological insights into human behavior to define “effects” around economic decision-making Behavioral Science… …allows us to better understand the conscious and nonconscious drivers of choice …provides frameworks for understanding when choices are made consciously (or not) …gives us a tool chest for influencing both System 1 and System 2 behavior © 2018 Ipsos 12

B-Sci’s Explanation: Two “Operating Systems” in The Brain SYSTEM 1 SYSTEM 2 Intuitive Deliberate Nonconscious Conscious Emotional Rational Present-focused Future-focused This underlies the Say-Do gap we often see 13 © 2018 Ipsos 13

System 1 “Decides” Differently Than System 2 WAITING ROOM HALLWAY SNACK PRESENTATION ROOM Group A Memorize Everyone 2-Digit Number Chocolate Cake Fruit Salad reports back the number they Group B memorized Memorize 7-Digit Number OR © 2018 Ipsos 14

System 1 “decides” differently than System 2 CAKE FRUIT Salad When they were distracted by the number, System 1 dominated: more subjects chose cake 63 than fruit salad 59 41 27 2 Digits (Low) 7-Digits (High) © 2018 Ipsos 15

What She Said He has an old iPad that he likes to play games on … I try to limit it or at least make sure he goes outside to play for a while. He does have the PBS Kids app and stuff, the Nick, Jr. app … He can watch some shows on there, but usually when he’s on his iPad he’s playing games. © 2016 Ipsos 17 © 2018 Ipsos 17

The Combined Lens 1919

Behavioral Science Provides Frameworks for Understanding Behavior HABITS MOTIVATIONS SOCIAL LEARNING THEORY 20

Habits • Working with a pet food manufacturer to help them gain a deeper understanding the role that feeding played in both the pets’ and pet owners’ lives • To investigate the factors that contributed to (and hindered) more routine feeding, we used the habits framework to understand the triggers of behavior, what made the behavior hard or easy, and the different rewards that people received from feeding © 2018 Ipsos 22

• The moment of feeding was long thought to be the best part of the pet food experience, for both pet and owner • In fact, we found that while there were rewards for the pet, there were actually a number of negative system 1 rewards at play • We were able to make a number of recommendations to help overcome these negative barriers 23

Maslow’s Hierarchy of Needs A financial service client wanted to change consumers behaviors, but first needed to know what needs the consumer was trying to fulfill at a fundamental level One of the oldest, but also most established models of motivation comes from Abraham Maslow, who created the hierarchy of needs. It holds that we cannot be motivated to achieve higher order goals until our most basic needs are taken care of. 24 © 2018 Ipsos 24

Motivations and Financial Behaviors • Through ethnography, we were able to both listen to and view a rich set of financial behaviors • We found several critical consumer actions:  The way they handled money  The bank interactions  Their financial recordkeeping • This allowed us to augment existing segments and recommend bank interventions © 2017 Ipsos 25 © 2018 Ipsos 25

Social • Our social identities are a fundamental part of ourselves. When we Identity experience scarcity of resources (time, money, health) – we subconsciously Theory try to protect ourselves. • What accounts for the • This ladders into behaviors polarization that we’re currently that protect the groups that witnessing in America? we belong to, including our political parties, leading to biased information processing and decision- making, plus in-group favoritism and out-group derogation © 2018 Ipsos 26