Tag Archives: Itamar Simonson

Live from #TMRE14: Why Marketing May Not Matter Much

Itamar Simonson

Stanford University Graduate School of Business Professor of
Marketing Itamar Simonson explained how the rise of
today’s informed and empowered consumer is subverting marketing convention.

Simonson, co-author of ‘Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information,’ reviewed the ways in which
brands in many categories’moreover, branding, conceptually’and traditional
constructs like loyalty, positioning and targeting are losing relevance and
effectiveness.
Consumers have unprecedented, immediate access to information and
their preferences are increasingly transient, malleable and subject to the
influence of other consumers, he noted.
What matters is current experience, not prior performance, Simonson emphasized. 

Accordingly, brands as value proxies and loyalty as a purchase driver are
waning.

The implications for market research may be significant.
Simonson argued that to try to predict future behavior by
measuring consumer preferences today will prove increasingly difficult. 

He said he expects loyalty metrics like NPS and lifetime value measures to lose utility and
that market research will focus less on tracking and more on conducting quick
experiments (A/B testing, etc.).

ABOUT THE AUTHOR
Marc Dresner is IIR USA’s sr. editor and special communication project lead. He is the former executive editor of Research Business Report, a confidential newsletter for the marketing research and consumer insights industry. He may be reached at mdresner@iirusa.com. Follow him @mdrezz.

At the Intersection of Art & Science: A TMRE 2014 Book List

Stories are a catalyst for action.

Market research, data sciences, consumer insights and marketing overall, has never seen such dramatic and rapid transformation’ and the stakes have never been higher. The output and value of our entire industry is in flux.

We’ve curated this list of 8 powerful books in advance of our upcoming MR event to help you open your mind to new ideas and truly become a catalyst for disruption, growth and impact beyond measure.

The TMRE 2014 Book List: 


1. It’s Complicated: The Social Lives of Networked Teens by Danah Boyd  


Boyd’s conclusions are essential reading not only for parents, teachers, and others who work with teens but also for anyone interested in the impact of emerging technologies on society, culture, and commerce in years to come. In this eye-opening book, youth culture and technology expert danah boyd uncovers some of the major myths regarding teens’ use of social media. She explores tropes about identity, privacy, safety, danger, and bullying. Ultimately, boyd argues that society fails young people when paternalism and protectionism hinder teenagers’ ability to become informed, thoughtful, and engaged citizens through their online interactions. Yet despite an environment of rampant fear-mongering, boyd finds that teens often find ways to engage and to develop a sense of identity.

2. Different: Escaping the Competitive Herd by Youngme Moon  


Different shows how to succeed in a world where conformity reigns’but exceptions rule. Youngme Moon provides a highly original perspective on what it means to offer something that is meaningfully different in a manner that is both fundamental and comprehensive.




3. The Power of Habit By Charles Duhigg

In The Power of Habit, award-winning New York Times business reporter Charles Duhigg takes us to the thrilling edge of scientific discoveries that explain why habits exist and how they can be changed. With penetrating intelligence and an ability to distill vast amounts of information into engrossing narratives, Duhigg brings to life a whole new understanding of human nature and its potential for transformation.

4. The Storytelling Animal: How Stories Make Us Human by Jonathan Gottschall 


Stories help us navigate life’s complex social problems just as flight simulators prepare pilots for difficult situations. Storytelling has evolved, like other behaviors, to ensure our survival. Stories can also change the world for the better. Most successful stories are moral, they teach us how to live, whether explicitly or implicitly, and bind us together around common values. We know we are master shapers of story. The Storytelling Animal finally reveals how stories shape us.

5. Leaders Eat Last: Why Some Teams Pull Together and Others Don’t by Simon Sinek 


Our biology hasn’t changed in fifty thousand years, but our environment certainly has. Today’s workplaces tend to be full of cynicism, paranoia and self-interest. But the best organizations foster trust and cooperation because their leaders build what Sinek calls a Circle of Safety that separates the security inside the team from the challenges outside. The Circle of Safety leads to stable, adaptive, confident teams, where everyone feels they belong and all energies are devoted to facing the common enemy and seizing big opportunities. 



6. Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information By Itamar Simonson, Emanuel Rosen 


What influences customers in this new age? The authors identify the old-school marketing concepts that need to change and explain how a company should design its communication strategy, market research program, and segmentation strategy in the new environment. 

7. Exploiting Chaos: 150 Ways to Spark Innovation During Times of Change By Jeremy Gutsche


Jeremy Gutsche’s book about 150 ways to spark innovation during times of change, includes these key lessons :


1) STRATEGY – Turn chaos into opportunity
2) CULTURE – Create a culture of innovation
3) TRENDS – Filter through all the noise
4) INNOVATION – Increase your odds

5) MARKETING – Infectiously market your ideas


Exploiting CHAOS: Book on How to Spark Innovation from Jeremy Gutsche / Trend Hunter



8. Start with Why: How Great Leaders Inspire Everyone to Take Action By Simon Sinek 

There are only two ways to influence human behavior: you can manipulate it or you can inspire it. Start With Why is for those who want to  inspire others and for those who want to find someone to inspire them.



Editor’s note:

The noted thought leaders above will share more of their experiences and ideas to explore at the Market Research Event. We hope you can join us.

Insights without impact are worthless

As market researchers, we realize it’s no longer enough to study the choices that people make; far more important is to understand how and why they make them.

The effects of psychological, social, cognitive and emotional factors on the decisions of consumers are limitless, let alone the impact of social media and technologies.

TMRE 2014 presents you with the most breakthrough applications of insights first, see for yourself, download the brochure.

Disrupt Habit

Charles Duhigg, Author, The Power of Habit 
In this session, Charles Duhigg will explore the science of habit formation, illustrating why we do what we do and how we can change it.

Duhigg explains why the most powerful habits have emotional cores, and how tweaking even one habit can have staggering effects. Duhigg draws from a number of current case studies. 

Harnessing Influence 

Itamar Simonson, Sebastian S. Kresge Professor of Marketing at the Graduate School of Business, Stanford University and Author, Absolute Value 
How people buy things has changed profoundly yet the fundamental thinking about consumer decision making and marketing has not. Most marketers still believe that they can shape consumers’ perception and drive their behavior.

In this provocative session, Stanford professor Itamar Simonson shows why current mantras about branding and loyalty are losing their relevance. When consumers base their decisions on reviews from other users, easily accessed expert opinions, price comparison apps, and other emerging technologies, everything changes. Counter to what we frequently hear, consumers will (on average) make better choices and act more rationally.

See all the TMRE 2014 Keynotes here.
Plus, an entire Track Dedicated to Consumer Psychology & Behavioral Economics

‘ The Behavioral Economics of Creativity| FCB Chicago
‘ How to Extend Your Brand With Implicit Consumer Insights | Sentient Decision Science & Pepsi
‘ Behavioral Economics in Action: A Corporate Wellness Case Study | Lockton Dunning Benefits
‘ Insights Lead to Income: Understanding Motivators Among Hispanics to Drive Increased Sales | Univision Communications

Download the brochure to see full session descriptions.

Insights without impact are worthless. Focus on the business value of insights at TMRE 2014 and hear from more than 150 leaders from inside and outside the industry; learn something new including ways you can apply similar thinking to drive your success and become a true catalyst for impact in Market Research.