Search Captions & Ask AI

Why Incomplete Products Increase Consumption

March 20, 2014 / 21:44

This episode features Barbara Khan, a marketing professor at Wharton, discussing her research on product completeness and consumer behavior. Topics include perceptions of product shape and size, the impact of packaging on consumption, and the implications for various industries.

Khan explains how consumers' perceptions of whether a product is complete or incomplete can influence their eating habits. For instance, she highlights a study where people consumed more sandwiches when they were cut in half, despite the same amount of food being present.

The conversation also covers her research on online versus offline perceptions of product variety. Khan discusses how visual representations of products can lead to greater perceived variety compared to verbal descriptions, which can affect consumer choices.

Additionally, she touches on the importance of attention in retail settings, emphasizing how the arrangement of products can influence purchasing behavior. Khan shares insights on how retailers can better present their products to enhance consumer engagement.

Finally, she mentions her ongoing research into the effects of different shopping channels on decision-making processes, using Warby Parker as a case study.

TL;DR

Barbara Khan discusses her research on product completeness and its impact on consumer behavior and decision-making in retail.

Episode

21:44
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our guest today is barbara khan
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professor of marketing at wharton and
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director of the jh baker retailing
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center
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she is also chair of the high velocity
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growth summit
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a conference on the retail and consumer
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package goods industries
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that knowledge at wharton is organizing
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in collaboration
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with the bakery tailing center on april
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28th
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and 29th barbara welcome thank you for
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joining us
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happy to be here so we are here to talk
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about your
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research and and one of the papers that
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you have written recently
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uh in collaboration with your colleague
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julio
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cervia is about the notions of a
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product's completeness
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and how they affect perceptions
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preferences and even purchase decisions
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of buyers
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uh what was the question you were trying
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to investigate in this research
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well one of the things that we know is
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that way people decide what to buy and
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what to eat and how much to eat is not
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necessarily based on objective measures
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but it's
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based more on their perceptions of how
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things work
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look etc and one of the big findings in
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the literature before we did our study
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was that product shape and size
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package shape and size affects how much
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people consume
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so there's been previous work that shows
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that holding the size of the
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of a product the same but changing its
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shape can
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influence how much people eat and we
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were interested in
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how whether or not you think the unit is
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complete
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versus an incomplete shape whether or
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not that affects how much you eat
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um so so just to make sure i got it
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right if i were to
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take a bag of cashews and i would eat a
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lot
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of the broken cashews at the bottom of
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the bag would i be right to be
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not feel guilty regardless of how much i
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consume because i think i haven't eaten
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the whole unit
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right yeah so that's the idea so
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whenever you eat a whole thing you think
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like you're
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the the process underlying is when it's
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a whole thing
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you feel like you're eating more um even
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if the amount is the same as a broken
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piece so if you ate a whole pretzel
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you'd be aware that you ate a whole
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pretzel whereas you ate a whole bunch of
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pieces
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you're not aware of how much quantity
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you're eating
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one of the things i found fascinating in
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your research is
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how do you exactly decide whether a
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product is complete or not
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well that is the interesting thing and
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we do show that you can manipulate what
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the expectation is
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and change people's behavior so for
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example we did a study in
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in this research where we had rolls or
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we had cheese
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and and the roll was incomplete because
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there was a hole in it and the cheese
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was incomplete because there were holes
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in the cheese
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and so it wasn't a solid piece of bread
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or a solid piece of cheese when we just
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called it a roll or
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cheese then people thought the ones with
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the hole in it were less complete and
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they did what i said they tended to
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consume more of the holy bread
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on the other hand if we set the
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expectation that it was a bagel or that
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it was swiss cheese
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and then their thought a whole bagel has
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a hole in it
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that reversed the findings how did you
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go about conducting your research
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well we did a lot of the research online
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with you know assume
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if this was what it looked like you know
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how much do you think you'd eat
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how much do you think you pay for it but
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we did run what i thought was really
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interesting and help validate the
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research we ran a field study
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and in that field study we did it we did
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it down in miami and it was for a class
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of people who were going for a health
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mba course and interestingly they were
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physicians and health
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professionals so they were senior
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sophisticated people who understand
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health
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and we had a condition where we had two
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classes
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and they either ate lunch in class room
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a or classroom b
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and what they had for lunch were
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sandwiches that were either cut in half
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or they were whole now we held constant
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in each one of these the amount of bread
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the amount of meat the amount of
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everything and and we also just counted
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how many sandwiches they ended up eating
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we were careful so that a normal portion
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size would be more than one
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because there's also some kind of bias
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called the unitary bias
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where you might just take one of
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something so these were small sandwiches
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and so people would naturally take more
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than one
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and what we found is when we held
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everything constant but we cut the
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sandwich in half
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versus the sandwich was a whole people
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ate more sandwiches when they were cut
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in half and mind you these were doctors
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and health professionals that were
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liable to fall for this bias as well
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interesting
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and what would you say were some of the
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main takeaways of your research
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the main takeaway i mean there's public
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policy takeaways and then there's
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marketing takeaways
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basically we add to this growing
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literature and there are others who
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found these kinds of things another big
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finding that people found
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is primary dimension and and that's um
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what people do is they focus on the
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primary dimension of the product
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and they do insufficient adjustment for
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the secondary dimension
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so if something has a long primary
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dimension and a small secondary
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dimension
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but it's the same size as something that
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had a little bit smaller primary
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dimension
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and a bigger secondary dimension so they
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were holding these things constant
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they overweight the primary dimension so
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that's similar to ours where they
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overweight the completeness
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and basically what it shows is that
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people are not normative decision makers
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they don't eat what they think they eat
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need to eat to feel
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full they eat what they perceive is the
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right amount and they use these implicit
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rules
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for deciding how much to eat so it
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suggests
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that people these things can um backfire
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boomerang we call it so for example
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there's other research
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not mine but it's related where they
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show sometimes if people eat in a
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hundred calorie pack or something like
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that
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they can end up eating more because
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their perceptions of how much they ate
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or something is based on the package
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or the shape of the product not how full
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they feel
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got it now
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based on what you said so far i guess
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the food industry in the beverage
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industry
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is is probably uh uh
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the most interested or or most uh would
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be most affected by the findings of your
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research
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are there any other industries that that
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also
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would uh where consumer preference would
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be affected by
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portions of completeness it's hard for
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me to think offhand but
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theoretically certainly it should be
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what's what we find is it affects
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choice and more importantly probably
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is that it affects consumption and what
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the difference is is choice tends to be
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a more
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mindful we call system two thinking kind
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of decision
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whereas consumption is more of a
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mindless kind of decision
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and so these things that are subtle and
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perception changes
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tend to affect the consumption decision
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and that tends to be more true in food
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you know
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a lot like when you buy clothing you
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know
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it's more of a conscious decision what
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you're buying um
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but it's anything that has some kind of
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mindless consumption pattern
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you'd find that these things would hold
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let's now to some of
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turn to some of your other research in
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other areas
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uh you you were just telling me about uh
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a new research
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uh paper you have done on uh on on
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online and offline
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uh uh perceptions uh could you explain a
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little bit about what was the
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issue you were trying to uh investigate
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there yeah so what we're
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we're what i'm generally interested in
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is this there's kind of a cottage
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industry of research that looks at this
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is well now we have online assortments
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and it's true also in category killers
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and offline
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we can have a lot of variety and there's
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a lot of research that's shown that
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there's such a thing as too much variety
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if you go into an assortment and there's
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so much going on there
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that you can't take it all in some
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research will show that people will
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choose not to choose
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because they're just overwhelmed by all
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the choices
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and so what i'm interested in is how i
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think choice is good though i think that
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what differentiates some retailers
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online and offline is to offer a wide
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variety of choices
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so what i'm interested in is how can we
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get consumers to pay attention
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to the variety so that it's not
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overwhelming and they can take it in
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and i've done several studies along that
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and the metric that i'm really
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interested or the measure that i'm
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really interested in is attention
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and we can now measure that because of
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eye tracking
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we have eye tracking we have an eye
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tracking lab here at wharton where we
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can put people in front of computers
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and see exactly what they're looking at
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we can also give people
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goggles and have them walk up and down a
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a real store and see what they're
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looking at
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so we can see how we can make changes on
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the shelf
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and how that affects their attention
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patterns similarly if you're buying
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online
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i can you know put the storefront or
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whatever on a computer
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and i can see how you're scanning that
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computer screen
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so some of the things that i've done one
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of the things i did and when we do
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experiments what i want to do is hold
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everything constant
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so i can say i know for sure this is
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what happened
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and so one of the things that we looked
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at is how do people pay attention
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differentially
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to an assortment if it's depicted
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visually
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or if it's depicted by words holding
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everything constant so that makes it a
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little less realistic but i can
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then make these generalizations and what
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were some of your main findings here
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so with the visual what we found is if i
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gave people a choice would you like to
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see the assortment
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shown visually or described by words
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overwhelming majority would prefer it
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visually and we tried all sorts of ways
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to try to get them not to prefer visual
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because i wanted to find a boundary
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condition
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so like you'd assume for something
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that's a very aesthetic category visual
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of course you'd rather see
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but what about a category like mutual
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funds if i could show it
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visually people would prefer to see
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mutual funds visually
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so it's kind of surprising how strong
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the preference was
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for visual depiction what we found was
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when the assortment was
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depicted visually versus verbally people
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perceived there was more variety
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in general that was the main effect and
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you can kind of understand why that was
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because
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you can take in more of the attributes
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at once you can see the interactions
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better
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whereas when it's verbal it's kind of
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piecemeal the way you process it
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so you tend to see more variety when
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it's visual versus
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verbal and people prefer it's
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emotionally nicer they like variety
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they prefer to see it in visual versus
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verbal
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and when the assortment is manageable
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visual is preferable
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because it's you know they like it
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better you can take all the variety in
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it's nice
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when the assortment gets really large
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what we found with the eye tracking
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is that people can't take in all that
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variety visually
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and what they tend to do when we know
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this from eye tracking
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is they tend to like kind of glaze over
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and look haphazardly randomly over the
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visual assortment
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and as a result of that they miss
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certain items
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and it becomes more complex and they're
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more willing
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to not make a choice on the other hand
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if the assortment's really large
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and i depict it verbally they may not
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like it as much but the only way they
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can take in that information
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is to spend a little bit more time and
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they tend to look a little more
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systematically
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so the net result of that is they take
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in more variety and they're more willing
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to make a choice
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that's fascinating so two follow-up
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questions on that
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first what do you think would be the
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implications for say a company like
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amazon which is though
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now calls itself the world's biggest
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retailer right
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and has an immense variety of products
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all depicted online what what would how
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would your research be relevant to a
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region of that
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so amazon sells anything so anything
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that's depicted online would be relevant
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i i haven't done research specifically
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with amazon but i have looked at some
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results like
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with campbell soup and with other
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packaged goods and it would be the same
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thing with anything
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is what we found is when people like
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what happens was say campbell soup
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you go to your favorite soup chicken
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noodle and you buy chicken noodle
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now campbell's has lots of variety what
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they want you to do is appreciate all
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that variety
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if what we found with goggles is if they
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look at just the pictures people glance
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over and they don't take in
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all the variety when we can get them to
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look at the labels the names
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they read it and then they see there's
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chicken noodles chicken stars
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chicken whatever but you have to you can
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can you picture what i'm saying like
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you'll just glaze it with you're looking
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at the picture but if you're reading
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you'll so like that's what we know with
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packaged goods i talk to a sports
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retailer i forget which one
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but they told me like with athletic
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clothes people buy black they buy black
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all the time
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but if you just had black on the shelf
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people wouldn't see all the different
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shapes and sizes you have
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so what some of the retailers do and you
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can imagine this online also
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is they insert like pink and orange not
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because they think people are going to
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buy that but because it gives them
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something to pay attention to
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and then you appreciate the different
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variety that's there so what you've got
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to do is get people to stop
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and pay attention to certain things or
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else they kind of glaze over
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i was also wondering how your research
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would relate to
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a company like walmart uh which again a
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huge retailer
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but it's not unlike sports goods it's
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it's a wide variety of products
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how how would they be how could they use
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your findings well i mean so i'm just
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looking at visual versus verbal and i'm
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looking
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at an attention getter when there's a
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wide variety of stopping to read and
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things
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but you can imagine doing more and more
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research on this and with these goggles
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you can watch people walk
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so what we know is if you're in a big
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store like a walmart with all this
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variety everywhere
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it kind of looks like this mountain of
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product and what you see is maybe what's
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on the end dial or under the for sale
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sign or something
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and so what you want to understand is
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how can we set up a store
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so that people take in all the variety
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that's there
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especially when you have your inventory
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out there on a shelf
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i was thinking about just recently i
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went downtown there's a store downtown
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that used to have ann klein which was
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clothing it now is stewart whitespin
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which is shoes
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the same exact physical space but the
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space is used differently in ann klein
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they keep all the inventory out
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right so all the dress sizes all the
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blouses all the different things they're
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out
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there's no back room really but if you
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think about a store
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a shoe store they have just a few shoes
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out
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and all the inventory is hidden in the
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back and so you think about just that
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different configuration of a store
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how much variety you're going to take in
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is really different and i never really
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thought about it until i saw the exact
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same physical space
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used a really different way that's
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fascinating
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and and one one more of your uh
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papers is about the horizontal versus
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vertical
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dimensions of uh product uh placement
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can you speak a little bit to that
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research yeah that's
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also we used eye tracking and we had
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some theory on the theory of attention
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and perception
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so to get at that research we first
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stipulate which i think is true that
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there's two stages let's say there's
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more than two but let's start with two
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stages
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to your choice process one stage is when
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you see the whole category you kind of
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scan it quickly
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maybe you're not going to make a
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purchase it's three seconds or so and
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you walk by
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the second is when you plant your feet
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and you're ready to make a choice okay
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now you're spending unlimited time
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and so we looked at those two stages and
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under those two stages should you do it
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horizontally or vertically
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horizontally or vertically in the two
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stages so stage one
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three seconds you're just scanning there
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what we found
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is because your eyes are horizontal
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um you you can see things that are
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horizontally
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more easily we call that higher
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perceptual fluency so when things are
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horizontal
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and you're looking very quickly you take
00:15:44
in more variety
00:15:45
when they're horizontal than vertical
00:15:47
because it's harder to see vertical
00:15:49
because of the physical
00:15:50
way your your eyes are and so the result
00:15:53
of that is
00:15:53
if things are across a horizontal row
00:15:56
and you're going past it quickly
00:15:57
whether online or in the store you think
00:16:00
there's more variety you remember
00:16:02
more variety when it's horizontal than
00:16:04
when it's vertical
00:16:05
now when you get to the choice that's no
00:16:07
longer the case because i'm spending
00:16:08
enough time to look at it the quickness
00:16:11
or the ease of looking at is not a
00:16:12
relevant thing
00:16:13
but now what happens is there's another
00:16:15
perceptual uh
00:16:17
i don't know if you've ever seen this
00:16:18
but if you take the same line that's
00:16:20
vertical
00:16:21
and you take that same line horizontal
00:16:23
people always think that the vertical is
00:16:25
longer
00:16:26
than the same length line that's
00:16:27
horizontal so
00:16:29
what that perceptual says is that
00:16:31
perceptual bias says is when things are
00:16:33
horizontal
00:16:33
you think they're closer together we
00:16:36
also know when you think things are
00:16:37
closer together you think they're more
00:16:39
similar
00:16:40
so when you're evaluating things if you
00:16:42
don't have clear preferences
00:16:44
the things that are horizontal are seen
00:16:46
as closer together and more equal in
00:16:48
preference
00:16:49
and so you're more likely to say pick
00:16:51
one up
00:16:52
or more of them horizontally when you
00:16:55
see them vertically
00:16:56
they see more further apart there seems
00:16:58
to be an order to it more when it's
00:17:00
horizontal when it's vertical
00:17:02
and so you tend to pick one whereas this
00:17:04
way you tend to pick
00:17:05
more than one and so what we find in
00:17:08
general is things
00:17:09
horizontally you tend to pick more
00:17:12
variety you see more variety quickly and
00:17:14
when you evaluate
00:17:15
you think they're more acceptable
00:17:17
options and when it's vertical you tend
00:17:19
to pick one
00:17:20
and anecdotally i think retailers know
00:17:23
this i've looked at the stores and i've
00:17:24
looked at a lot of convenience stores
00:17:27
what they tend to stack horizontally are
00:17:30
things where you're going to take
00:17:31
more flavors what they tend to stack
00:17:33
vertically is
00:17:34
good better best or best better good you
00:17:37
know kind of like that
00:17:38
and then the notion is you're going to
00:17:39
take one when it's vertical
00:17:41
and when it's horizontal you take more
00:17:43
than one and so what my research has
00:17:45
done is the
00:17:46
retailers have kind of figured it out by
00:17:47
trial and error they don't care why they
00:17:49
just know it works
00:17:50
but what i do back in the lab is to
00:17:52
figure out how you pay attention and
00:17:54
your
00:17:55
resulting perceptions is part of why you
00:17:58
see that effect
00:17:59
because there's no reason that you know
00:18:01
thinking about in advance why something
00:18:03
would be horizontal or vertically
00:18:05
what's really interesting about what you
00:18:06
said is that in addition to retailers
00:18:09
there are also
00:18:10
companies that like netflix you know
00:18:13
that
00:18:13
show thousands of film titles
00:18:16
horizontally
00:18:17
and and different categories of film
00:18:19
types
00:18:20
vertically that that also can have a
00:18:23
tremendous bearing on on
00:18:25
what you just said yeah you see and like
00:18:26
it could be the other way around
00:18:28
but over time they figured out it worked
00:18:30
this way and i'm just saying yes that's
00:18:32
right
00:18:32
because you tend to pick more than one
00:18:34
in a particular category
00:18:36
and you choose one or another category
00:18:38
see that's that's exactly the same thing
00:18:40
and what i think is so interesting
00:18:42
is retailers frequently they're too busy
00:18:44
they just want to know what's worked
00:18:45
they do a b
00:18:46
testing or this ad works better than
00:18:48
that ad and they don't know why
00:18:50
and so a lot of times it's very
00:18:51
reassuring to see the results that i
00:18:53
find in the lab
00:18:54
validated by real world stuff and what i
00:18:57
can add to them is i know why that's
00:18:59
working that way
00:19:00
and it's important because when you're
00:19:02
going into new types of retail
00:19:04
so you're going into shopping online or
00:19:06
these omni channel things
00:19:08
you want to know is what worked offline
00:19:10
going to work online
00:19:11
if you understand why it worked offline
00:19:13
then you can make the adjustment more
00:19:15
appropriately to these new formats
00:19:18
so we've talked about three of your
00:19:20
really
00:19:21
interesting research papers any uh
00:19:24
future research
00:19:25
projects that you're working on that
00:19:27
that based on some of the findings of
00:19:29
these research papers
00:19:30
yeah i'm really am interested in how the
00:19:33
process
00:19:33
goes you know now in this new omni
00:19:36
channel world
00:19:37
so what's happening now is we know
00:19:39
there's stages to the purchase process
00:19:40
you know you have an idea you want to
00:19:42
fill something you about
00:19:43
you know you search for information you
00:19:45
evaluate the options you make a choice
00:19:47
you use the product
00:19:48
so there's all these different stages in
00:19:50
traditional research
00:19:52
you did a i mean retailing and
00:19:54
traditional retailing
00:19:55
you made the decisions in store and then
00:19:57
you took them home so there was in-store
00:19:58
and there was at home that was it
00:20:00
but now it's a 24-7 world you might look
00:20:03
on your phone for one you might look on
00:20:05
the computer
00:20:06
for something else you might go into the
00:20:07
physical store for something else
00:20:09
so you have all these different stages
00:20:11
that can be in all different channels
00:20:13
and i'm curious to know how separating
00:20:15
the
00:20:16
stages by channel by time affects
00:20:19
decision making so i'm working on a
00:20:21
project
00:20:22
and we started with warby parker as an
00:20:24
example warby parker the eyeglass
00:20:25
retailer started by four wharton
00:20:27
students
00:20:28
um what you do in warby park they've
00:20:30
changed it now because they've opened
00:20:32
real
00:20:32
stores but originally you made the
00:20:34
decision online you looked at this big
00:20:36
assortment
00:20:37
you waited a couple days and you got
00:20:40
five pairs to try on at home
00:20:42
so what i was interested in was that
00:20:44
separation
00:20:46
between making your decision online
00:20:49
having to wait a couple days to get the
00:20:51
physical glasses
00:20:52
how did that time between the two stages
00:20:55
affect your decision making
00:20:56
so we're in the process of doing that
00:20:58
research now and we're finding counter
00:21:01
to what people might
00:21:02
think the delay between the two stages
00:21:04
may not be bad it may be a good thing
00:21:07
well perhaps the high growth velocity
00:21:09
conference
00:21:10
where warby parker is going to be one of
00:21:12
the participants
00:21:13
might be a good way to continue this
00:21:15
conversation further barbara thank you
00:21:17
so much
00:21:18
for joining us today thank you
00:21:43
you

Episode Highlights

  • Research on Product Completeness
    Barbara Khan discusses how perceptions of product completeness affect consumption decisions.
    “People decide what to buy based on perceptions, not objective measures.”
    @ 00m 54s
    March 20, 2014
  • Visual vs. Verbal Assortments
    Khan's research shows consumers prefer visual representations of product assortments for better variety perception.
    “When the assortment is depicted visually, people perceive more variety.”
    @ 09m 48s
    March 20, 2014
  • Implications for Retailers
    Khan explains how her findings can help retailers like Amazon and Walmart improve consumer engagement.
    “Retailers need to make consumers pay attention to the variety available.”
    @ 11m 39s
    March 20, 2014
  • Research on Decision-Making Delays
    Exploring how waiting between online decisions and receiving products affects choices.
    “The delay between stages may not be bad; it may be a good thing.”
    @ 21m 02s
    March 20, 2014

Episode Quotes

  • People are not normative decision makers.
    Why Incomplete Products Increase Consumption
  • You eat what you perceive is the right amount.
    Why Incomplete Products Increase Consumption
  • Visual depiction leads to a perception of more variety.
    Why Incomplete Products Increase Consumption
  • The delay between stages may not be bad; it may be a good thing.
    Why Incomplete Products Increase Consumption

Key Moments

  • Research Discussion00:30
  • Perception Findings01:06
  • Visual Preference09:39
  • Retail Implications11:34
  • Retail Research17:41
  • Omni-Channel World19:36
  • Warby Parker Study20:21

Words per Minute Over Time

Vibes Breakdown

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