Apply behavioral sciences into your e-commerce site and increase conversion rates. Learn how do online shoppers think and discover the exciting field of behavioral economics.

1. By Omri Yacubovich
Head of Biz Dev & Marketing
@Commerce Sciences
17 Slides on:
How do online shoppers think?
Behavioral concepts any retailer should learn
Online Shoppers
Behavior
Introduction
A
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Conversino optimisation for ecommerce site.
Increase your ROI by applying behavioral
science into e-commerce. Offer targeted real-
time offers and increase sales

2. Hi,
My name is Omri Yacubovich. I'm an Israeli entrepreneur,
script writer and innovation leader.
I'm currently heading the Business Development and
Marketing @ Commerce Sciences –the first to apply
behavioral science into E-Commerce. We are venture
backed by Google's Chairman, Eric Schmidt, delivering
significant conversion uplift for 1000+ online retailers
including US Top 100 retailers.
Keep in touch!
About me
twitter.com/Omri_YacubovichFollow me on facebookConnect with me
f
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3. Introduction
if (humans are rational) and (free to make decisions)
then
rational decisions are made
Common Belief
If our prices are always low,
as they would if we offer coupons,
we can dismiss coupons
In J. C. Penney's words
WRONG!
WRONG!
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4. Introduction
1+1 = 2
1+1 = 11
Mathematics and Decision Making
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5. Introduction
There are some factors that affect decision
making abilities and cause people to make
irrational decisions -Wikipedia
“
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6. Introduction
How do we make decisions?
Imagine that every time you cross the road, you would have to calculate
the cars driving speed, your walking speed, the length of the road etc.
How much time would it take to cross the road? Would you be
able to cross the road at all?
A car goes from point A to point B,
at a rate of 57 mph...
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7. Introduction
How do we make decisions?
Instead of taking into account all the relevant data, our brain uses
heuristics in order to make a decision.
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8. Introduction
heuristics are simple, efficient rules which
people often use to form judgments and make
decisions” -Wikipedia
“
Heuristics
Definition
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9. Introduction
Heuristics usually
give reasonably good results
quickly & easily
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10. Introduction
But there are some hidden traps -
behavioral biases
Many of these biases affect belief formation, business
and economic decisions, and human behavior in general
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11. Introduction
A cognitive bias is a pattern of deviation in
judgment, whereby inferences of other people and
situations may be drawn in an illogical fashion.” -Wikipedia
Cognitive Bias
Definition
“
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12. Introduction
Common Cognitive Biases
Framing effect Anchoring Availability heuristic Reactance
Zero-risk bias Ownership bias
Loss aversion
Omission bias
Distinction bias
Duration neglect
Illusion of control
Bandwagon effect
Gambler's fallacy
Stereotyping
Information bias
Less-is-better effect
Confirmation bias
Pseudo-certainty effect

13. Introduction
the tendency to rely too heavily, or "anchor,"
on one trait or piece of information when making
decisions.” -Wikipedia
Anchoring
Definition
“
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14. Introduction
Anchoring
Example
According to Nobel Prize awarded economic and psychological
researches (Kahneman & Tversky) , when people have uncertainty about
the price of a product, they often look for information from surrounding
offerings and willing to pay higher prices when "anchored" by an higher
price.
Kindle offer in Amazon.com:
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15. Introduction
Anchoring
Example
When people receive discount they are automatically “anchored” to the
price before reduction.
What's more appealing?
Product A Product B
$21.10
Save 20%
$26.99 $21.10
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16. Introduction
a tendency to prefer the complete elimination
of a risk even when alternative options produce a
greater reduction in risk (overall).” -Wikipedia
Zero risk bias
Definition
“
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17. Introduction
Think Quickly
Choose between a FREE $20 coupon to Apple store, or a $30 coupon for eight dollars.
Which one would prefer to get?
FREE
$20
Coupon
$30
Coupon
Get Free Coupon Buy for $8
Or
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18. Introduction
Zero Risk Bias
Example – Soap.com homepage
The FREE offer is more valuable than offering the a few dollars discount,
equivalent to the delivery price.
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19. By Omri Yacubovich
Head of Biz Dev & Marketing
@Commerce Sciences
17 Slides on:
How do online shoppers think?
Behavioral concepts any retailer should learn
Online Shoppers
Behavior
Introduction
A