Eden Strategy Institute introduces Shopper Science, a holistic approach to marketing that integrates the latest advances in market research methodologies such as Ethnography, Neuromarketing, Behavioral Economics, and Big Data Analytics to better drive the actual purchase decisions of consumers today.

1. eden strategy institute
R E TA I L & C O N S U M E R G O O D S
The Science of Buying
S O C I A L I N N O VAT I O N P L AY B O O K S E R I E S

2. Have you noticed how some places have a recognizable, distinct aroma?
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3. Wondered why only some shops make price comparisons transparent?
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4. Or asked yourself why some places are just designed more thoughtfully for users?
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5. Who are the real purchase decision‐makers in a shop?
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6. How easy is it for them to reach the products?
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7. Are there insights that user improvisations & adaptations can reveal?
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8. Shopper Science joins the sub‐fields of today’s Marketing practice to deliver more
robust consumer insight
Strategy
Competitive Advantage, Industry Attractiveness, Profitability,
Organization, Operations, Marketing, Strategic Alignment
Marketing
Strategy
Market size, Segmentation, Marketing mix
Category Retail P2P Shopper
Marcoms
Marketing Marketing Marketing Science
Branding, Advertising, Cross brands, Product Location / Layout, Shelf Influence marketing, Customer experience,
Media strategy, Slogans bundling space management, Evangelism, User Emotions, Behavior,
Inventory planning, Generated Content, Preferences/Perceptions
Merchandising Consumer advocacy
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9. To understand shopper behavior, most market research firms use interviews, focus
groups, surveys, and retail audits that aim to access subconscious themes
genesis
Inspired by psychological techniques such as the
Rorschach Inkblot and
Thematic Apperception Tests
utility
beliefs, attitudes,
Useful to learn presumably unreachable
values, motivations, personality, & behaviors ? “When you drink
our soda, which
famous person do
you think of?”
Main function to generate, supplement, and verify hypotheses
Low fatigue due to relatively minor
cognitive demands placed on respondents
Not dependent on having a highly educated
sample nor limited by cognitive ability
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10. However, peer‐reviewed studies have demonstrated many limitations in such approaches
RESPONSES
× Retail audits do not × Low test‐retest × Teamwork‐
provide insights on reliability; affected based exercises
subconscious by emotional state compromise
motivators nor on and thoughts at individual
lost business the moment attitudes
× Consumers see
themselves as Associations Completion tasks × Social
rational buyers, and Personification, word Sentence completion, Desirability bias
may not provide association, metaphors, story completion, still surfaces in
rich emotional or personification arguments self‐reporting
imaginative insights method
× Most market SOME
researchers are Construction tasks Expressive tasks × Hypotheses
untrained in Third person LIMITATIONS Role play, acting, generated are
psychology or questioning, OF PROJECTIVE psycho‐drawing, difficult to verify
personality Speech bubbles collages, mood boards
assessment TECHNIQUES
× Even psychologists × Unclear which × Not always easy to
× Low inter‐rater require weeks – not aspects of the achieve concrete
reliability due to minutes – to truly imagery actually marketing actions as OUTCOMES
INTERPRETATION subjectivity understand the drive purchases a result
personality and
perspectives
Sources: Qualitative Market Research: An International Journal Vol. 10 No. 3, 2007, pp. 300 – 309; International Bulletin of Business Administration ISSN: 1451‐243X Issue 5 (2009) eden strategy institute | 10

11. Yet, marketers continue to invest in buying qualitative research studies, despite a
lack of measurable brand impact
Percentage of
Global advertising spend
trustworthy brands
$300 60% 52%
USD285b
40%
$280 22%
USD271b
20%
$260 0%
LEADING TO
2005 2006 1997 2008
Source: Datamonitor Source: Young & Rubicam BrandAsset Valuator
SUPPORTED BY
% of consumers who could
Global investment in name one of the top 50
qualitative research products launched that year
$6 100%
USD5.36b
USD3.95b 75%
$4
50% 43%
$2 19%
25%
$‐ 0%
2007 2011 2005 2006
Source: ESOMAR Source: Datamonitor
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12. The human brain is complex; neither mining unconscious desires nor focusing on rational
responses is sufficient to understand true purchase drivers and drive practical marketing
• People are emotional
• Driven by social influence
AUTOMATIC • Averse to loss
SYSTEM
(Impulsive)
REFLECTIVE
SYSTEM
(Thinking)
THOUGHTS,
DECISIONS, AND
ACTIONS
• People are rational
• Driven by self‐interest
• Maximize utility
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13. Shopper Science provides tools to analyze and influence both the automatic and the
reflective systems of the brain
Shopper
Science
Techniques Neuromarketing
Ethnography
Marketing
Behavioral Analytics
Economics
Big Data
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14. Neuromarketing
“a new branch of marketing, based on the techniques resulted from neuroscience for a better
identification and understanding of the cerebral mechanisms that fundament consumer behavior”
To Help Understand
Information Processing In Order to …
Tools Attention Predict how
EEG Learning consumers think
fMRI Memory AND
Face Coding Language Understand what
Galvanic Bracelets Emotion parts of the brain tell
Voice Fluctuation Development consumers how to act
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15. Shopper Scientists shape cognitive input to achieve different desired responses at the
stimuli spectrum
Multi‐sensory
Basic fonts are easy to read
Unlike complicated ones
Gestalt processing Warmth &
Right cortex openness LemoNaDe 25c
HIGHER processing LOWER
COGNITIVE Conventional layouts COGNITIVE
STIMULI STIMULI
Surprise!
Mental Simple slogans
Learning white
space
Note: All images not proprietary to Eden are reproduced courtesy of Wikipedia eden strategy institute | 15

16. … and guide purchases by framing consumer choices that require higher or lower
cognitive effort at the decision spectrum
Hybrid cars Luxury car as
appeal to the a status
environmental symbol to
consciousness impress
of customers
Sponsoring a
Incentives
e.g. car purchase Automated
specific child online
maintains donor donations to
commitment give by default
each month
Difficulty
Visualising the
e.g. charity donation
HIGHER
unhealthy LOWER Pairing
intake of soft COGNITIVE
COGNITIVE options make
drinks nudges EFFORT Commitment multiple
consumers to EFFORT
WITH e.g. F&B choices purchases
healthier WITH much easier
alternatives REFLECTIVE
AUTOMATIC
SYSTEMS
SYSTEMS
Pricing later Pain of Purchase
models higher e.g. buying electronics Limited options
gives existing allow easy
customers the choices
impression of
getting a bargain Feedback
e.g. new outfit
Cause marketing
helps socially Better‐than‐
conscious real feedback
customer to encourage
segments self‐ purchases
select
Note: All images not proprietary to Eden are reproduced courtesy of Wikipedia eden strategy institute | 16

17. Effective Shopper Segmentation needs to go beyond basic demographic archetypes
THINK SIGNAGE USAGE
SEE ‐ Traffic approach vs. facing
‐ Cognitive effort
‐ Color
‐ Independence level ‐ Height, Size
‐ Peripheral vision REACH ‐ Font, Imagery, Message
‐ Embarrassment
‐ Brightness ‐ Height
‐ Contraditions ‐ Degree of actual utilization
‐ Acuity ‐ No. of free hands
‐ Volume of grasp
‐ Strength of grasp
SHELF INTERACTION
FEEL ‐ Display touchability
‐ Informativeness
‐ Sensorial stimulation
‐ Depth of shelf
‐ Emotional dis/engagement
‐ Height / eye‐level accessibility
‐ Body language
(e.g. for kids, aged, obese)
‐ Personality, shopping style
ITEMS
‐ Relationships between and no. of items
‐ Weight
‐ Requirements for bag rest , baskets
‐ Purchase value
NEEDS
‐ Desires and need states
‐ Interactions
‐ Frustrations
‐ Decision pathways
WALK
‐ Accompaniment
‐ Pace, Speed
‐ Route
‐ Attire
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18. … and lead brands towards in‐store Shopper Ethnography that analyses hundreds of
unarticulated but actual purchase drivers & barriers
Interaction with goods? Shelves Fitting rooms
Store room
Usage behavior? Queues?
Shopper
Inventory range and availability? Shopper mix? density?
Sample booths
Clerk interception rate?
Competing /
complementary
TYPICAL STORE FORMAT Search stores in vicinity?
Shelf merchandising?
ease?
Shelves
Field of
vision? Shelves Aisle
Shopper Lost length?
Distance interaction? shopper?
Shelves
Aisle Nearby events
between
width? / weather
sections?
conditions?
Ethnographer/s Traffic
Obstacles? seasonality?
No. of queue Queue format
Route? lines? Promo baskets / length / time
/ slope?
Tardiness? Impulse buys? Self‐service kiosks
Availability /
maneuverability of
trolleys / baskets? Counters
Knowledge adequacy? Stress Clerk’s
View of store? levels? focus? Cleanliness?
Vigilance? Noise levels?
Store displays Security Store displays Buying persuasiveness?
Attractiveness? Relevance? Transition zone?
LEGEND Footfall? Population composition of neighborhood?
Shopper Access to car parking?
Store staff
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19. … such as service interaction relationships of dominance, emotion, or professionalism
in an academic setting
Appropriate mannerism, distance, tone, Better attendance for the introductory lecture on
or volume of speech? academic subjects or the session on career prospects?
Discussing finances with counselors… … or campus lifestyle with seniors?
Actively taking notes and filling out forms… … or not exactly engaged in class?
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20. … or to identify “Thoughtless acts” in an F&B setting
CUSTOMER SATISFACTION ERGONOMICS CUSTOMER CONCERNS
Elbow leaning Backrest too
for support straight
Seat depth
too wide
Confused staff
Irate customer
POSSIBLE INTERPRETATIONS
• Reasonable scope of customer demand? • Physical comfort affect state of mind? • Damage to item?
• Decision‐rights of service staff? • Customer experience? • Premise cleanliness?
• Lack of coordination? • Desired length of customer stay? • Security of belongings?
• Standardization vs. customization?
POTENTIAL IMPLICATIONS
• Confidence training? • Restaurant workflow? • Personalized spaces?
• Assertiveness? • Human factors design? • Pre‐empting concerns?
• Inventory management? • Engineering desired patron behaviors? • Reassurance?
• Communications skills?
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21. … in Retail
STAFF EXHAUSTION SELF‐ESTEEM TECHNOLOGY UTILISATION
Portable
barcode
scanner
POSSIBLE INTERPRETATIONS
• Leaning against furniture for back support? • Power relations? • Mobility requirements?
• Subservience? • Technological readiness?
• Change management?
POTENTIAL IMPLICATIONS
• Attrition due to working conditions? • Role playing for empathy? • Capital input to productivity?
• Operating hours? • Negotiation skills? • Labor input to productivity?
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22. … for Amenities
REST POINT WAITING ROOMS MISSING BENCHES PHONE BOOTHS
OBSERVATIONS
• People using facilities for a • Visitor reading papers while • Visitors using main entrance • Visitor taking a call, standing
siesta waiting outside privacy rooms for steps as seats on one leg and leaning on a
her queue number to be called beam for support
POSSIBLE INTERPRETATIONS
• Consider designing for the • Possible boredom being stuck • Visitors may need to engage in • Visitor fatigue
needs of local communities waiting private discussions before and
• Can waiting itself be eliminated? after visiting MND premises
POTENTIAL IMPLICATIONS
• Opportunity to showcase user‐ • Provide entertainment? (e.g. • Incorporate benches for visitors to • Include call booths for visitors
friendly built environments? information, food, tours, kids areas) rest, possibly with privacy screens? to consult external parties
• Personal alert systems allow visitors during a transaction?
to go elsewhere while waiting?
• Meetings scheduled by appointment
to eliminate downtime?
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23. … in Information Interaction
EDUCATIONAL POSTERS UNWIELDY DISPLAYS DISPLAY INTERACTIVITY ENGAGING THE UNINTERESTED
OBSERVATIONS
• Posters messily pasted • Visitors struggling with large maps / • Interactive displays need to finish • Not all visitors will be naturally
in AVA reception blueprints playing a clip before resetting drawn to various exhibits
POSSIBLE INTERPRETATIONS
• Ineffective use of posters • Displays may be too large for easy • Resetting protocol in displays may • Traffic flow to exhibits are
• Unprofessional corporate physical manipulation be perceived as delayed response structured on a pull basis
identity time and cause impatience
among viewers
POTENTIAL IMPLICATIONS
• Replacing posters with • Interactive digital displays? • Calibrate interactive display • Channel visitor traffic such as
interactive digital games that controls according to visitor flow? with corridors / passageways
provide feedback on to keep visitors engaged?
campaign effectiveness?
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24. … in Service Provision
QUEUE MANAGEMENT UNINSPIRING TOUCHPOINTS WORKING DESK SERVICE ATTITUDE
OBSERVATIONS
• Visitors confused about which • Applications counter is • Visitor using • Aggressive service attitude observed at
queues to join and forms to fill essentially a hole‐in‐the‐wall displays as table reception
POSSIBLE INTERPRETATIONS
• Instructions may not be • Uninspiring environment and • Lack of workspace • Role conflict between regulator and
clear/intuitive esp. to non‐English closed posture at dissonance with for visitors industry promoter?
readers the stated premium standards of • Are high counters barriers to
this professional body communication?
POTENTIAL IMPLICATIONS
• Cross‐agency concierges to usher • Well‐lit, furnished reception area • Individual workspaces • Can barrier‐free communications with arm‐
visitors to the right queues and provide to communicate a sense of pride for visitors? chair layouts improve customer service
guidance on logical sequence of forms among engineers? attitudes?
to fill before being attended to? • Open layout to convey sense of • How can we transform the mindset of staff
• Encourage online self‐service tools? engagement? to see themselves as advisors or hosts?
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25. Insights should then be mashed with Big Data Analytics to create fresh value propositions
Market
Inputs from Analytics to creation with
multiple generate demand & Sustaining
datasets insight supply change
matching
DESCRIPTION
Identify various sources of potentially Structure datasets to discover meaningful Resolve a previously unmet need by Reinforce behavioural change to ensure
useful data patterns matching demand with supply stickiness and lasting impact
APPROACHES
• Crowdsourced, ground‐up • Aggregate datasets (e.g. unified IDs, • Predicting and channelling resources • Benchmarks
intelligence (e.g. locations, moods, relational databases) (e.g. traffic)
• Gamification / incentives
sightings, temperature
• Visualise data (e.g. geo‐location, heat maps) • Connecting people
preferences) • Reputational mechanism
(e.g. friends, volunteers)
• Test hypotheses & uncover insights
• Sensor data (e.g. ambient noise, • Community influence
• Making markets
location, speed, posture) • Simulate scenarios for optimised decision‐ (e.g. social media)
making
• Stored Big Data (e.g. transactions, • Feedback loop for Big Data
health records)
EXAMPLES
• Missing pet / child finder • Multi‐modal transportation systems • Electronic queuing • Accountability systems in sharing resources
(e.g. taxi‐sharing, items)
• Recommendations for tourists / aged • Issue prioritisation for town council • Volunteer management
/ climate control management • Weight loss competitions
• Blood donations
• mHealth to reduce test redundancy & • Fall prediction systems for the aged • Consumption management
improve quality of care (e.g. benchmark utilities usage against
national average, variable pricing
mechanism)
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26. The automatic and reflective systems need to be considered using both quantitative and
qualitative data in order to truly understand the Science of Buying
Traditional
retail audit,
in‐depth
interviews, and
brand surveys
Frame
consumer
choices with
Behavioral
Neuroscience Economics Data‐driven
and Marketing
Ethnography to Analytics to
understand confirm
Shopper Decision
Psychology Dynamics
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27. Eden Strategy Institute. Asia’s leader in Social Innovation Consulting
What we do. Eden Strategy Institute approaches the global issues of disease, poverty, illiteracy, and exploitation head‐on, by
formulating strategies, models, processes, products, and designs that help our clients create, realize, and sustain quantum
profit in addressing these issues. We focus exclusively on empowering business strategies with Social Innovations that create
enduring financial impact, such as Emerging Markets Shopper Science, Silver Hair Marketing, identifying Bottom‐of‐Pyramid
segments, creating Ethical Supply Chains, Socially Responsible Investing, Policy Planning and Advocacy, and so on.
Our Retail & Consumer Practice. Eden is experienced in Fast‐Moving Consumer Goods, White and Brown durables, Lifestyle
and Luxury products, Travel and Hospitality, Wholesale and Retail Trade, as well as Food and Beverages. Our work in this
sector ranges from training and incentives for Trade Marketing; footfall and shelf space management for Retail Marketing;
store layouts and need states for Shopper Marketing; to decision‐making and Net Promoter Scores for Consumer Marketing.
Using a mix of business‐to‐business, consumer, quantitative, qualitative, ethnographic, neuromarketing, and analytics
methodologies, we help our clients identify future trends and micro‐segments, develop product pipelines, manage categories,
build brands, create emotions, gauge advertising effectiveness, devise retail strategies and in‐store programs, and model
pricing analytics, customer loyalty, and store locations. These apply not only to department stores, designer shops, and
supermarkets, but also to airports, hotels, libraries, museums, theatres, and trade shows – everywhere people make
purchase decisions.
We advise brand stewards on how to inspire trust and advantage with responsible labeling and reporting, discover new
purchasing drivers such as healthy living or life fulfillment, infuse computational analytics in their strategic marketing
decisions, differentiate their brands with cause marketing, relook at the promise of “mom & pop” channels, and redefine
entire user experiences such as with ecotourism or connoisseurship.
Our philosophy. We believe in the power of ideas to positively shape our world, one client at a time. Our focus is unparalleled
in bringing to bear our entire senior management team, as well as the world’s foremost experts, on our clients’ most pressing
sustainability issues. In turn, we elect to only collaborate with clients who are seriously committed to creating value together.
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28. Thank you!
Contacts: Calvin Chu Yee Ming, Partner
Jessica Louw, Summer Business Analyst
Eden Strategy Institute
T: +65 9751 5817
E: query@edenstrategyinstitute.com
www.edenstrategyinstitute.com
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