[CONSUMER
BEHAVIOR]
The Povverof Customers' Mindset
Areyour customers in a concrete or abstract mindset as they think about purchasing your product? The answer can affecthow much they bu)T.
BY KELLY GOLDSMITH, JI!'JG XU AND RAVI DHAR
Every day consumers make purshop. In social psychology, a mindset is defined as a set of cognitive processes and judgmental criteria that. once activated, can carry over to unrelated tasks and decisions. In other words, if you get a consumer of thinking
chase decisions by choosing among large sets of related products available for sale in the aisles of stores. What factors might systematir.:aliy affect how consumers make decisions among an array of products? Our research explores one aspect of that question. As most marketers realize, not ail shoppers are crei!ted equal. Within the same store, one may be searching for a specific product to meet an immediate need, while others mClYsimply be browsing. Just as they'can have different goals when they enter a store, individual consumers may approach purchase decisions with different
thinking a certain way, that Wc.y - that mindset - can
influence his or her subsequent shopping behavior. In particular, social psychologists h:JVe identified two distinct mindsets that are relevant to how consumers make decisions when choosing among large sets of related products: abstract and . concrete. An abstract mindset encourages people to think in a more broad and general way. (Continued on page 20)
mindsets that can affect how they
The power of Customers' Mindset (Coni,nue'[frompage 19)
Consumersin anabstract mindset who faceanarrayof relatedproductswill focusmore on the shared productattributesassociatedwith anoverarchingpurpose- for exampie, the generalcategory of hair careor car maintenance. Converselv,co concrete mindset draws attention to lower-level details and attributes associatedwith execution or usage;consumers in a concrete mindset will thus focus on factors that differentiate between products. In our research,we examined how abstri!ctversus concrete mindsets affected consumers' purchase decisions. (The research results are described in detail in a working paper called "The Role of Abstract and Concrete Mindsets on the Purchase of Products from Adjacent CategOi ies. ") In a series of experiments, we found that mindset n ,atters. VVhen cor,sumers must dec;d8 whether or not ~o "lake purchases from a variety of relat9d but differsnt product cat8gories u- such as tuothpaste, mouthwash and dental noss ;n an array of oral care prod'Jcts - an abstract mindset increases the nUrY,bp.r f products consum9rs seo Iad. But the reverse occurs when consumers choose arnong products that are similar enough that consumers couid substitute one for another such as a vadety of bey erages. In those cases, a concrete mindset increases the number of products consumers want to buy. in the experiments, we first used exercises that prior resaarch has suggested should help establish an abstract or a concrete mmdset such as asking some likely tc participants to write about a year from now (an assignment induce an abstract mindset) while others were asked to write about tomorrow (which is likely to induce a concrete mindsetJ. We then compared the purchase intdnt
,
Matching the Mindset. The nature of the retailer or the types of products offered may naturally promote a more abstract or concrete mindset upon which businesses can capitalize. In some CiJses, consumers may tend to approach a retailer planning to make purchases for distant future use; for example, consumers may be evaluating furniture that will be delivered in a number of weeks. The literature on abstract versus concrete mindsets suggests that when consumers consider products for distant future use, they may naturally be in a more abstract mindset than consumers who are evaluating products for immediate consumption. Our research suggests that retailers who recognize that their products may promote distant future considerations (and thus a manipulating consumers' mindset f as they view specific sets of products may be one effective way to increase purchase rates. Imagine a retailer offering a large set of related but different products in an oral care aisle. Our findings suggest that, to increase sales, that retailer should consider promoting a more abstract mindset as consumers make their product considerations. For example, managers could implement promotions highlighting the individual products' relatedness to the overarching, higher-level purpose (i.e., oral care, as opposed to simplY clean teeth) in order to increase consumers' propensity to purchase more types of oral-care products. Conversely, for a retailer offering a large set of substitutable products, such as drinks in a beverage aisle, the o~osite suggestion holds. In-store communications promoting a more
likelihood of purchase. Instead, the effect of concrete and abstract mindsets varied with the type of product arrays from which consumers were choosing. Specifically, hen facedwith a w choiceamong different types of productsthat relateto the same overarchinggoal- for example,the variouskindsof productsavailablein the oralcareaisle- havinganabstract mindset, ratherthana concreteone, increasedthe number ofproducts purchased.Thispresumablyoccurredbecauseanabstract mindset draws attentionto the higher-levelpu,pose - in this case,
oral care
-
which in turn increased
consumers' interest in all means serving that goal- toothbrush, floss, etc. - and thereby increased the total number of products conn sumers wanted to purchase.
To increase sales, companies should consider matching or manipulating the rnindset of the consunler.
However, henconsumers w
chose among products that were similar enough to be substituted for one another- such asan arrayof beverage:> an abstract minds",t d6creased interest in purchasing additional products when compared to a concrete mindset. That i:>because an abstract mindset leads to a focus on the higher-level goal- such as satisfying one's
thirst
concrete minds9t
-
by stressiny
the individual alld unique benefits of various products - could be used to increase total sales. While we believe our work suggests important practical implications for retailers, future may inresearch is necessary to fully explore and understand the observo:;d effects. We hope that the current research will prompt future inquiry into this erea.
moreabstract inds6t) m
crease sales if they organizetheir product offerings in a way that highlights their products' relationsh;pto a c'ornmonhigher-order goal. FLirexample, a furniture retailer might group products in a way that showcases how different types of furniture all sharethe benefit of adding comfort and warmth. Conversely,for retaiJerssuch as
snack vendors who recognize that
-
and, presumably,
to the
fact that one beverage is sufficient
to satisfythatabstractgoal. Conversely, consumers with a
concrete mindset focused on the differentiating factors between
products
their products premote fairly immediateuseandhencea mor9
concrete mindset, rouping g similar,
substitutable snackproducts TOgether should help maximize
consumers' purchase rates.
-
and were thus likely to
select a greater number of substitutable products than their abstract-focused and straightforward counterparts implications did. These findings have two clear for managers: To increase sales, companies should consider matching or manipulating the mindset of the consumer.
Manipulating
the Mindset. While
-
and in
matching the mindset may be an effec.tive strategy for retailers whose goods naturally promote a distinct mindset. for many retail-
some -3xperiments, actual purchases - of consumers in an abstract versus concrete mindset. We found that it is not a question of one mindset being better than the other at increasing consumers'
Kelly Goldsmith is.an assistant professor of marketing at the Kel10gy School of Management at Northwestern University in Evanston, !/Iinois. Jing Xu is an assistant professor of marketing at the Guanghua School of Management of Peking University in Beijing. Ravi Dhar is George Rogers ClarkProfessor of Management and Markcting at the Yale School of Management at Yale University in New :-iaven, Connecticut. Comment on this article at http://sloanreview.mit .edu/x/52112, or contact the authors at [email protected].
Reprint 52112. For
tion, seepage 9. Copyright @ Massachusetts lnstitu,te
ordering informa-
ers the variety of products they offer is such that no clear mindset predominates. For these retailers,
of Technology, 2010. All rights reserved.
20 MITSLOANMANAGEMENTREVIEW
1=11.11n1n ?
doc_618756128.pdf
BEHAVIOR]
The Povverof Customers' Mindset
Areyour customers in a concrete or abstract mindset as they think about purchasing your product? The answer can affecthow much they bu)T.
BY KELLY GOLDSMITH, JI!'JG XU AND RAVI DHAR
Every day consumers make purshop. In social psychology, a mindset is defined as a set of cognitive processes and judgmental criteria that. once activated, can carry over to unrelated tasks and decisions. In other words, if you get a consumer of thinking
chase decisions by choosing among large sets of related products available for sale in the aisles of stores. What factors might systematir.:aliy affect how consumers make decisions among an array of products? Our research explores one aspect of that question. As most marketers realize, not ail shoppers are crei!ted equal. Within the same store, one may be searching for a specific product to meet an immediate need, while others mClYsimply be browsing. Just as they'can have different goals when they enter a store, individual consumers may approach purchase decisions with different
thinking a certain way, that Wc.y - that mindset - can
influence his or her subsequent shopping behavior. In particular, social psychologists h:JVe identified two distinct mindsets that are relevant to how consumers make decisions when choosing among large sets of related products: abstract and . concrete. An abstract mindset encourages people to think in a more broad and general way. (Continued on page 20)
mindsets that can affect how they
The power of Customers' Mindset (Coni,nue'[frompage 19)
Consumersin anabstract mindset who faceanarrayof relatedproductswill focusmore on the shared productattributesassociatedwith anoverarchingpurpose- for exampie, the generalcategory of hair careor car maintenance. Converselv,co concrete mindset draws attention to lower-level details and attributes associatedwith execution or usage;consumers in a concrete mindset will thus focus on factors that differentiate between products. In our research,we examined how abstri!ctversus concrete mindsets affected consumers' purchase decisions. (The research results are described in detail in a working paper called "The Role of Abstract and Concrete Mindsets on the Purchase of Products from Adjacent CategOi ies. ") In a series of experiments, we found that mindset n ,atters. VVhen cor,sumers must dec;d8 whether or not ~o "lake purchases from a variety of relat9d but differsnt product cat8gories u- such as tuothpaste, mouthwash and dental noss ;n an array of oral care prod'Jcts - an abstract mindset increases the nUrY,bp.r f products consum9rs seo Iad. But the reverse occurs when consumers choose arnong products that are similar enough that consumers couid substitute one for another such as a vadety of bey erages. In those cases, a concrete mindset increases the number of products consumers want to buy. in the experiments, we first used exercises that prior resaarch has suggested should help establish an abstract or a concrete mmdset such as asking some likely tc participants to write about a year from now (an assignment induce an abstract mindset) while others were asked to write about tomorrow (which is likely to induce a concrete mindsetJ. We then compared the purchase intdnt
,
Matching the Mindset. The nature of the retailer or the types of products offered may naturally promote a more abstract or concrete mindset upon which businesses can capitalize. In some CiJses, consumers may tend to approach a retailer planning to make purchases for distant future use; for example, consumers may be evaluating furniture that will be delivered in a number of weeks. The literature on abstract versus concrete mindsets suggests that when consumers consider products for distant future use, they may naturally be in a more abstract mindset than consumers who are evaluating products for immediate consumption. Our research suggests that retailers who recognize that their products may promote distant future considerations (and thus a manipulating consumers' mindset f as they view specific sets of products may be one effective way to increase purchase rates. Imagine a retailer offering a large set of related but different products in an oral care aisle. Our findings suggest that, to increase sales, that retailer should consider promoting a more abstract mindset as consumers make their product considerations. For example, managers could implement promotions highlighting the individual products' relatedness to the overarching, higher-level purpose (i.e., oral care, as opposed to simplY clean teeth) in order to increase consumers' propensity to purchase more types of oral-care products. Conversely, for a retailer offering a large set of substitutable products, such as drinks in a beverage aisle, the o~osite suggestion holds. In-store communications promoting a more
likelihood of purchase. Instead, the effect of concrete and abstract mindsets varied with the type of product arrays from which consumers were choosing. Specifically, hen facedwith a w choiceamong different types of productsthat relateto the same overarchinggoal- for example,the variouskindsof productsavailablein the oralcareaisle- havinganabstract mindset, ratherthana concreteone, increasedthe number ofproducts purchased.Thispresumablyoccurredbecauseanabstract mindset draws attentionto the higher-levelpu,pose - in this case,
oral care
-
which in turn increased
consumers' interest in all means serving that goal- toothbrush, floss, etc. - and thereby increased the total number of products conn sumers wanted to purchase.
To increase sales, companies should consider matching or manipulating the rnindset of the consunler.
However, henconsumers w
chose among products that were similar enough to be substituted for one another- such asan arrayof beverage:> an abstract minds",t d6creased interest in purchasing additional products when compared to a concrete mindset. That i:>because an abstract mindset leads to a focus on the higher-level goal- such as satisfying one's
thirst
concrete minds9t
-
by stressiny
the individual alld unique benefits of various products - could be used to increase total sales. While we believe our work suggests important practical implications for retailers, future may inresearch is necessary to fully explore and understand the observo:;d effects. We hope that the current research will prompt future inquiry into this erea.
moreabstract inds6t) m
crease sales if they organizetheir product offerings in a way that highlights their products' relationsh;pto a c'ornmonhigher-order goal. FLirexample, a furniture retailer might group products in a way that showcases how different types of furniture all sharethe benefit of adding comfort and warmth. Conversely,for retaiJerssuch as
snack vendors who recognize that
-
and, presumably,
to the
fact that one beverage is sufficient
to satisfythatabstractgoal. Conversely, consumers with a
concrete mindset focused on the differentiating factors between
products
their products premote fairly immediateuseandhencea mor9
concrete mindset, rouping g similar,
substitutable snackproducts TOgether should help maximize
consumers' purchase rates.
-
and were thus likely to
select a greater number of substitutable products than their abstract-focused and straightforward counterparts implications did. These findings have two clear for managers: To increase sales, companies should consider matching or manipulating the mindset of the consumer.
Manipulating
the Mindset. While
-
and in
matching the mindset may be an effec.tive strategy for retailers whose goods naturally promote a distinct mindset. for many retail-
some -3xperiments, actual purchases - of consumers in an abstract versus concrete mindset. We found that it is not a question of one mindset being better than the other at increasing consumers'
Kelly Goldsmith is.an assistant professor of marketing at the Kel10gy School of Management at Northwestern University in Evanston, !/Iinois. Jing Xu is an assistant professor of marketing at the Guanghua School of Management of Peking University in Beijing. Ravi Dhar is George Rogers ClarkProfessor of Management and Markcting at the Yale School of Management at Yale University in New :-iaven, Connecticut. Comment on this article at http://sloanreview.mit .edu/x/52112, or contact the authors at [email protected].
Reprint 52112. For
tion, seepage 9. Copyright @ Massachusetts lnstitu,te
ordering informa-
ers the variety of products they offer is such that no clear mindset predominates. For these retailers,
of Technology, 2010. All rights reserved.
20 MITSLOANMANAGEMENTREVIEW
1=11.11n1n ?
doc_618756128.pdf