Customer Experience Podcast

If there is one thing that academics know how to do, it’s publish new research. It seems that umpteen studies are published every hour. It can be overwhelming to keep up with it all. 

So, we undertook it to help you with this week’s episode. 

We explore three fascinating studies in the realm of consumer behavior with insights from Dr. Morgan Ward, a Professor of Consumer Behavior at Emory University. From the influence of sound on social status to the role of streaks in motivating behavior and even how firms should use AI to deliver news to customers, this episode provides a wealth of information for businesses looking to understand and serve their customers better than they do today.

Social Status and Product Sound

Dr. Ward’s research delves into how consumers choose products based on the sounds they emit, linking these choices to social status. The study finds that people often seek status through two main channels—dominance and prestige. Some customers buy noisy products, like a Harley Davidson, to assert dominance, while others opt for quiet, high-end products, such as Dyson fans, to signify prestige. Ward emphasizes that understanding the status-seeking motivations of your target audience can help businesses design products that appeal to specific social power desires.

Key Takeaway:

Customizing product sounds can signal social power, appealing to customers’ status-seeking behavior.

The Gamification of Behavior Through Streaks

Ward also discusses the role of streaks in consumer behavior, particularly how brands use streak-based incentives to encourage continued engagement. Apps like Duolingo, Snapchat, and Headspace all capitalize on the idea of maintaining streaks to motivate daily usage. However, there are tradeoffs. Extrinsic motivators like streaks can sometimes overshadow intrinsic motivators, leading to a decrease in overall enjoyment and, ultimately, participation. Ward warns businesses to consider when streaks are appropriate carefully and to balance the motivations that drive consumer behavior.

Key Takeaway:

Streak-based gamification can motivate, but businesses should carefully balance extrinsic and intrinsic motivations.

AI vs. Human Interaction:

Finally, Ward shares research on when companies should use AI versus humans for customer interactions, particularly around delivering good or bad news. Interestingly, the research suggests that AI should handle bad news because customers perceive it as more impartial. In contrast, a human best delivers good news to create a personal connection. These findings affect how businesses structure customer service strategies and use AI.

Key Takeaway:

AI is better suited for delivering bad news, while human interaction is more impactful for delivering good news.

Additional things you’ll learn in this episode:

• How cultural differences affect consumer status-seeking behavior.
• The psychological impact of losing a streak and how it influences future behavior.
• Why some products benefit more from gamification than others.
• The future implications of AI-human interaction in customer service.