Consumer Decision Making

&
Human Behaviour

Leow Chee Seng (Datuk Dr)

+6017 5882258
drleowcs32@gmail.com
 Leow
Datuk Dr. •
•
Advisor, Humanology Sdn Bhd, Malaysia
Productivity Champian, Malaysia Productivity Corporation
Chee Seng • Jawatankuasa Pemantauan Nexus Productivity Perkhidmatan
Profesional
• Technical Expert, Behavioural Insights, Malaysia Productivity
Corporation
• Honorary Professor of Nguyen Tat Thanh University, Vietnam.
• Panel of Expert of Sandikta College of Administrative Science,
Indonesia.
• Body Language Analyst for South China Morning Post, Hong
Kong
• Journal Editorial Board – Sit in more than 10 International
Journal
• Book Writer
– Body Language Exposed: Never Get Lies Again
– Trapping the cunning fox: Lie Detection
– Selling with Heart and Soul
– I see, I hear and I conquer: Human Leadership
– Flintstones Management: Compassionate Management
– Nudge or Fudge: Application of Behavioural Economics
– The Humane Way: Being Humane is Humane Being
– Predictable Accident: Nudging Into Safety and Health
 Do You Really
UNDERSTAND Marketing?
Have You Ever Thought?
Can You Believe?
 Nature of Consumers

Consumers are Illogical

Consumers are greedy

Consumers Wish to be Special

Consumers are Emotional

Consumers Love Feel

Good Factors

Consumers can be Nudge Easily

Marketing Research
VS
Compassion
Can you Help the Marketing Manager?
Sound Better?
68%

32%
 R E
i ng 68%TU 16%
o r EC
ch HI T
n
A RC 32% 0%
E A
I C
HO
C 84%
Organ Donor Case Study
 u t E
t- O U R
O p C T
/ I T E
t - i n C H
p
O EA R
I C
H O
C
Which one would you choose?
Which one would you choose?
c t
ffe
g E
m in
F ra
he
T
What is Your Choice?
What is your choice?
What is your choice?
Choices Customers Buyers
ox
rad
a 12%
e P
o i c
Ch
h e
T
6%
 Marketing Campaign
Campaign A:
• “If you change to LED light, you will
save RM2000 a year”

Campaign B:
• “If you do not change to LED light,
you will lose RM2000 a year”

Which campaign will be more

effective?
 the US is preparing for the
outbreak of an COVID-19,
which is expected to kill
600k people.
Choose a program to
address the problem.

72% A: 200k people will be

saved
28% B: 1/3 chance that 600k
people will be saved.
2/3 chance that no
people will be saved.
Tversky, A. & Kahneman, D., 1981, The framing of decisions and the psychology of choice. Science, 211, 453-458.
Imagine that the US is
preparing for the outbreak
of an COVID-19, which is
expected to kill 600k
people.
Choose a program to
address the problem.

22% A: 400k people will die.

B: 1/3 chance that nobody will die.
78% 2/3 chance that 600k people will
die.
Tversky, A. & Kahneman, D., 1981, The framing of decisions and the psychology of choice. Science, 211, 453-458.
 Choose We are less
A) A sure gain of
$240 84% likely to
risk to get
B) 25% chance to
gain $1000, and an extra
75% chance to 16% gain
gain nothing
A) A sure loss of
$750 13% We are
B) 75% chance to more likely
lose $1000, and to risk to
25% chance to
lose nothing
87% avoid a
sure loss
Tversky, A. & Kahneman, D., 1981, The framing of decisions and the psychology of choice. Science, 211, 453-458.
Which one would you choose?
 g h
o u
E n D ?
i a l R E
ec B E
S p M
u
o EM E
y
e eR
r
A b
To
How would you decide?
Strategy for Indecisive Customers
How much do you willing to buy the next
house?
 i a s
y B
ri t
t ho
Au
he
T
How would you help the company?
 i a s
y B
ci t
ar
Sc
he
T
 c t
ffe
a E
e rti
n In
ti o
a c
In
he
T
Marketing is about Strategy

c t
ffe
A E
IK E
he
T
Motivate Your Customers
Price? It doesn’t matter!
Price Interpretation
Fairness and Reciprocity
How Much Do you Willing to Pay?
Nudges
Music Stairs
Examples
Successful Nudges

EASY
FUN
02
01
03
05 ATTRACTIVE
04
TIMELY
SOCIAL
Dilemma in Marketing
• Leow Chee Seng (Datuk Dr)
• +6017 5882258
• drleowcs32@gmail.com