Last week the IPA launched its Behavioural Economics Think Tank (BETT) to help understand why consumers make the brand choices they do, and to explore the complexities of consumer decision-making, with the aim of challenging current thinking on the topic.
IPA president Rory Sutherland has made the discipline of behavioural economics a focus of his agenda, as he believes it can transform marketing effectiveness.
He said that the work of BETT would serve as "a useful little wake up call for direct marketers" despite the sector's strengths in database-driven behavioural insights.
"DM to an extent got affected by the advertising obsession with persuasion and proposition and to an extent has lost sight of its roots," Sutherland said.
"One of the things I learnt early on in DM was that offering extra channels of response increased response, but no one has codified this."
Behavioural economics includes an understanding of "how you might, for instance, frame the design of a form or interface to boost response," Sutherland said.
Think Tank members so far include COI chief executive Mark Lund, the Work Foundation's executive vice chairman Will Hutton, Agency Assessment's founder David Wethey, Partners Andrew Aldridge planning partner Kate Waters, and Mark Earls of planning consultancy Herd.
Dr Nick Southgate, a former planner at Grey and now a consultant, has been commissioned to do R&D work for BETT.
A full report based on BETT findings will be published in January 2010. Last week it published on seven key principles of behavioural economics.
BETT will involve workshops and training sessions for member agencies starting in November. To take part, contact victoria@ipa.co.uk.
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