Marketing Research: 45% of consumer behavior is habitual (interview with Charles Duhigg)
Let’s pretend for a second you are an alien from outer space studying economics. You’re presented with these two options:
- Option A: People can make a cup of coffee for 16 to 18 cents in the comfort of their home.
- Option B: They can haul themselves out of bed earlier, stop at Starbucks and pay two … three … four … five dollars for a cup of coffee.
As a rational alien studying economics, you would know that people will certainly choose Option A.
Except, as we all know, people don’t. They choose Option B. Not everybody, of course. But enough people to generate $16.447 billion in revenue for Starbucks. So many people, in fact, that you must look at this purchase decision — which we’ve become so accustomed to being a part of daily life — as an alien economist to even notice that it’s not a rational economic decision every time people make that purchase.
Why people make repeated, economically irrational decisions
So why do people act this way? Because they are no longer making rational economic decisions; rather, they are on autopilot following automated habits. Starbucks’ marketing department has helped turn a simple cup of coffee into a cheap luxury habit.
It’s not just Starbucks, of course. It’s the daily newspaper on your driveway. Movie night. And even, according to Charles Duhigg, the mundane act of brushing your teeth.