Retail Mavericks is HIVERY’s official podcast channel showcasing discussions on AI, technology, culture, innovation, and the future of retailing. It features our team of experts, academics, business leaders, and maverick thinkers in the retail, customer package goods and category management.
At HIVERY, we are passionate about bringing to life new thinking, ideas and the technology behind them. We believe this can help change attitudes, lives, and ultimately the world.
Host, producer and editor
Creator and director
Franki Chamaki, HIVERY’s Co-founder and Head of Marketing & Design
Academia-focused episodes feature co-host
Dr Alvaro Flores, Mathematician and Data Scientist at HIVERY
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Are consumers rational really? How does this impact shopper insights, category management, marketing and future AI models? Dr Gerardo Berbeglia, Associate Professor of Operations, shares his views and predictions
Jul 23, 2021 | By
Dr Gerardo Berbeglia
In this podcast you will learn:
• What Operations Research and Optimisation is about and how most of the models used today assume one thing: consumers are rational! • How can statistics explain consumer choice? Dr Berbeglia is working on new models to help predict what consumers will choose given certain events or triggers. This research has applications for policy marketers, category management and shopper insights professionals. • Does social influence impact consumer choice? Dr Berbeglia illustrates, for example, how popularity of media can influence consumer rationality and hence choice. • What new consumer rationality experiments are being performed by Dr Berbeglia in his labs. One interest is "the compromise effect". The effort that dictates that a consumer will choose a middle option over a given set of choice alternatives as it's easier to justify that choice, it reduces cognitive dissonance and loss aversion. • Another phenomenon Dr Berbeglia is exploring is the "the decoy effect", the effort going into consumer choice when the third option is presented against existing two options. • Dr Berbeglia talks about applications and effects of these models from choice of COVID19 vaccine to organ donation to retail and assortment, category and merchandising planning. • Hear what Dr Berbeglia thinks about how these consumer choice models will be used in machine learning and AI models in the future. Interesting further reading and watching: • Compromise effect and consideration set size in consumer decision-making, Jaewon Yoo, Hyunsik Park & Wonjoon Kim • The decoy effect: how you are influenced to choose without really knowing it, Gary Mortimer, Associate Professor in Marketing and Consumer Behaviour, Queensland University of Technology • Dr Dan Ariely classic experiment Pricing the Economist