On 16th April, China Centre welcomed Prof. Patrick McNutt, Visiting Fellow at Alliance Manchester Business School to deliver a Master Class on online consumer behavior using Meso-Data.
Meso Data = Memory + Emotions
The term ‘Meso-Data’ has been applied to refer to small data sets inside the common term ‘Big Data’. An interesting example is to use an origami. The various folds of the origami is comparable to ‘Big Data’ and little segments in between would be ‘Meso-Data’.
As smart phone users, online shoppers and Instagram followers, we leave traces of information on our digital devices. As all this information is kept as history, a certain memory of your behaviour is hence formed. But how does it have emotions? Imagine that you have a morning routine assisted by smart devices to unlock shared bikes, to buy coffee with alipay, to login to email from the office and etc. Whenever the routine is broken, it is an indication of something happening therefore giving away your ‘emotions’
Your digital footprint betrays you
In a holiday booking scenario, we are often exposed to information such as ‘only 2 rooms left at this price’, ‘7 people are looking at this hotel now’. It puts a trigger (SEED) to influence your action, in this scenario creating a sense of urgency or competition with your holiday purchase. A great number of companies take advantage of your digital footprint and use a SEED to influence your decision making. Many times we end up spending more money on hotels in the end (END price) than the initial price you were shown (BIN price) at the beginning.
Are you ready to betray your emotions – the design of ‘game’
The use of game design with options to indicate your preferences can be referred to by businesses for commercial decision and also in public services to allocate resources more efficiently.
Would you eat in a restaurant with no kitchen while the food was cooked centrally off-premise and delivered to you? Would you only drink there, or accept certain cold foods, or you completely happy with that or do you refuse to go?
In a hospital operation scenario, you were told right before the surgery that a virtual surgeon was to operate on you? What would you react? You might accept it with only certain types of surgery i.e on your hips, and would not accept it if it was on your heart? You might be totally fine or you might jump of the operating table?
A collection of people’s answer to these scenarios can influence business operating models as well as optimization of scarce resources for public use.
Recently the EU proposed changes on taxed for digital companies that have significant online revenues. The proposals include a "common EU solution" which would allow member states to tax profits that are generated in their territory, even if these companies do not have a physical presence there. But, a company would have to fulfill one of the following criteria: its annual revenues in a European country exceeds a 7 million euro ($8.6 million) threshold; it has more than 100,000 users in a taxable year; or over 3,000 business contracts for digital services are created between the company and its users in a taxable year.
Prof. Patrick McNutt is leading the Strategy and Competition course on Manchester Global MBA. For those interested in is finding more about Global MBA, please visit website for more information. http://www.uom.ac.cn/programmes/manchester