Caso: Leisure, Hospitality, and Tourism
Les compartimos uno de nuestros casos de Neuro investigación que la prestigiosa revista INSIGHTS realizada por la Asociación mundial de neuromarketing, ciencias y negocios (NMSBA -por sus siglas en inglés-) publicó en su edición No.22 a principios del 2018.
The unconscious, emotional and cognitive ingredients that boost purchase motivation in Private Residential Club Ownership (fractional ownership).
What are Private Residence Clubs or Luxury Fractionals?
When we go on vacation we often feel greatly relaxed if the environment we are in resembles a “home away from home”. However, it is also nice to experience the luxury of a first-class hotel. A private residence club offers a combination of both of these things.
Fractional ownership is rapidly growing as an alternative to full ownership of vacation homes because it makes a high-end home affordable in a place where real estate is extremely expensive.
Owners of luxury fractional properties buy a share of a single residence that provides them with a couple of weeks to thirteen weeks of usage a year.
Private Residence Clubs (PRC) are the upper tier of the luxury fractional market, providing all the services of a five-star hotel together with the ownership.
The reasons to buy a private residence club or luxury fractional.
There are several reasons a second home developer might like to test before launching any PRC or Luxury Fractional project, but after an extended analysis, we suggested the ones that from an investment point of view could be more relevant to evaluate because of the attributes that could increase the perceived value of the PRCs and therefore the sales price.
The defined features around the reasons to buy a PRC that the study tested were:
Services: When staying in one of the club’s residences, members expect to receive full concierge service according to their individual taste. This means that 5-star service is an important feature to choose between PRC projects.
Locations: Many clubs are located in areas that cater for a specific type of vacation. For this study, it was important to test just a beach PRC facilities concept.
Club Operators: Many private residence clubs are o1<AZZs run by well-known hotel operators, but there are also many independent private residence clubs which have one or more properties. In addition, different types of hotel brands were tested to establish the most preferred hotel brand to be part of the PRC project in the beach.
Type of PRC: For the purpose of the study and based on previous studies, we suggested that the potential site could offer 2 types of PRCs: Freestanding Houses and Luxury Camping units.
Cost: Prices for joining a private residence club vary according to the location, size and type of the property, the ownership period and the services provided with the property. Under this same study, we also evaluate the maximum price that a fractional ownership could have.
Luxury Furnishings: Furnishings of the units responding to the highest standards and offering the highest quality in all elements of design and construction were defined as key elements to consider when designing the concept and type of PRC project. Therefore, in the study different interior designs were tested to understand which type of furnishing could increase preference choice.
On-Site Amenities: The appeal lies in using room & pool spas, fitness facilities, lazy river pools, over-21 pool, pool bars, pool clubs and restaurants, hamaca areas to relax with WiFi, business centers, kid clubs 24/7 or simply having access to natural features like mangrove canals, natural pools, tropical forest reservations, sea boat experiences and other land and water sports and leisure amenities. These are all major attractions for private residence club buyers. For this study, the on-site amenities were defined as “key variables” to evaluate. These ones define the concept of the project and the type of market segment that could be attracted to purchase a fractional.
When considering the decision of buying a full vacation home over a luxury fractional, there are several financial benefits to purchasing the second option. However, when there is the need to choose between different PRCs, it is important to understand what type of features and amenities are attractive to different types of potential co-owners, especially the ones who are willing to pay higher prices depending on the benefits that the project offers.
Based on all this, can neuroscience determine the key attributes a PRC should have to increase purchase motivation?
Assumptions and hypotheses: Subjective preference for fractional ownership features are expected to be associated with:
• Longer viewing time on key aspects of each amenities or features showed.
• Stronger emotional responses to amenities of a private residence club, as in higher arousal and motivation responses
• Higher cognitive load responses, denoting stronger associative load to preferred amenities or features.
• NeuroEquity responses increase (more) for preferred amenities after exposure to all stimuli.
Methods: We selected two groups of 35 participants each.
Group 1 – aged between 25 and 35 years old, married without children or with children under 12 years of age.
Group 2 – aged between 36 to 50 years old, married without children or with children older than 12 years of age.
In both groups, each participant was exposed to a NeuroEquity test to evaluate the subliminal emotional and cognitive responses to different conceptual features and amenities, as an indication of “gut feelings” to the features and amenities that a beach PRC project could offer.
The Neurons Inc, NeuroEquity test measures direct and unconscious emotional responses to different kind of stimulus, like concepts, brands, prices associated with images, products, etc. During the task, participants are asked to focus on a screen where concepts were showed for a few seconds at a time.
The measured responses reflect deep emotional structures of the brain that are not controlled by conscious thought but still drive behavior.
Each time a concept was shown; we measured the emotional and cognitive responses, and thereby calculated the unconscious brand responses.
The NeuroEquity test is a reliable measure of unconscious responses to the different type of stimulus, much alike to standard stimulus trackers of conscious thoughts and feelings.
Key findings: Some of the interesting findings that came out of this study and which we can share publicly are:
There is a significant statistical difference between Group 1 and Group 2 toward PRCs concept:
• Parents with children older than 12 years of age (Group 2) showed 12%* higher positive motivation than Group 1 (parents with children under 12 years of age), suggesting that for them investing in a PRC property
is more attractive and makes more sense to make the decision of investing when they have teenage children.
• Group 2 also showed 4% * higher emotional arousal, suggesting that this market segment is much more engaged with the idea of what a PRC project offers.
• We found that Group1 has a 9% * higher positive motivations towards beachfront PRCs (Img. #36) – which Group 2 avoids completely, but they disliked and lost interest in the more exotic type of fractionals like luxury camping and over the water units which for Group 2 was 13% more interesting. These findings suggest that, because of young children, Group 1 prefers to invest in PRCs given that the entire context feels more secure, controlled and familiar to them. When understanding the features and amenities, we also found significant statistical differences:
• Group 1 is 13%* more interested in resting areas (Hamacas areas with WiFi) and 9% * higher positive motivation towards having a 24/7 kids club; which suggests that this group could be interested in purchasing a PRC unit where they can spend time with their children but also where they can have a place to rest while their kids are in a safe and entertained environment for as much time as needed.
• Group 2 showed a negative motivation towards resting areas and kids club suggesting that they dislike the idea of purchasing a PRC where families with younger children purchase.
• Both groups showed a positive emotion towards features like spa and pool bar (Img. #10), especially Group 2 who showed higher emotional engagement towards those amenities.
These findings can help in defining the type of PRC concept that a project could include engaging a specific type of market segment; which means that a project that offers everything for all kinds of users is not necessarily a safer investment strategy.