Matt Britton explains how senior executives make million-dollar decisions based on a child's offhand comment instead of data. He claims 95-97% of everyday business decisions rely on gut feeling, not research, and that assumptions are market research's biggest competitor.
When I was running an ad agency for 20 years I can't tell you how many times a senior business decision maker made a decision based upon something that their kids said to them. No data behind it. Spending millions of dollars behind a big concert sponsorship or at some big integration because something they heard their kids say Market research's biggest competitor is actually assumptions in general 95 to 97% of all decisions that are made in everyday business situation are are actually made by hunches or gut instincts and actually have no data behind it. We asked business executives what's the biggest drivers of decision making that's happening at companies and management judgment was at the top of it which to me is just so shocking in a day and age where information is so readily apparent and you can access what consumers are thinking at any time of day. As Mark Twain once said, it's not what you don't know that gets you into trouble, it's what you know for sure that just ain't so.