DELTA HABIT FACTOR [DHF]

Chibba has created a model for forecasting consumer product responses to brands called the Delta Habit Factor.

The Delta Habit Factor (DHF) model provides a framework for an analysis which helps sharpen the marketing strategy for a brand. The DHF model postulates that a brand succeeds because it changes consumer habits for that particular product category. Once the brand changes usage habits, the consumer uses it more often and becomes loyal to the brand, leading to brand success. The change in the consumer’s habit is itself an indication of his satisfaction with the brand. A corollary to this is that a brand earns market share by earning a “share of habits” of that product category.

The DHF model states that every brand has an inherent DHF, or the ability to change consumer habits. The higher the degree of DHF, the better its chances of success.

Close-Up is one brand which succeeded owing to changes in the collateral habits of two product categories — toothpastes and deodorants — simultaneously. This also explains why the same positioning failed in its first launch — that is, “Close-Up is for close-ups” which sought to sell freshness through a high degree of social interaction. The platform was correct but the level of investment made to change the habit was low

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DHF is used to predict the success or failure of a brand. This is based on factors like

  1. Changing duration of consumption of the product.
  2. Evolving new occasion for the use of the product.
  3. Changing sharing habits of the product.
  4. Changing buying habits of the product.
  5. Doing new things.
  6. Changing the frequency of consumption of the product.

The Delta Habit Factor is an index calculated based on six variables that measure the change of usage habit of consumers. When DHF score is below 3 out of 5, it is easy to induce trial purchase but difficult to get consumers to stay. When DHF score is more than 3 trial is difficult but retention is easy.

One response

  1. A very insightful framework that forms an excellent layer of decision making to deliver higher marketing ROI!

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