Category: consumer behaviour | 消費者行為 | 소비자 행동

Consumer behaviour is central to my role as an account planner and about how I look at the world.

Being from an Irish household growing up in the North West of England, everything was alien. I felt that I was interloping observer who was eternally curious.

The same traits stand today, I just get paid for them. Consumer behaviour and its interactions with the environment and societal structures are fascinating to me.

The hive mind of Wikipedia defines it as

‘the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services.’

It is considered to consist of how the consumer’s emotions, attitudes and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, marketing and economics (especially behavioural economics or nudge theory as its often known).

I tend to store a mix of third party insights and links to research papers here. If you were to read one thing on this blog about consumer behaviour, I would recommend this post I wrote on generations. This points out different ways that consumer behaviour can be misattributed, missed or misinterpreted.

Often the devil is in the context, which goes back to the wide ranging nature of this blog hinted at by the ‘renaissance’ in renaissance chambara. Back then I knew that I needed to have wide interests but hadn’t worked on defining the ‘why’ of having spread such a wide net in terms of subject matter.

  • Generational user experience effects

    This post fell out of a conversation I had about mobile applications in particular SnapChat. The idea of generational user experience effects came from my own experience of consumer electronics. This  crossed over from wired and analogue devices through to the present day, which provides me with a wide perspective on how things have changed.

    My parents grew up in an environment where the four most complex devices they would have been exposed to as a child were a watch or clock, the household radio, a sewing machine owned by the local seamstress and the piano or organ in the parish church.

    Form follows function

    I was just old enough to remember electricity coming to the family farm were my Mum grew up. The 1960s vintage Bush TR82C radio still ran off a battery until the mid-1980s.  This provided the agricultural mart price changes and weather forecast, as well as the musical entertainment on a Saturday night. Non-rechargeable batteries were relatively expensive and battery operated devices where used sparingly.

    My Dad saw electronics enter industry, where previously electro-mechanical systems and pneumatic circuits had driven simple processes that would now be governed by a microprocessor.

    They were fine with new appliances and even the new 1970s Trinitron TV with touch controls; hi-fis and kitchen appliances usually had neatly labelled buttons that may have had logic controls rather than the physical ‘clunk’ of a mechanically operated mechanism behind them.

    This is the kind of generational user experience that Dieter Rams developed. The nature of the design if done well made the operation seem self evident.
    Sony Walkman DD

    Modal interface design

    The problems started to come with digital watches and VCRs (video cassette recorders).  The user experience in these devices were different than anything that had gone before. VCRs and digital watches were like the computers of their day modal in nature.

    You had to understand what mode a device was in before you could know what pushing a given button would do.  In my case this wasn’t an intuitive experience, but I got there by reading the manual. If you own a G-Shock or similar Casio watch, you still experience this modal experience, this is the reason why a G-shock comes with a user manual the size of two packs of gum. g-shock modal nature
    My Dad had the head to deal with these technologies but didn’t have the time to go through the manuals. In the late 1980s / early 1990s Gemstar launched a simple way of programming the video with the correct time and channel with a PIN number for each programme that was between six and eight digits long. It was known by different names in different regions; in Europe it was called VideoPlus. And it was easy enough for anyone who could use a touchpad phone to grasp. Panasonic launched a rival system based on scanning barcodes that wasn’t successful, though programming sheet still goes for £10 or so on eBay.

    VideoPlus allowed me to skip duties as the household VCR programmer. But I didn’t get away from modal interfaces.

    Menu driven interfaces where all the rage with friends digital synthesisers. None more than the Yamaha DX-series, which not only had a complex way of creating sounds and a byzantine menu system of accessing them. Knobs and dials in interfaces were expensive, menus driven by software were virtually free once the software was written – and the microprocessors to drive them continued to drop in cost. This was one of the main reasons why albums from that time often credited someone with being a ‘MIDI programmer’. From a manufacturing point of view robotic pick-and-place machines that automated the manufacture of consumer electronics (until the rise of the hand-assembled Chinese electronics from Foxconn) were an added driver for having ‘dial-less’ circuit boards.

    During the day, I worked with a range of computers at work and my first email account was on a DEC VAX as part of the All-In-1 productivity suite; think of it as a Google services type application on a private cloud with a ‘command line’ like interface that operated on the same modal principles as the VCR or digital watch.

    All-In-1 had a simple email client, word processor, a ‘filing cabinet’ – think of it as Google Drive and the front end of business applications – we used VAX for stock management and to order supplies.

    Given the spartan interface, it seemed appropriate that I learned how to touch type on an application for the VAX – mainly because after you had read the newspaper cover-to-cover there wasn’t much to do on a night shift.

    We had a few other computers in the labs for running test equipment, usually some sort of DOS, a couple of Unix-variant boxes (HP, SGI and a solitary Sun Microsystems machine), an Amiga (because they had handy features for video) and  Macs.

    WIMP

    I naturally gravitated towards the Mac. Once you got the hang of the relationship between the movements of the mouse and the cursor on screen, the interface of Windows Icon Mouse Pointer (WIMP) was remarkably similar to the form follows function design of analogue consumer electronics. Interface design aped real-world button designs, folders and filing cabinets, even waste paper baskets. Even the spreadsheet mirrored a blackboard grid used at Harvard University to teach business students.

    Once one you had got used to the WIMP environment it was remarkably simple. More complex devices required menus but for many applications, once you knew some basic rules you were up and running. Part of this was down to Apple laying down interface standards so cmd Q meant quit an application, cmd C meant copy, cmd X meant cut and cmd V meant paste in any programme.

    This was something that Microsoft took as a design lesson for themselves when making Windows, however it was interesting that they started to break these rules in applications like Outlook.

    Things became more complex with applications like Adobe PhotoShop which became so feature rich, it meant that there was more than one right way to achieve a particular task, so instruction manuals tend to be of limited value.

    The leap from WIMP to hyper-media was a small one, the act of clicking on a link was relatively easy. What one didn’t realise at the time was the new world this opened up. We went from interlinked documents to surreal worlds created in Macromedia Flash and similar authoring tools on CD-ROMs and eventually the web. An immersive experience was promised that was never fully delivered mainly because we expected William Gibson’s Sprawl trilogy to be our manifest destiny.

    Icons under glass
    MessagePad :: Retrocomputing on the green

    In the early 1990s Newton had pioneered a simple version of the icons-under-glass metaphor that consumers would really take to heart with the iPhone and later Android devices. The Newton was too ambitious for the technology available at the time. The Palm series of devices pointed out the potential of icons-under-glass as a metaphor. The Palm V can be scene as a conceptual model for the modern smartphone.

    Please wait...

    With a metallic case, slim lithium ion battery that was not removable and a bonded construction were all eerily reminiscent of the industrial design for the iPhone models rolled out some eight years later.

    The launch of the iPhone marked a sea change in consumer adoption if not technology. Apple built on the prior generations of touch screen devices and improvements in technology to update the experience. They made one choice that made the iPhone stand out from its competitors, dominant player Nokia made devices that were designed to be used one handed – phones with a computer inside. Apple flipped it around so that it was selling a computer that happened to do phone things as well. When you went into a shop, it had a bigger screen and a more polished interface so was great for sales demonstrations.

    Eventually the technology started to appear everywhere. The coffee machine at work has an iOS like interface complete with skeuomorphic icons for buttons.
    Icons under glass

    Social interfaces

    In some ways, mobile interface design aped existing analogue devices. But things started to change within applications. Designers started to build applications that focused on a particular use case, which made sense given the software feature bloat that had happened on desktop applications and even web experiences like Facebook. Most social app designers haven’t managed to squeeze as much functionality out of their real estate as WeChat/Weixin. You then started to see the phenomena of app constellations where non-game single purpose apps deep linked to other applications.

    Designers started to take a minimal approach, to cut down ono the screen real estate taken up by controls.

    Instead controls only appeared in what might be broadly termed a contextual manner. The only difference that applications which have contextual menus tend to ‘telegraph’ the options and offer a help section in the app.

    I am not sure when it started but Snapchat is a prime example of this phenomena of the ‘social interface’. Their interface features are not explained by a design or manual but are more like cheat codes in a game, shared socially.  It feels like a fad, minimalism taken to an extreme, a design language that will move on yet again.

    More information

    VCR Programming: Making Life Easier Using Bar Codes | LA Times
    Quick History of ALL-IN-1 | The Museum of Email & Digital Communications
    Jargon watch: app constellation

  • Scratching + more things

    History of scratching

    A brief history of scratching | FACT magazine – a great piece on scratching but skips over many of the greats prior to Q-Bert et al such as Mr Mixx, Cash Money, DJ Supreme and DJ Pogo. Scratching went through massive changes from the mid-1980s to the mid 1990s. Q-Bert et al were standing on the shoulders of other scratching innovators

    Consumer behaviour

    Researchers reveal millennials will take a 25,000 photos of themselves in their lifetime | Daily Mail Online – lifeblogging or qualitative ‘quantified self’?

    Bill Drummond (of The KLF) fame did this really good talk about how the iPod (and you could add smartphones) have changed our relationship with music

    Marketing

    Tic-Tac have put together a great tie-in with local Hong Kong independent musicians and music festival Clockenflap (Hong Kong’s answer to Glastonbury). Budding artists can submit their own video with a chance to play at Clockenflap.

    FutureDeluxe did this great bit of CGI work for the adidas X Primeknit football boot.

    Media

    Cross Device Tracking Creates New Privacy Concerns, FTC Says | Advertising Age – “They do this under the veil of anonymous identifiers and hashed P.I.I. [personally-identifiable information], but these identifiers are still persistent and can provide a strong link to the same individual online and offline,” Ms. Ramirez said, in language that challenges the typical rhetoric from companies that track consumers.”Not only can these profiles be used to draw sensitive inferences about consumers, there is also a risk of unexpected and unwelcome use of data generated from cross device tracking” (paywall) – interesting that cross device tracking is seen as a ‘new privacy concern’ rather than an established one. This delay between regulatory attention and development is why cross device tracking companies have such an advantage over governments and consumers

    TBS is giving eSports its mainstream moment with new weekly program – Digiday – interesting move, US media following normal practice in Korea

    Retailing

    Here’s where teens shop as old favorite stores go extinct | Fusion – Malls still are super important to teen culture as physical spaces you can go to hangout without parents

    Security

    From Radio to Porn, British Spies Track Web Users’ Online Identities | The Intercept – basically you have no privacy, presumably this would allow them to zoom in on Tor users at some point?

    Software

    Google faces new US antitrust scrutiny, this time over smartphones – CNET – the US antitrust scrutiny could turn to action that would  fragment Android distributions quite dramatically… More Google related content here.

  • Green labels + more news

    Green labels

    There are more than 450 meanings behind “green” labels – Eco-conscious shoppers have probably noticed hordes of new “green-approved,” “100% natural” eco-friendly goods—claiming to be “certified” by some organization or other—popping up on store shelves. Green labels have many problems. One of them is that environmentalists can’t agree on what’s green so green labels are challenged. Let’s take take hybrids versus old cars on carbon footprint – since most carbon release is in manufacture, yet the hybrid cars would sell on green labels. Or electric cars overall, we don’t understand the energy requirement to recycle them yet they will get green labels. Ands thats before you look at how electricity is generated where they are being sold. Chinese electric cars may get green labels, but the majority of China’s electricity generation comes from coal-fired power stations.

    Business

    I, Cringely Amazon’s cloud monopoly – I, Cringely – Bob Cringely provides some interesting insights into the market position of Amazon regarding cloud services. It also highlights the challenges that Alibaba, IBM, Microsoft, Oracle and SAP in addressing Amazon’s cloud monopoly

    Yahoo, NHL Ban Employees from Paid Fantasy-Sports Sites | WSJ – ethics (paywall)

    Consumer behaviour

    68% of Chinese men are smokers—and millions will die because of it | Quartz – most of the cigarette brands are owned by state owned firms and China has a surplus of males to females. More China related posts here.

    Innovation

    Weekend edition—The lure of Mars, citizen Schmidt, lobster mysteries  – Hot on the heels of the release of the action movie The Martian—and the discovery that the red planet still has liquid water—NASA has unveiled a bold three-stage plan for getting humans to Mars – interesting lessons in messaging and storytelling from this

    Marketing

    adam&eveDDB, Temptations Dress Up Cats for the Holidays – Ad Week – blatant link bait

    Has Essena O’Neill signalled the end of influencer marketing? | Econsultancy – probably not, influencer marketing is too much ‘on trend’ but it does beg the question are the fees worth it?

    Online

    WeChat reading rates are dropping. How much, and why? – In mid-2015, the number of views of WeChat subscription accounts started to decline. Some popular accounts saw a decline of more than 50% in readership. More on WeChat here.

    product insights from wechat — Medium – interesting WeChat insights

    Technology

    Will You Ever Be Able to Upload Your Brain? – NYTimes.com – so your cryogenics is probably wasted

    Web of no web

    Watch How to Eat a Virtual Cookie | MUNCHIES – how is a virtual cookie possible? By altering the taste of food with different visual cues using virtual reality techniques – literally creating a virtual cookie.

    Wireless

    iPhone Vs Samsung: Apple is still the marketshare leader | BGR – Apple still commands more than 90% of all the profits in the smartphone market

  • WeChat Life Report

    Chinese consumers literally live a WeChat life as shown by this great  collection of consumer behaviour data on WeChat. Over the past year WeChat has expanded the services that it provides to include Skype like conference calls, which changes and expands the behaviour in this report. (Presentation on Slideshare)

     

    Key takeouts

    • The ubiquity of WeChat can’t be over stated with over 93% usage in tier one cities. It will grow over time in lower tier cities for a couple of reasons. There will be a network effect that will reach out of the tier one cities and into the lower tiers and countryside. Secondly, WeChat services will start to permeate out of the tier one cities and into the lower tiers. You will then have a virtual cycle due to network effects and ever-increasing ubiquity
    • Call and message data shows how it binds the diaspora back to friends and loved ones in China. The Chinese talk about ‘near and far networks’. But WeChat closes the gap, meals can be shared with photos and videos. Voice messages popular with older users also helps with asynchronous communications over difficult time zones
    • Chinese people tend to exercise during the week, rather than at the weekend according to WeChat fitness data. The idea being for rest is an insight and an opportunity for fitness and sports apparel companies
    • Male shoppers spending 30% more than female shoppers  was an interesting statistic emblematic of WeChat life. Generally men are not as enthusiastic a shopper as women are. They have to save for a home, a car and marriage. My take was that women offer WeChat a growth opportunity in payments; if it can address the underlying cause of this disparity
    • The average social circle on WeChat at 128 is very close to the Dunbar number

    More on WeChat here.

  • Nudges + more things

    The Power of Nudges, for Good and Bad – NYTimes.com – how loss aversion and other behavioural traits  (or nudges) can be used as methods for social change and political change. These elements have already been used in UK government projects and the advertising world. They are the reason why games are addictive and so is swiping on Tinder. (paywall) – more on consumer behaviour including the impact of nudges here.

    Chat App Firm Line Focuses On Services After Adding Just 1M MAUs In 3 Months | TechCrunch – I don’t think that this is as bad as the TechCrunch seems to think. US focused services and China focused services are about the advertising eco-system and scale.  LINE hasn’t really tried to blow out the market penetration beyond Asian markets yet. It does really well in places like Thailand, Taiwan and Japan. It is also a media franchise rather like Sanrio, given the licenceable nature of its sticker characters like Brown. Also ARPU (average revenue per user) is as important as numbers – profit share vs. market share. This has been demonstrated in other sectors such as the smartphone market, where Apple has historically earned 70 to 90 percent of smartphone profits from just 15 percent market share.

    U.S. Technology Device Ownership 2015 | Pew Research Center – good data points on device usage by US consumers.

    Hong Kong pupils at risk of ‘becoming like Foxconn workers’ in education system, says former principal – it is problematic for two reasons. Firstly, that kids will be put in such a high stress position by the Hong Kong education system. The second reason is that Foxconn as become a verb for stressful conditions. That is damaging for both Hon Hai Electronics and their customer base. The idea of damaging stressful conditions being so tightly linked with the company name is damaging. It’s like a really bad version of ‘Hoover’ and vacuum cleaner linkage.  (paywall)