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.

  • 2012 Chinese social web eco-system

    In many ways the 2012 Chinese social web is richer than our own with a fiercely competitive marketplace and rapid innovation taking place amongst more evenly matched players. Social networks are stratified more along demographic lines which are in flux as developments occur. The brightest star at the moment is Sina’s Weibo service, but its not the only one.

    Weibo has taken off in China in a similar way to Facebook, and has led Twitter in terms of rolling out innovations.

    A second aspect of the 2012 Chinese social web is that these platforms offer segmentation. They vary in terms of the age groups that group on different platforms. Kids up to college age on one platform. Adults on another. Lower tier (less economically developed) cities inhabitants use different social platforms to those in higher tier cities.

    Finally, there is a classic aspect of Chinese business. Once an idea has proven to be successful, lots of competitors will spring up. That is why in places like the UK you will end up with a number of Chinese restaurants open next to each other.

    This happens in the online sphere also. The 2012 Chinese social web represents this business cluster. The next stage will be for intense business competition to thin their ranks out over the next few years. Iceberg
    This infographic came from Sinatechblog.com.cn

  • Product design stalemate?

    Kurt Anderson wrote an essay in Vanity Fair where he argued that product design in everything from fashion to homewares has stood still over the past two decades. It was an interesting that got me thinking about hypothetical reasons why his theory maybe true.
    Why hasn't design changed
    There were a number of possible factors that I came up with:

    Design – product design education has gone global – design professionals now know more about product design than they ever have done before. You now have product designers who can access the same influences from all over the world from the same place. The design computerised tools haven’t changed radically from the early 1990s but they have become more pervasive. Product design and culture are inextricably linked and culture as we previously knew it has been disrupted.

    Culture – The structure of culture has changed. Where the mass-media, publishers like Taschen and (often hard-to-get) style magazines or fanzines were the arbitors of the latest tribe, high and low culture trends, now Google is likely to turn up images and blogs about what whatever you want. This has meant that fashion is no longer linear in its timeline, but massively parallel: from cosplay and rockabilly  to ‘rugged’ style – fashion sensibilities resonates around the world in a self-sustaining loop with more power than previously.

    The pressures on culture have also changed; in the west there is no longer a sense that progress is inevitable. Even up to the 1990s with the Hubble space telescope and the Channel tunnel; big exciting things were being done and aspects of technology were interesting or exciting. You still have this; only its in China, Brazil and India. Environmental concerns and a wider anti-science movement that has gained momentum have squeezed the joy out of progress.

    Societal change – seems on some levels to be going at an ever faster pace, which means that culture values things like authenticity, by looking to simpler times in the near past. Authenticity comes from:

    • Simplicity
    • Heritage
    • Esoterism
    • Quality

    Globalisation – Autenticity can also be seen to be a backlash against the tyranny of choice that globalsiation has provided. Retailers in the west have created giant sheds to handle their massively expanded but similar product lines. This has promoted a homogeneity in many product lines and product design in those product categories. It has also promoted a throwaway culture: H&M clothing for instance – which is at odds with environmental concerns, particularly when you think about what goes into growing cotton. On the plus side it has also created opportunities for mass bespoke manufacture – supporting various subcultures through ecommerce and better logistics.

    Marketing – finally marketing has changed from being intuitative and demand-driven to being much more data and insights driven in nature and this has affected the product development process with every aspect of it undergoing scrutiny. The key challenge is that often people don’t really know that they want, but the space for vision is now lacking.

    You can find more design related content here.

  • Patriot Act + more news

    PATRIOT Act

    PATRIOT Act clouds picture for tech | Politico – the PATRIOT Act passed in the wake of the September 11 attacks, giving the US government access to web services to try and fill in the gaps in intelligence. However the PATRIOT Act covers data held outside the US. So many foreign multinational companies are baulking at using US web services for their businesses. This is particularly important given the move from server and software apps to cloud computing. So the PATRIOT Act is disrupting US businesses from scaling

    Consumer behaviour

    Trendpool » Panasonic’s Female-Only Consumer Trial House

    Students of Virtual Schools Are Lagging in Proficiency – NYTimes.com – interesting that technology isn’t the panacea that people thought it would be in education. Smartboards haven’t been successful given their cost either

    Counterfeit goods losing attraction | SCMP.com – (paywall) Brands stand for quality – like they did in the Victorian era

    Young Women Go Back to School Instead of Work – NYTimes.com

    Economics

    More on What’s Left Over After Paying for Housing – The Atlantic – interesting article on housing and economics. Its less about house prices and more about income net of housing expenses

    Big Developers Dabble in Apartment Market – WSJ.com – decline in home ownership

    Finance

    Ray Dalio’s Richest and Strangest Hedge Fund : The New Yorker

    Innovation

    Single-Atom Wires Could Help Moore’s Law Live On

    Omron smartphone app comes close to instantaneous text translations | The Japan Times Online – like something straight out of a DARPA project

    Domestic robots failed to ride to rescue after No. 1 plant blew | The Japan Times Online – law of unintended consequences and innovation

    Liquid metal capsules used to make self-healing electronics | ExtremeTech

    Roboden: Japanese Company Develops World’s First Elastic Electrical Cable (Video) | TechCrunch

    Japan

    Woodford to sue Olympus, citing lack of investor support to get his job back ‹ Japan Today – not surprising he didn’t get support, first he trashes their shareholder value (probably exasperated by his theatre) then he asks for their help. They won’t care about the truth they’ll care about the 70 per cent drop in the market capitalisation

    Korea

    President Lee Myung-bak talked a lot about controlling high prices. – WSJ – growth and price inflation both considered issues

    Legal

    US Threatened To Blacklist Spain For Not Implementing Site Blocking Law | TorrentFreak

    London

    An Obligatory and Pointless Debate About the Olympics | VICE – but Vice nails it

    Luxury

    NetEase’s Luxury E-Commerce Site First Casualty Of 2012 « Jing Daily – interesting, especially since Netease has a lot of expertise in online businesses. I guess luxury handbags aren’t like World of Warcraft

    Will China’s E-Commerce Market See An Industry Shakeout In 2012? « Jing Daily

    Taking First-Class Coddling Above and Beyond – NYTimes.com… first class represents less than 5 percent of all seats flown on long-haul routes, and business class accounts for 15 percent, those seats combined to generate 40 to 50 percent of airlines’ revenue, according to Peter Morris, the chief economist at Ascend, an aviation consulting firm

    Marketing

    UK marketers anticipate change: Warc.com – Ball & Hoolahan expecting marketing departments to get nuked in amalgamation with other departments

    Media

    Beijing Calling: The Trouble With China’s New English-Language News Network | Fast Company

    Retailing

    UK retailers face “carnage”: Warc.com – partly economics, partly industry structure due to etailing

    Wireless

    Nokia Moving to China from Singapore – WSJ – interesting complex reasons for choosing China or other countries outlined

    Interview with Murtazin – Will Microsoft Buy Nokia’s Smartphone Unit? – Forbes

    Text Messaging Is in Decline in Some Countries – NYTimes.com

    Nokia N9 outsells all other phones in Finland during October – Neowin.net – did Nokia’s move to Windows screw the pooch? Anecdotal evidence that it probably did. Also this code is now called Tinzen being pushed by Intel and Samsung

  • The North Face and Nike

    The North Face and Nike on marketing

    The North Face seems to have just peaked on its cultural moment in Korea. The North Face jackets are worn by all strata of society. Below is a Korean blog post that compares Its winter coats with different types of high school students as the brand has become so ubiquitous in South Korean school yards and on the backs of consumers during the winter months.

    The bottom of the blog post goes on to compare The North Face with the duffle coats worn by previous generation of school children in a mocking way.

    it is as much the winter uniform of the Korean salary man as his tie.

    The North Face sees itself as a technical brand rather than a true luxury brand, but the vast majority of its jackets don’t see the mountains and ski slopes for which they were originally designed. It has begun to treat itself as a premium brand with its purple label retro designs and different fabrics like Harris Tweed – currently exclusive to the Japanese market. But how can this be maintained if the brand becomes this overexposed?

    It is not a corner that it can easily get out of and technical innovation in the clothing design will be of limited use.

    North Face overexposure

    Part of the problem is the nature of Korean society itself which has a certain conformity to it. This means that once a trend picks up, it goes everywhere. But then because it goes everywhere it has a finite life. A small amount of tastemakers move on and the cycle begins again.

    The next winter jacket might be Canada Goose or Moncler.

    Contrast this with Nike: The Wall Street Journal has an interesting article about how Nike and Footlocker maximised revenue from the Jordan franchise through careful timing of limited product releases. More marketing related posts here.

  • Workampers

    The Wall Street Journal had an article that introduced me to the idea of workampers. The article was on the seasonal workers that Amazon.com uses in the US to help it with the surge in demand in the run up to Christmas.

    Who were these elves to Amazon’s Santa Claus?

    The article describes them as workampers. Older retired people who live a transient lifestyle by choice in an RV (recreational vehicle) for at least part of the year.
    CIMG1091
    Their motivations were diverse in nature. Some of the workers are similar to their ancestors during the Great Depression, who moved across the country following work were it was available.

    For others the reasons are diverse, from money to help with expenses to camaraderie with similarly nomadic peers or proving to themselves that they could still hack a task. A mix of forced earlier retirement and improvements in health mean that many seniors still have decades of potential work still in them that they want to take advantage of.

    A mix of ageism and globalisation have meant that there is a growing body of workampers. Future workampers might be in a worse financial state due to less generous pensions and health insurance, higher personal debt and automation. The move to a lower carbon economy will also impact the ability of a workampers to live out of an RV and transverse large distances at a reasonable cost.

    Workamper futures

    With an aging population and the decimation of working class communities due to the opioid epidemic we are likely to see more demographics like workampers as companies adapt to tap into an older work pool. With Amazon in particular, one has to wonder if more of their warehouse and logistics work can be automated and how it will be affected by a low carbon future.

    More explanations of of jargon terms can be found here.

    More information

    Seasonal Amazon ‘Workampers’ Flock to Remote Towns for Temporary Gigs – WSJ.com (paywall)