Ged Carroll

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.

  • Saab

    Saab has been a pioneer in the automotive sector and it is now facing imminent death in the car business. Saab made the first production cars with safety belts, the first headlight washer and wiper facilities, the first impact absorbing bumper, pioneered pollen filters in the air system of its cars and the first CFC-free climate control. Saab along with the Mercedes S-Class it has had a disproportionate impact on the modern car.

    I have a personal attachment to the Saab brand. I can still remember the smell of the interior of a family friend’s Saab 99, the brooding brow over the dashboard that the VDO instruments used to look out from, the heated seats and the ignition key that also locked the gear box.

    stig_blomqvist_rally99

    Motorsport, in particular rallying was the preferred sport of my Dad and my hero didn’t wear a polyester Liverpool shirt, but a set of fireproof overalls. His name is Stig Blomqvist, one of the most talented men ever to get behind the wheel of a car. He has competed successfully in circuit racing and rallying for the past 38 years.

    saab_rally_99T

    Blomqvist’s vehicle during the late 1970s was a Saab with a distinctive avant-garde paint job that caught my imagination as an 8-year old. With the rise of four-wheel drive, he then moved to Audi, and my team allegiance went with him – when Saab bowed out of top flight rallying. But that avant garde paint job still has a place in my heart.

    Saab is now staring oblivion in the face. A financial rescue has been scuppered and the car company is likely to be consigned to the annals of history. At this point Saab reminded me of Apple circa 1996, however one thing Apple had in its darkest hours were fans of the Macintosh platform. I can remember when having an Apple Mac wasn’t cool, but marked you out as a bit of weirdo.  I know, I was one of them weirdos; and thankfully the company is still around making insanely great products that shows my loyalty was not misplaced.

    If I was a potential saviour for Saab; not even a business plan by the best brains from Goldman Sachs would persuade me after reading feedback from the loyal members of the New York Saab Owner’s Club by Michael Corkery on the Deal Journal blog on the Wall Street Journal online.

    Some of the things that caught my eye:

    1. …there are some guys in the club who are going to say : ‘good riddance they haven’t made a good car in a long time.’
    2. There are some vintage guys in the club who say that Saab hasn’t made a good car since 1999…
    3. Over the last few years club members have started bringing their non-Saab cars to meetings. It speaks to the fact that Saab has gotten away from what made them a fun driving car.
    4. There are some people who work with me and will ask for car advice. But unless they are a car person, I won’t recommend Saab. I don’t want them to come back and yell at me.

    I wouldn’t even like to guess what the net promoter score is amongst some of Saab’s long-suffering fans. Saab has lost what it was to its customers. It was no longer authentic, this isn’t about globalisation; its about a company and its brand losing its soul. This happened whilst the company was a completely-owned subsiduary of GM. General Motors is ultimately responsible for management decisions that didn’t just destroy shareholder value and brand value, they nuked it.

    The only bit of Saab that remains is in the camaraderie of the club and vintage vehicles. Graham Brown frequently talks about authenticity being the keystone for successful youth marketing, its also true for marketing to the not-so-young. More on brand related posts here.

  • The Playful World by Mark Pesce

    The Playful World was written by Mark Pesce. Pesce was an early pioneer of the web. He was instrumental in bringing a 3d interface to the web through a standard called VRML. This was an early attempt to provide the kind of immersive ‘matrix’ experience envisaged by the likes of William Gibson and Neal Stephenson in cyberpunk literature. Were a digital double of the real world (or more likely a more attenuated digital version) provides for interactions in the virtual realm.

    Since then he has been applying his ingenuity and enterprise to academia  and futurism for the past decade and a half.

    The Playful World was written about a decade ago, yet was very prescient of today’s cutting-edge web and related technology trends:

    • Augmented web – the web provided a data overlay of the real world with applications like locative digital art and turn by turn directions for navigation. Putting this inside glasses rather than on a screen would mirror some of the human computer interaction work done since the 1960s for fighter pilots.
    • The web of things – items become intrinsically linked to the web with all the security risks that entails as well.
    • Custom manufacturing – smaller production runs, intellectual property becomes more important than manufacturing scale. Globalisation gets transformed. Waste could be reduced, though that would be affected by the kind of prototyping one goes through printing items in 3D printing from an existing file.
    • Gaming – lean forward entertainment becomes more immersive, though a lot of the growth in gaming has already happened

    Pesce knits his experiences together into an engaging narrative that would brings all of it together for the reader. If you want to get where things are going I recommend you have a read of Pesce’s book. You can find more book reviews here. More related content here.

  • New approach to China + more

    New approach to China

    Official Google Blog: A new approach to China – According to Google, IP theft from Google and Gmail being hacked prompted a new approach to China. That’s very reasonable on the face of it, especially given that the IP theft also affected several other companies as well. However Google is uniquely placed to take a new approach to China because it has lots of rewards and few downsides. Such as the fact that Google is under pressure in the US and not doing terribly well in the Chinese market due to credible local competition. Or as another outlet put it Google: Revenues From China Are ‘Immaterial’ | paidContent

    Consumer behaviour

    A Few Good Kids? | Mother Jones – interesting how marketing data is being used. It seems that more work needs to be done on the creative and the approach

    If Your 9-Year-Old Doesn’t Have a Cell Phone, He’s Not Socializing Enough – Fast Company

    What Do Baby Boomers Want From Technology? – Bits Blog – NYTimes.com – some interesting progmatic attitudes to tech

    Media Cache – TV Still Has a Hold on Teenagers – NYTimes.com – Forrester survey of European teens. Conventional media still consumed

    Design

    Snow Peak Official Website – cool Japanese over-engineered camping stuff, love their Baja table out of solid aluminium and titanium cooking ware.

    Hacking with Style: TrueType VT220 Font – I remember this font from my time at Corning Optical Fibres using the plant DEC VAX which provided my first email account

    Economics

    Superfusion: How China and America Became One Economy. – By Daniel Gross and Win Rosenfeld – Slate Magazine

    Asia leading the way | Economist.com

    FT.com / World / Comment – Washington adapts to eastwards power shift

    FMCG

    Taste the Rainbow: Cigarette Makers’ Colorful Answer to FDA Packaging Regs | Advertising, Branding, and Marketing | Fast Company – tobacco companies use visual cues to make up for not being able to bill cigarettes as light, mild or low tar.

    How to

    Sleep success: How to make ZZZs = memory – life – 26 November 2009 – New Scientist

    Ideas

    Edge In Frankfurt: THE AGE OF THE INFORMAVORE by Frank Schirrmacher

    How reputation could save the Earth – opinion – 15 November 2009 – New Scientist – at first when I read this headline I thought someone in corporate communications had been going full belt at the magic mushrooms again. Instead the concept is a kind of green whuffie

    FT.com | Warfighting: The US Marine Corps on agility – interesting take on dealing with chaotic times

    Innovation

    Apple Patent Application Could Presage Thinner Devices – Bits Blog – NYTimes.com

    London

    FT.com | Olympics likely to harm UK tourism

    Luxury

    Cartier drops prices to woo young | The Japan Times Online – interesting move. I remember Armani doing a similar kind of thing with Armani Xchange in the early 1990s, it will be interesting to see the effect that it may have on the Cartier brand

    Media

    FT.com / Media – Disney boss tells Hollywood to rewrite script – internationalise content rather than assume a global media culture, develop online delivery platforms, cut costs, consolidate media franchises

    Online

    FT.com / China – Beijing tightens internet controls – “The internet is developing quickly, there are many loopholes in social management and maintaining social stability faces unprecedented new challenges,” said Meng Jianzhu, public security minister. “We must establish a comprehensive prevention and control social security system that covers the internet and the real world.”

    Retailing

    Retail outlook: Discounters best poised to thrive – USATODAY.com – US is seeing discounters thrive as well

    Security

    FT.com / UK – Watchdog probes sale of mobile phone records – take T-mobile’s licence away and shut them down

    Software

    Microsoft’s Future, Beyond Windows 7 and the PC – NYTimes.com – I can’t believe that the New York Times published this piece on Microsoft. Waggener Edstrom and Frank Shaw must have hit the roof when it came out. The mantra for Microsoft as a client is no surprises, I would be surprised if anyone walked willingly into this piece which eviscerates the corporate reputation

    Apocalypse Then: a two-part series on the lessons of Y2K. (1) – By Farhad Manjoo – Slate Magazine

    FT.com / Technology – Chinese court rules against Microsoft – infringed Zhongyi Electronics property rights.

    Technology

    The BBC is encrypting its HD signal by the back door | Technology | guardian.co.uk

    Cloud computing: Clash of the clouds | The Economist

    E.U. Takes More Time to Review Oracle-Sun Deal – DealBook Blog – NYTimes.com – I hope that Sun Microsystems finds a safe harbour at Oracle

    The Digital Economy Bill is legislatively flawed | Left Foot Forward – piece that I co-authored with my pod neighbour Nick

    Web of no web

    AR to Realize World of Science Fiction — Nikkei Electronics Asia — November 2009 – good overview of augmented reality

    Wireless

    Daring Fireball: Oh Joe You Didn’t – interesting take on is or isn’t Apple earning more money on handsets than Nokia story that been doing the rounds on Twitter over the weekend

  • Consumption Guilt

    Consumption guilt has been with us for decades. Back when I studied marketing at college we studied the nuances of Surf washing powder advertising: (its about the efficacy of the product) versus the premium-priced Persil brand (good mothers keep families happy and well-cared for with clothes washed in Persil, and by implication you are a crap Mum if you don’t use it).

    Now these were essentially the same product, except one would have blue bits in it. The blue bits were a oxygen-based bleaching activator chemical called TAED (tetra acetyl ethylene diamine) made by Warwick International who could also make those bits in white, green or a pink colour if you wanted it.

    It wasn’t only washing powder, the story of Folgers Instant Crystals Coffee is a classic example of observation in market research being used to solve a business problem. The advent of instant coffee got rid a traditional morning ritual where the house wife brewed coffee on the stove for the rest of her family.

    Folgers found out from research that this ritual was immensely important for their customers self image, customers that used instant coffee were seen to be slovenly and not thought to be taking sufficient care of their family. Folgers then directly addressed this issue in subsequent marketing activity.

    These days things are more complicated. I started thinking about this after an innocent conversation in the office. Adele who sits next to me mentioned that she loves Flash wipes but felt bad about how they affected the environment. I was amazed by the fine ethical balancing act going on between having a way to quickly make a surface hygienic enough for her young children versus the square of tissue going into the recycle bin.

    I conducted a poll which was impressive in its lack of any scientific method to find out what other products would make the list:

    • Flash wipes
    • Pot Noodle
    • Halogen bulbs
    • Alkaline batteries
    • Mach 3 razor blades

    The largely subjective nature of ‘environmentally friendly’ muddies the water a great deal in terms of users values and intent. It is only by doubling down on research into consumer behaviour in relation to a particular product category that marketing and PR people will be able to understand appropriate brand interaction cues. The need to understand the complex nature of the customer intent is paramount.

    Secondly these cues aren’t static and are constantly evolving to need to be monitored closely.

    Finally in a world where even the simplest products can now provoke complex consumption guilt related patterns; where do a lot of consumption-led lifestyle publications from Vogue to Stuff now fit in terms of relevance?

  • The Age of Spiritual Machines: When Computers Exceed Human Intelligence by Ray Kurzweil

    The Age of Spiritual Machines was written by Ray Kurzweil. Kurzweil is a technological rock star, responsible for great music synthesisers and much of the developments around optical character recognition and speech recognition. This is what makes him a good futurist. The fact that he has had his hands dirty.

    The Age of Spiritual Machines: When Computers Exceed Human Intelligence is a book of two parts. In the first part, Kurzweil outlines how technology has progressed since the dawn of computing with Charles Babbage’ difference engine. Kurzweil uses this trip down computer memory lane to demonstrated that computing power has been increasing exponentially since the dawn of time rather than just the dawn of Intel with Moore’s Law on the doubling of transistors. Even though silicon transistors may top out computing power will keep on trucking (though Kurzweil doesn’t necessarily have the answer of what is the next technology).

    The second part of the book is likely future scenarios; and this is where things get interesting. Kurzweil is setting himself up for a possible fail.

    Bill Gates and Nathan Myhrvold missed the internet in the first edition of The Road Ahead when it was first published in 1995 and Kurzweil sets himself up for a potentially bigger fall in the scope of his book. Even if Kurzweil has his timing a bit wrong or doesn’t get everything right his book is still a great thought experiment in how intelligent computers would impact humanity.  More book reviews here.