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.
Microsoft Executive: Netbooks Risk Cannibalizing Windows – netbooks are considered to be part of a wider consumer trend on downshifting technology. Consequently netbooks affects a business that relies on the consumer believing that continual innovation is a good thing. ASUS’ iconic eeePC netbooks even ran a Linux desktop application. Netbooks were a realisation that a lot of people use the web to check their email and create basic content. I don’t think that Google’s thin client Chromebooks are the antidote to netbooks either due to patchy networks.
ElfYourself by OfficeMax – Powered by JibJab – viral from OfficeMax for Xmas 2008. Interesting the way they went with the same concept. This isn’t as sophisticated (from a technical perspective) as their previous viral
New York Times Finds Success with Facebook Campaign – ClickZ – reading this is a bit meta: media company which makes its money by advertising, uses Facebook advertising to successfully market itself (presumably offsetting the amount it spent in acquiring traffic by advertising on Facebook with selling advertising on its own site)
UK media set for thousands more job cuts-analysts By Kate Holton LONDON (Reuters) – British media companies could cut tens of thousands more jobs in the coming years as the economic downturn hits an industry already ravaged by the Internet revolution. British newspaper groups and broadcasters have…
Child farming is not some cynical way of getting indentured slaves, fresh organ donors or creating human batteries to power The Matrix. Instead it was used by Karen Crouse in her article Koreans learn to speak LPGA’s language (International Herald Tribune, November 2, 2008) to describe ‘cultivating successful sons and daughters confers great prestige on the parents.’ Whilst there is balance needed in everything, I think that child farming is healthier than having parents that don’t care, or don’t take an active part in the upbringing of their child.
The article discusses the way LPGA management, in particular commissioner Carolyn Bivens tried to impose American culture and values: assimilate the South Korean players into a culture starkly different from their own and to emancipate them from what she characterized as overbearing fathers. It sounds to me like a particularly distasteful form of hubris, cultural fascism and possibly racism. It reminded me of the way indigenous children were taken from the ir parents and put in boarding schools to break them from their culture.
It would make more sense to work with the parents instead, something that Bivens seems to have an aversion to do. What’s next? US high school-type show-and-tell practice for Europeans unused to public speaking compared to their US counterparts?
Purpose based marketing
Purpose based marketing – in the words of former P&G marketer Jim Stengel purpose-based marketing is ‘defining what a company does – beyond making money – and how it can makes its customers’ lives better.’ This isn’t a new concept, P&G’s Pampers higher purpose is helping Mums bring up ‘happy, healthy babies’ rather than keeping them dry and clean. Unilever brand Surf washing powder conversely is about helping Mums having clean happy families.
That doesn’t necessarily mean that purpose based marketing will neatly align with corporate and social responsibility goals. Although I could see that these two things will get conflated at some point into a primordial soup of everything ‘doing good’.
It’s about alligning your brand with customers emotions, values and needs. Apple is a really good example of this. Kudos to The Wall Street Journal Europe – P&G Marketer sets up own shop by Suzanne Vranica (Monday November 3 2008).
Nintendo announces new version of DS gaming handheld: the DSi » VentureBeat – interesting new design on the DS with the Nintendo DSi. The Nintendo DSi features two digital cameras, supports internal and external content storage, and connects to a Nintendo DSi Shop. The Nintendo DSi supports ‘physical games’ in addition to DS games with DSi-specific features and standard DS titles. The only exceptions in backwards compatibility is any DS products that use a Gameboy Advance slot.
Facebook Redesign Succeeds: Widgets Are Dead – interesting article on how the Facebook redesign has killed the basic widget Facebook application. Clearing this clutter will hopefully make Facebook a more useful and rewarding platform to use. I still personally dislike it however.
Social media and brands in 2009 – Shiny Red’s vox pop survey; nicely done. Wouldn’t necessarily agree with some of the trends such as the semantic web, but otherwise good material. More related content here.
James Earl Jones has one of the most distinctive voices in the entertainment industry as you can hear in this Sesame Street clip. You might recognise from his appearance in Conan the Barbarian film, but James Earl Jones has a surprising variety in his career across film, television and stage performance. James Earl Jones has done voiceover work for everything from Disney’s The Lion King to CNN station idents.
Hollow Spy Coins – talk about niche businesses, this is definitely on the long tail. You have to admire their dedication to engineering this.
Economics
Boomtown of Dubai feels effects of global crisis – International Herald Tribune – Until recently, credit in Dubai was growing by 49 percent a year, according to the Emirates’ Central Bank — a rate almost double that of bank deposits’ growth. That unnerved some bankers here, who felt it could lead to a collapse. “In the U.S., the challenge is about keeping the banks going,” said Marios Maratheftis, chief economist for Standard Chartered Bank. “Here, the economy has been overheated, a correction is needed, and it’s about making sure the slowdown happens in a smooth, orderly manner.”
Klein Verzet: Freaking doomed – the premise is that the demand for shipping of raw materials like coal, bauxite and iron ore have ground to a stand still and soon even the factories of China will be a lot quieter – so the economic outlook is nothing short of ammegeddon
P&G to launch washing gel that cleans at 15 degrees – Brand Republic News – Brand Republic – “According to P&G, Ariel’s Cool Clean campaign encouraged more than five times as many customers than normal to switch to low-energy washing programmes, with Ariel customers twice as likely as the average consumer to wash at a lower 30 degrees temperature (28% of Ariel customers in 2007 versus 13% of those using other brands). P&G has a partnership with the Energy Saving Trust, which encourages people to use energy efficiently and reduce their carbon footprints.”
I, Cringely . The Pulpit . Data Debasement | PBS – cloud computing versus DBMS, interesting reading, I need to go back and look at it a few more times to understand it fully. But initial take is that parallel computing as well as parallel processing changes how computing works and databases have to be adapted (like Oracle’s Grid database concept from the tail end of the dot com era and cloud computing. It’s the failings of Moore’s law rather than progress that is driving this change
Cloud computing is a trap, warns GNU founder Richard Stallman – while I have sympathy for some of what Mr Stallman says, his argument misses the point about the benefits of social software. Open formats and APIs allow you to move from one service to another as needs must.
I, Cringely . The Pulpit . Collateral Damage | PBS – interesting take on the mobile market, not one that I necessarily agree with, but interesting none the less. Cringely expect that Microsoft Windows Mobile software will fail and has some interesting ideas around the why. I think Microsoft has everything to play for with enterprise users and can leverage items like security authentication and Outlook email access – they might not be dominant but they could still be in with a shout
Beginning of end of megapixel marathon – Pixel count gives phones and cameras the ‘Dixons Factor’ – being able to be sold easily by some pimple-faced oik; but doesn’t mean you will have better quality pictures. I have a digital SLR which takes pictures at 5.1 megapixels and a phone camera that will do the same – no prize for which one takes the better pictures.
I saw this notice talking about 87000 possible combinations and was reminded of the car industry. Back in the 1990s, I remember being told that car maker Volvo had over 30,000 combinations of vehicles available as passenger cars. This included: body shell variants, diesel and petrol engines of different sizes and power, manual or automatic transmissions, interior design options, in car entertainment options, safety features, paint jobs, body accoutrements. Since then Volvo has hinted at electric vehicles and now has at least two models of SUVs.
While I don’t doubt the statistical capability of Starbucks marketing department, I was surprised to see that the coffee shop could serve up 87000 possible combinations of drinks based on relatively few options. This could be even larger in Starbucks other markets like Hong Kong or Japan, where there are more beverage varieties like Milk Tea or Matcha lattes, and more seasonal variation such as sakura season and mid-autumn festival alongside the usual Starbucks products.
All of which brings home the impact of mass-customisation to a business. How would the Starbucks EPOS (electronic point of sales) system handle 87000 possible combinations? How does this impact the training of their baristas? Is there an operational model like a decision tree for these coffee options?
I wonder is there a Starbucks long tail? What is the split between cold coffee drinks and hot drinks? Has this long tail altered itself over time, as the popularity of flat white drinks have taken off due to the influence of Australian coffee culture? How does the long tail affect the relative prioritisation that Starbucks might put on the different ingredients that go into their drinks? Mass customisation has gone mainstream. What does this degree of customisation mean for other service and retail businesses? How does this compare to what is seen in personalised products like NikeID or MyAdidas?
