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.
Nexta media operation and its role in the Belarus protests was the main article in this weekend’s FT magazine.
FT magazine on Nexta
A few things about the article. The old maxim of ‘hearts and minds‘ is still true despite technology. Secondly, Belarus seems to view media and propaganda as a tactic rather than something strategic. This surprised me given that Belarus has always been authoritarian in nature and Soviet in terms of the way it operated. It is at odds with the way countries like Vietnam and China operate.
Finally, the irony that the smartphone is the instrument of protest. Nexta seem surprisingly well organised in a way that wasn’t seen with voices around the Hong Kong protests.
YouTube has a lot of digitised archive footage. First up is unused footage shot in 1962 filmed for a Pathé film This is Hong Kong.
The next reel was shot six years later. Again it was footage that ended up on the cutting room floor of Pathé. The footage was shot for one of its Colour Pictorial episodes. These were film magazines that screened prior to the main feature film in a cinema. Television would be soon squeezing cinema as the main form of video based news and documentaries.
Some of this footage was familiar to me from my times going and living in Hong Kong, whilst other aspects of it were unrecognisable. Both of these films reminded me of Miroslav Sasek’s book This is Hong Kong.
Japan
This footage is said to be taken in Tokyo, Osaka and the countryside in Japan during the 1980s. Though the airplane through bamboo scaffolding footage from 0.23 – 0.25 seems to have been taken on the run in to Hong Kong’s old Kai Tak airport. Some of it is beautifully shot.
It is underpinned by a an ambient track that works really well.
ASICS have put together a film to promote the shoe.
Berocca integration of radio and voice services
Finally Berocca did an innovative radio advert to take advantage of voice services as part of its radio advertising campaign. Alexa has a well documented API stack for building skills, which is what Berocca is encouraging consumers to use. I could see this happening more as Alexa is rolled out in automotive environments.
How Klarna’s pastel pink exterior began to crack | Dazed – Klarna isn’t new technology, its unsecured financing. Once you scratch beneath Klarna’s technology veneer you realise that Klarna is like pre-internet business like a shopkeepers lay away or the catalogue agents who used to work for Freemans and Littlewoods. Previously the catalogue companies were vertically integrated with retailing and consumer finance. Now Klarna does the unsecured consumer finance, de-risking the retail business. But this business model leaves Klarna with all the risks. Klarna also has age-old problems regarding fraud. I am also concerned about the consumer debt risk that Klarna represents.
Ex-officials, academics call for US to work with Europe to counter China | South China Morning Post – “A road map for US-Europe cooperation on China”, published by the Paul Tsai China Centre at Yale Law School on Wednesday, the experts said steps needed to be taken as an “urgent priority” in six key areas: trade, technology, human rights, climate, pandemic plans, and reform of international institutions
Dead poet rekindles cultural feud between South Korea and China ｜ Apple Daily – “There is general consensus that Yun is Korean and it is not in dispute,” he said, adding that “the Chinese hegemony is imposing its values on South Koreans.” – first trying to steal kimchi, now trying to steal Korean patriots; the Chinese government has no shame
The China challenge | Financial Times – the interesting thing is the way China is co-opting Goldman Sachs and others as a fifth columnist hook into the US until they have their digital currency ready to challenge the dollar as global reserve currency
Is The Role of Digital Becoming Obsolete Within Luxury Companies? – recent changes at the top level management at LVMH may signal a wider move within the luxury industry to move away from “digital transformation” and a shift towards a “total immersion” in their business.
Adam Curtis knows why we all keep falling for conspiracy theories | WIRED UK best read with The China model has come to America – Asia Times – Far too few Americans grasp the implications of such a view taking root among their own elite. Though more and more Americans are awakening to the challenges inherent in China’s growing economic, technological, and military capabilities, few understand the threat that China’s governing philosophy and structures pose to the US. – assumes that US philosophy will stand on its own merits, or in other words magical thinking or a blind spot
1 in 12 Irish people access radio on digital devices | RTÉ – About 8% of the population, or 330,000 people, listen each day using a digital device, the report found. Just under 5% listen via a mobile device, 2% on a PC and around 1.5% on a Smart Speaker and the remainder on a TV set or DAB (Digital Audio Broadcasting). – 77% on FM. This makes sense given high car ownership, poor mobile coverage and slow progress of DAB head units in cars
China eyes ‘virtual production’ technique used in The Mandalorian to help local film industry catch up to Hollywood in visual effects | South China Morning Post – the scenes were not shot on location, on a movie set, or using a green screen. They were filmed in front of a giant LED wall display that could project an imaginary world as one that appears real to the audience. Known as “virtual production”, the digital background are generated in real time by a powerful computing game engine, allowing filmmakers to combine live-action footage with visual effects in real time. The technology could revolutionise filmmaking because real world settings can be replaced. China, with more than 20 billion yuan (US$3.1 billion) of box office revenue in 2020, is known for its theme parks across the country that double as locations for film shoots. In the town of Hengdian in China’s eastern province of Zhejiang, for instance, the so-called “movie city” built a replica of the Forbidden City for filmmaking
Facebook Meets Apple in Clash of the Tech Titans—‘We Need to Inflict Pain’ – WSJ – The war of words and ideas will ultimately play out in court, regulatory agencies and user decisions as both companies defend themselves against antitrust investigations. The potential regulatory settlements and legal decisions are likely to affect hundreds of millions of consumers’ phones in coming years. A Facebook spokeswoman, Dani Lever, said the choice between personalized services and privacy was a “false trade-off,” and that Facebook provides both. “This is not about two companies. This is about the future of the free internet,” she said, asserting that small businesses, app developers and consumers lose out under Apple’s new rules. “Apple claims this is about privacy, but it’s about profit, and we’re joining others to point out their self-preferencing, anticompetitive behavior.” – spoken like a true sociopath
User domestication was an interesting phrase that I noticed in an essay about the growth of WhatsApp. In the essay the author highlighted a number of factors in WhatsApp’s success:
Having a proprietary messaging client that didn’t support industry standards for messaging such as the XMPP protocol supported by Google Talk. (Google later abandoned the XMPP open protocol itself in favour of its proprietary Google Hangouts).
WhatsApp had a low learning curve of adoption through to a well designed user experience.
The user experience of WhatsApp was easy to learn
WhatsApp worked across both Android and iOS devices which helped its adoption through network effects
This led to a number of things, which the author identified as user domestication factors:
A high level of user dependence on WhatsApp
No control over the software. (it can’t be modified, it prevents migration to another platform – a la Facebook and people’s address book)
Exploitation of ‘captive users’ who would find it difficult to resist
If all of this sounds familiar, its because it was the Facebook playbook from the get-go. Like organising export of your address book from Yahoo! to Facebook, but not the other way around.
Captured attention
The author makes clear that WhatsApp is just an illustrative example.
This probably explains why the essay doesn’t seem to match up with the WhatsApp story pre-Facebook. Founders Brian Acton and Jan Koum originally had a nominal subscription model. Acton went on to help set up the Signal Foundation, after leaving WhatsApp post Facebook takeover. His reason for leaving was concerns over the monetisation of WhatsApp by Facebook.
But I think that there can be little argument that Facebook thought of WhatsApp as a user domestication opportunity.
The relationship that the media industry has with consumers through the use of DRM (digital rights management) is a similar form of user domestication mentioned in his essay.
Another example of this ‘user domestication’ in action is the apparent failure of Google’s search choice screen to have any effect on its monopoly market share in Europe.
It differs from previous generations of technology lock-in exercised by the likes of Microsoft, IBM and Apple in that the costs of these obvious upfront. In user domestication, the costs are less apparent and the value extraction happens on an ongoing basis.
Digital golden bull at Pavilion, Kuala Lumpur & Chinese new year
The golden bull in question is on the digital screens of Pavilion, Kuala Lumpur, Malaysia. Pavilion is an upscale shopping area and the animation was designed to tie into the year of the ox in the Chinese lunar calendar.
The golden bull is supposed to be auspicious and is seen to break through the coronavirus that affected 2020.
https://youtu.be/llFkwcAlFSk
Pavilion Kuala Lumpur
The golden bull execution is very similar to an installation done by a Chinese property developer that I found earlier this year. Both rely on corner screens and on understanding the viewing angle of pedestrian footfall streaming past the animation.
Following on from my post collating adverts celebrating Chinese new year last week, Radii China had some additional suggestions that came out after I had written my original post. Let’s hope that 2021 lives up to the auspicious promise of the golden bull.
Design & culture
The Royal Shakespeare Company is looking at using a virtual set for a performance based on A Midsummer Night’s Dream. RSC’s Dream will be performed live from March 12 – 20, 2021. It shows how the arts are looking to adapt to a COVID world and experimenting with cutting edge technology.
RSC – Dream trailer
My friend Arun has released a COVID inspired track available for purchase from Underbelly Music on Bandcamp. Check out the accompanying video here.
Coffee Hype x Underbelly
This weekend I will be watching the latest Adam Curtis documentary series – BBC iPlayer – Cant Get You Out of My Head it’s the only thing that I bother watching on the BBC now.
I haven’t driven a BMW in well over 20 years, so Doug DeMuro’ update on the BMW brand was fascinating.
BMW Twitter account
The BMW brand issue hadn’t been on my radar until Doug DeMuro talked about it. A number of things seem to be happening with BMW.
The company’s customer base is predominantly gen-x and baby boomers; because their cars are expensive. For decade these people have been told that the BMW brand represents the ultimate driving machine.
An important part of the visual BMW brand: the design language that it is implementing on is problematic. In particular the ugly ‘beaver teeth grill. This is ironic given that an electric car doesn’t need a grill for its engine.
It didn’t help things that from a certain angle the rear of the BMW iX has a resemblance to the Nissan Juke.
Nissan Juke 1.6 Advance 2017 by RLGNZLZ
It has at least an internal perception that it has lost its BMW brand mojo as there is a slow steady move away from the internal combustion engine.
If you look at other YouTube automotive channels, BMW seems to be having reliability issues with its current cars and the repairs are expensive to do. Back in the early 1970s the BMW brand was tarnished with negative perceptions about the cars being rust buckets and the company managed to lick that. The current engineering problems sound more complex.
All of this makes the BMW brand sound more difficult to fix than being on the socials and being up to date with their yoofspeak.
Canada concerned as Hong Kong starts to force dual citizens to choose status – The Globe and Mail – individuals who declare themselves Canadian could now lose their residency rights to live in Hong Kong.“It’s the beginning of the end for people in Hong Kong with Canadian status,” said Vancouver immigration lawyer Richard Kurland. The policy on dual citizenship stems from a 1980 law in mainland China that was then applied to Hong Kong when the United Kingdom handed over the city to Beijing in 1997. “The law was on the books for years but it wasn’t always enforced,” Mr. Kurland said. – interesting move
The Longer Telegram: Toward a new American China strategy – Atlantic Council – single most important challenge facing the United States and the democratic world in the twenty-first century is the rise of an increasingly authoritarian and aggressive China under Xi Jinping. China has long had an integrated, operational strategy for dealing with the United States. The United States has so far had no such strategy with regard to China. This is a dereliction of national responsibility – interesting read. Right on with its diagnostics, but off base with its proposed solution. The west thought that Xi was a moderate when he came into power. He has extended his loyalists in every aspect of the party. The Jiang Zemin faction of the party, which would be an alternative aren’t liberal; they used the army to put down student protests in 1989.
Commission chief tells charities not to be ‘captured’ for politics | Charities | The Guardian – Charities that support politically or culturally contentious causes should expect their charitable status to come under regulatory scrutiny even if they are acting within the law, according to the outgoing chair of the Charity Commission. The Tory peer Tina Stowell, who is stepping down after three years in the post, warned charities against being “captured” by unnamed people who wish to push a partial view of the world and use charity platforms to wage war on “political enemies”. – this is going to be interesting
Looking downstream – Tortoise – as a long time netizen I am less certain that regulating platforms for content will work and worry about the precedent it would set for authoritarian regimes. Should OTT platforms such as Netflix, Disney+ or Amazon Prime carry news? Here my first question is how do you define news? Should they do real time news reporting, probably not even if they could. Should they do current affairs analysis – they already do if you look at the kind of documentaries that they have. I think that there should be real questions about those documentaries in terms of quality and bias? While we’re on about documentary making, surely the BBC could be doing more work with Adam Curtis or Bellingcat and have those people training the documentary film makers of tomorrow
Liu Yifei Announced as Face of Louis Vuitton China | Radii China – LVMH betting on woke western liberals not being their customer base and choosing polarising star. It also shows how far Fan Bingbing’s star has fallen since her tax troubles. Crystal Liu was the protagonist in the car crash live action version of Mulan. She’s also not as beautiful as Fan Bingbing
How Europe Became a Model for the 21st Century – DER SPIEGEL – Despite its long list of crises in recent years – including the most recent vaccine snafu – the European Union has become a global pacesetter. Its laws and regulations have established global norms. This has made the bloc a 21st century model. – I agree with the direction of this article, even if some of the examples could be debated
Silicon Valley’s iron grip on venture capital is slipping — Quartz – the shift to smaller tech hubs that’s been going on for years is set to move even faster, according to Stanford. “The pandemic has thrust the VC ecosystem into new territory where Zoom meetings and alternative deal sourcing methods reign supreme,” he wrote in an analyst note. “This shift has, at least somewhat, leveled the playing field for investor attention…Over Zoom, it doesn’t matter if the company is in the same building, city, state, or country.” – no credit given for the dissipation technology start-ups to places like Singapore and Shenzhen. For instance, social darling Clubhouse is based on Chinese voice technology. But there’s also a bigger issue about the decline in hard innovation which is easier to do in a tight cluster. Since its no longer happening, the cluster makes less sense. More on innovation here.
Bases for Trust in a Supply Chain – Lawfare – With a supply chain attack, there is a potentially long delay between the introduction of a vulnerability and its exploitation. In addition, infiltrating a supplier generally requires a well-resourced adversary and interaction with that supplier. So compared to the alternatives, preparations for a supply chain attack take longer and have a higher risk of discovery. The risks of discovery can be reduced, however, if inserted vulnerabilities resemble ordinary flaws and, thus, the malicious intent is disguised. The digital systems on which individuals and nations increasingly depend are large and complex, so today they are likely to be rife with vulnerabilities. Many of those vulnerabilities will be known, some unpatched, and others easily discovered by analysis. In short, such systems are easy to compromise.
Russian hack brings changes, uncertainty to US court system – new rules for filing sensitive documents are one of the clearest ways the hack has affected the court system. But the full impact remains unknown. Hackers probably gained access to the vast trove of confidential information hidden in sealed documents, including trade secrets, espionage targets, whistleblower reports and arrest warrants. It could take years to learn what information was obtained and what hackers are doing with it – you can’t hack paper
