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.
For me string art is something that was a hangover from the 1960s and 70s. I remember visiting a number of schools as a child as I was going to move infant schools. One of the ones that my parents and I visited had a giant felt covered board with tacks nailed into it and coloured threads forming a geometric patten of string art.
https://flic.kr/p/24nfCjU
Artist Petros Vrellis took string art to a new level. Using a giant circular frame with 200 pegs and a computer programme built in Openframework to work out where to arrange the 2 kilometre long strings.
More on Petros’ string art work here. More design related content here.
I’ve been listening to a lot of Dimitri from Paris this week. Here’s a sample of this work
Kerri Chandler does a rare set using reel-to-reel tape recorders. The models he is using are mid-range consumer models by Pioneer (I think they’re the Pioneer RT-707) with direct drive motors that the Japanese manufacturers pioneered in hi-fi. I suspect Chandler is using these more for their compact size than them being the best machines. The RT-707 couldn’t take 10 1/2 inch reels
He is putting it all into a vintage Bozak mixer. Back in the 1970s and 80s, DJs used reel-to-reel tapes much more in the DJ booth. It allowed new recordings to be tried. Or edits and mixes that had been made at home played to a live crowd.
The reel-to-reel machine didn’t allow you the same control of tempo that a Technics SL-1200 or CDJ machines would allow. Reel to reel tape allowed for a richer saturated sound than digital recording does.
Ogilvy did a presentation on what previously have been called youth marketing trends. Despite them using the generation Z label there is some good consumer trend content in it.
If you were around ten years ago, much of this is is familiar and would have been said about millennials. Authenticity was also said about generation X. Though it was often tied to the idea of not ‘selling out’.
Hyundai and Ineos team up to develop hydrogen future | CAR MagazineBMW details fuel cell plans | EE News – I think that this move to hydrogen fuel cells makes more sense than lithium ion batteries. Hydrogen fuel cells are well understood, having been used by NASA during the Apollo space mission, the main challenge as been the cost of the cell. Hydrogen fuel cells don’t induce range anxiety and don’t have the environmental problems that you get recycling lithium ion batteries.
Panasonic finally looks at European battery gigafactory – but this is happening with hydrogen fuel cells being in a more effective decision. Elon Musk is down on hydrogen fuel cells, but ignores the issues with lithium ion batteries compared to hydrogen fuel cells. Lithium ion batteries have their own dangers. Hydrogen fuel cells don’t have the same recycling issues that spent lithium ion batteries have. Given the strategic hold over lithium mining by China; hydrogen fuel cells offer a better option to reduce dependence. The hydrogen lobby does a better job to combat the Tesla showmanship.
China
EU braces for battle despite new faces in White House | Financial Times – “ There will be a number of easy wins and enhanced co-operation on climate, the pandemic and remedying some of the offences of the past four years,” said Kristine Berzina, a senior fellow at the German Marshall Fund of the United States. “But there are real dangers that disagreements on issues like data privacy and digital taxation will make it more difficult to get agreements on other issues that are very important for both the US and Europe — particularly China
Germany frets over its corporate dependency on China | Financial Times – Robust Chinese demand has helped Germany’s auto manufacturers and their suppliers to offset weaker European and US markets still afflicted by the pandemic. But it has also revived concerns that German industry is too dependent on China. And it has raised questions about whether Berlin will be willing to respond to growing pressure in the EU for a stronger line towards Beijing and to embrace a new transatlantic partnership on China under a Biden administration. – you can see this in the split between Merkel and her party over China engagement – Daimler, which has two large Chinese shareholders, sells nearly 30 per cent of its Mercedes cars in China. It accounts for about 11 per cent of group revenues. For several companies in the Dax 30 index, China represents at least a fifth of sales including BMW, chipmaker Infineon and plastics manufacturer Covestro. Likewise, Volkswagen is estimated to generate a similar proportion of its sales in the country last year, selling nearly 40 per cent of its vehicles there. All of this leaves you vulnerable to the Australian situation: China sends a message with Australian crackdown | Financial Times – The message is clear. If your media is overly critical, if your think-tanks produce negative reports, if your MPs persist in criticism, if you probe Communist party influence in your community and politics and if you don’t allow Chinese state and private companies into your market, and so on, you will be vulnerable to Beijing’s retribution as well
Red Convergence | China Media Project – media policy in China – with implications domestically and internationally. It outlines how the Chinese Communist Party intends to leverage transformations in global communication, both at home and abroad (though the latter is more implied), to sustain the regime and increase its influence internationally.
Q&A: Gareth Richardson – Western Brands No Longer Have an Easy Ride in Asia | Branding in Asia Magazine – In China, there’s no access to Google and Facebook but consumers are immersed in WeChat. This is a playground where western brands have no inherent advantage. In fact, many Chinese consumers don’t know or much care about where the brand originated (save for a few specific categories such as Infant Milk Powder). In western culture individuals are heroes and this is reflected in the approach to brand storytelling. However, in Asia, the culture is more collectivist and storytelling celebrates multiple heroes. Asian brands should celebrate their cultural values. Examples include brands built on traditional values of Asian hospitality, such as Mandarin Oriental. There’s a paradox though. Asian culture is collectivist and yet Asian businesses are very hierarchical. There’s often a significant power gap between the C-suite and the frontline staff. This makes branding more challenging to implement even when its value is properly understood by the leadership – this also happens within agencies. True story: I was asked to go and present to the Chinese subsidiary of a US multinational. The global digital lead had gone in there previously with the global client ambassador and made a mess that couldn’t be cleared up. Firstly, they hadn’t recognised the great firewall. Twitter doesn’t matter in China. Secondly, they thought that democratic political campaigning experience was an example of great marketing. At the time, the person who was the global data lead had also worked on the first Obama presidential campaign. All of them had come from a political background and were clueless about brand marketing. Finally, they’d unintentionally priced a measurement solution ludicrously low. It was a shit show. We had lost the client already, but the client lead had held out hope that hanging on in there churning out a monthly report with no actionable insight would somehow provide a way back in. But at least I got to Guangzhou for the first time.
Consumer behaviour
Right-wing populism with Chinese characteristics? Identity, otherness and global imaginaries in debating world politics online – Chenchen Zhang, 2020 – The past few years have seen an emerging discourse on Chinese social media that combines the claims, vocabulary and style of right-wing populisms in Europe and North America with previous forms of nationalism and racism in Chinese cyberspace. In other words, it provokes a similar hostility towards immigrants, Muslims, feminism, the so-called ‘liberal elites’ and progressive values in general. This article examines how, in debating global political events such as the European refugee crisis and the American presidential election, well-educated and well-informed Chinese Internet users appropriate the rhetoric of ‘Western-style’ right-wing populism to paradoxically criticise Western hegemony and discursively construct China’s ethno-racial and political identities. Through qualitative analysis of 1038 postings retrieved from a popular social media website, this research shows that by criticising Western ‘liberal elites’, the discourse constructs China’s ethno-racial identity against the ‘inferior’ non-Western other, exemplified by non-white immigrants and Muslims, with racial nationalism on the one hand; and formulates China’s political identity against the ‘declining’ Western other with realist authoritarianism on the other. The popular narratives of global order protest against Western hegemony while reinforcing a state-centric and hierarchical imaginary of global racial and civilisational order. We conclude by suggesting that the discourse embodies the logics of anti-Western Eurocentrism and anti-hegemonic hegemonies. – This is interesting especially when the Communist Party of China is adopting a more Han nationalist stance (and in some respects reaching back into historic integration of Mongol and Manchu rulers). Secondly, Communist Party academics and legal academics from Beijing University have been drawing heavily on the work of Carl Schmitt. As have far right organisations and Russian nationalists. Schmitt was Nazi Germany’s leading legal theorist. He was known to be hostile to parliamentary democracy and supported the power of an authoritarian leader to decide the law. Schmitt’s rejection of attempts to take politics out of the operation of the law or economic policy implementation – have appeals to diverse audiences.
Design
Top 3 reasons why Nokia N97 failed: The “iPhone killer” that actually killed Nokia – Gizchina.com – Nokia N97 has a slide-out design with a three-line QWERTY keyboard displayed below the display. That was an advantage at the time, but it was just another manifestation of Nokia’s outdated ideas. With the improvement of input methods, touch screen keyboards have become more accurate and soon eclipsed physical keyboards. – the keyboard was very poor compared to the Nokia E90 Communicator that I used to use. I also remember that the address book feature used to crash the phone if you loaded more than 999 contacts into it. Even their ‘E’ series business handsets like my E90 Communicator and the later E71 devices. I moved to the iPhone because I wanted an address book that worked. If the iPhone ever came in a Nokia Communicator type format, I would be ecstatic. More gadget related content here.
Ideas
I have been watching more David Hoffman films recently, looking back to the past to try and understand the present. What becomes apparent was that there was a schism of values in the late 1960s America. What’s less apparent was how, or even if; that schism was eventually healed.
Good Collaborations Are Art, Great Ones Are Kitsch | Highsnobiety – “You know it’s art when the check clears,” said Andy Warhol. With Roy Lichtenstein and Robert Indiana, Warhol made his way into museums by turning the mundane world into works of art by enriching it with pop references, connotations and associations. Warhol’s art is commercial and his commercials are art (a Warhol ad launched Absolut vodka in 1986)
How to appeal to Gen Z in Asia | Vogue Business – “Chinese luxury consumers’ offline and online lives are becoming increasingly intertwined,” says Mark Morris, Burberry’s senior vice president of digital commerce. “They are demanding a more seamless blend of content and capabilities across their two worlds.” Working with local experts like Mr Bags and relatively lower-tier influencers (Ching has 6.6 million fans on Weibo, which is mid-range for a Chinese KOL) helped reach this level of engagement. “Gen Z wants to be approached in a narrow and deep, insightful way instead of using a mass approach with a big talent [and] hashtag ads,” says Rie Tanaka, senior business strategist and senior researcher at Japanese PR firm Dentsu
Five-Year Plan, 15-Year Vision by Geoff Yu, Bank of New York Mellon – at the outset a new long-term objective for 2035 was established: China is expected to “largely realize socialist modernization” by that year. Specifically, this means achieving GDP per capita of a “moderately (or mid-level, depending on the translation) developed country”. Again, we underscore that the FYP itself does not contain a corresponding numerical target, but during his remarks at the plan’s launch, President Xi Jinping remarked that “it is fully possible for China to realize a doubling of the size of the national economy by 2035”. Assuming the doubling happens in real terms, this comes to around 4.7%y/y p.a. real GDP growth over the next 15 years (PDF)
Japan gov’t may turn to YouTubers to promote ‘My Number’ ID cards – The Mainichi – To publicize the system, the government has inserted advertisements in newspapers and used digital signage to stream commercials at stations and in the streets, among other methods. However, it has not received as many applications as anticipated, and now places a big hope on the YouTubers’ power to transmit information. The choice is also apparently because labor costs are not as high as appointing nationally popular actors, celebrities and other public figures. Moreover, the Japanese government, by eradicating its image of stubborn bureaucracy and having people watch videos on YouTube without reserve, aspires to remove anxiety and concerns about possible personal information leaks that accompany the My Number system – surprised that Japanese influencers would be that cheap relative to their reach. More on marketing here
Resharing this as many people still don’t know about this old paper from Ogilvy on Facebook organic reach
Ex-Morgan Stanley bankers make a splash in Hong Kong as new boutique firm adds Ant Group, Xpeng to list of clients | South China Morning Post – launched last year by two former senior Morgan Stanley bankers, Crawford Jamieson and Daniel Wetstein, and has since added top-notch companies including Alibaba Group Holding, Ant Group, and Xpeng among its clients. The firm offers corporate finance advice to companies and financial sponsors in the technology, health care and financial services sectors, backed by experience in completing US$500 billion worth of deals between them since late 1990s.
PlayStation CEO says VR won’t be a ‘meaningful’ part of gaming for years – The Verge – Sony PlayStation CEO Jim Ryan says virtual reality won’t be a meaningful part of interactive entertainment in the near future. Ryan indicated to The Washington Post that VR still has a long way to go, although he emphasized that Sony isn’t giving up on the medium. The statement suggests that an update to Sony’s PlayStation VR headset is years away. “I think we’re more than a few minutes from the future of VR,” Ryan told the Post. “PlayStation believes in VR. Sony believes in VR, and we definitely believe at some point in the future, VR will represent a meaningful component of interactive entertainment. Will it be this year? No. Will it be next year? No. But will it come at some stage? We believe that.” – Interesting take. On one hand the hardware in Sony’s VR sets for the PlayStation doesn’t need to change due to displays, on the other hand the pause in take up seems to be software related. Does gaming have the kind of storytelling issues that VR cinema has?
Consumerology taps into Phil Graves experience as a consultant on consumer behaviour.
In the book, he draws on experience in retail marketing and classic marketing case studies such as New Coke. These examples show the numerous ways in which marketing fails to understand consumers.
Much of the tried and true testing methods used make consumer marketing decisions have their own built in biases and affect the results that marketers use to base major decisions on.
AFECT criteria
In Consumerology, Graves recommends a set of criteria to assess any research project against. The more that the research project aligns with these principles, the less likely it is to be adversely affected by consumer or marketer bias.
A – Analysis of behavioural data. Does the research look at consumer behaviour or not? If it doesn’t look at some aspect of consumer behaviour, it isn’t valuable.
F – Where the consumers in the right frame of mind? Where they observed whilst in a retail experience, making a purchase?
E – Environment. What is the context of the content. Research that isn’t observational / behavioural in nature should at least be done where retail decisions happen. Environment is bound together with frame of mind.
C – Covert study. Being aware of being observed affects behaviour. Think about the use of close circuit TV and fisheye mirrors to try and prevent casual shoplifting.
T – Timeframe. Did the timeframe of the study match the timeframe that consumers would typically use themselves?