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.

  • Megatrends by John Naisbitt

    John Naisbitt’s Megatrends was on the New York Times bestseller list when it was first published in 1982. Naisbitt outlined some big long term trends that he’d found as part of a decade of research. Hence the mega in Megatrends; though one could argue that macro may have been a more accurate term to use.

    I wasn’t that familiar with the work of Naisbitt; but came upon it by a circuitous route.

    My circuitous route to Megatrends

    I was introduced to the works of futurist Alvin Toffler in college reading Future Shock, The Third Wave and Power Shift. At the time these were cited on the technology degree courses my friends were on; as well as the marketing course I was studying.

    My house mate and I would talk about Toffler’s books as much Robert Pirsig or Emmanuel Kant, on the sofa of an evening sipping really bad instant coffee. I wouldn’t say that those were particularly happy days for me, but they did give me the time to think and read. Something that is much more of a struggle now.

    As I became more interested in Asia in the late 1990s; l read about how Toffler had influenced technocratic leaders from Singapore to China. I also started to read about John Naisbitt. Like Toffler, Naisbitt had done the Asian speaker circuits, met senior officials and conducted projects in-country through the 1990s. The management consultancy Toffler Associates eventually operated in China on government and private sector briefs.

    Compared to Toffler; Naisbitt seems to have become much more personally committed to China and central Europe. He has alternately lived in Vienna and in Tianjin, China. As the dot com boom kicked off I was reading this book. It fitted right in with similar writings from publications like Gilder Technology Report, Wired and Upside.

    LONDON
    Megatrends by John Naisbitt

    Back to the Megatrends review

    In Megatrends Naisbitt sets out X large scale long term trends that he sees in society

    • Information society and the rise of the knowledge worker
    • High tech / high touch – Naisbitt saw that roles would focus more on technology, or on ‘high touch’ sectors where humans aren’t easily replaceable like nursing care
    • Globalisation – a move in focus from the national economy to the world economy as the world becomes more interconnected
    • A move in strategic focus from short-term planning to long term planning.
    • Decentralisation of power and structures
    • A move from institutional help to self-help
    • Bottom-up governance across government and other organisations as a channel for public opinion
    • The move from hierarchies to networks
    • The population shift in the US from north to south
    • Increase in consumer choice

    At the top line we can still see much of these changes. I can see how Naisbitt’s vision of globalisation would appeal to the likes of Singapore and China. I am less sure about how Chinese technocrats would have made of bottom up decision making or as Naisbitt puts it ‘participatory democracy’.

    Naisbitt failed to take the next logical step; to look at the interactions between the trends. Instead the chapters remained siloed, rather than in context.

    For instance that the decline of hierarchies and rise of knowledge workers saw layers of management shed by organisations. Or the link between consumer choice and the rise of globalisation.

    Conclusion

    Megatrends has value in the way that looks at trends without looking at the how (usually mentioning digitalisation or some similar vehicle of transformation). This is something that we probably wouldn’t be able to do now; given that our mindset is about big data and agile processes. More book reviews here.

  • Eat Your Greens edited by Wiemer Snijders

    Eat Your Greens is a selection of articles curated by Wiemer Snijders on all things that come up for discussion amongst account planners. Branding, marketing, some home truths about innovation and the value of creative. Much of it recycles the stuff that account planners know from reading Sharp or Field and Binet. In addition there are a few that specifically address diversity, inclusion – but excludes ageism in terms of the ways it talks about these as an issue.

    Where’s the value in Eat Your Greens? The answer to that question depends on where you are in your career. As someone who is established in my career, I found it valuable in a few different ways.

    Some of the essays from the likes of Phil Graves, Mark Ritson and Ryan Wallman, Rose and Faris Yakob, Byron Sharp and Amy Wilson are strong enough to make Eat Your Greens worthwhile in its own right. For instance here’s some of what Ritson had to say:

    “The modern marketer has created an entirely stupid dichotomy between ‘digital communications’ and ‘traditional communications’… There are just tactical tools, and they can only be valued and selected once a target and a position and a strategy are in place. What’s more, it’s clear that most successful campaigns combine multiple channels for optimum success. Most studies suggest that the more channels a campaign includes, the better the ultimate ROI.”

    Mark Ritson in Eat Your Greens

    Going through the essays allowed me to come up with recommendations of new reading materials referenced in the essays – I have been using it to bulk up my Amazon list.

    Essays that I would particularly recommend:

    • What Ails Marketing by Mark Ritson
    • Post-Truth Telly by Tess Alps
    • To Target Or Not To Target, That’s Not The Question by Shann Biglione
    • Everybody Lies – The Importance of Psychological Validity In Consumer Insight by Phil Graves
    • The Devaluation of Creativity by Bob Hoffman
    • Biting The Hand That Feeds Us? Why Advertising’s Love Of Novelty Is Doing Brands A Disservice by Kate Waters
    • Why Innovation Isn’t As Sexy As Business Books Promise by Costas Papaikonomou

    For busy marketers or junior planners, Eat Your Greens is a nice introductory point for a number of issues in marketing, such as the corrosive digitisation of marketing.

    I think it fulfils an important role. Particularly for junior planners as many agencies now rely on an army of freelance talent. Eat Your Greens isn’t a substitute for having senior staff developing younger account planning minds on the job. But given the current state of agencies, its probably one of the best options that we have. More book reviews here and my slowly updated bookshelf here.

  • Influencer endorsements + more stuff

    Influencer endorsements fail to influence purchase decisions | WARC – Influencer endorsements play only a small role in affecting the purchase decisions of their followers, according to research from influencer endorsements platform Influencer and GlobalWebIndex. In their survey of consumers in the UK and US who follow influencers on social media, just 15% said influencer endorsements motivates them to make a purchase – the tenth most common response. In comparison, more than half of consumers who follow influencers say free delivery (57%) and offers/promotions (52%) would motivate them to make a purchase. – Interesting in light of the high amount of spend put around influencer endorsements by the likes of Unilever personal care and beauty products. Is this a lack of ‘influence’ or being more budget conscious that is the driver? There might need to be a readjustment of charges for influencer endorsements. Also as WARC notes, a long term test is required.

    Jailed WeChat User Says Chinese Police Monitor Overseas Accounts TooJin Chun, a former big data engineer at Huawei’s Nanjing Research Institute, meanwhile recently told reporters that all Chinese communications companies and internet service providers companies are required to monitor users on behalf of the ruling Chinese Communist Party. Faced with an official request for data, no company will resist, because they would cease to operate, he said. More on China here.

    Will Blaize Trailblaze Edge AI Market?   | EE Times – what people tend to miss about this is the pushback against the cloud, even with 5G connectivity

    Puncturing the paradox: group cohesion and the generational myth – BBH Labs – yet more evidence against generations

    Google giving far-right users’ data to law enforcement, documents reveal | Technology | The GuardianSaira Hussein, a staff attorney at the Electronic Frontiers Foundation, said in a phone conversation that EFF was concerned about the “vast amounts of user data” Google appeared to be voluntarily passing on to law enforcement, but questioned Google’s goal in doing so. “Are they expecting law enforcement to do something, or is this just a way of covering themselves? Does Google see its responsibility as simply reporting this to law enforcement and moving on?”

    Automated assistants – Wunderman Thompson Intelligence – limited but coming

    China drought, heavy rains spark concern over grain supply as Xi Jinping launches campaign against food waste | South China Morning Post – interesting when one reflects on this in conjunction with the Chinese government ‘clean plate’ initiative in the news last week

    She Helped Wreck the News Business. Here’s Her Plan to Fix It | WIRED – TL;DR brand safety is destroying online advertising in news and current affairs

    New Cold War With China Demands Radical Industrial Rethink for United StatesSince March alone, China has threatened to withhold medical equipment from the United States and Europe during the coronavirus pandemic; launched the biggest cyberattack against Australia in the country’s history; hacked U.S. firms to acquire secrets related to the coronavirus vaccine; and engaged in massive disinformation campaigns on a global scale. China even hacked the Vatican. These incidents reflect the power China wields through its control of supply chains and information hardware. They show the peril of ceding control of vast swaths of the world’s manufacturing to a regime that builds at home, and exports abroad, a model of governance that is fundamentally in conflict with American values and democracies everywhere. And they pale in comparison to what China will have the capacity to do as its confrontation with the United States sharpens

    Miss M: Guarding the City We Call Home | We Are HKersLike many of our forefathers, Mainland Chinese flee to Hong Kong and even overseas for obvious reasons.Among the younger students in my school, 80% have Mainland Chinese backgrounds (they are either from China or they speak Mandarin at home). Many treat learning English with disdain and fantasise that China will rule the world in the near future and foreigners will have to learn Mandarin to please the Chinese. This is a tragedy. Their parents send them to Hong Kong to study despite all the hardship, but the kids fail to forego their conservative Chinese mindset. This happens not only in Hong Kong, but also in Canada. The CCP have already gotten their hands on Chinese language newspapers such as Mingpao and Sing Tao Daily. Lennon Walls in Canadian universities are destroyed within days by Mainland Chinese students and their physical attacks on Hong Kong students are common – the degree of population change is quite phenomenal

    Why marketers should embrace Share of Search as a metric | WARC“The SoS calculation itself is simple. Calculate a rolling 12-month average of the various brands to be analysed, including your own. Total this. Divide each individual brand’s 12-month rolling average by the total and turn into a %. This is Share of Search, using Google Trends data.”

  • 1999 eclipse

    The 1999 eclipse, also called millennium eclipse as it would be the last total solar eclipse of the 2oth century popped up recently on the BBC.

    Solar eclipse

    For me it was a big online event. Eclipses don’t happen often. The last one in the UK had been some 72 years earlier. I was working in an agency in Covent Garden. It was the middle of the dot com boom. I had a mix of telecoms clients, the usual dot com projects and Palm PDAs as my clients.

    I had managed to hand off most techie client; custom chipmaker LSI Logic on to other colleagues.

    Delivering results wasn’t a problem for LSI Logic at the time. They were on the cutting edge of games console technology, computer storage and embedded electronics. Digital television was about to take off and LSI Logic had a chipset back then that even supported 8K transmissions. The corresponding displays to support 8K wouldn’t be along for another decade and a half. Its CoreWare library of chip functions based on a MIPS processor was the ARM of its day. But LSI Logic could fabricate the chips as well. The CEO was old school Silicon Valley, having been at Motorola Semiconductor and Fairchild Semiconductor.

    The problem was the European operation communications team were very process-orientated, rather than outcome-orientated.

    With a few of my clients (RSL COM and Bell Atlantic’s international wireless business); I was allowed to run with remarkable leeway. I got on well with my clients. For the most part, I managed to avoid screwing things up.

    Life was hectic, I was constantly tired from a lack of sleep. But overall it was good. I had gained a promotion and was saving for the deposit on my first house. I was sat on the end of a (massive for the time 1Mbit/sec T1 internet connection). Ok, I shared it with other colleagues. But it mean’t pretty reasonable for the time internet connectivity. The IT department allowed me to use FTP overnight and during the weekends to download vintage house mixes. At the time the legendary deephousepage.com site was run by a technician on a university web server, allowing downloads of mixes encoded using Real Media audio format. This was just before MP3 went mainstream.

    The 1999 eclipse came along and was to be the first ‘internet’ event that I would experience.

    The BBC along with Sky News and ITV devoted their entire morning’s broadcasting to it. As an agency; we didn’t have a TV that I could remember. There was a problem with getting access to an aerial socket given we were on the ground floor of a tower block. Also the landlord wasn’t accommodating as they wanted a higher paying tenant in the office.

    Dot com businesses were driving up office rents in a similar way to Chinese hot money driving up central London residential property prices a decade later.

    The day of the 1999 eclipse, London was overcast. Just before lunch, colleagues dipped out to watch whatever they could see. I jumped on my work computer and fired up the BBC website to watch the eclipse experience live. It didn’t work that well; I presume every design agency with an ISDN line had a similar idea that morning.

    I typed in the website address for Sky News and went there instead. It was slightly better. I then used the backwards and forwards buttons to switch between the BBC and Sky News. (It would be another few years before mainstream browsers like Mozilla and Opera had tabs). Both pages carried what was supposed to be live video of the 1999 eclipse.

    Just six months previously, our agency had done Victoria’s Secret annual fashion show as a web stream for the first time. Back in 1999, this was a major technical feat and for the most part it turned out alright. The picture was so small you couldn’t really make it out. I couldn’t tell you if it was Tyra Banks on the cat walk. But that didn’t matter, it captured the imagination. It was done as much for the buzz it would create, as for how many people would view it.

    I had high hopes for the eclipse. It was happening before the US came online. Back in 1999, as soon as the US woke up, our office internet speed would grind to a halt.

    The reality of the 1999 eclipse was more prosiac. The video was displayed on screen about the size of a large rectangular postage stamp. Like a special edition one that you might get for Christmas. The image changed in a very jerky manner, like a bad slide show rather than full motion. And there was no sound.

    But at least I got to see a full eclipse, which was more than my colleagues could say. The overcast day and only a partial eclipse over London wasn’t that thrilling. It would be at least another ten years before the internet was ready for mass live events.

    Two years later, the dot com bubble had turned into a bust. I was working at another agency, that thankfully had TVs and I remember leaning against a filing cabinet watching a plane hit the world trade centre in New York. It didn’t occur to me to go online. I knew that the web wouldn’t work that well.

    Four years after that, I was working at Yahoo! Europe, when our web pages ground to a halt as the UK scrambled to get the latest news on the July 7th – London bombings. This was the first social media event as the engineers saw a flood of pictures into flickr. This gave the team a 15 minute head start to strip the Yahoo! UK home page of adverts and scripts. Instead they rebuilt the home page manually (in Dreamweaver) and republished updates as they happened through the day and into the evening.

    Now, most events would be produced and streamed via a smartphone on to a service like Twitch, YouTube or Instagram with video good enough for broadcast news.

  • Mamahuhu + more things

    Scarlett, Shanghai and Me is a short film by comedy troupe Mamahuhu. They describe it as a film about coming to the end of your life as an expat in China. But I thought it was interesting as an examination of our lives with technology. Major Chinese cities now routinely use facial recognition as a biometric ‘key’ for things like entry access and voice services. Mamahuhu then ply a good deal of creative licence on top. The technology drives a ‘programmed’ world around you, what I’ve called in the past, the web-of-no-web.

    Action Bronson’s latest single Latin Grammys taps into Bronson’s long held love of bodybuilding and powerlifting. The video is like a sophisticated version of JibJab’s Elf Yourself with the sheen of VHS tinged nostalgia.

    Sam Chui got a behind the scenes tour with United Airlines to see how they were preparing for passenger flights in a COVID-world. Its fascinating to see how they’re re-engineered the passenger experience and back-end pre-flight processes such as cleaning the plane. It’s fascinating to watch, I am curious to see how much of this will stay when the COVID crisis is over?

    If you have ever watched Reservoir Dogs; or listened to the soundtrack you will know the ‘boss radio’ sound. (The Reservoir Dogs soundtrack was very popular in its own rights; in a similar way to The Guardians of The Galaxy mixtape of a few years go). ‘Boss radio’ was started in Los Angeles in the 1960s. You had a rise in teenage culture, surf culture. So KHJ decided to compete by devoting more of their air time to music. It was also famous for the ‘sound’ of their DJs. You can here this sound in this sales presentation recordings, presumably for brands and advertising agencies at the time.