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.

  • US military right to repair + more

    Here’s One Reason the US Military Can’t Fix Its Own Equipment – The New York Times – the irony of the US military being restricted by US legislation and lack of ‘right to repair’. US military withdrawal from R&D hasn’t help things either. DARPA does pure research, but the focus on COTS (commercial off the shelf) solutions by the US military has seen a withdrawal from more practical applications. Where is the modern US military equivalent of things like the Piccatinny rail standard? More security related content here.

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    Facebook’s fake numbers problem — Lex in depth | Financial TimesFacebook’s own estimates suggest duplicate accounts represent approximately 11 per cent of monthly active users while fake versions make up another 5 per cent. Others claim the total is higher. Yet Facebook continues to promote its user base as an incredible 2.45bn per month — close to one-third of the global population.” – ok so some of the logic is wonky, but the underlying point is very interesting

    Adidas is shutting down its Speedfactories in Germany and the US — Quartz – Adidas is apparently moving this to APAC which negates the agile advantage. Is this more about Capex and recent poor financial results instead?

    Sidewalk Labs document reveals company’s early vision for data collection, tax powers, criminal justice – The Globe and Mail The community Alphabet sought to build when it launched Sidewalk Labs, she said, was like a “for-profit China” that would “use digital infrastructure to modify and direct social and political behaviour.” While Sidewalk has since moved away from many of the details in its book, Prof. Zuboff contends that Alphabet tends to “say what needs be said to achieve commercial objectives, while specifically camouflaging their actual corporate strategy.” – some of the most sinister stuff I’ve heard of, that hasn’t been originated by Chinese Communist Party cadre

    E-Commerce Content Marketing: A 2020 China Trend | PARKLU – basically OTT shopping TV

    Luxury Daily | Breitling in step with resale mood launches online trade in programme – or a way of stimulating sales. Rolex seems to have sucked a lot of the momentum out of the luxury watch market. Breitling and and other brands like IWC have suffered

    Chaebols and firm dynamics in the Republic of Korea | VOX, CEPR Policy PortalMoving from low- to high-income status implies that countries escape the middle-income trap. This implies institutional reform to create innovation-based growth. The column uses firm-level data to show how the Korean government’s chaebol reforms in the late 1990s transformed the economy from an investment-based to an innovation-based model. There are lessons here for China.

    USAF officer says China brags about stealing US military tech, they call it “picking flowers in the US to make honey in China” | War Is Boring”China devotes significant resources at a national level to infiltrate our universities and our labs,” Murphy stated. “They are doing it for a reason. They’ve even coined the phrase, ‘Picking flowers in the US to make honey in China,’ which I would say perfectly illustrates their deliberate plan to steal R&D, knowhow, and technology

    Why are so many countries witnessing mass protests? | The Economist – interesting on how there isn’t necessarily a clear correlation of reasons, despite efforts to find a pattern – (paywall)

    Apple, TikTok draw congressional rebuke for skipping hearing on China – The Washington Post – I hope that they get penalised

    Dialog 50 cent SoC Targets Disposable Bluetooth Market | EE Times – environmental disaster in waiting

    Smartphones Rule. But Should They Control Cars? | EE Times – no they shouldn’t

    Something in the air – Why are so many countries witnessing mass protests? | International | The EconomistAs Red Flag, an Australian socialist journal, sees it: “For more than four decades, country after country has been ravaged by neoliberal policies designed to make the mass of workers and the poor pay for what is a growing crisis in the system.”

    Opinion | Why Google’s Quantum Supremacy Milestone Matters – The New York TimesIn everyday life, the probability of an event can range only from 0 percent to 100 percent (there’s a reason you never hear about a negative 30 percent chance of rain). But the building blocks of the world, like electrons and photons, obey different, alien rules of probability, involving numbers — the amplitudes — that can be positive, negative, or even complex (involving the square root of -1). Furthermore, if an event — say, a photon hitting a certain spot on a screen — could happen one way with positive amplitude and another way with negative amplitude, the two possibilities can cancel, so that the total amplitude is zero and the event never happens at all. This is “quantum interference,” and is behind everything else you’ve ever heard about the weirdness of the quantum world.

    5G will only be as revolutionary as the devices we design for it — Quartz“When we’ve spoken with consumers who carry the latest smartphones today, and you talk with them about 5G, what these users are saying is that the current form factor and feature sets cannot take advantage of the promise of 5G,” Sethi told Quartz. While smartphones are great for reading the web, watching videos, and checking emails, there’s not much that a considerably faster connection speed will do for them that they can’t already do.

    Unreal life: just 21% of Brits believe internet personalities portray life honestly | YouGov – about authenticity as a concept….

    Letter of the US attorney general – very thoughtful defence of end-to-end cryptography in the face of sensationalist ‘protecting children’ claims

    How China’s mystery author called its economic slowdown | Financial Times – interesting read about the end of China’s growth

    I Accidentally Uncovered a Nationwide Scam on Airbnb – VICE – the interesting bit is that AirBnB don’t care if people get grifted

    China effectively bans online sales of e-cigarettes | Revue – given that: China invented the e-cigarette and the government has a monopoly on smoking sale. This isn’t the market opportunity loss Juul et al might think that it is

    IPA | IPA reacts to Twitter’s political ad ban If online platforms won’t commit to a publicly available, platform-neutral, machine-readable register of all political ads and ad data online, then they should consider following Twitter’s lead in banning political advertising – and even then what would the first solution solve, given the failure of legislative regulation – what’s the point of a register when you have both major parties more crooked than a yakuza convention, but without the style?

    IPA | IPA Insight Infographic: Smartphones – interesting point for me is that the phone alarm didn’t appear on this

    IPA | Legal Update 31 October 2019Google announced that they are making changes to YouTube to address the substance of the FTC’s concerns and will apply these changes globally. The changes, which will be rolled out from January, include:• moving families over to YouTube Kids through notifications and educating parents about its benefits;• identifying Made for Kids content on YouTube via a combination of input from creators and machine learning; and • no longer serving personalised ads on Made for Kids, for all users regardless of age, and serving only contextual ads on this content

  • Choi Hyun woo & things that made last week

    Choi Hyun woo

    TV shopping channels are huge in Korea. Asian Boss did this great interview with Choi Hyun woo, one of the most successful shopping TV pitchmen (pitchwoman) in Korea.

    Looking at data from home shopping company CJ ENM Commerce division, sales are starting to focus more on premium and luxury products from international brands like Karl Lagerfeld and Vera Wang. Overall TV viewship has been declining; but TV home shopping has been steadily growing.

    Good document on how consumer behaviour and technology will affect the future of retailing and e-commerce by Sparks & Honey. Its a book rather than a presentation.

    Amazing bit of creative work by Alzheimer’s Research UK.

    We’re in a golden age of TV drama and it looks like thins are only going to get more interesting with this trailer from HBO’s adaptation of The Watchmen universe. This seems to go in a very different direction to the original Watchman series. It is picks up from the end of the original book when a ‘trans-dimensional’ invasion fails. It doesn’t have the cold war orientation of the original series and is instead a show for our times. The HBO series focuses on issues of race and class. It looks as if it could be more entertaining than the original film adaptation that felt a bit flat.

    https://youtu.be/-33JCGEGzwU

    McDonalds have pushed these ads about trust and they play on human truths like the discomfort of formal restaurants or the tyranny of choice in grocery stores. A classic example of this tension is that many people I know refuse to eat on their own in a restaurant. I don’t have that hang up at all. McDonalds deserves credit for really listening to consumer insights and playing them back tot the audience for added brand resonance.

  • Influencer marketing – what does the future hold

    What does the future hold for influencer marketing was an event organised by PR Week that I got to attend last week.  Below are some of the thoughts and key points that came out of the event.

    The Competition and Markets Authority

    They are responsible for enforcing The Consumer Protection from Unfair Trading Act (2008) (paywall) which governs transparency and claims across all marketing including social media influence campaigns.

    In terms of jurisdiction they have a reciprocal relationship with the FTC to enforce the law on campaigns that are being run out of the US that would affect the UK and vice versa. Geography can no longer be considered a defence.

    In terms of compliance, there is an emphasis on brands needing to monitor influencer campaigns and enforce disclosure. The legal responsibility falls equally across brands, agencies and influencers. All three are obliged to go through content and retroactively apply the act if the content is likely to be resurfaced in the future. So you are less like to have to alter tweets and Facebook posts than say YouTube videos and blog posts.

    In general they felt that brands (and their agencies) were too naive and trusting with regards influencers.

    False and misleading claims at the corporate brand level (a hypothetical example would be gold mine claiming its a green sustainable company) aren’t something that they would deal with, but they acknowledged that this kind of incident would likely breach the law.

    At the moment the Competition and Markets Authority is considering the role of platforms as agents of influence, but isn’t looking at items like Amazon’s recent algorithmic change.

    Unsurprisingly the Competitions and Markets Authority have no desire to get involved in regulating political campaigns on social. The whole area is radioactive. Whilst there would be societal benefit, it would call into question the independence of the civil service and a host legal / constitutional issues.

    Judging by the reaction of the audience, more of them were up to speed and complying with GDPR than The Consumer Protection from Unfair Trading Act – not for profits seemed shocked to find out that they weren’t exempt

    Content crowdsourcing platform Tribe

    Tribe talked about how Logitech used Instagramers to create photos for their paid media campaign to drive direct sales.

    Ad creative was lasting a week and a half on Facebook (Facebook & Instagram) before ‘ad fatigue’ set in. From my own personal experience, traditional creative lasted appreciably longer. Tribe didn’t indicate whether they had an opinion on the cause of this premature ad fatigue. Factors that might be responsible include context collapse (lower usage, with less time per session on the platform by consumers) that has been afflicted the Facebook platform for a few years

    Logitech internal division of labour on social influencer marketing campaigns

    One of the perennial questions that is asked is where does PR stop and (digital) marketing teams start with regards social media influencers. Logitech’s approach was a common sense approach to this question. High follower number influencers were dealt with by the PR team just like members of the press or celebrities. Micro and nano influencers were co-opted by marketers as part of the process to drive sales. It makes sense, but it was the first time I had heard it broken down explicitly by a brand in public.

    MSL research on the future of influencer marketing

    They had wanted to explore both consumer and influencer attitudes to extrapolate insights; given the codependent nature of influencers on agencies and brands.

    The research involved surveying 1,000 consumers and 100 influencers. So take the insights with a pinch of salt. The slides weren’t shared but I’ve reconstructed the data from photos I took at the event.

    • 1,000 consumers were asked about their thoughts on the influencer landscape
    • 100 influencers were asked on their views on brand partnerships

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    Slide5

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    Influencers don’t like to be pigeonholed as influencers, according to consumers the title has become a dirty word

    This conclusion is counter intuitive. The common wisdom is that:

    • Gen-y and gen-z are happy to ‘sell out’
    • Professional v-logger (YouTube, Twitch, TikTok etc) are desired professions in the same way that DJ, rock musician or celebrity were previously

    Yet the influencers surveyed think that they are changing the world for the better. For instance some of them are dealing with fans who share their suicidal thoughts. But the label of ‘influencer’ was considered to have lost its currency.

    Influencers that other influencers respect. People who have demonstrated resilience; they have gone through trials and tribulations and triumphed. Zoella and Lilly Singh were among the most popular cited.

    Influencers feel that they are being treated like a channel and the process has got too transactional. Yet one of their key motivations to stay in their career as influencers is to pay the bills.

    Panel discussion

    If you’d have ran this event ten years ago. The panel discussion would still have been very similar. Measurement was considered very immature, but then the panel bifurcated. Measurement is much easier when you are using advertising and tracking through to a purchase. The discussion got muddled as paid and non-paid measurement strategies were discussed side-by-side without differentiation or explanation.

    Social agency Goat made an interesting disclosure. They’ve worked with about 100,000 influencers and found that the vast majority did not work in delivering sales. But there are no data or heuristics about which influencer is likely to work, or the reasons why?

    What was missing in influencer marketing discussion?

    The main item that I felt the discussion missed was the role of social platform algorithms in creating social bubbles and reducing campaign reach. OgilvyOne’s paper on considering life after the demise of organic reach doesn’t seem to have factored into PR agencies (publicly expressed) thinking some five years after it has been published.

    Secondly, I was surprised at the lack of progress. Whilst the platforms have changed over the past ten years. The issues don’t seem to have altered at all for communications agencies. Whilst some agencies like Edelman (and 90TEN where I am currently working) realise that a blended PESO* media mix is required – there was a large faction of earned media only practitioners in attendance. Ten years later, advertising and creative agencies have learned many of the techniques that PR agencies considered to be their domain in order to improve ‘talkability’.

    This is out of step with clients requirements for two reasons:

    • Clients want to effectively measure their success and the tools available to paid media are more complete
    • As OgilvyOne proved in their research a number of years ago, we’re heading to a demise in organic reach

    Brand marketing is in a resurgence after marketers had fetishised technology-based performance marketing for at least the last decade and a half. Influencer marketing may now be too important to be left to the the PR team…

    *PESO (paid, earned, shared, owned) – different media types.

  • Nostalgia + more things

    If Nostalgia Isn’t What It Used to Be, Why Are We Living in the Past? | NewsweekOur past keeps growing, and as it does, it continues to crowd out our present, shortening the already narrow nostalgia gap. If Tom Vanderbilt thought treating last month’s music as classic was silly, think about various #TBT (“Throwback Thursday”) posts online, which celebrate historical events that happened a mere seven days ago. 

    We could shrink this gap even further. Like many kids her age, my 20-year-old sister is obsessed with the 1990s. When Netflix announced that it was remaking the ABC television show Full House , she and her friends took to Facebook to share their delight that a show from “their childhood” was coming back. 

    This reaction struck me as odd because my sister was born in 1996: a year after the original series ended. She does the same thing with other ’90s phenomena, taking to social media to share images and songs and neon colors from a decade that she describes not as her favorite , but as her own.– more on consumer behaviour here.

    Why Zero-Emission Hydrogen Is the Best Way to Power the Cars of Future | Robb Report – great article by the Robb Report which highlights my skepticism around Tesla et al

    Why Estée Lauder are spending 75% of their marketing spend on influencer marketing | The Drum – what’s the job to be done that their spend is that skewed?

    Costco grand-opening hoopla gives way to disappointment in Shanghai | News | Campaign Asia – this didn’t look like it was going to end well

    As Hong Kong Churns, Beijing Bankrolls Shenzhen | EE Times – interesting that they are trying to ‘overcook’ Shenzhen

    Sources say China used iPhone hacks to target Uyghur Muslims | TechCrunch – the thing that puzzled me is why China would want to take off data from Chinese SNS that the government has a pipeline into anyway?

  • Carry nothing + more things

    Men Know It’s Better to Carry Nothing – The Cut – Mediumwomen clean up because fashion allows it. She pointed to the size of women’s bags, which allow us — like sherpas or packhorses — to lug around the tool kits of servitude. A woman is expected to be prepared for every eventuality, and culture has formalized that expectation. Online, lists of necessities proliferate: 12, 14, 17, 19, 30 things a woman should keep in her purse. Almost all include tissues, breath mints, hand sanitizer, and tampons — but also “a condom, because this is her responsibility, too.” (A woman’s responsibility for everyone else’s spills extends to the most primal level.) – I don’t think that this ‘carry nothing’ mentality of men is true any more. One only has to look at the backpacks carried around. Or the whole EDC culture of over-engineered products to optimise the carry experience, making a lie of carry nothing as a concept. For a lot of men, the car is the handbag, but that’s a whole other discussion around the idea of carry nothing. More consumer behaviour related content here

    Gender ad bans set ‘concerning’ precedent, say advertisers | FT – the publishing ban only applies to direct marketing: members of the public, media outlets and sites like YouTube can continue to share banned materials.

    Amazon offered vendors ‘Amazon’s Choice’ labels in return for ad spending and lower prices – Digiday – shit meet fan….

    REON POCKET | First Flight – personal cooling device using Peltier effect to cool behind the neck

    Silicon Valley’s China Paradox | East West Centerthe period from 2014 to 2017 as a time of “segmentation and synergy,” two words that on their face are opposites of each other. Their juxtaposition forms the core of what Sheehan labels “Silicon Valley’s China paradox.” While at a corporate level US and Chinese companies were entirely separate, the flow of money, people, and ideas reached an all-time high during this period. “This is when you saw a lot of investors from China showing up in Silicon Valley, some prominent US researchers and engineers joining Chinese companies in positions of leadership, and ideas flowing in two directions,” said Sheehan. He noted that the concept of shared bicycles, now popular in US cities, started in China, and both Chinese and US companies have been active in the development of autonomous vehicles. Even while the relationship between the two national governments was in many ways going sour, “the relationship at the grassroots level, the technology relationship, was still very free-flowing,” he noted. Sheehan suggested that the relationship has now entered a new and uncharted phase, which he termed the new “technology cold war,” with the US government asserting national policies in what was previously considered a private arena. This new phase has three dimensions, he said. The first is an effort to disentangle the interconnected technology com- munities that bind the two countries together. In 2018, the US Congress passed the Foreign Investment Risk Review and Modernization Act (FIRRMA). This new legislation increases US government oversight and supervision of Chinese investment in Silicon Valley, Sheehan pointed out. The US State Department also began restricting visas for Chinese graduate students working in sensitive fields of science and technology. The second dimension is height- ened competition between US and Chinese companies in other countries. In general, “American companies know they can’t win in China, and Chinese companies know they can’t make a dent in the US market,” according to Sheehan. So US and Chinese companies are competing in markets such as India, Brazil, and Southeast Asia. (PDF)

    Why Consumers Aren’t Buying Electric Cars | naked capitalism – no great surprise

    US smart speaker update – (PDF)

    Fake news and cyberwarfare from China in Hong Kong protests | Slate – really good analysis of some of the online events happening in Hong Kong

    The big scoop: what a day with an ice-cream man taught me about modern Britain | Food | The Guardian“Since Brexit, people have less money, and less confidence in spending money. They haven’t got the money in their pockets they had a few years ago.”

    Apple and Samsung phone sales are down, and $1,000+ prices are one reason why – BGR – less convinced by this explanation – BlackBerry could have fitted into this format as well in its decline

    In-house marketing ‘costing firms lost productivity and creativity’ | Netimperative – but is the pay-off worth it should be the question

    US and China investors battle over Indian digital payments boom | Financial Times – so I think that Payments in India will turn out to be a White Elephant but the FT thinks that its a growth market

    Revealed: Johnson ally’s firm secretly ran Facebook propaganda network | Lynton Crosby | The Guardian – a lot positive advocacy campaigns can learn from this

    Are Companies About to Have a Gen X Retention Problem? HBR – or why are gen-y self entitled snowflakes part 43

    Taiwan primaries highlight fears over China’s political influence | Financial Times – Want Want China Times and Cti TV deny they take instructions from China’s Taiwan Affairs Office like good little United Front puppets. Who would you trust them or the FT?

    TikTok creator ByteDance to enter smartphone market, following deal with Smartisan | SCMP – not convinced by this move

    Boris Johnson to unveil biggest ad campaign since Second World War to prepare for ‘no deal’  – 100 million that realistically would need to be spent in 9 or so weeks. That’s a lot of gaslighting….

    Filling hospitals with art reduces patient stress, anxiety and pain – imagine seeing those tiles whilst well medicated

    Websites are (probably) making less money because of GDPR – MIT Technology Review – the caveats read so wide its hard to conclude anything from this really