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.

  • The media of me

    media of me post

    Wadds came up with 13 theses about the media of me with more than a nod and a wink to The Cluetrain Manifesto. The main thrust of it is that the media model is broken, technology has a lot of the blame at its door.

    Picking through it are some worthy aspirations, but it was diagnosing symptoms rather than causes. I believe that the main problems in the media of me are wetware, not software. People and civil society rather than networks and servers.

    Technology has its own momentum

    As with many things, the reality and where we are going is much more complex. Kevin Kelly posited that technological progress is a natural force of its own. He called this force the ‘technium’. It is not moral, it doesn’t understand good or bad. It can be slowed down for a time, but never stopped.

    Even during the European dark ages, the golden age in Muslim countries saw Arab scholars:

    • Collate classical knowledge
    • Translate it into their own language
    • Build upon the body of knowledge

    This knowledge came back into Europe. It helped provide a foundation for the renaissance.

    We’re not going to be able to stop bots or algorithms. As they improve; their impact will be harder to discern. There will be a tension in online platforms; shareholder value versus good citizenship.

    Digital is a winner takes all world

    As with many previous technology markets such as the PC and smartphone operating systems online is an oligopoly of two. Digital media provides a disproportionate amount of benefit to very few platforms.

    Facebook and Google count for 85-90% of online advertising growth.

    In China, online media is dominated by Tencent and Baidu. We could ‘Balkanise’ the media landscape. But that would mean a poorer experience for users outside the US and China. The technology sector does not have:

    • Commercial scale in funding
    • Sufficient talent
    • Comparable addressable markets

    Timms & Heimans hypothesis of ‘new power vs. old power’ rubs up against technology as an uncomfortable vector.

    This all means that the tensions in society, civic society and societal discourse is accelerated and amplified.

    From the perspective of technology platforms this isn’t their problem. They are only tackling it with reluctance, they don’t have a silver bullet solution.
    In their eyes:

    • ‘Online’ isn’t a problem, it is the breakdown in social norms, which are then amplified and gamed online
    • In the real world we’re insulated from views unless we chose to explore alternatives. Algorithms have amplified this process further to create a filter bubble. Algorithms are only mimicing our natural desires. This is mirrored in the lack real-world discourse and polarisation of views
    • Algorithms are accused of having a reductive effect on an individuals breadth of media consumption. News feed algorithms jobs are to make platforms money. Before their widespread use netizens widely flocked to chatrooms and forums with a similar narrow focus. News readers using RSS which would allow individuals to read widely have proved to be only a niche interest

    Reading widely is important to be being well informed, but its a conscious choice that people have to make. But in order to read widely one has to be:

    • Sufficiently educated to be confident in their reading ability
    • Confident enough to ignore any scorn that might come from ‘books, learning and being an expert’
    • Sufficiently curious to have the motivation to read
    • Having sufficient time to be able to read

    These bullets are affected by quality of education, social norms and income. If you are just getting by with a series of side hustle jobs you might too time poor to read widely.

    These are not universal traits in society. In the UK the idea of the self-educated literate working-man who goes to classes at the Mechanics Institute is long dead. That wasn’t done by Facebook or Google.

    The notion of an easily swayed populus wasn’t an invention of Cambridge Analytica, Google or Facebook. The Roman poet Juvenal famous for the concept of ‘bread and circuses’ would see something similar in populist politics. From Brexit, to Germany’s AfD the focus on diversion, distraction and immediate satisfaction ‘palliative’. A significant amount of common people are selfish in nature and often pay little attention to wider concerns.

    A quote from near the end of Jean-Paul Satre’s play No Exit sums it up quite well

    “All those eyes intent on me. Devouring me. What? Only two of you? I thought there were more; many more. So this is hell. I’d never have believed it. You remember all we were told about the torture-chambers, the fire and brimstone, the “burning marl.” Old wives’ tales! There’s no need for red-hot pokers. HELL IS OTHER PEOPLE!”

    Whilst in a democracy, all opinions should have the opportunity to be voiced; should they have a right to be heard? Should politicians really reflect the will of the people? I think there is a strong argument to be made against it. I am not advocating authoritarian rule, but that we need leaders who reflect on the greater good. Edmund Burke – one of the founding fathers of British conservatism is a widely cited example of a politician who didn’t reflect the will of the people. Burke recognised that democracy can create a tyranny over unpopular minorities. He didn’t consider politicians to be delegates; conduits for votes without moral responsibility.

    He is widely cited as being a better man for it:

    • Burke viewed the British conduct in India under the East India Company immoral
    • He advocated representation for American colonists
    • Acknowledgement of wrongdoing by the Crown in America and an appropriate apology

    Facts versus Emotion

    Facts and emotion have always duelled and facts have frequently come off the worse for it. Western politicians from Adolf Hitler to Barrack Obama have little in common except being successful exponents of rhetoric and emotion in their speeches. Technical skills and knowledge don’t make the cut. A classic example of this is the dissonance between the advice of John Redwood as a strategist with Charles Stanley versus his political stance on Brexit. Mr Redwood knows what works as a politician.

    Those that wield emotion now, have a greater understanding of how it works. It is why populist organisations win. It is why experts fail to persuade voters to act in their own interest. That won’t change with technology but with stonger, harsher electoral commission powers.

    Fact versus Fiction

    Yellow journalism and fiction has been with us for as long as civilisation existed. It’s modern roots are in the American media industry of the late 19th century, as publishers battled for circulation. They work because audiences love ‘good stories’. A good story is one that:

    • Surprises
    • Entertains
    • Reinforces our own beliefs

    American journalist Frank Mott listed the following characteristics of :

    • Scare headlines
    • Lavish use of images
    • Faked expertise: misleading headlines pseudo-science and false learnings

    All of Mott’s points sound like a thoroughly modern media playbook. Yellow journalism pioneers Hearst & Pulitzer were only stopped by public vilification and shame. The Pullitzer Price, like the Nobel Prize was a penitent act at the end of a successful  commercial career in media. Hearst & Pullitzer were owner-proprietors, it is a lot harder (though not impossible) to shame a public company today. The bigger issue is that a century of mass-media practice has lowered the bar in standards for ‘new media’ companies. A brutal legislative machine that would replace compliance through guilt with compliance through fear is a possible solution. However the legislative executive by its nature tends to favour the wealthy.

    More information
    What Technology Wants by Kevin Kelly
    Trend Watch: New Power v. Old Power by Beth Comstock
    No Exit and Three Other Plays by Jean Paul Sartre
    Satires by Juvenal
    Media of me: 13 theses

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  • Hyphbot + other news

    HyphBot

    How Adform discovered HyphBot – one of the largest botnets to ever hit digital advertising. The full HyphBot impact on all Adform’s platforms was extremely limited, costing less than $1,000 USD per month, the impact of HyphBot may have more extensive on other online advertising platforms  (PDF)

    Consumer behaviour

    Have we reached peak smartphone? – Kantar‘Younger mobile users aren’t simply listening to less music or reading fewer books; instead, the way in which they are engaging with entertainment and the devices they are choosing is evolving. For example, we have seen a decline in younger mobile users listening to music on their mobiles, but the purchasing of vinyl and streaming music through home virtual assistants is on the rise. Social networking has held steady, with 87.8% of 16-24-year-olds using their phones for this purpose (87% in 2016), so as new (or retro) technologies come onto the market the role of the mobile device for younger users will continue to change.’ – a certain amount of this is BS

    Ethics

    To predict crime, China’s tracking medical histories, cafe visits, supermarket membership, Human Rights Watch warns — Quartz – Minority Report in action

    Media

    When fake news will be made by pros – Monday Note – opportunity for PR industry? ;-)

    Interviews Come Back — With Cringely’s Answers – Slashdot – Slashdot’s proto-AMA with Robert X Cringely from 2000

    Software

    Sweating bullets: notes about the creation of PowerPoint by Robert Gaskins – (PDF)

    Google – The colour purple. | Radio Free Mobile – interesting support for Swift in the Fuchsia build

    Technology

    Facebook launches collaborative Stories for Groups and Events | TechCrunch – Storify / Moments for Facebook?

    Social Media Is a Denial-of-Service Attack on Your Mind | Nautilus – (paywall)

    Web of no web

    Apple wins one of their First Augmented Reality Patents related to Compositing an AR Scene – reminded of the locative art from William Gibson’s Spook Country. More related content here.

  • Sony Walkman WM-R202 – throwback gadget

    sony wmr202
    I got a Sony Walkman WM-R202 and loved it, though it was only for a short while. It was delicate and fragile, or I had a lemon; but it was the kind of device that stuck with me and made sense for me to profile as an iconic throwback gadget. Back when I started work I was obliged to do night classes in advanced chemistry. It was tough going (partly because I wasn’t that focused). I had a long commute home in a company minibus and my existing Walkman WM-24 whilst good had given up the ghost.  I decided to put what money I had towards a Sony Walkman WM-R202 that would help with my commute boredom and my night classes.

    Why that model:

    • It could record reasonably well which I convinced myself would be handy for lectures. It was not up to a Pro Walkman standard as the Dolby circuit fitted was for playback only. (I couldn’t afford the professional grade WM-D6C at the time and they weren’t the kind of device that you could easily fit in a pocket either. They were big and substantial.)
    • It had a good reputation for playback. Not only did it have Dolby B noise reduction and auto reverse on cassette playback, but it held the cassette really well due to its metal construction. I learned the benefits of good tape cassette fit in a rigid mechanism the hard way. I had got hold of a WM-36 which on paper looked better than my previous Walkman with Dolby B noise reduction and a graphic equaliser, but had to keep the door closed with a number of elastic bands. It was a sheep dressed up as a wolf and I struggled on with my original dying Walkman
    • Probably the biggest reason was that it intrigued me. It wasn’t much larger than an early iPod and was crafted with a jeweller’s precision. It was powered by a single AA battery or a NiCd battery about the size of a couple of sticks of chewing gum. It looked sexy as hell in in a brushed silver metal finish.

    Whilst the buttons on the device might seem busy in comparison to software driven smartphones it was a surprisingly well designed user experience. None of them caught on clothing, the main controls fell easily to hand and I can’t remember ever having to use the manual.

    What soon became apparent is that you needed to handle it very carefully to get cassettes in and out. I used to carefully tease the cassettes in and out. Despite my care, one day it stopped working.  Given that mine lasted about two weeks, I am guessing that mine was a lemon and that the build quality must have been generally high as you can still see them on eBay and Yahoo! Auctions in Japan.

    Since mine gave out well within a warranty period, I look it back to the shop and put the money towards a Sony D-250 Discman instead.

    Here’s a video in Japanese done by someone selling a vintage WM-R202 on Yahoo! Auctions which shows you all the features in more depth.

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  • Small business + other news

    Small business

    What does small business really contribute to economic growth? | Aeon Essays – not as much as politicians etc would have you believe. Probably the most emblematic example of ‘small business’ contributing to economic growth was Margaret Thatcher. Small business and financial services were supposed to replace the manufacturing sector which had been devastated.

    Business

    Will.i.am’s startup raises $117 million, enters enterprise market | Reuters – don’t hold your breath

    Poor PR Performance Puts Publicly-Held Agencies On Back Foot | Holmes Report – great analysis by Arun

    Consumer behaviour

    Majority Of White Americans Say They Believe Whites Face Discrimination : NPR – where to start with this?

    Online eco-system maps | Coventry University – students self-identify their web habits looking at it you can see how the public focuses on just a few sites

    Ethics

    No, of that I’m innocent. – Scobleizer – I was reading this and had my fingers covering my eyes. I am just thankful not to be counselling Scoble as a PR person or a lawyer

    Marketing

    Trump Data Guru: I Tried to Team Up With Julian Assange  – A Republican digital strategist who worked with Cambridge Analytica during the 2016 campaign told The Daily Beast that Nix should not be viewed as a reliable narrator.
    “Alexander Nix is not credible at all,” the strategist said. “He is a consummate salesman, and there are numerous instances already out in the public record where he made claims that were not just factually wrong—they were total fabrications.” – we’re still no closer to the truth

    PRCA Study: ROI Concerns Slow Digital Marketing Spend For UK PR firms – I suspect that this is a problem of strategy rather than measurement. Influencer programmes are very much a random bet in comparison to paid media

    Uniqlo’s Four Secrets for Building a Global Brand | Fortune – ‘truth telling’ rather than storytelling

    Media

    Taylor Swift is going to save the CD | Quartz – one of the few things I can agree with Taylor Swift on

    Clarifying Recent Tests | Facebook Media – interesting move given the panic caused by falling page engagement rates

    Retailing

    Alibaba revenues up 61% to US$8.3T, annual active consumers grew to 488M in Q3 2017 | China Internet Watch – the scale of the numbers are huge

    Ikea returns to Aichi after 1970s department store presence proved hard fit | The Japan Times – interesting reflections on when the flat pack giant was sold in a Japanese department store. There was an expectation that products came fully assembled

    Technology

    Harmony Link EOS or EOL? Logitech – looks like Logitech is going to need a crisis comms agency in March next year

    China’s Technology Ambitions Could Upset the Global Trade Order – The New York Times – AMD unpatriotic

    Wireless

    The Unprecedented Explosion of Smartphones in Myanmar – Bloomberg – this is insane. When I was working on Myanmar programmes some 3 years ago the internet penetration was in single figures

    Web of no web

    iPhone supplier Catcher Tech to make augmented-reality parts- Nikkei Asian Review – but this doesn’t mean that they are for Apple

  • Temasek + other news

    Temasek takes risky leap

    Magic Leap Raises $502 Million, Led by Singapore’s Temasek – Bloomberg – this seems insane. Temasek is Singapore’s sovereign wealth fund. It has holdings in DBS Bank, Singapore Airlines, Singtel and Mediacorp. Temasek grew a thousand fold during its five decades of existence. All of which makes the Temasek bet on Magic Leap seem even more odd. More related content here.

    Business

    WSJ City | A $20 billion startup fuelled by Silicon Valley pixie dust – yep WeWork

    In Europe’s digital race, the winner is the United States – POLITICO – this analysis largely rings true

    Consumer behaviour

    Millennials are no harder to manage than Generation X, according to the commentary of the 1990s — Quartz at Work – basically youth is youth is youth

    Brexit – a cry of financial pain, not the influence of the old | VOX, CEPR’s Policy Portal unhappy feelings contributed to Brexit.  However, contrary to commonly heard views, the key channel of influence was not through general dissatisfaction with life;  it was through a person’s narrow feelings about his or her own financial situation. There has been a correlation between leave vote areas and rising hate crime

    Culture

    Thinking about working for a Chinese company? First, find out if it’s a ‘Lenovo’ or a ‘Huawei.’ – SupChina  – With Huawei, all business seems to orbit around the company’s central headquarters in Shenzhen, and for the company’s overseas business, it relies on sending employees abroad on a massive scale. It is notoriously untrusting of local staff. “If someone works at Huawei and they are not Chinese, regardless of their title or salary, I guarantee you, they have very little real power or authority, even if they are based in their home country,” said a former Huawei employee. Another former Huawei employee told me, “When we’d work overseas, the Chinese staff would discuss an issue privately, and then agree on how we would communicate that issue to the local staff. Often the message we would give the local staff was very different from the reality of the situation.”

    Another industry expert said bluntly about Huawei, “I cannot think of another company in the world that has such a global presence, but pays so little attention to localization and integration.” – This had been doing the social rounds with former colleagues who had worked on the Huawei business, offered here without comment…

    Ethics

    Too many firms claim social goals they can’t possibly realise | The Australian – what happens when advertising does corporate communications and CSR

    Finance

    How a Messaging App Challenged Traditional Banks and Captured 45% of the Market – Counterpoint Research – interesting case study. The penetration of KakaoTalk in Korea is almost total

    The Transaction Costs of Tokenizing Everything | Elaine’s Idle Mind – this will give me unpleasant flashbacks from launching Enron’s broadband market internationally

    FMCG

    In 1973, I invented a ‘girly drink’ called Baileys – I looked down at the paper and there was an article about a golf tournament. The Open was being played at Royal Lytham. The headline mentioned R&A, golf’s governing body, and I instantly blurted “How about two initials? How do you like the sound of R&A Bailey? Think golf and the R&A.” “Great” he said, “I love it.” And that was that and I went back to reading the paper.

    Marketing

    Space: Marketing’s Final Frontier | Agency News – AdAge – 38% of Americans surveyed would be more likely to buy a product if its development was associated with space exploration

    Lee Child, British Crime Thriller Author – Xerox – really nice project by Xerox

    KLM first airline with verified WhatsApp business account – from September but still interesting

    Online

    Twitter is working on a feature that lets you save tweets for later | Digital Trends – this is kind of the way I used favourites on Twitter

    Retailing

    The War To Sell You A Mattress Is An Internet Nightmare | Fast Company – interesting cliquey environment

    Security

    Dodging Russian Spies, Customers Are Ripping Out Kaspersky | Daily Beast – not that much sourcing on this, but worry nonetheless

    Ad Industry Insiders Profited From An Ad Fraud Scheme That Researchers Say Stole Millions Of Dollars – interesting if what it alleges is true – the outcome will be interesting

    Software

    Google’s Learning Software Learns to Write Learning Software | WIRED – software writing other software

    Web of no web

    Apple Watch Hits Cellular Snag in China – WSJ – also allows domestic wearable vendors to catch up

    Samsung’s 360 Round camera livestreams 3D VR | Engadget – interesting focus on streaming

    Microsoft may soon launch its answer to the Amazon Echo – Business Insider – interesting statistics on relative performance of machine learning platforms

    Home – Voice Originals – interesting integration with Alexa

    Wireless

    ZTE Axon M dual-screen phone first look – YouTube – interesting development in smartphone product design

    Huawei and LinkedIn: A new way to power your professional relationships | Official LinkedIn Blog – I wonder how this fits with the Google licensing on Android?