Blog

  • Choice Blindness

    I’ve always wanted to understand how consumers don’t have a higher level of dissatisfaction when they go home with the supermarket’s own brand goods as a mistake instead of a branded product with the apparent answer being choice blindness. It was neatly captured in culture with Bruce Springsteen’s song 57 channels and nothin’ on. (This is the the reason why Tesco, ASDA et al will often have rows of branded goods in the middle of similar looking own brand products, the own-brand products have a higher profit margin for the supermarkets).

    New Scientist talks about the phenomena in Choice blindness: You don’t know what you want by Lars Hall and Petter Johansson (April 18,2009):

    …in an early study we showed our volunteers pairs of pictures of faces and asked them to choose the most attractive. In some trials, immediately after they made their choice, we asked people to explain the reasons behind their choices.

    Unknown to them, we sometimes used a double-card magic trick to covertly exchange one face for the other so they ended up with the face they did not choose. Common sense dictates that all of us would notice such a big change in the outcome of a choice. But the result showed that in 75 per cent of the trials our participants were blind to the mismatch, even offering “reasons” for their “choice”.

    We called this effect “choice blindness”, echoing change blindness, the phenomenon identified by psychologists where a remarkably large number of people fail to spot a major change in their environment.

    I find it facinating that people will even justify their ‘wrong’ decision. Is this just academic? No, it has a major commercial impact which is why many retailers have look a like brands to take advantage of choice blindness. This lead to a court case between ASDA and McViities biscuits over the look a like brand Puffin.

    It is at the centre of dark patterns for in-real-life retail. Search in e-tailing acts as a neat filter. But not every retail experience can be satisfactorily transferred online. Secondly promoted items on Amazon and eBay as examples can be as disruptive as retail tactics that take advantage of the phenomenon.

    There is a big question so far unanswered about how ethical is retailers use of choice blindness as a tactic. With carefully designed packaging are consumers being deceived? McVities might well believe so. The question of whether consumers are the injured party is more complex. If you ask a consumer that has bought a private label brand, they are likely to post rationalise their purchase rather than experience cognitive dissonance.

    So its not the same level of disappointment experienced when one is ‘bait-and-switched’ a real product for a counterfeit purchase. But does that somehow make it more honest?

    More consumer behaviour related content can be found here.

  • Barbarians Led by Bill Gates

    I started reading Barbarians Led by Bill Gates after the I’m a PC campaign tried to humanise the brand image of Microsoft. Barbarians is an unusual book: it is unspun lacking the fingerprints of public relations-led storytelling and yet fits uncomfortably between gonzo journalism and business history book. This partly explains the negative reactions that the book received on its release, in that it is a curates egg of a book.

    Its isn’t strictly a history that describes Microsoft, instead it like it reminds me of a great definition for art “art isn’t about what a thing looks like, but what a thing is.”

    It peers inside the software company and shows how chaotic happenstance, internal politics and ego rather than smarts managed to bring the company from being a lowly start-up to one of the world’s biggest and most powerful corporates which would match a reasonably sized country in earning power. The smarts came in when they realised the opportunities that they had been handed and the magicians art of promoting a new product: and a key part in this magic was my former agency WE Worldwide and in particular senior executive Pam Edstrom aka Gates’ keeper.

    If you are in PR, the descriptions of the planning that went into campaign execution and long-term relationship building alone will be very instructive. For me, the description of life on the inside of Microsoft rang true, as it resonated with my own experiences in-house at Yahoo! as projects ebbed and flowed in priority on an almost weekly basis.

    The book is also the story of how Marlin Eller gradually fell out of love with the company he had help build, how politics triumphed and expertise waned as Microsoft grew from a scrappy start-up to being part of the establishment. The portrayal of Bill Gates ultimately makes him more human because of his fallibility and indecision. Things that were polished out of his official image.

    Although the book finishes its story in 1998, it is by turns instructive and provides an interesting prism to view the company through, as the experiences described shape the legal and commercial environment that Microsoft operates in today. For instance, Google’s openness mantra is designed to be a judo move on Microsoft’s historic business model, using the corporations own strength and size against itself.

    Barbarians led by Bill Gates is also an artifact, staring back into marketing and PR before The Cluetrain Manifesto and The Naked Corporation, but comparing and contrasting with the present can provide a a useful aid to learning a number of powerful lessons. More book reviews can be found here.

  • Sun Microsystems + other news

    Sun Microsystems

    Oracle in shock $5.6 billion takeover of Sun – Computer Business Review : News – Sun Microsystems is a Silicon Valley icon. Cisco built their first routers around a Sun Microsystems motherboard. Dot com companies hosted their fledgling online businesses on Sun Microsystems servers. Quant analysts in banks built their models on Sun Microsystems workstations

    Consumer behaviour

    Consumers ‘turned off by social networking spam’ | Netimperative – interesting statistics

    A Dialog about the Future for Students and Employers: The Upcoming Social Workforce « Web Strategy by Jeremiah Owyang | Social Media, Web Marketing

    O’Brien: Older generations adopting new technologies faster than young – SiliconValley.com

    Culture

    YouTube – James Lebon’s Channel – original International Stussy Tribe member James Lebon had put up a number of the videos he directed. Check out the classic Paradox – Jailbreak and Force & Kzee – Who got the last laugh, through to the poptastic Betty Boo (just doing the do). The real downer about aging is having watched great talent die too young.

    FMCG

    Britons know 10 recipes by heart

    How to

    Knowem UserName Check – Social Networking Username Availability – thanks to Becky for this one

    50+ Google and Yahoo Search Shortcuts Cheat Sheet

    populair.eu – good set of recommendations on likely places where buzz starts

    HOW TO: Use Social Media to Champion International Causes

    Ideas

    Hyping the Hype Curve – broadstuff

    Innovation

    Official Google Blog: Hard at play in Google Labs with Similar Images and Google News Timeline

    Ireland

    Village – Politics, Media and Current Affairs in Ireland – “Erin Go Broke” – a bit concerned about this. I don’t particularly want to see my home country go a bit Iceland. More related content here.

    Japan

    Inhabitat » Kyocera Unveils Kinetic Flexible OLED Cell Phone – nice article on product design trends

    Panasonic and NEC to unveil nine Linux devices on Monday as the LiMo Foundation takes off : Boy Genius Report

    Louis Vuitton and Takashi Murakami x QR Code – Josh Spear, Trendspotting

    Jobs in Tokyo – Danny Choo is looking for a new staff member, sounds like a cool opportunity

    Marketing

    Branded iPhone Apps and the Misleading Allure of Buzz

    Facebook | Creative Capital – interesting event

    Collective Conversation » Hill & Knowlton Digital in China » Blog Archive » Our Very Own Digital Library – Launched!

    Media

    Susan Boyle boosts traffic to ITV.com by 700% | New Media Age – I was shocked by this since I didn’t expect ITV.com’s viewership to be as low as the figures imply.

    Research: Going Web-Only Could Kill Your Newspaper | paidContent:UK

    The Failure of #amazonfail | Clay Shirky on AllThingsD

    Earnings: Google Back To Growth In UK After Managing Exchange Rates | paidContent:UK

    Ignoring the community – a look at Yahoo! Hong Kong

    Online

    The Twitter stampede continues (and Facebook dominates in Europe)

    SEO & Social Media Roadmap

    Yahoo Shutting Down The Rest Of Jumpcut In June

    Retailing

    Hello! launches online fashion shop – Brand Republic – media does retail

    The Butler’s Back: Ask.com Brings Jeeves Out Of Retirement In UK | paidContent.org

    Technology

    Apple Stops Gaining Market Share (AAPL, DELL)

    Wireless

    MTV Launches Branded SIM Card In Malta | mocoNews

  • Brands in China – be true to yourself

    I was reading a post the other day (and forgot to bookmark it – my OCD having been taken out by the man flu) about how a substantial minority of  respondents thought that US-originated international brands in China like Coca-Cola were  local Chinese brands. Coca-Cola originally entered the Chinese market in 1928 and then re-entered when the country re-opened to the outside world in the early 1980s.

    Coca-Cola Chinese design

    The drink’s Chinese logo marries the traditional Coke flowing lines with the Chinese characters for ‘delicious happiness’. Coke welded itself to China’s caterpillar-like emergence at the Olympic games – so it is easy to see how Coca-Cola has become a Chinese brand for Chinese people. Here in the UK, Coca-Cola is an unashamedly US brand: from GI’s swigging it back during the war to halcyon images of American Graffiti to the urbane cougars (Sex in the City before Sex in the City) featured in the original diet Coke adsand hippies offering the world a Coke.

    Yahoo! in the US is an all-American brand: Jerry Yang and David Filo building a business in the proverbial garage is the quintessential American story. They were not trust fund kids like Bill Gates, one was from the American South and the other was a first generation immigrant.

    In Asia the company has managed to define itself as a local Asian brand. Yahoo! Japan is as much about Softbank founder Masayoshi Son as Yang and Filo. In each of the Asian countries where it has been successful the brand has developed specialist services that meet the needs of the local population and give them ‘ownership’ of the brand.

    By comparison, in Europe, Yahoo! is a big amorphous brand that people don’t really get since what it stands for hasn’t been clearly articulated on a regular basis.

    With Japanese brands Muji, Uniqlo and Nintendo they are unashamedly Japanese. Chauncey Zalkin in her recent article for Brandchannel Made in Japan: The Culture Behind The Brand points out how Japanese companies have made a virtue of being Japanese. If I see one flaw in her argument it would be that I would argue Sony has redefined itself as a global brand that stands for nothing rather than competitors like Nintendo or Nikon who have managed to retain their ‘Japanese-ness’ and maintained a respectable financial performance over the long term (at least this far).

  • Underground

    Murakami is best known for his book Norwegian Wood, but I chose Underground: the Tokyo gas attack and the Japanese Psyche as my first Murakami book. It is his only non-fiction work to date (at least to my knowledge).

    Murakami fled Japan after the success of Norwegian Wood and was lacking context around the Sarin attack on the Tokyo underground in 1995. It was a fantastical and terrible event that sounds like it has been plucked from the pages of a Tom Clancy or Robert Ludlum novel.

    You have a weapon of mass destruction cooked up by a cult that has echoes of the Mansion family about it.

    Underground was his way of making sense of it. He interviewed survivors and protagonists telling the stories in their own words.

    It is antithesis of Tom Wolfe’s new journalism: Murakami manages to let the people speak for themselves. Murakami removes himself completely from the work, which is the antithesis of the personal nature in a novel. Instead you get uncoloured reportage. If Wolf did new journalism, Murakami has done ‘Muji journalism’. Simple unadorned content which lets the story be the story.

    What comes out of their stories in Underground a strength, modesty and stoicism that shines through the horror of the experience that the people went through. I was reminded of that oft quoted Japanese saying ‘fall down seven times, stand up eight’.

    I was told that it was a dark book that is heavy going, but I didn’t find this to be the case at all. These people and their response to the Tokyo underground gas attack are an example to us all confronted with sudden adversity.

    The Tokyo gas attack was a shocking event and both systems and processes broke down, but what came out also was the heroism of the people involved in dealing with the tragedy and their deeply ingrained ethical system. More details of Underground here. More Japan related content here.

    Picture courtesy of NeilsPhotography