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.
I read about soft girls, when a friend shared an article from Glamour magazine with me.
Glamour
Glamour is a women’s magazine published by Conde Nast. When it launched in the UK, it was famous for its ‘handbag format’ size, which then spurred innovation in the summer editions of men’s magazines. Nowadays it’s important for its beauty-led content. But it covers other aspects of wellness through to personal finance.
What is a soft girl?
Soft girl seems to be an extension of quiet quitting. Soft girls was considered to be an aspirational lifestyle. Soft girls are about the now, they don’t want a high-achieving high-flyer. Instead it about being in tune with herself: energy levels, her moods and her menstrual cycle. They’d like to live slowly, read books, artistic pursuits and making dinner for their partner or family.
Many working women can’t to go ‘full soft girl’ and quit working due to having bills to pay. Ultimately, it’s a sub-set of an idealised lifestyle shared on TikTok and Instagram by some women.
Why soft girl mattered?
I received the article wrapped in a critique:
Soft girl lifestyle implies immense social privilege to live a life of leisure.
It would put feminist achievements back decades.
Sharing such content set a bad example for girls and teenagers.
It was a social conservative version of Elysian fields for women who knew their place.
It wasn’t a proper piece of journalism.
Like the gender neutral quiet quitting, it’s a rejection of the rat race at a time when the deck is stacked against workers. In this respect it’s rather similar to the story of generation X slackers who were dealing with Reagonomics and a jobs market devastated by globalisation and automation.
Why soft girls don’t actually matter.
The whole story is based on a central conceit – that cohorts of people, generations if you will are somehow unique and special. The reality is that doesn’t hold true as much as you think. We change as we go through life stages, but there is more that binds us than differentiates us from one and other.
Group cohesion scores ( a measure of how much a given community holds a common set of values measured across 419 statements). In the UK population as a whole, the average majority opinion is held by 48.7% of the population. BBH looked at how generations scored on this measure and found that they differed from the overall population about +1.3, ‘gen-z’ cleaved even closer to the population norm with a difference of -0.2. Generations have no stronger connections to each other than the rest of the population.
Longitudinal patterns.
Remember when I talked earlier about the story of generation X opting out, instead choosing to hold down a McJob and becoming a slacker due to cynicism fuelled by Reaganomics, the cold war and poor employment prospects? It turns out that a Stanford research project found that the cynicism-fuelled life view was down to cross-generational increase in cynicism, rather than gen-Xers. However, the label stuck and marketers missed out on a valuable insight.
The Economist recently highlighted Gallup’s State of the Global Workplace 2023 Report. A survey that it uses to promote its corporate employment engagement practice to help business managers become effective coaches to their teams and use ‘science-based management’.
Gallup describes the survey as ‘the voice of the world’s employees’. In their introduction Gallup discuss how low engagement is costing the global economy about 9% of global GDP, because 59% of employees are ‘quietly quitting’. A further 18% were ‘loud quitting’ or actively disengaged from work. On those numbers alone, quiet quitting is cross-generational in nature.
And actively engaged employees have been increasing over the past decade and a half. This increase in work engagement came against a background of progressively increasing daily stress levels at work.
The most reliable indicators of engagement were whether the person was able to work remotely (high engagement) or in a workplace (lower engagement) and management (high) versus individual contributor (low). Women were slightly more engaged than men and age showed no difference.
Soft girls might be just a dreamy balm to get them through the daily grind.
In Canada, as with other countries a beep electronic sound punctuated the correct time. In Canada, this is called the long dash because of its extended tone. In the UK and Ireland I have heard it called the ‘pips‘ three short beeps instead.
Consistency and precision
Before we had precise time mediated by a beep; consistency was still important. The time was marked in different ways:
Church bells
Farm estate clocks
Railway station clocks
Factory sirens
While this time would be consistent on a daily or weekly cycle, it gradually became apparent that it could differ from one town to another. Accurate time was crucial for mariners looking to gain an understanding of how east or west they were – their position in terms of longitude . You compare the position of the sun in the sky, how far it is on its access at midday GMT time and then back calculate your position. But marine chronometers were not commonplace onshore.
Half a century after the development of the chronometer, George Stephenson’s work developing the steam locomotive started what we now think of as railways and the Bessemer steel process allowed for mass production of railway tracks. Railway timetables were the point at which widespread consistency and precision were needed, with a country (or at least a time zone in the case of large countries like Russia, Canada and the United States) having a common time.
Radio
Radio programmes carrying some sort of time signals allowed a country to use watches and clocks that weren’t chronometer accurate that could be periodically compared and reset against the beep of the time signal.
The delay in propagating a time signal in most countries was not meaningful. The beep also featured on speaking clock services where a caller could dial in to a telephone line at a time of their choosing to receive the precise time to the second, every ten seconds. BT still provides the service in the UK. They are used less frequently with the rise of quartz watches, mobile phones and computers.
The Angelus
In Ireland, Roman Catholic heritage combined with the need for a time signal meant that the bells were rung on TV and radio at 12 noon and 6pm for The Angelus. When the Angelus started on the radio, Roman Catholic households would be able to mutter the prayer to themselves. Having it on the radio also served a socio-political purpose as well as a time marking purpose in the Ireland of Eamon DeValera where piousness was a key part of the Irish identity the young country looked to foster.
Modern Ireland, particularly in the urban areas is a very different, more diverse Ireland than the rural-dominated Ireland of DeValera
RTÉ aside
Before Ireland went to a 24 hour broadcast schedule on RTÉ radio 1, the station turned on at 5:30am with an electronically created interval signal that was a more tuneful version of the beep.
This repeated at regular intervals until 6am when the announcer would the start of programming. It often marked my time to get up for my milk round or shift work.
It still appears at the same time, announcing the transition of overnight programming shared with RTÉ Gold to radio one’s first programme of the day Rising Time.
Technology systems
Accuracy was improved by the invention of the first atomic clock in 1955. This built on theoretical work that had been done from the 1930s onwards in the area of magnetic resonance imaging (MRI) devices. By the mid-1960s Hewlett-Packard were building 19″ rack mountable atomic clocks, eventually it became small enough to squeeze on a satellite. By 2004, researchers had built an atomic clock mechanism the size of a coffee bean.
Atomic clock time codes are a crucial part of global positioning satellite signals. Mobile operators have used these. Then there are several radio stations around the world on shortwave and long wave transmitters who send out a regular time code. These timecodes are used to correct clocks and watches including Casio watches with the ‘Multiband 6 feature‘.
Prior to widespread adoption of the internet, computer network workstations, be they Mac or PC would have different times on them, usually set by the user or the system administrator at the computer. While mobile phone networks could distribute accurate time signals to mobile phones, they often didn’t. Some networks supported the summer time transfer, others didn’t.
The internet and workstation grade PC operating systems provided an opportunity for widespread use of network time protocol servers. Sudden your Mac and later on your iPhone and iPad would all have the same time.
Internet time problems
The internet, while providing a format for distributing relatively accurate time to machines has presented its own problem propagating time to humans. There can be a substantial amount of time difference between different ways of receiving broadcast content. The difference is most apparent between internet streaming and terrestrial broadcast radio and television. A good deal of this is down to the nature of best effort packet networks that support the modern web. Video and audio are buffered to provide a seamless experience rather than a precise experience. So time signals on IPTV and audio streamed radio are indicative at best rather than having precision.
Omakase is a Japanese term that has become popular in Korea. Omakase as a phrase comes from the term ‘makaseru’ meaning to entrust. In a sushi restaurant omakase meant the customer turned over responsibility for choosing their menu to the sushi chef. The chef would choose the type of fish and the cut. They would assemble the sushi in front of the customer, tell them what it was and choose the next piece, based on what they think the customer should try next. It is likely to have developed sometime in the last two centuries when nigiri sushi became popular. This was sushi that could be quickly assembled in front of the customer – which is essential for the way omakase operates.
Omakase experience
The personalised nature of the experience and the choice of ingredients by the chef rather than the customer means that omakase is an expensive experience. The ingredients will be seasonal in nature and the chef will select the finest ingredients available.
A short trip across the Sea of Japan (or what the Koreans call the East Sea) is South Korea. And it was inevitable that this particular type of sushi experience would cross the waters as well, given that it has already made it the best sushi restaurants in the US and Europe.
Gangnam at night by laurabl
Expansion of Omakase
In Korea omakase took off some time before 2020. At first it was in upscale sushi restaurants. Then it extended itself into tempura in the Japanese restaurants of high end hotels in Seoul, you see this in some restaurants in Japan as well.
It started to spread throughout the country beyond Seoul and as it grew geographically within Korea, it was extended beyond Japanese cuisine.
Western dessert tasting menu as an omakase experience
Coffee tasting with your own barista. Coffee fuels Korean work life and is immensely popular.
Champagne tasting with a personalised experience from a sommelier.
It has been even extended to grilled pork belly – a stable dish of Korean neighbourhood restaurants. Rather than barbecuing it yourself, pieces are selected and grilled for you by a personal chef.
Why ‘Korean omakase’ happened?
In Korea you have a confluence of factors affecting young consumers.
Korea is known for its luxury consumption. On a per capita basis, Koreans spend more on luxury personal goods than any other country. Harrods has been surpassed as the number one retailer in luxury goods by the Shinsegae department store branch in Gangnam-gu, Seoul, Korea with $2 billion dollars of sale in 2021.
Like young consumers in many developed markets, young Koreans have money in their pocket but are unlikely to be able to afford to buy their own home. Korea’s ultra-wealthy have a good deal of their wealth in buy to let property.
The Jeonse system of home rental exasperates the home ownership problem. A Jeonse tenancy begins with the initial security deposit of a single amount which is usually about 40% to as much as 80% of the current market value of the property. Unlike in most of Europe, the interest yield on the deposit will not be paid to the tenant, but the landlord can keep this as income. No additional monthly rent is paid. On expiry of the contract period, the original deposit will be refunded in full.
This leaves young (and not so young) Koreans heavily indebted and makes it hard to plan for the future.
Live for today, the future is lost anyway
So young Koreans spend on luxury consumption now, rather than save for a future that they believe is unaffordable. While Korean is a developed economy with successful industries, one in ten of young Koreans are unemployed. When they look at the generation of Koreans who built the country over from the post-war years into the developed economy it is today; 45% of these elderly live in poverty.
Omakase as social standing
Luxury consumption is used to reflect a higher social standing. Korea is known for a high degree of conformity, which creates big fashion winners. Once a trend picks up, it goes everywhere, but then also has a finite life as brands like The North Face have found to its cost in the past as consumers move with the crowd.
But Korea is also a Confucian society which means that social standing matters, and this is where the luxury consumption comes in. The quest has moved into online channels as well, with these channels showing to your peers your social standing.
Jeong
The social platforms act as a pressure point in modern Korean life. Because of social, luxury experiences like omakase become as important as having luxury goods.
In Korea, the power of social is amplified by jeong (정) – can be considered to be a sense of social responsibility. Jeong is a positive force for conformity and community in a collectivist society. Historically, jeong is built through shared experiences, such as eating together and a sense of community bond is formed.
Aspects of jeong include
Scheduling quality time with loved ones.
Create meaningful shared experiences.
Expand and engage with your community.
Modern urban and digital life has disrupted Korean society which has meant that values like jeong manifest themselves in new ways.
Mukbang aside
The principles of jeong is where mukbang videos originally came from. Mukbang started as streaming videos where the host would share a virtual meal with the viewers and interact with them. Korean meals are designed to be shared, yet a third of Koreans live in single person households. Mukbang provided the lonely with shared experiences that had a degree of meaning in their lives – creating a kind of virtual jeong between the host and the audience. Now they are genre of video content that’s carefully edited and removed from the original social context that they came from.
Getting back to jeong, think about your Instagram feed for a moment, think about how you might feel if you have had a mediocre day and your feed is filled with people you know living their best lives. Now dial that up to 11.
Sharing content is engaging with your wider community and growing your community and sharing experiences with them. There is a corresponding pressure to share experiences back within your feeds. This has driven a demand for luxury products and experiences including omakase.
Omakase is a rational economic response. There are only so many times that you can share a new bag or watch costing thousands of pounds. But you can share omakase each time you go, with the price being in the hundreds of pounds instead.
So where does the money come from?
Omakase experiences aren’t an everyday thing for young Koreans; they would think its perfectly fine most days to eat a lunch bargain meal from a convenience store and then do an omakase experience every so often that they can document it on social media.
Korean households have the highest amount of debt in the world, and over 21% of young Koreans have personal debt that at least three times their salary. A decade earlier, the rate was 8.2%.
So what?
Korea today is a cultural powerhouse. Trends that start here go worldwide. Korea is involved in all aspects of global culture:
Cinema.
Television series.
Beauty.
Fashion.
FMCG products.
Food.
Korea’s role as a global trendsetter has not gone unnoticed, Christian Dior opened its flagship store in Seoul and held its collection debut in Korea over China or France.
Luxury businesses already realise that consumers want status experiences as well as status goods. LVMH has been actively exploring the hotel and restaurant business, as has Kering. But these businesses have lower margins than their existing businesses. The way to increase these margins would be to address less customers and charge even more.
Luxury is being redefined into highly personalised experiences by consumers and it makes commercial sense for luxury businesses to meet their needs.
While luxury groups are looking at cutting edge technology like generative AI, NFTs and metaverse experiences, the future of luxury might be more human, as well as more technology.
I was reminded by an article in an old copy of the FT’s HTSI (How To Spend It) magazine about the diversity of what listening pleasure means to different people.
My own pre-amp / power amp combo
Aural wallpaper
For many of us, the personal equivalent of muzak masks distracting sounds in the neighbourhood or the odd sounds emanating from the heating pipes. It is a listening pleasure of sorts, masking things that might otherwise side track or agitate us while we carry on our own lives. Prior to COVID this meant an office or coffee shop full of workers with Bose noise cancelling headsets on, now its more likely to be Apple AirPods firmly implanted, although they struggle to hold up to the demands of a days worth of Microsoft Teams calls.
In the home it can be: your smartphone, your computer, BlueTooth speaker, the radio, an old boombox or the TV set. I have a ritual in hotel rooms where after dropping my bags, the 24 hour TV news channel goes on low volume, ideally CNN. If I can’t get that, then I connect up my laptop and stream Bloomberg Live or podcasts.
Dedicated listening
If you derive listening pleasure by focusing more on what you are listening to then a higher quality system makes sense. Digital and analogue media can both provide a high quality audio experience. There are some fantastic vintage systems out there, it’s worthwhile educating yourself on products and setting up those eBay searches. Some streaming services now claim better than CD quality audio too, but more on that later.
Good quality speakers can be inexpensive, though brands and models which were bargains just five years ago are now expensive as purchasers have educated themselves. A good deal of the listening pleasure from these kind of systems is the hunt and building the system as much as what you have playing through it.
Space is the place
Good quality audio performance is dependent on the source, the hi-fi, the speakers and the room that the hi-fi is set up in. A room can enormously impact speaker performance. When I used to DJ, I found this out to my cost. Perfectly parallel walls create reverb meaning you can have multiple versions of a recording coming back to you. Furniture and people are great at absorbing bass.
Despite what you might see in hi-fi shows held in hotels, few of us have a room that would do a pair of B&W Nautilus justice, nor do we need a top of the range Mark Levinson amplifier.
Instead it makes sense to look at good quality headphones, I use AKG K872 headphones. But this also means that you can get supporting hardware by the likes of Schiit Audio for a much more reasonable price.
What sounds good is subjective and different equipment lends itself to different use cases. Do you want to listen to music, films or games? What genres will you be listening too?
If you like fuzzbox-driven rock music, you probably wouldn’t like my audio system. My tastes vary from Vladimir Cosma and Manuel Göttsching to The Reflex, Jeff Mills and even a bit of Jim Reeves and Johnny Cash. I spent a good deal of my youth in friends bedroom recording studios and DJing in night clubs. All of which affected what sounds good to me. My own listening pleasure leans to a more analytical, transparent sound.
The source
Finally, there is the fidelity of recordings themselves, in the late 1990s and 2000s we saw what some musicians would call the ‘Loudness’ wars. Recordings were overly compressed by mastering engineers and we now have a generation of engineers who think that this is how things are done and genuinely believe that they are addressing the listening pleasure of the general public. Veteran audio engineers and hi-fi enthusiasts have noticed a 10+dB difference in recording sound levels. In reality each dB a doubling in volume as you hear it, so 10dB is a 1,204 times louder. Why did the over-compression happen? There are a number of hypotheses:
Digital signal processors and digital audio workstation software made it easier to tweak everything and so people did.
Older recordings get digitally remastered with an expectation that these recordings will be played on BlueTooth speakers and smartphones.
I have heard the remastering is also for car stereos as well, but the reality is that many car stereos have been better than the average persons home audio system for decades – because they are designed for the vehicle cabin.
The decline of consumers actively listening to music, using it as aural wallpaper, so looking for a constant volume.
The rise of nascent streaming services like Real Networks and Yahoo! Music.
How do you know what is the best level of compression? This is a matter of personal taste. It depends on the genres of the music you like, does it have highs and lows? Are there quiet segments or pauses before a breakdown? Does it makes use of stereo spacing to move its sweeping sound around you?
Audio spacing is important not only for listening to music but gaming and the home cinema experience.
The problem with modern streaming services that look to provide ‘better than CD quality audio’ is as much on the original source as it is about the quality of streaming. Apple has tried to address this with its ‘Mastered for iTunes’ tools optimising for its platform, but that doesn’t have universal adoption in terms of remastering.
The reality might be closer to what I saw at Yahoo! Music in the mid-2000s where ‘mastering’ for the service meant ripping retail compact disc using a HP desktop PC and uploading the song to the servers. Nothing particularly special was involved in the process.
The Whole Earth Catalogue was a publication that sat at the centre of so many movements over the past six decades and its influence is still with us today. The publication was founded by Stewart Brand in 1968. Brand had been a participant in the counterculture and environment movement that sprang out of Rachel Carson’s book Silent Spring. Brand was particularly interested in a strand of counterculture that saw hippies follow in the footsteps of pioneers in America and go back to the land.
In order to do this and become more self sufficient, Brand looked to collate and share knowledge on how to do things and the best products to get in order to facilitate it. This became The Whole Earth Catalogue which provided access to tools and knowledge.
The marble in space
The first issue published in 1968 featured a NASA satellite picture of the earth in space, the first picture of its kind.
Colour photograph of the whole Earth (western Hemisphere), shot from the ATS-3 satellite on 10 November 1967.
The publication of the photo of the earth floating like a marble in a black void gave emphasis to how fragile the earth was to environmentalists.
The Whole Earth Catalogue stopped publishing on a regular basis in 1972 and instead went to a sporadic mode of publishing until 1998 including related publications like Coevolution Quarterly, various Whole Earth Catalogue compilations and Soft Tech which predicted the empowering role of technology that influenced early netizens including The Grateful Dead. While The Whole Earth Catalogue stopped, its influence lived on through The WeLL, the Global Business Network (acquired by Monitor Deloitte), Wired magazine and The Long Now Foundation.
Stewart Brand revisited some of the underlying philosophy around the environment that begat The Whole Earth Catalogue with his 2009 book Whole Earth Discipline. Now The Whole Earth Catalogue lives on as an almost complete online archive of its issues and related publications.
Why note-taking apps don’t make us smarter – The Verge – “Thinking is an active pursuit — one that often happens when you are spending long stretches of time staring into space, then writing a bit, and then staring into space a bit more. It’s here that the connections are made and the insights are formed. And it is a process that stubbornly resists automation.”
They Studied Dishonesty. Was Their Work a Lie? | The New Yorker – “‘When you look at [Gino’s paper], it just makes no sense,’ [one professor] said. But, he added, ‘even in safe spaces in my world, to bring up that someone is a data fabricator—it’s, like, ‘Our friend John, do you think he might be a cannibal?’” – on Dan Ariely and Francesca Gino’s research
Neil Shen plots global expansion for Sequoia’s China spin-off | Financial Times – venture capital giant HongShan, which announced its split from Sequoia Capital this year, is establishing a global footprint as a slowdown in the domestic economy pushes it overseas. Neil Shen, the group’s founding partner, who led Sequoia’s China business for 18 years until it was forced to separate under political pressure in June, is seeking business opportunities and investments worldwide to benefit HongShan’s Chinese portfolio companies, according to seven people familiar with his plans – expect regulatory roadblocks in the west
Goldberg: The fracturing of the U.S. political left over Israel, Hamas – San Jose Mercury News – Many progressive Jews have been profoundly shaken by the way some on the left are treating the terrorist mass murder of civilians as noble acts of anti-colonial resistance. These are Jews who share the left’s abhorrence of the occupation of Gaza and of the enormities inflicted on it, which are only going to get worse if and when Israel invades. But the way keyboard radicals have condoned war crimes against Israelis has left many progressive Jews alienated from political communities they thought were their own. – I am not surprised that this has happened. The left wing terrorists of the cold war era trained in the middle east and there is a latent sympathy on the left
The End of an Era: Update on the Johnny’s Idol Scandal | J-List Blog – TL;DR – Japan’s equivalent of Simon Fuller turns about to be Japan’s equivalent of Jimmy Saville. The Japanese media was complicit, but have so far come out unscathed, and hundreds of people in the entertainment industry are struggling to work. Johnny’s victims are still scarred.
The return of Mansur Gavriel | Vogue Business – Mansur Gavriel is launching MG Forever, a resale programme for customers to buy and sell used handbags and for the brand to sell off samples. It’s the first big launch since co-founders Rachel Mansur and Floriana Gavriel reclaimed the brand, resuming their roles as co-creative directors this year. And, it’s a statement: Mansur Gavriel is not trend-led, its products are timeless – this sounds like a definition of classic luxury rather than new luxury. Read with Platforms race to take a slice of the vintage jewellery market | Financial Times
Kazakh telco provider Altel gets AI-nnovative in new campaign | Analysis | Campaign Asia – Faced with dwindling market shares and an over-saturation of foreign imagery making up their key brand campaigns, Kazakhstan’s oldest telco provider revamps their brand persona by using AI to tap into the look, feel and desires of their national consumers. – this is going to be a problem with Image libraries (iStock Photos, Getty Images etc). When I think of the number of campaign assets I have worked on in the last 18 months alone that relied exclusively on image libraries rather than campaign photoshoots – the impact will be huge.
Driving Impact through Inclusive Advertising: An Examination of Award-Winning Gender-Inclusive Advertising: Journal of Advertising: Vol 0, No 0 – Theoretical and managerial contributions include (1) identification of how social impact is conceptualized in award-winning inclusive advertising and how impact functions through awards, (2) development in the definition of inclusive advertising to include social impacts as an outcome, and (3) a reimagining and expansion of the concept of inclusive advertising through a proposed Inclusive Advertising Spectrum, which encompasses representation
How the attacks in Israel are changing Threads | Platformer – In my dim and distant memory, I can recall how not being able to log into Friendster drove early social media users to MySpace and Facebook. Twitter has a similar issue, not in terms of being able to physically log-in, but in being able to discuss topics in a less toxic environment on other platforms. This could be Twitter’s Friendster moment.
How to use Japan’s new self-checkout supermarket carts | SoraNews24 -Japan News- – We found the system to be very convenient, but it doesn’t come without concerns for locals. One of the most glaringly obvious worries is the chance that some customers might fail to scan items, leading to a loss for the supermarket that might result in price hikes that would negatively impact all customers – but would still be far less prevalent than in the UK
BMW’s Next Car Launch Is Happening In Fortnite | Jalopnik – alignment between buyers and channel is poor, BUT, if you think about this more as aspirational brand building its spot on. And probably a better decision than a motorsports programme nowadays
