Ged Carroll

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.

  • Dealer chic

    If the working class and the lower middle class are worried about financial security with trends like extreme couponing; the upper-middle classes are also interested in the thrill of a good deal with the changing economic environment a distant secondary motivator. With this in mind Trendwatching talked about dealer chic; reading their profile its almost as if they are thinking about their lifestyle in business terms. Looking for:

    • Increased efficiency – getting more for less – the buzz of a bargain
    • Value add – provided primarily through an improved experience

    Dealer chic is supposed to be caused by a move towards perfect markets – the use of reviews and comparative pricing facilitated by the web parallels the kind of techniques that procurement professionals would use. It also echoes the promise of disintermediation that web 1.0 was supposed to bring use with the first generation of shopping comparison sites in the late 1990s

    A more worrying by-product of the dealer chic trend is that brands are increasingly commoditised and access to mobile devices have accelerated the consumer buying process by providing them with the necessary research and the opportunity for instant gratification – potentially having a micro-chunking time effect on the timings and tweaking of pricing strategies.

    It means that luxury goods are seen as an asset class. This will mean an acceleration in price appreciation, but in order for luxury brands to benefit they will need to get involved in running pre-owned platforms. They can add value in validating each and every item, for a commission. 

    The space won’t be uncontested. You have established players from eBay and Yahoo! Auctions to Japanese retail brands like Brand-Off are already in this space. The Japanese have built up a formidable opportunity

    More information

    Trendwatching | dealer chic – find out more about dealer chic and sign up for Trendwatching’s free email newsletters

  • Extreme couponing

    Extreme couponing – is a phrase that I came across in the Knowledge@Wharton newsletter to describe the way hard-pressed value conscious consumers in North America are using offline vouchers and online resources including comparison shopping and coupon websites to make their grocery spend to go further. Having worked on FMCG programs rolled out in North America, the continued power of local newspaper and electronic coupons are famous.

    Coupons and extreme couponing were historically associated with thrifty older consumers who carried on family traditions developed during and post the great depression.

    Some US supermarket retailers built up a reputation for being ‘coupon friendly’ stores. But that might present its own problems. The average basket value might be much lower. Also the productivity of cashiers might be lower as they have to process all the coupons submitted. If the coupons aren’t valid for that supermarket that might result in a customer stand-off that needs to be resolved with the help of store management.

    The more astute of you may remember seeing coupon clipping and usage in historic episodes of Roseanne (what then become The Conners).

    Which begs the question what’s new that’s driving extreme couponing now? The answer seems to be a combination of food price inflation, low-to-no wage growth and an uncertain economy with high unemployment has led consumers to change their shopping. Pharmacy chains like Walgreens have benefited from business previously done as a one-stop shop in the supermarket since they will accept coupons for personal hygiene and cleaning products. The big issue is for the major brand companies like General Mills, Unilever and Procter & Gamble who are seeing brand loyalty eroded.

    Alongside an increase in coupon adoptions you are seeing bulk buying to hedge against inflation, rather than consumers trying to save the money itself in bank account. More retailing related content can be found here.

    More information

    Brand Disloyalty: Recession-weary Consumers Take Discounts to the Extreme

  • Asian woman & more news

    Asian woman observations

    Marketing to the modern Asian woman: Trends to watch by Vic Corsi, Landor – WPP – “Shopping is a social activity and the goal is not necessarily to make a purchase. Group shopping is one of an Asian woman’s main hobbies—over 20 percent of Asian women go shopping every weekend with no expectation of purchasing. While she peruses the malls contemplating what to buy—either now or on some future shopping mission—the Asian woman is looking for brands to convince and entertain.” – the author is writing from a Singapore perspective, but still great content. The big challenge is that the asian woman as a demographic isn’t homogeneous. Shopping is an activity, partly because of air conditioning, which occurs in certain markets like Singapore or Hong Kong. But many asian women are very value orientated. A classic example of this Asian woman would be in lower tier Chinese cities, Indonesia or the Philippines where is the a huge difference in incomes. I suspect that the modern asian woman of the title is code for wealthy and relatively young.

    Consumer behaviour

    Report: Workers in China and India Most Likely to Play Hooky – WSJ

    Design

    JNKsystem.com　 : NEIGHBORHOOD C.W.P. ALT.Zippo – I love the way Neighbourhood puts pocket wear and tear on these to provide authenticity

    Ethics

    A VC: Following Facebook Down The Wrong Path – interesting post on Facebook privacy

    Ideas

    Text of Steve Jobs’ Commencement address (2005)

    Talking To The Future Humans – Bruce Sterling | VICE

    Japan

    Japanese manufacturers see positive signs – FT.com

    Media

    Irish Post bought as going concern – RTÉ News – this is potentially good news

    UK Labour Party wants journalism licenses, will prohibit “journalism” by people who are “struck off” the register of licensed journalists – Boing Boing – this sounds very suspect

    Technology in Schools Faces Questions on Value – NYTimes.com – e-education doesn’t necessarily work: schools are spending billions on technology, even as they cut budgets and lay off teachers, with little proof that this approach is improving basic learning

    Online

    Questions Arise Over Yahoo’s Value as Buyers Weigh Bids – NYTimes.com

    Facebook: Sharing it all | The Economist – Facebook the sociopathic network

    Software

    Communities Dominate Brands: Analysis of Smartphone Wars and 3 Big News last week or so: Part 1 of 3: Intel + Samung – Nokia = Tizen (not MeeGo)

    Technology

    Why do some people really hate Apple | guardian.co.uk

    Michael Dell Advises Hewlett-Packard – NYTimes.com – its about scale in other areas rather than margins

    Wireless

    Sony Ericsson CEO: We Should Have Taken The iPhone More Seriously | TechCrunch

    Chinese phone systems ‘no threat’ to Google – FT.com – yeah right

  • Hackgate & UK audience

    Much has been made this week on the Murdoch’s appearing at a parliamentary inquiry into hackgate: a scandal involving phone hacking and other nefarious practices by the media in order to get stories. What is less getting less to no real discussion is what hackgate says about the UK audience. News International is a business, if the content didn’t sell, they wouldn’t create more of it.

    Content that would formerly only air in blackmail cases would appear on the Sunday breakfast table and consumers lapped up the lives of public figures. I am no fan of News Corporation’s media outlets but I feel very uncomfortable about the four-minute hate that is going on at the moment. Lots of people are enjoying the details about the how, but nobody seems to be asking about the why of the whole episode.

    Like the war on drugs, the problem isn’t only one of supply, but one of latent and actual demand that will be supplied one way or the other. Whilst there are middle-class people who believe that cocaine is an ideal final course at a dinner party you will have drug cartels. Whilst you have consumers who have a prurient interest in other people’s lives there will be publications that are willing to push the envelope in news-gathering.

    Why aren’t questions being asked about the thirst of UK consumers for the kind of stories that hackgate revealed. An examination of society as well as media ethics is called for.

    Why did it take the murder of a child (Milly Dowling) to suddenly make the media gathering behaviour move from naughty to wrong in the general public’s eyes? More media related commentary can be found here.

    More discussions of note about the case

    Monocolumn – High farce lets Murdoch off the hook [Monocle]

    RPT-COLUMN-It pays to be Murdoch. Just ask US gov’t: DCJohnston | Reuters

    Hunt asks regulators to reconsider News Corp/Sky deal – Media news – Media Week

    Murdoch Closing Tabloid Linked to British Hacking – NYTimes.com

    James Murdoch accused of lying

    UK deputy PM: Chance to clean up press-gov’t ties

  • London through a tourist’s eyes

    My friend Tomoko was in London the other week and it was interesting seeing what excited her about London, as Tomoko’s London is very different from my own.

    Firstly ‘knowing London’ means knowing central and Northwest London rather than central and East London. Shoreditch, Clerkenwell and Soho aren’t attractive; St Johns Wood and Mayfair are – big learning curve for me here, as I have assiduously avoided anything west of Soho during my 13 or so years in London.

    Whilst we may think that London has everything to offer with contemporary clubs like Cargo and the East Village, it was Whisky Mist that Tomoko went to. With a clientele drawn from or aspiring to be in a P.G. Wodehouse adaption styled by Jack Wills; that you would only find me in under duress, but was what she wanted to do. Tradition and the class system trappings is a huge selling point for the UK – in terms of experience it beats Cool Britannia of modern UK life into a cocked hat. We had a drink and a catch-up late one evening in the Rockcliff Bar in The Trafalgar Hotel which I felt was a reasonable compromise.

    One thing that she was surprised at was how early in general London closes its bars and restaurants on a week-day; its not as swinging as the reputation would have others believe and certainly not up to the standard of Tokyo, Seoul, Shanghai or Singapore.

    Fifteen or twenty years ago, the UK had a reputation as the worst cooks in Europe. Tomoko’s trip was as much about being a gastronomic journey. She learned how to prepare a proper English afternoon tea (the rest of the world thinks that we don’t go to Pret-a-Manger and Starbucks apparently) and we had a taster menu lunch at Gordon Ramsay’s Maze restaurant (more on this in another post).

    There was an interesting take on shopping:

    • Mitsukoshi for convenience – not having to fight your way through Mayfair, along Regent Street or up Oxford Street to Selfridges
    • Jermyn Street for male family presents; Covent Garden antiques market for souvenirs and bringing presnts to female family presents
    • Old and New Bond Street were of interest for window shopping

    Which makes me think that a lot of central London retail space is looking seriously over-priced and that high footfall – long the measure of a desirable retail space can be as lethal for a shop as a branch of the Sue Ryder charity opening up next door.

    All of this made think about what what my current home city means to people around the world. I have met people within my industry where having worked in London agency life carried a lot of kudos, the popularity of modern dance music elsewhere in the world was spearheaded by the middle-aged UK DJs who were involved in the late 80s acid house scene. Modern design with a twist of irreverence from James Dyson and Paul Smith to Jonathan Ives at Apple are the product of a forward-looking country. But that doesn’t seem to have translated into a brand identity for London that is less Daniel Craig and more David Niven.

    Asian countries like Korea, Japan and China have managed to forge identities that are modern, yet are complementary to the centuries of culture and history that they have. On the other had, Egypt (at least as a tourist destination) is all about the ancient Egyptian society that flourished and declined 2,000 years ago. I would prefer to see London being able to balance a modern identity with a nod to the history rather than be trapped by it. Perhaps the best place to start would be through the creative destruction of the Central London built environment.