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 started thinking about climate despair last month as I was researching my post on psychotherapy + culture.
Depth of climate despair
The driver was a research report that appeared in The Lancet in December 2021. Researchers surveyed 10,000 respondents aged between 16 – 25, in ten countries across the Asia Pacific region, North and South America, Europe and Africa. The respondents were drawn from Kantar’s LifePoints online research panel. Of those who started the survey less than 70 percent completed it. The gender split was slightly overweight towards males: 51·4% male, 48·6% female.
The survey was developed by 11 international consultants with expertise in climate change emotions, clinical and environmental psychology, psychotherapy, psychiatry, human rights law, child and adolescent mental health, and young people with lived experience of climate anxiety. Which means that there was an incentive to come out with the findings they received and that may have biased the results. But the indications are clear in terms of direction around climate despair.
Key datapoints supporting the sense of climate despair amongst respondents:
Survey respondents across all countries were worried about climate change (59% were very or extremely worried and 84% were at least moderately worried)
Over half of those surveyed reported each of the following emotions: sad, anxious, angry, powerless, helpless or guilty
75% of those surveyed said that they think the future is frightening
Derek Read – “C̶l̶i̶m̶a̶t̶e̶ ̶C̶h̶a̶n̶g̶e̶ We Change”
The report says:
Distress about climate change is associated with young people perceiving that they have no future, that humanity is doomed, and that governments are failing to respond adequately, and with feelings of betrayal and abandonment by governments and adults. Climate change and government inaction are chronic stressors that could have considerable, long-lasting, and incremental negative implications for the mental health of children and young people.
Hickman, C.,Marks, E., Pihkala, P., Clayton, S., Lewandowski, R.E. & Mayall, E.E. (December 2021) Climate anxiety in children and young people and their beliefs about government responses to climate change: a global survey. (UK) The Lancet Planetary Health
The article then goes on to hold governments accountable for a moral harm on the young people. However, a good deal of the moral harm is also due to the way companies and NGOs actually talk about climate change.
Anecdotal evidence from therapists interviewed by the New York Times suggests that climate despair tends to be more prevalent in young female patients that they see. However, this might be down to a young men being less likely to see a therapist than a young woman.
Positive reinforcement
This video from WARC features research why it is ineffective to play into the constant environment doom loop if we want action. A change in approach should start to combat the deeply entrenched feeling of climate despair.
When the environmental issue is considered a sudden disaster, negative anthropomorphism is more persuasive.
By contrast, when the environmental issue is viewed as an ongoing tragedy, positive anthropomorphism results in a more favourable attitude, higher willingness to pay, and more money being donated.
Consumers’ connectedness to nature serves as the underlying mechanism in this messaging. If this level of connectedness to nature is low, nonprofit organizations and companies must alter these perceptions by choosing a more appropriate anthropomorphic valence and cause acuteness in their green advertising.
All of which seems to point to a possible challenge amongst both NGOs and companies over their inability to discern the difference between important and the most urgent elements. If collectively they can’t understand the categorisation, it’s no wonder that a significant minority of their audience slips into climate despair and is discouraged from taking a more active role.
Secondly, working on consumer’s connectedness to nature is a major communications JTBD (job to be done).
Psychotherapy is using psychological techniques to to help improve:
Happiness
Mental wellbeing
Behaviours, beliefs and compulsions that might be holding someone back from achieving their full potential in life
It can involve sessions that are one on one, or be part of a group experience.
Psychotherapy in culture
American TV brought the emotional and mental anguish of life into its programming, for instance, this segment from from Thirtysomething.
The TV series Frasier put the profession front-and-centre with both Frasier and Niles Crane being psychiatrists by profession. It even brought up the subject of therapy for animals.
Hollywood has often looked to develop characters by showing them undergoing therapy.
Probably the most famous example is the relationship between Robin Williams as the therapist Dr. Sean Maguire and Matt Damon as his court-mandated patient Will Hunting in Good Will Hunting.
Over the past 20 years therapy as an activity has become much more mainstream in the UK. And this has been reflected in the media, such as this plot line from the critically-acclaimed BBC comedy series Fleabag, which shows how mental health and therapy have become part of modern middle-class life.
Age of anxiety
Elizabeth Wurtzel’s Prozac Nation was published in 1994; yet feels very now. At the time of publishing it turned the drug brand Prozac into a household name. The black and white cover photo of a vacant Wurtzel fitted very much into the grunge aesthetic. As did the authors tale of being a young American battling against depression. There was even a counter-movement over the years of writers who looked to provide alternatives to Prozac (and its peers like Paxil and Zoloft). Their solutions ran from potatoes, to Plato or God.
Moving forward some three decades and Wurtzel’s writing resonate with a generation battling anxiety and reshaping society around their angst.
Modern world events from wild fires and climate change seems to have created the conditions for a collective sense of hopelessness and grief. A 10-country survey with a sample size of 10,000 people aged 16 – 25 published in The Lancet found high rates of pessimism. 45 percent of respondents were said worry about climate negatively affected their daily life. Three-quarters of respondents believed “the future is frightening,” and 56 percent said “humanity is doomed.”
Roots of a crisis
Wurtzel’s generation too grew up with climate changes, the ozone layer, economic uncertainty due to globalisation and deindustrialisation. They watched the most dynamic economic power on the planet hit a brick wall with the Japanese economic miracle, the internet bubble and imminent global thermonuclear war.
Over the past half-century we’ve seen wealth flow to the richest while the middle class stagnates or shrinks.
So the stressors for anxiety that needs psychotherapy are neither new, nor are they unique. But they have uniquely manifested themselves creating a mass market for psychotherapy in different forms. Like generations of children before them they were brought up as individuals with an upbringing influenced by Benjamin Spock’s The Common Sense Book of Baby and Child Care which shaped childcare from the post-war era onwards.
Every family home didn’t have a copy of Spock on their shelves, but it shaped advice given out by medics, educators, social workers and the media.
Like previous generations in the late 20th century their upbringing was marked by a new mass medium. (Previous new mediums would be popular radio, teenage culture including rock n’ roll music, television (and its subsequent proliferation of channels) and the web).
The big generational difference is likely to be level of childhood exposure to risk. Children growing up in the 1960s through to the early 1990s would be familiar with the ‘latch key kid’. They would have played outside with friends, maybe held down a part-time job or even had a degree of personal mobility with a bicycle that they used to cycle everywhere. Playgrounds were fun, but didn’t have the safety measures of modern playgrounds, the playgrounds of the mid to late 20th century had rusty swings and hard concrete surfaces. The decline in ‘outdoor play’ in favour of play dates and electronic amusements was cited as a possible factor by authors Greg Lukianoff and Jonathan Haidt in their book The Coddling of The American Mind.
Lukianoff and Haidt’s suggested solution to this age of anxiety was to use a form of psychotherapy known as cognitive behavioural therapy to help boost mental resilience in children and young adults. There is a growing body of work that puts the blame on rising anxiety at the always-on nature of social media through smartphones.
The age of anxiety has mainstreamed a number of niche product categories from gadgets like fidget spinners to weighted blankets.
Rebranding psychotherapy
Going back to the explanation of psychotherapy that I started off with, one of the bulletpoints was ‘behaviours, beliefs and compulsions that might be holding someone back from achieving their full potential in life’.
A number of decades ago psychotherapy was seen to be something that tended to happen in hospital and the general thinking that a pill may provide the solution or at the very least a chemical cosh for the worst affected or most disruptive.
The more well-heeled may have seen a therapist in a consulting office. In other communities the role may have been played by the social worker, (in rural Ireland it might have been the local parish priest) or a marriage guidance counselling service. Developments of different psychotherapy techniques over the 20th and 21st century owe as much to philosophy as they do to our scientific understanding of the mind and neuroscience.
There are now a large amount of therapists and life coaches who have a wide range of certifications and experience addressing the behaviours beliefs and compulsions that might be holding someone back in their personal or professional lives.
The changing nature of psychotherapy
Technology and media are changing our relationships, the way we relate to each other and ourselves. Parasocial relationships are asymmetric in nature. Fans believe in an influencer who may not even know them. They supplement or replace friendships that would otherwise be in the fans life. These new forms of relationships can affect both the fan and the influencer when unrealistic expectations aren’t met. Exemplified by ‘Stans‘ in western culture.
Parasocial relationships
The kind of relationships that we have now are fundamentally changed. This is especially acute in culture. Influencers, and Asian idol culture mean that we’re much more invested in people we don’t actually know.
YouTuber Aini has covered how this relates to East Asian pop artist fan culture. In particular young men or women who are in idol groups. Parakin fans go to extreme lengths to support their idol and guide their career in what they believe is the best direction. Parakin fans in China have the idol fulfil a role in their own lives that would otherwise be unmet.
This is a world away from the model followed by Simon Cowell to Colonel Parker over the past 70 years of popular music.
The Timepiece Gentleman
A great example of parasocial relationship is playing out in the luxury watch collecting community at the moment. American watch dealer Anthony Farrer trading as The Timepiece Gentleman matched luxury watches with people who wanted to own them and took a cut off the top.
Something went horribly wrong and Mr Farrer owes millions of dollars to fellow watch dealers, investors and individuals whose watches he was selling on their behalf. Oisin O’Malley goes into how Farrer’s parasocial relationship with his audience engendered trust.
Farrer told his audience his own personal story, complete with his faults and failings
He brought the audience inside his business and how it operates
He demonstrated a successful lifestyle.
He was in their lives day-in, day-out. This meant that both industry professionals and consumers put more trust in Farrer than they should have. Farrer brought the formula of the Kardashian media empire to a formerly staid and overlooked retail sector.
The manosphere
Much has been shared about the manosphere and the Tate brothers in particular. But in the context of this post, I thought it was worthwhile exploring the role that Andrew Tate’s content fills in the lives of young men.
First Andrew Tate in his own words
You can’t slander me because I will state right now that I am absolutely sexist and I’m absolutely a misogynist, and I have fuck you money and you can’t take that away
Tate and his business partners offer content and services aimed at young men that ‘solve’ similar challenges to therapy (promising guidance on how to fulfil their full potential)
For better or worse, Tate sets an example for his audience. The audience are looking for confidence and certainty. Tate provides the answers to the audience through:
Social media accounts that promoted an “ultra-masculine, ultra-luxurious lifestyle.”
Training courses run by his Hustler’s University business on accumulating wealth and ‘male-female interaction’ to copywriting and cryptocurrency trading.
Virtual relationships through a web cam studio described as a total scam.
The ‘War Room’ private network that sits somewhere between group therapy, a subreddit and a secret society complete with business networking
Tate’s work has had an outsized impact in the media and classrooms of the UK. Something a Guardian journalist labeled the ‘Andrew Tate effect’.
Therapy AI
As machine learning and chat bots have become more prominent we’ve seen algorithm driven psychotherapy.
Telemedicine primed market
The market was primed for the rise of AI driven therapy sessions after platforms like MYNDUP connected people with therapists online or over a mobile app, as part of a wider boom in telemedicine. R/GA talked about telemedicine in terms of it being ‘a more human centred vision of health’ in their Futurevision report series. They saw a clear line of continuity between the kind of service and convenience we’ve received from Amazon and online banking to future telemedicine services.
Looked at from this perspective, why wouldn’t you want to have online, on-demand therapy sessions?
So we saw ChatGPT being used for ‘do-it-yourself’ therapy, alongside dedicated systems.
Dedicated systems like Wysa, Heyy and Woebot use ‘rules based AI’ which is easier to manage from a medical, legal and regulatory point of view.
Wearables are considered to offer an opportunity for more timely interventions.
TikTok quacks is a bit of a harsh label for TikTok content. The reality is that similar content to that turned out by various TikTok quacks appear on YouTube, Instagram and other social media channels. Quack and quackery are synonyms for medical false claims or a ‘snake oil salesperson’.
Social media not only spreads misinformation and false hope across a range of medical conditions, it allows the perpetrators to profit directly from their work. The rise of dodgy health businesses with commerce integrated into their social posts by the likes of TikTok (and Instagram) facilitates TikTok quacks.
Below are just some of the content currently exposing this intersection between health, wellness, beauty and dishonestly obtained profits.
Hong Kong’s corporate lawyers test boundaries as Beijing’s influence grows | Financial Times – legal practitioners, including corporate lawyers, are concerned the broadening scope of a sweeping national security law could jeopardise the independence of the city’s legal system, a legacy of British administration, as Beijing tightens its grip. “There is general concern . . . that people are not fully understanding where the boundaries lie,” said a senior corporate lawyer with a global firm who has worked in Hong Kong for more than two decades – not entirely unexpected and a great opportunity for Singapore
Digital materials look to use different geometry of materials to replace other materials with special properties like foams. It does this through 3d printed lattices.
Sweden Is Not Staying Neutral in Russia’s Information War | New York Times – The Psychological Defense Agency also raised political concerns when it was proposed, but its leaders have emphasized that mandate allows it to address only foreign sources of disinformation, not content generated in Sweden. The challenge is one facing all democracies that, as a matter of principle, decline to enforce official ideologies, allowing divergent points of view of what is true or false. “The government can’t control the truth if it’s going to be a democracy,” said Hanna Linderstål, the founder of Earhart Business Protection Agency, a cybersecurity firm in Stockholm, and an adviser to the International Telecommunication Union, part of the United Nations. “The government can’t control the truth if it’s going to be a democracy,” said Hanna Linderstål, the senior cybersecurity adviser of Earhart Business Protection Agency.
ChatGPT In Trouble: OpenAI may go bankrupt by 2024, AI bot costs company $700,000 every day – not terribly surprising, it’s computationally intensive and hard to monetise. Look at how Google and Facebook have looked to squeeze computing power per watt out of their data centres, along with squeezing cost per server right down as well – they did this to reduce operating costs versus income. ChatGPT hadn’t gone there on design and instead uses 10,000 plus servers based around power-hungry top-of-the-range Nvidia graphics processors
The Code – Silicon Valley and the Remaking of America by Margaret O’Mara is the second book I have read recently about Silicon Valley, this review follows my review of Chip War by Chris Miller. The Code covers the history of Silicon Valley from the post-war to the present.
Margaret O’Mara
In terms of her background, O’Mara is a Clinton administration era policy wonk. When O’Mara left policy circles, she became an academic and is now a history professor at the University of Washington in Seattle – at the other end of the country. Her area of focus is on the history of the modern technology industry. She spent five years researching the book in the mid-2010s, just as Silicon Valley was going under a technological and social change.
The lens shaping everything else that I have written here
I am a sucker for books on the history of technology and like Chip War, The Code was right in my wheelhouse. It complemented, rather than overlapped some of my existing favourite technology history books like Bob Cringely’s Accidental Empires, John Markoff’s What The Dormouse Said or most of Michael Malone and Steven Levy’s output to date.
Like Miller’s Chip War, O’Mara brought a degree of distance from her material to her writing. She has done a lot of research and surfaced lesser known characters like community computing pioneer Liza Loop in her work, she doesn’t have the inside track.
Bob Cringely with his work on InfoWorld‘s Notes From the Field column got an inside track from the Valley’s engineers before he went on to write is magnus opus Accidental Empires. Like Cringely, Michael Malone was brought up in the Silicon Valley area and then worked the business section beat as a reporter for the local newspapers. Cringely and Malone lived and breathed the valley. If you are are fan of Cringely and Malone’s works, expect something that is interesting but stylistically very different.
On to The Code itself
Other reviewers have used words like ‘masterful’ and ‘majestic history’ to describe the book – which while being a reasonable guide to overall quality aren’t really all that helpful. In contrast to Chip War which took me six months, I managed to storm through The Code in a week. This is partly down my familiarity to the material covered and the airplane view that O’Mara takes when writing about her subject. I enjoyed O’Mara’s writing, but could also see someone coming to it with a good grasp of American political history and current affairs, but no knowledge of Silicon Valley history enjoying it just as much.
Being an academic O’Mara worked hard to source everything in The Code, she also provides a recommended reading list that goes into different aspects of the story that she laid out in more depth including John Markoff’s What the Dormouse Said and Theodore Roszak’s From Satori to Silicon Valley.
H-P’s first product taken by Robert Scoble
The book starts in the post-war period as Stanford and Silicon Valley peaked as an area for military contractors. O’Mara references the political lives of the H-P founders alongside the growth of cold war technologies and the space race.
O’Mara leans hard into Stanford’s defence industry connections that started pre world war II. The book then veers to the decline of the military industrial complex in the area due to a number of factors. The Vietnam war demolished the defence budget. The space programme started to wind down after NASA met Kennedy’s challenge to put man on the moon. Johnson’s social programmes took spend away from scientific developments. Finally the social climate in the US changed.
The next stage of computing was shaped by counter cultural values which O’Mara covered the libertarian instincts of Silicon Valley pioneers alongside the more community orientated views of the counterculture folks. Unlike other writers, O’Mara also covers the Boston area technology corridor that Silicon Valley eventually overshadows.
O’Mara focuses more on the finance of Silicon Valley covering some of the highlights featured in Sebastian Mallaby’s The Power Law. But O’Mara also delves into the public markets and the role of lobbying in the Silicon Valley finance machine.
O’Mara tells how immigration affected the nature of Silicon Valley through the story of Jerry Yang, co-founder of Yahoo!. As is the case with policy wonks she puts a lot of emphasis on Al Gore, the information superhighway and the Clipper chip. The Clipper chip resurrected like Godzilla the libertarian Republican party arm of Silicon Valley elites and paved the way for the likes of Peter Thiel later on.
The Code finishes on the future hopes for autonomous driving by university research teams and Google’s Waymo business.
You can get hold of Chip War here. More book reviews here.
I wish gatekeeping was a thing back in 2005 and 2006 when I was working on the international launch of Yahoo! Answers. The problem that we had was getting people to contribute answers to questions. Gatekeeping and the exhortation to not gate keep is about sharing knowledge and opinions freely – an in real life version of what we saw in early social publishing. Ironically gatekeeping stands in sharp contrast to oversharing as a social faux pas. The kind of knowledge that concerns about gatekeeping is particularly opposed to is opinion based knowledge or NORA.
Now ‘your jam’ is no longer your jam, but instead offered up to be other people’s jam instead. Your individuality ready to be cloned at a moments notice. Will everything descend to being ‘basic’ or mainstream? Does it disincentivise possessing good taste?
What the Internet’s Use of ‘Gatekeeping’ Says About Power – The rise of “Don’t gatekeep” has reframed keeping things to yourself as a selfish act. But not everything is for everyone! And sometimes the act of sharing does more harm than good. I’m thinking of how Anthony Bourdain felt conflicted about sending droves of tourists to mom-and-pop restaurants. I’m thinking of gentrification and what happens when certain neighborhoods are positioned as hidden gems.
Study Times op-ed shoots down new policy options | Pekingology – translation from an article from the Study Times. Comments on infrastructure are particularly instructive in terms of the view point that they reflect: To debunk views such as “infrastructure overcapacity is wasteful,” “promoting infrastructure equates to taking the old path that’s inconsistent with high-quality development,” and “limited space,” it’s crucial to fully understand the role of infrastructure investment from a holistic perspective of national economic development. Infrastructure investment doesn’t only interact with the expansion of aggregate demand to stabilize economic operations, but also enhances macroeconomic efficiency, improves people’s living standards, and robustly supports high-quality development. Overall, there’s no issue of excessive infrastructure. On the contrary, there are areas that hinder the efficiency of the national economy and the improvement of people’s living standards. China’s per capita infrastructure capital stock only accounts for 20% to 30% of the developed countries, and public facility investments per rural resident are only about a fifth of an urban dweller, indicating potential for investment
McDonald’s Hong Kong and Kevin Poon “Coach McNugget Art World” Exhibition | Hypebeast – via Ian at Deft. This was to celebrate 40 years of the McNugget. McDonald’s have always done some smart cultural marketing work in Hong Kong (such as an McDonalds Big Mac themed issue of Milk magazine). Hong Kong seems like a natural home for these things, I remember activating a Coke Zero x Neighborhood collab while there.) But it isn’t only a Hong Kong thing, McDonalds has done some strong cultural marketing internationally as well: from the Cactus Jack happy meal to a bounty programme for rappers that namedropped McDonalds on their mixtape over the years. As my friend Ian observed this is at odds with their current UK positioning ‘ McDonalds is the perfect place for estranged parents to meet their kids for awkward conversations’. The implication in that McDonalds restaurants are a lower rent third space (than Starbucks or Costa) positioning. I have welcomed their value-priced coffee and breakfasts at the end of an all-nighter on a pitch or a long drive. But the UK’s the third space aspect loses all the joy that McDonalds manages to imbue in their children experiences – the treat, the birthday party, the expectation of picking up a much wanted toy in a happy meal. The child to adult disconnect in the experience is something cultural marketing like this can help bridge if done in the UK.
Hong Kong’s corporate lawyers test boundaries as Beijing’s influence grows | Financial Times – legal practitioners, including corporate lawyers, are concerned the broadening scope of a sweeping national security law could jeopardise the independence of the city’s legal system, a legacy of British administration, as Beijing tightens its grip. “There is general concern . . . that people are not fully understanding where the boundaries lie,” said a senior corporate lawyer with a global firm who has worked in Hong Kong for more than two decades
Daring Fireball: ‘Changes to U.K. Surveillance Regime May Violate International Law’ – As I see it, the most likely outcome is that the U.K. passes the law, thinking that the grave concerns conveyed to them by the messaging services are overblown. That the platform providers are saying they can’t comply but they really just mean they don’t want to comply because it’s just difficult, not impossible. And when it becomes law, the platforms will hand it off to the nerds, the nerds will nerd harder, and boom, the platforms will fall into compliance with this law. That’s what they think will happen. What will actually happen, I believe, is that E2EE messaging platforms like WhatsApp (overwhelmingly popular in the U.K.), Signal, and iMessage will stop working and be pulled from app stores in the U.K., full stop. The U.K. seems to think it’s a bluff; I don’t
Singapore
Money Laundering Bust Puts Foreign Wealth in Singapore on Notice | Asia Sentinel – if that occurred at the behest of the China then we’re likely to see flight overseas from Singapore. It’s also interesting that these raids have come soon after China arrested a Shanghai immigration consultant to get hold of their database of UHNWI overseas (predominantly in the US). They second question I had would be why Singapore would cooperate with China on this?
Software
Now is the time for grimoires – by Ethan Mollick – With the rise of a new form of AI, the Large Language Model, organizations continue to think that whoever controls the data is going to win. But at least in the near future, I not only think they are wrong, but also that this approach blinds them to the most useful thing that they (and all of us), can be doing in this AI-haunted moment: creating grimoires, spellbooks full of prompts that encode expertise. The largest Large Language Models, like GPT-4, already have trained on tons of data. They “know” many things, which is why they beat Stanford Medical School students when evaluating new medical cases and Harvard students at essay writing, despite their tendency to hallucinate wrong answers. It may well be that more data is indeed widely useful — companies are training their own LLMs, and going through substantial effort to fine-tune existing models on their data based on this assumption — but we don’t actually know that, yet. In the meantime, there is something that is clearly important, and that is the prompts of experts.
Trybals is a YouTube channel that features people from the less developed parts of Pakistan and asks their reactions about different aspects of the modern world. It’s an interesting bit of anthropology. In this episode the panel gets to try a VR experience.
