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.

  • Treasure hunt

    Treasure hunt

    Treasure hunt as defined by NPD is the process of consumers bargain hunting. It might be discounted pricing on items or looking for substitute pre-owned products.

    Sale
    Sale

    Discounted items used to be seen in the retail trade as the preserve of older consumers alongside couponing. But as empirical experience going along to discount outlets show bargain hunters reach across social classes, income levels and age groups. Discounted products accounted for 3 percent growth in retail, even while retail declined by 1 percent overall in the last quarter.

    There hasn’t been as much of an exploration into whether its the discounts that people want or whether its the thrill of the hunt itself, especially when Google makes it much easier online.

    As for pre-owned goods, whilst NPD thinks that this is a millennial trait – vintage clothing stores, crate digging for records and and eBay are evidence that this trait isn’t new. I was reminded of being told that the collective memory is about eight years or so. So this explains how trends come back and get regurgitated or remixed by trendspotters and agencies.

    Admittedly the motivation that they are ascribing to vintage shopping by millennials and gen-z adds environmental aspects to vintage consumption. (Though is probably quality aspects as well as apparel globalisation and fast fashion have gone hand-in-hand in the demand for heirloom design).

  • China Inc. + more things

    China Inc. goes global. Transnational and national networks of China’s globalizing business elite: Review of International Political Economy: Vol 0, No 0The article finds substantial transnational linkages between the globalizing Chinese business elite and the corporate elite networks of Western globalized capitalism – through corporate affiliations and policy-planning affiliations. At the same time the analysis reveals the strong ties of the Chinese state-business elites to the party-state. Rather than presenting an outright threat to the liberal order and the corporate elite networks at its core, or indicating a co-optation scenario, the article finds evidence for a more hybrid scenario in which China as a corporate actor within the liberal world reveals its two faces: partially and pragmatically integrating and adapting to the liberal modes of networking, while simultaneously holding on to its distinctive state-directed capitalism and the (Party) direction this entails – China Inc. challenges the meaning of what the private sector means. Even private enterprises have a communist party cell who take direction from the state. This direction may be against their shareholders interests. Combine this with the lack of transparent audits for China Inc. companies with foreign listings and you have a toxic brew. More business related content here.

    Impostor Syndrome from Luxury Consumption | Journal of Consumer Researchresearch proposes that luxury consumption can be a double-edged sword: while luxury consumption yields status benefits, it can also make consumers feel inauthentic, producing what we call the impostor syndrome from luxury consumption. As a result, paradoxically, luxury consumption may backfire and lead consumers to behave less confidently due to their undermined feelings of self-authenticity. Feelings of inauthenticity from luxury consumption may arise because consumers perceive luxury as an undue privilege. These feelings are less pronounced among consumers with high levels of chronic psychological entitlement, and they are reduced when consumers’ sense of entitlement is temporarily boosted. The effects are robust across studies conducted in the lab and in field settings such as the Metropolitan Opera, Martha’s Vineyard, a luxury shopping center, and the Upper East Side in New York, featuring relevant participant populations including luxury target segments and consumption contexts including consumers’ reflections on their actual past luxury purchase

    I used Netflix’s DVD mail service to watch movies instead of TV for a year | Slate – interesting observations about media consumption

    How Much Are Cars Spying On Their Owners? – SlashdotOn a recent drive, a 2017 Chevrolet collected my precise location. It stored my phone’s ID and the people I called. It judged my acceleration and braking style, beaming back reports to its maker General Motors over an always-on Internet connection… Modern vehicles don’t just have one computer. There are multiple, interconnected brains that can generate up to 25 gigabytes of data per hour from sensors all over the car… Most hide what they’re collecting and sharing behind privacy policies written in the kind of language only a lawyer’s mother could love… The Tesla Model 3 can collect video snippets from the car’s many cameras. Coming next: face data, used to personalize the vehicle and track driver attention… Coming 5G cellular networks promise to link cars to the Internet with ultra-fast, ultra-high-capacity connections. As wireless connections get cheaper and data becomes more valuable, anything the car knows about you is fair game. GM’s view, echoed by many other automakers, is that we gave them permission for all of this… Five years ago, 20 automakers signed on to volunteer privacy standards, pledging to “provide customers with clear, meaningful information about the types of information collected and how it is used,” as well as “ways for customers to manage their data.” But when I called eight of the largest automakers, not even one offered a dashboard for customers to look at, download and control their data…. GM’s privacy policy, which the company says it will update before the end of 2019, says it may “use anonymized information or share it with third parties for any legitimate business purpose.” Such as whom? “The details of those third-party relationships are confidential,” said GM spokesman David Caldwell.

    In their own words: why voters abandoned Labour | YouGov – a certain amount of post-rationalisation in this type of research, read with caution. I’d also recommend Datapraxis analysis Tory Landslide, Progressive Split

    Catalyst and Cohesion – Worms and VirusesIf there is one word I would use to describe what makes an Apple-like experience, it’s “cohesion”. Any Apple enthusiast is aware of the company’s Human Interface Guidelines (HIG). The Macintosh has had one since 1984. iOS has had one since the launch of the App Store in 2008. Even WatchOS and tvOS have their own versions. Apple has had opinions about building cohesive user experiences for as long as Apple has been building user experiences – the context dependence of each platform is what makes ‘building once, running many places’ so hard for all but the simplest widgets

    China’s $1.3tn global spending spree will collapse, says top US official | Financial TimesChina’s international investments were “100 per cent” like a house of cards because of “debt overload, poor infrastructure, bribes [and] lack of transparency”.  “Everything comes around, it’s only a matter of time. It was only a matter of time before WeWork came around, right?,” Mr Boehler said, referring to the distressed office rental start-up that unravelled this year. “We have to be there as an alternative because I could see China take down a whole bunch of emerging countries . . . there will be more and more cracks and then the glass will break,” he added – but who will be carrying the can for China Inc. if this happens?

    Debenhams sparks fears as it seeks fresh rent cuts | Business | The Sunday TimesThe retail chain is said to be targeting a further 25% reduction on about 20 stores in exchange for scrapping break clauses in the leases. The move has sparked panic among some property owners, who have sounded out rival Mike Ashley about taking on the sites when the break clauses become active

  • Machines for emoting

    Machines for emoting

    Machines for emoting, is the problem of our internet in the palm of our hands? Over the past few years the sentiment towards the internet has changed dramatically.

    iPhone

    Before the internet

    Going back to the 1960s, my parents told me about the ‘No Blacks, No Irish, No Dogs’ signs. These were found in many British towns at the same time that hippies were advocating peace and love. And when Enoch Powell made his rivers of blood speech; 70 percent of British people surveyed agreed with him.

    Real world media and underground subcultures traded blows over racism at a slower pace. Though many of those blows were real.

    Is it the internet?

    This is no longer the information superhighway of Al Gore. The reasons for the changes aren’t obvious. One popular narrative is that algorithms are to blame. It is common to hear that narrative in news media.

    But academic research suggests that it isn’t ‘radicalisation’ by algorithms isn’t true.

    Is it the devices we use?

    There were smartphones before the iPhone. They were made by numerous companies including Nokia, Palm, SonyEricsson, Panasonic and even Microsoft (who partnered with a number of manufacturers). In Japan, NTT DoCoMo put the ‘smart’ in the network through iMode rather than building a mini-PC in the phone itself.

    Smartphones had initially started with business users and gradually broadened its base. Quite early on, phones focused on social functions, a classic example would be Danger’s Sidekick model which was designed for messaging. Nokia first popularised the app store and security signed apps that Apple and Google built upon.

    The move to the ‘pictures under glass’ interface that we now know from Android and iPhone devices coincided with a surge on social.

    Social media existed before 2010, but not as we now know it. Few of us had smartphones in 2009. Facebook’s active user base has grown sevenfold over the past 10 years, and there simply aren’t enough people for that to happen again. Instagram and WhatsApp were both launched about a decade ago, and swiftly absorbed into the mother of all social networks. As for Twitter, let me simply note that Donald Trump only started tweeting in earnest in 2011.

    Tim Hartford in the FT

    Did the pictures under glass metaphor and apps designed to utilise it make social too easy to share? It allows people to emote. From mild emotions usually expressed with emoticons or GIFs to visceral anger that seems to flood Twitter – there seems to be evidence of correlation if not causality. So how can design slow the hose pipe down to encourage more considered responses?

    If that’s the case then user experience design has to play a part in resolving some of the worst issues online, given that people can’t seem to be able to respond appropriately by moderating their behaviour.

  • Open source 5G + more things

    Pentagon wants open-source 5G plan in campaign against Huawei – ok in theory only. Open source 5G including OpenRAN doesn’t provide the flexibility in installation that vendor solutions do. More related content here.

    It Seemed Like a Popular Chat App. It’s Secretly a Spy Tool. – The New York Times – Emirati’s do with Totok what the Chinese have been doing for years with WeChat TOMS/Skype etc. Totok is apparently popular in Qatar as it allows VoIP without a VPN – so expat workers use it to connect with their families at home.

    Totok messenger

    Made in America – On US staffed hacking team in UAE. Interesting investigation by Reuters

    The decade of the drop: why do we still stand in line? | How To Spend It – experience. It’s diametrically opposite to one stop shopping

    Apple Captures 66% of the Smartphone Industry’s Profits in Q3 leaving all of their Competitors Combined in the Dust – Patently Appleit is becoming a challenge for Chinese smartphone brands to increase their smartphone ASPs and margins due to a combination of longer consumer holding periods and Apple lowering pricing on some key SKUs, which has limited the headroom that Chinese vendors had used to increase their ASPs – in the long term Huawei having to be vertically integrated all the way up the stack could be to their benefit

    Nike’s Jordan brand just had its first billion-dollar quarter — Quartz – interesting that it has taken over 30 years to get to a billion dollar quarter, yet Jordan is at least ten years past its cultural peak

    In Focus: Pet Shop Boys 6th December 2019 | Listen on NTS – amazing delve into their career

    Reality TV stars auditioned to ‘promote’ poison diet drink on Instagram – BBC News – Oh my gosh, this is as good as watching re-runs of Brass Eye

    Pig Irons at the ‘Plex | Margins – essay on consulting firms well worth reading

    Gildo Zegna: tailoring masculinity for changing tastes | Financial Timesluxury goods industry is feeling the heat of technological disruption, social upheaval and identity politics. Furthermore, within the high end fashion industry few items of clothing are facing more pressure from falling consumer demand than the one that made the Zegna family rich: the traditional men’s suit. “The big challenge we face is a rethinking of masculinity,” he says. – I think streetwear is interesting because of the reassurance it provides on masculinity. The basics of streetwear go back to the mid-century sports basics. The hooded top, jeans, t-shirts, plaid shirts, Letterman jacket, track jacket etc

    Facebook awaits EU opinion in privacy case | Financial Times – interesting how wide the impact of this case could be in terms of things like credit card transaction data etc. (paywall)

    Aito.ai – Introducing a new database category – the predictive database – hmmm

    A Surveillance Net Blankets China’s Cities, Giving Police Vast Powers – The New York TimesChinese authorities are knitting together old and state-of-the-art technologies — phone scanners, facial-recognition cameras, face and fingerprint databases and many others — into sweeping tools for authoritarian control, according to police and private databases examined by The New York Times. Once combined and fully operational, the tools can help police grab the identities of people as they walk down the street, find out who they are meeting with and identify who does and doesn’t belong to the Communist Party. The United States and other countries use some of the same techniques to track terrorists or drug lords. Chinese cities want to use them to track everybody.

    Is LVMH’s Digital Transformation Working? | Luxury Society“Over the last few years our market has become highly fragmented,” it added. “Customer journeys and purchasing habits have become more complex. Now, in addition to magazines and other traditional media, our customers – especially young people – use a range of digital options to stay informed, communicate with friends and shop. Brand awareness and customer engagement are built on these many different touchpoints.”

  • Matured digital strategy + more

    Mediatel: Newsline: Vodafone’s ‘matured’ digital strategy reappraises adspend“Many advertisers, including Vodafone, have come to realise that a lot of the social platforms are high frequency but very, very low attention,” she said. “When you are launching a new brand or proposition you can’t communicate it in one and half seconds.” – stating the bleeding obvious dressed up as industry thought leadership. You could have realised that a decade ago. Social is poor for brand building, but what are Vodafone going to do with it?

    Vodafone taxi

    Dubai Ports World and a New Form of Imperialismreport examines Gulf expansionism through a case study of the Emirates-based company Dubai Ports World (DP World). This multinational is one of the world’s leading global port operators and logistics giants—and a source of power for the United Arab Emirates. A close look at its operations in the Horn of Africa reveals the ways that a government can exert control through a modern state-chartered company. A closer look at the operations of DP World also casts light on a key driver of disastrous state fragmentation in the Horn of Africa and the Red Sea. DP World functions like a modern-day version of the British East India Company, serving as both a foreign policy tool and a profit engine – which makes Chinese run ports and Belt and Road projects even scarier

    Project MUSE – China and World Order: Mutual Gain or Exploitation?signs are that an assertive realpolitik is China’s leitmotif. Frankopan’s New Silk Roads lays out the wide scope of China’s ambitions and hints at some of their genuinely internationalist dimensions, but it also documents the case for viewing China’s role as a wolf in sheep’s clothing—at least as rapacious as European and other imperialists in previous centuries. The latter view is supported by Burnay’s Chinese Perspectives on the International Rule of Law and the anthology Building a Normative Order in the South China Sea. Still other studies show that China’s cyber networks are establishing foundations for Chinese dominion over foreign resources and potential dependencies that, in time, can be pressured to do more than kowtow

    China and Hollywood: Is the romance over? – SupChinathe upcoming sequel to Top Gun, a 1986 American action drama film, made headlines following the release of its first trailer, where two patches that had originally shown the Taiwanese flag appear to have been swapped out. Produced by Paramount Pictures, the movie has Chinese tech giant Tencent as its investor and primary promoter in the Chinese market.

    The “New” Private Security Industry, the Private Policing of Cyberspace and the Regulatory Questions – Mark Button,the growth of the “new” private security industry and private policing arrangements, policing cyberspace. It argues there has been a significant change in policing which is equivalent to the “quiet revolution” associated with private policing that Shearing and Stenning observed in the 1970s and 1980s, marking the “second quiet revolution.” The article then explores some of the regulatory questions that arise from these changes, which have been largely ignored to date by scholars of policing and policy-makers

    Privacy, People, and Markets | Ethics & International Affairs | Cambridge CoreMost current work on privacy understands it according to an economic model: individuals trade personal information for access to desired services and websites. This sounds good in theory. In practice, it has meant that online access to almost anything requires handing over vast amounts of personal information to the service provider with little control over what happens to it next. The two books considered in this essay both work against that economic model. In Privacy as Trust, Ari Ezra Waldman argues for a new model of privacy that starts not with putatively autonomous individuals but with an awareness that managing information flows is part of how people create and navigate social boundaries with one another. Jennifer Rothman’s Right of Publicity confronts the explosive growth of publicity rights—the rights of individuals to control and profit from commercial use of their name and public image—and, in so doing, she exposes the poverty of treating information disclosure merely as a matter of economic calculation

    ‘Influencing is heading into the void’: Natasha Stagg and Kate Durbin on the future of social mediaauthor Natasha Stagg joins Kate Durbin to discuss the Kardashians’ quest for immortality, ‘it girls’, and maintaining identity in the content economy

    Data and Digital Intelligence CommonsThe digital economy can be understood as comprising intelligent systems running whole sectors, employing data based digital intelligence to re-organise and coordinate them. Within such a macro understanding, it is possible to apply the framework of Institutional Analysis and Development (IAD) developed by Elinor Ostrom to examine the management of data and digital intelligence resources at the community level in a given sector, like transport, under the dominant model. Such an analysis reveals very suboptimal results on almost all the key IAD evaluation parameters; from efficiency and equity to accountability and sustainability

    Social factory as prosaic state space: Redefining labour in China’s mass innovation/mass entrepreneurship campaign – June Wang, Yujing Tan,Redefining labour in China’s mass innovation/mass entrepreneurship campaign

    Steering capital: the growing private authority of index providers in the age of passive asset management: Review of International Political Economy: Vol 0, No 0with the shift towards passive investing, the three big index providers have become actors that exercise growing private authority in capital markets as they steer investments through the indices they create and maintain. Index providers define the criteria according to which companies or countries are included into an index. Thereby, they influence investment decisions and corporate governance norms as well as strategies of those companies and states (that seek to be) included into their indices. We argue that rather than technical expertise, the main source of authority are their powerful brands that are trusted by the international investment community and which are entrenched via network externalities

    Noncompete agreements | Economic Policy InstituteOur survey results show that somewhere between 27.8% and 46.5% of the private-sector workforce—between 36 million and 60 million workers—are subject to noncompete clauses. High and low level employees are being covered by noncompetes. Given the ubiquity of noncompetes, the real harm they inflict on workers and competition, and the fact they are part of a growing trend of employers requiring their workers to sign a variety of contracts that take away their rights, the authors believe that they should be abolished – having been hobbled by one, I couldn’t agree more

    Telegraphic Revolution: Speed, Space and Time in the Nineteenth Century* | German History | Oxford Academicthe impact of the ‘communications revolution’ upon experiences of time and space during the nineteenth century. Focusing upon the first three decades of telegraphic communication, it unpacks the assumptions underlying linear narratives of ‘acceleration’ and ‘time-space compression’ to understand the roots of Germany’s fraught relationship to modernity. In doing so, it highlights the importance of the changes which took place between the 1848 revolutions and the early years of the Kaiserreich and which laid the foundations for the peculiarities of the Wilhelmine Era. During this period, it argues, the perceived impact of telegraphic communication, the ‘expansion’ or ‘contraction’ of space and time, varied from one person and place to another, reflecting the technology’s progressive and uneven expansion across Germany. Access to new networks of communication was dependent upon, and in turn influenced, the changing status of individuals, towns and the countryside experiencing the forces of industrialization, market capitalism and globalizationmore on the central idea behind this

    Jazz Wars in the ’70s | The Village Voicejazz in the ’70s boiled down to a debate between the non­compromising eclectics and the compromising eclectics, a debate that escalated into a class war. Monied groups with major record label affiliations played concert halls; a middle class of dependable mainstream-modern attractions monopolized the established jazz clubs; the new and avant were accom­modated briefly by the loft scene, and then by a network of new clubs and theatres. Numerous exceptions to this pic­ture don’t alter its veracity. Jazz radio became fusion radio, while the record in­dustry, puffing away at the jazz-is-back myth with one overproduced confection after another – this explains Kenny G

    Beyond scandal? Blockchain technologies and the legitimacy of post-2008 finance | Finance and SocietyHarnessing the concepts of ‘moral economy’ and ‘scandal’, we identify both possibilities and limits for blockchain applications to legitimate a range of monetary and investment activities. However, we also find that a persistent individualisation of responsibility for failures and shortcomings with ‘live’ blockchain experimentation has undermined the potentially legitimating aspects of this technology. Combining a reliance on technological fixes with a persistent individualist moral economy, we conclude, works against efforts to confront head-on the tensions underpinning the on-going legitimacy crises facing finance – sociological reasons why much of fintech wouldn’t work even if the tech could

    Swiping right: face perception in the age of Tinder – ScienceDirectjudgments of physical attractiveness are assumed to drive the “swiping” decisions that lead to matches, we propose that there is an additional evaluative dimension driving behind these decisions: judgments of moral character. With the aim of adding empirical support for this proposition, we critically review the most striking findings about first impressions extracted from faces, moral character in person perception, creepiness, and the uncanny valley, as they apply to Tinder behavior

    What’s love got to do with it? Passion and inequality in white‐collar work – Rao – – Sociology Compass – Wiley Online Librarywe argue that the passion schema has become a critical marker in the labor market for sorting individuals into occupations, hiring and promotion within organizations, and assigning value to people’s labor. Emergent research suggests that because the expression and perception of passion remain ambiguously defined in the workplace and varies by context, it is pivotal in reproducing social inequalities. In this review, we focus on how privileging passion in the workplace and interpreting it as a measure of aptitude impacts social inequalities by race, gender, and social class

    CMA lifts the lid on digital giants – GOV.UK – interesting points: Each year, about 15% of queries on Google have never been searched for before. Other search engines like Bing will not have the same access to these queries, putting Google in a powerful position of being able to better train its algorithms and provide more accurate search results than its rivals. The CMA has also found that the default settings people are faced with online have a profound effect on choice and the shape of competition. Last year in the UK, Google was willing to pay around £1 billion – 16% of all its search revenues – where it was the default search engine on mobile devices such as Apple phones. – Looking at the the 15% of queries that are new to Google every year, is this cultural evolution, new brands and products or a combination of both?

    Explainer: Behind the climb in Chinese companies’ defaults on bond payments – Reuters state and private companies have missed payments on more than 100 billion yuan ($14.2 billion) of bonds in the year to end-October, not far off the 111 billion yuan for all of 2018, according to S&P Global. Reuters calculations show six state-owned firms and 42 private companies defaulted on payments this year.

    Marketers warn they could be ‘priced out’ of Facebook advertising | Advertising | Campaign Asia – overheating in developed markets? Really interesting when you read Mediatel: Newsline: Starcom: TV is now twice the price… but not twice as good“There’s still nothing better than [a 30 second ad],” Dan Plant said on a panel at Future of TV Advertising Global. “Unfortunately it costs twice as much now – and it hasn’t got twice as good at what it was doing. You pay twice as much to achieve the same thing.” – is this really taking into account the long term brand building role of (good) TV advertising? Also the inflation doesn’t seem to be nearly as bad as Facebook for instance

    China’s social credit system: The Chinese citizens perspective | UCL ASSAThe question of who to trust, and social trust more broadly is one that is pertinent to every modern society, not just China. Although the idea of someone being ‘trustworthy’ (chengxin) has long existed in the Chinese traditional moral system, it is widely believed this was fundamentally damaged in the past 50 years, starting with Mao’s Cultural Revolution (1966-76), now seen as a period characterised by the ‘breakdown of public morality’.  A turbulent period characterised by families turning on each other and being forced to denounce any friends or family members deemed counter-revolutionary, the Cultural Revolution has also had the effect of eroding the concept of chengxin and therefore also mutual trust over time

    Unilever warns it will miss 2019 sales growth target | Financial Timeseconomic slowdown in south Asia — one of its biggest markets — and “difficult” trading conditions in west Africa. It also said trading in developed markets remained “challenging” and that while there were signs of improvement in North America, a recovery there would take time.

    Apple faces shareholder vote on human rights policies | Financial Times – shit, meet fan….

    China’s TV, Film Industry Shrinks Amid Ongoing Censorship | RFAAround 65 percent of 9, 841 actors and celebrities in mainland China, Hong Kong and Taiwan hadn’t been on television lately, while the high-profile roles are generally shared among less than one percent of the profession, the report said.Around 95 percent have had more than a year without being offered work, it said. – It’s RFA so you have to take a certain amount of it with a pinch of salt but the numbers fit with what I’ve heard. The Chinese film industry has put its eggs in fewer and fewer baskets