A concept that I can now fully grasp is the process of gaining insights and how vital it is to developing a product that people will actually want to buy. It never really dawned on me how new products came into existence. Sometimes it is really difficult for a consumer to explain what they truly need or want so exploring their emotions and behavior is crucial. I was never really aware of how involved of a process it was from beginning to end to create a product. With the help of this project, I was able to better understand the concept of customer insights. For our segment, we produced a survey and asked them to complete it and do a photo journal so that we could understand single older dads more accurately. By focusing on trying to grasp more about these men instead of trying to come up with a product, I feel we created something they didn’t even know they wanted. We discovered that their bedroom was very functional and no design element really existed. We used those insights to provide our segment with a solution to their decorating issues. Getting a bigger picture of what our segment was all about really helped us to design a product that would meet their needs. I really enjoyed learning about the progression of gaining insights and the steps that are involved. I now realize how beneficial insights are, and I am thankful that this project exposed me to the entire process.
Another concept that I understand better now, thanks to this class, is the process of prototyping. When I initially thought about the different aspects of marketing and gaining customer insight, prototyping was not at the fore front of my mind. The guest speaker did a great job of expanding my knowledge about the different steps in the development process. In my mind, I always thought a prototype had to be an elaborate creation with working parts; however, I learned that it is more about visualizing the style, color, and being able to feel its weight. I was a little overwhelmed that we were going to have to actually prototype our product because its one thing to formulate an idea and another thing to bring it to life. It was difficult deciding what we wanted to use and then rounding up the material for our product because our budget was really small. We went back and forth with the size of the prototype, the packaging, what we were going to put in our décor in a box, etc. I was a little worried that the things we were putting in our box didn’t really match, and in my head I wanted it to be cuter and more life-like. I felt so much better after talking to Professor Walls about the fact that we are not prototyping a lamp because everyone knows what a lamp looks like- we are prototyping the idea of every piece being seen together. We didn’t have to kill ourselves on everything being perfectly to scale as long as our idea of the collection of pieces was portrayed. We definitely had our share of issues, but being able to actually prototype a project taught me how much of a valuable step this is. It really made me focus on different aspects that I would never have really thought about- such as the packaging for our box.
At first, when I found out about the project my sarcastic reaction was like, “oh joy, another group project” because I have had some bad experiences before. However, by the end, I really enjoyed this project, and I feel I learned a lot about gaining customer insights. My emotional reaction started out irritated, but with some hope that this would be a fun project. I thought we picked a very interesting segment, so I was very optimistic about the potential products we could produce. At times I was a little frustrated with the updates because I didn’t see the big picture of how helpful they would be in the end. It was a little difficult to find the correct people in our segment to conduct research on. In my head, I thought the process would be a lot simpler. However, after we finally came up with a product and worked through our prototyping issues, I felt accomplished! I am very glad we worked in teams because I felt more creativity flowed by bouncing ideas off of each other. My team worked well together, and I think we did a good job of sharing the work load. With every group there is always the challenge of combining personalities and ideas, but I feel we did a good job of listening to one another. Any frustration I had was ended by a sense of relief once we finished to project. I think working with my group contributed to my learning and enjoyment of the material. If ever I didn’t understand a concept or topic, I felt I could ask my group about it so they could it explain it to me more in depth. I liked the process of the project; however, I do wish we could have sent out another survey once we knew what our product was so that we could gain even more insight. I enjoyed that with this project we got to be creative with our hands. Professor Walls always did a great job with answering all of our questions and giving us suggestions that would help us with our project.
Monday, May 4, 2009
Monday, April 20, 2009
Blog 9- PERKONOMICS
I chose to read the trendwatching.com blog from October 2008 about PERKONOMICS. The blog started out talking about how we are moving towards a consumer society that is “based more on experiences, on status stories, on the ephemeral-and in which, for many, time is now the only true scarcity- expect perks and privileges to become an integral part of every B2C industry and sector.” PERKONOMICS is defined as: “A new breed of perks and privileges, added to brands' regular offerings, is satisfying consumers’ ever-growing desire for novel forms of status and/or convenience, across all industries. The benefits for brands are equally promising: from escaping commoditization, to showing empathy in turbulent times.” PERKONOMICS pioneers include airlines, hotels, credit card companies and private banks, who have always been big on all kinds of loyalty programs and privileges. I agree that times are changing and a new wave of privileges needs to emerge.
I liked how the blog was organized and went more in depth into the topic instead of just forming basic opinions about it. I feel I learned more from this blog compared to others. He went on to talk more about convenience. I couldn’t agree with him more when he talked about how time-that is, the lack of it- is still one of the biggest consumer trends around. I liked how he mentioned stats in the blog to back up his assumptions. "70% of American 16 years and older say they don’t have enough time to do all the things they need to do. Half of US consumers now say that a lack of time is a bigger problem in their lives than a lack of money." I always feel like there are never enough hours in the day. Another part of PERKONOMICS is having more empathy with customers’ hassles and struggles. Ben & Jerry’s took advantage of this even in a stuff economy by giving away a scoop of "free love." I agree that any gesture of kindness and understanding would be truly appreciated. I feel the small things done can make a memorable impact with people. I enjoyed how he talked about how PERKONOMICS benefits brands. His perspective could apply to any company dynamic. Here are some of the benefits that a company can gain by delivering status and convenience to its customers:
• Perks bring much-needed love (if not FREE LOVE), in upturns and downturns, potentially leading to more ‘brand love’.
• Perks help commodity-like industries stand out by conferring a (renewed) sense of uniqueness. Adding perks often requires the ability to partner with other products or services, so brands with the best partnering skills—and therefore access to the best exclusive offers—will win.
• Perks, when done well, foster customer loyalty.
• Perks can give you the leading edge when it comes to attracting first-time customers.
• Perks can make for great if not invaluable PR; customers will tell others—perks are excellent conversation starters—while the media (trend watchers included) love a good perk story.
• Perks can help make boring companies (insurance, anyone ...?) interesting again, and thus more desirable.
• Perks can help cultivate more desirable brand perceptions and associations—think anything from showing you actually care about your customers (gasp!) to showing you care about the environment, offering eco-perks.
The blog then went into examples of companies who are taking advantage of PERKONOMICS. There are the “Only & First” perks. When individuality rules and conformity is frowned upon, owning or experiencing something no one else has is 'hot'. So any perk that is all about you while excluding them, will get attention. Amex cardholders have exclusive access to purchase the winning dress designed on the episode of Project Runway. The dress cannot be purchased by non-Amex customers. Another perk revolves around “no queues.” Queues are the pedestrian equivalent of no available parking spots. Being able to jump a queue is one of the biggest time-savers and perks around. An Avis Preferred Membership enables car rental customers to skip lines and paperwork and go straight to their car. Another concepts are “Concierge” perks and parking perks. Babies “R” Us stores introduced reserved parking spaces for expectant mothers years ago. PERKONOMICS offers marketers the chance to be trendsetters, especially if coming from a sector or industry not yet big on perks. I enjoyed how this blogger’s perspective was not biased. He stayed pretty matter-of-fact. He also talked about the pitfalls companies can drop into. Overall, I think he gave great examples that helped me to understand even further what he was talking about.
I liked how the blog was organized and went more in depth into the topic instead of just forming basic opinions about it. I feel I learned more from this blog compared to others. He went on to talk more about convenience. I couldn’t agree with him more when he talked about how time-that is, the lack of it- is still one of the biggest consumer trends around. I liked how he mentioned stats in the blog to back up his assumptions. "70% of American 16 years and older say they don’t have enough time to do all the things they need to do. Half of US consumers now say that a lack of time is a bigger problem in their lives than a lack of money." I always feel like there are never enough hours in the day. Another part of PERKONOMICS is having more empathy with customers’ hassles and struggles. Ben & Jerry’s took advantage of this even in a stuff economy by giving away a scoop of "free love." I agree that any gesture of kindness and understanding would be truly appreciated. I feel the small things done can make a memorable impact with people. I enjoyed how he talked about how PERKONOMICS benefits brands. His perspective could apply to any company dynamic. Here are some of the benefits that a company can gain by delivering status and convenience to its customers:
• Perks bring much-needed love (if not FREE LOVE), in upturns and downturns, potentially leading to more ‘brand love’.
• Perks help commodity-like industries stand out by conferring a (renewed) sense of uniqueness. Adding perks often requires the ability to partner with other products or services, so brands with the best partnering skills—and therefore access to the best exclusive offers—will win.
• Perks, when done well, foster customer loyalty.
• Perks can give you the leading edge when it comes to attracting first-time customers.
• Perks can make for great if not invaluable PR; customers will tell others—perks are excellent conversation starters—while the media (trend watchers included) love a good perk story.
• Perks can help make boring companies (insurance, anyone ...?) interesting again, and thus more desirable.
• Perks can help cultivate more desirable brand perceptions and associations—think anything from showing you actually care about your customers (gasp!) to showing you care about the environment, offering eco-perks.
The blog then went into examples of companies who are taking advantage of PERKONOMICS. There are the “Only & First” perks. When individuality rules and conformity is frowned upon, owning or experiencing something no one else has is 'hot'. So any perk that is all about you while excluding them, will get attention. Amex cardholders have exclusive access to purchase the winning dress designed on the episode of Project Runway. The dress cannot be purchased by non-Amex customers. Another perk revolves around “no queues.” Queues are the pedestrian equivalent of no available parking spots. Being able to jump a queue is one of the biggest time-savers and perks around. An Avis Preferred Membership enables car rental customers to skip lines and paperwork and go straight to their car. Another concepts are “Concierge” perks and parking perks. Babies “R” Us stores introduced reserved parking spaces for expectant mothers years ago. PERKONOMICS offers marketers the chance to be trendsetters, especially if coming from a sector or industry not yet big on perks. I enjoyed how this blogger’s perspective was not biased. He stayed pretty matter-of-fact. He also talked about the pitfalls companies can drop into. Overall, I think he gave great examples that helped me to understand even further what he was talking about.
Tuesday, March 31, 2009
Blog 7
I watched a TEDTalks podcast of Don Norman titled “The three ways that good design makes you happy.” In the video, Don Norman turns his insightful eye toward beauty, fun, pleasure and emotion, as he looks at design that makes people happy. He talked about three emotional cues that a well-designed product must hit to succeed.
He starts out showing a picture of a fancy gold plated juicer that he owns, and talked about how when he got it there was a note saying he should not use it to squeeze actual oranges because it will ruin the finish. However, he still kept it, and he displays it at the front of his house because he finds it very appealing and fun. Norman’s job is about trying to understand what beauty and emotion is about.
He next talked about an MIT media lab that put a projector above a ping pong table that displayed a pond. Whenever the ball hit the table it created ripples in the water and the fish swam away. He asked the question if this was a good way to play ping pong? No not really, but is it fun? Yes! I had never really noticed this but at the bottom of a Google search page it says “Goooooooooogle” where the o’s reflect how many pages of information that was found for your search. This is a very pleasant and clever way to display the results and might enhance your Google experience without you really even knowing why. I amazed at how many “fun” things we buy even when they are not practical. There was a review on the Mini Coup that said it had many faults, but to buy it anyway because it is so fun to drive. I feel as though we believe that pleasant things work better.
It has been proven that fear and anxiety change the way you think. In the podcast it talked about how a psychologist did an experiment on students asking them to solve problems. When the students came in, she would tell them that it was an IQ test, and it would determine how they do in life. She asked the students to tie the strings together that were hanging from the ceiling, however the strings wouldn’t reach each other and they couldn’t solve it. Next she brought a second group of students in and before they started she said “oh by the way I have a box of candy here that I don’t eat candy- would you like it?” This made them happy in some little way, and they ended up solving the problem. It turns out when you are anxious you squirt neurotransmitters into the brain which focuses you; however, when you are happy (which is referred to as positive valence) you release dopamine into the prefrontal lobes. This allows you to think out side of the box and be more creative even though you are more susceptible to distractions.
Don Norman talked about the different levels of processing. First is the Visceral level which is built into the brain. For instance we prefer smiling faces over frowning ones, we like bright colors, etc. In design, you can express Visceral in many ways such as the choice of font you can use in an advertisement or the color the text is such as red for hot or exciting. The middle level of processing is the Behavioral level which is where most of the stuff gets done! It is sub conscious and most of what we do is sub conscious. Behavioral design is all about feeling in control – which includes usability and understanding but also the feel and heft. For example, you feel in control when you are driving a high performance sports car over a demanding curve. The third level is Reflective which is the little part of the brain that has no control. It looks over what is going on and is the little voice inside your head. Hummer owners enjoy driving their tank because it attracts lots of attention which makes them happy. Even though a digital watch would give a more accurate time, an owner of an impressive brand watch is going to show it off and enjoy it even more. Cognition is about understanding the world and emotion is about interpreting the world. Companies have to figure out what really appeals to customers and be very careful how they package their products.
He starts out showing a picture of a fancy gold plated juicer that he owns, and talked about how when he got it there was a note saying he should not use it to squeeze actual oranges because it will ruin the finish. However, he still kept it, and he displays it at the front of his house because he finds it very appealing and fun. Norman’s job is about trying to understand what beauty and emotion is about.
He next talked about an MIT media lab that put a projector above a ping pong table that displayed a pond. Whenever the ball hit the table it created ripples in the water and the fish swam away. He asked the question if this was a good way to play ping pong? No not really, but is it fun? Yes! I had never really noticed this but at the bottom of a Google search page it says “Goooooooooogle” where the o’s reflect how many pages of information that was found for your search. This is a very pleasant and clever way to display the results and might enhance your Google experience without you really even knowing why. I amazed at how many “fun” things we buy even when they are not practical. There was a review on the Mini Coup that said it had many faults, but to buy it anyway because it is so fun to drive. I feel as though we believe that pleasant things work better.
It has been proven that fear and anxiety change the way you think. In the podcast it talked about how a psychologist did an experiment on students asking them to solve problems. When the students came in, she would tell them that it was an IQ test, and it would determine how they do in life. She asked the students to tie the strings together that were hanging from the ceiling, however the strings wouldn’t reach each other and they couldn’t solve it. Next she brought a second group of students in and before they started she said “oh by the way I have a box of candy here that I don’t eat candy- would you like it?” This made them happy in some little way, and they ended up solving the problem. It turns out when you are anxious you squirt neurotransmitters into the brain which focuses you; however, when you are happy (which is referred to as positive valence) you release dopamine into the prefrontal lobes. This allows you to think out side of the box and be more creative even though you are more susceptible to distractions.
Don Norman talked about the different levels of processing. First is the Visceral level which is built into the brain. For instance we prefer smiling faces over frowning ones, we like bright colors, etc. In design, you can express Visceral in many ways such as the choice of font you can use in an advertisement or the color the text is such as red for hot or exciting. The middle level of processing is the Behavioral level which is where most of the stuff gets done! It is sub conscious and most of what we do is sub conscious. Behavioral design is all about feeling in control – which includes usability and understanding but also the feel and heft. For example, you feel in control when you are driving a high performance sports car over a demanding curve. The third level is Reflective which is the little part of the brain that has no control. It looks over what is going on and is the little voice inside your head. Hummer owners enjoy driving their tank because it attracts lots of attention which makes them happy. Even though a digital watch would give a more accurate time, an owner of an impressive brand watch is going to show it off and enjoy it even more. Cognition is about understanding the world and emotion is about interpreting the world. Companies have to figure out what really appeals to customers and be very careful how they package their products.
Tuesday, March 24, 2009
Blog 6- Persuaders
I really enjoyed a quote from the video The Persuader: “Consumer’s are like roaches –you spray them and spray them and after awhile it doesn’t work anymore…they develop immunities.” Consumers are driven by unconscious needs and impulses. They want to be entertained. While in New York standing in Time Square, my husband asked, “what is the point of Times Square?” My answer was that it is just a huge marketing scheme! Looking around I couldn’t even concentrate on one ad because there was SO many of them!
In the video it talked about how by the early 1990’s a newer approach to marketing came to the floor- one that leapt over what the product did to what the product meant. Companies like Nike and Starbucks are engaging in a pseudo spiritual marketing. Nike has commercials about people’s relationship with running not necessarily about the features of the shoes. Marketers have gone out to find why people joined cults or were loyal to a brand and found out it was for the same reason: they need to belong and make meaning. Companies now have to maintain a meaning system. Tide is no longer a laundry detergent- every detergent cleans your clothes…it is a much deeper thing- it is an enabler, a liberator, and the heart of the family.
Clotaire Rapaille is one of many market researches claiming to have figured out consumers’ hidden desires. He conducts a series of 3 stages concerning the 3 brains on focus groups. He feels his technique provides insight on why people choose the products they do. He goes past reason to the final core. The first stage Dr. Rapaille performs is the Intelligence Stage- he starts with the cortex. In the video, the focus group was asked to say any words that came to their minds about the word “luxury.” Dr. Rapaille refers to this process as the “washout session” because it allows the participants to showcase how intelligent they are about the topic. Dr. Rapaille doesn’t really get anything beneficial from this stage, but it must be completed so he can get down to the real stuff later.
The second stage is the Emotions Stage- this is the limbic part of the brain. The objective for this stage is for participants to throw away their intelligent or logical thinking and enter into a new state-of-mind. Dr. Rapaille asks them to tell a story to a 5 year old from another planet. The group now does not understand why they are doing what they are doing which is exactly where Dr. Rapaille wants them to be.
The third stage is the Instincts Stage- this is the reptilian part of the brain. When the focus group came back from their break all the chairs were moved out and there were pillows and pads of paper on the floor. Dr. Rapaille says that when we wake up in the morning, we can remember things that happened long ago that are kept hidden in the back of our minds. Dr. Rapaille is hunting for their primal urges- he is after the “reptilian hot buttons” that compel us to action. His theory is that the reptilian always wins!
Dr. Rapaille develops “codes” for products. Through the years he has told car makers to beef up the size of their SUVs and tint windows because the code for SUVs is domination. He told a French cheese company that they were “Off Code” with their advertising in the American market. In France, cheese is alive and does not belong in the refrigerator. (I laughed when Dr. Rapaille said it was like how you don’t put a cat in the refrigerator because it is alive) However, in America, cheese is dead. Americans need to see it wrapped up in plastic (“a body bag”) and put in the fridge (“the morgue”).
Another topic to be mentioned about from the Persuader is Song airlines, a subsidiary of Delta Airlines. Delta is known for being old fashion air travel so they felt that Song could be their way of persuading us that they can compete with hip low cost carriers like JetBlue. They wanted to do their Ad campaign in a way that was emotional and optimistic. I liked their idea of downplaying the airlines new features in favor of something much more intangible- its soul. Creating something that communicates on another level is very important these days. I think it was a good idea that Song was trying to cater towards women’s needs and desires; however, I think they went a little too far with limitedly targeting “Carrie.” I liked their tag lines of “founded by optimists, built by believers” and “we are not an airline, we are a culture.” Sadly I think they missed something with their great idea because people couldn’t connect their marketing efforts with the airline. People didn’t know if they were a travel agent or airline? Overall I think the experience that Song airlines was trying to create was a good idea. I feel that Song had bad timing into the struggling airline industry. I guess the real question about creating experiences is should marketing be aimed at the head or the heart? Is less more? Is elegance simplicity? Can simple be beautiful?
In the video it talked about how by the early 1990’s a newer approach to marketing came to the floor- one that leapt over what the product did to what the product meant. Companies like Nike and Starbucks are engaging in a pseudo spiritual marketing. Nike has commercials about people’s relationship with running not necessarily about the features of the shoes. Marketers have gone out to find why people joined cults or were loyal to a brand and found out it was for the same reason: they need to belong and make meaning. Companies now have to maintain a meaning system. Tide is no longer a laundry detergent- every detergent cleans your clothes…it is a much deeper thing- it is an enabler, a liberator, and the heart of the family.
Clotaire Rapaille is one of many market researches claiming to have figured out consumers’ hidden desires. He conducts a series of 3 stages concerning the 3 brains on focus groups. He feels his technique provides insight on why people choose the products they do. He goes past reason to the final core. The first stage Dr. Rapaille performs is the Intelligence Stage- he starts with the cortex. In the video, the focus group was asked to say any words that came to their minds about the word “luxury.” Dr. Rapaille refers to this process as the “washout session” because it allows the participants to showcase how intelligent they are about the topic. Dr. Rapaille doesn’t really get anything beneficial from this stage, but it must be completed so he can get down to the real stuff later.
The second stage is the Emotions Stage- this is the limbic part of the brain. The objective for this stage is for participants to throw away their intelligent or logical thinking and enter into a new state-of-mind. Dr. Rapaille asks them to tell a story to a 5 year old from another planet. The group now does not understand why they are doing what they are doing which is exactly where Dr. Rapaille wants them to be.
The third stage is the Instincts Stage- this is the reptilian part of the brain. When the focus group came back from their break all the chairs were moved out and there were pillows and pads of paper on the floor. Dr. Rapaille says that when we wake up in the morning, we can remember things that happened long ago that are kept hidden in the back of our minds. Dr. Rapaille is hunting for their primal urges- he is after the “reptilian hot buttons” that compel us to action. His theory is that the reptilian always wins!
Dr. Rapaille develops “codes” for products. Through the years he has told car makers to beef up the size of their SUVs and tint windows because the code for SUVs is domination. He told a French cheese company that they were “Off Code” with their advertising in the American market. In France, cheese is alive and does not belong in the refrigerator. (I laughed when Dr. Rapaille said it was like how you don’t put a cat in the refrigerator because it is alive) However, in America, cheese is dead. Americans need to see it wrapped up in plastic (“a body bag”) and put in the fridge (“the morgue”).
Another topic to be mentioned about from the Persuader is Song airlines, a subsidiary of Delta Airlines. Delta is known for being old fashion air travel so they felt that Song could be their way of persuading us that they can compete with hip low cost carriers like JetBlue. They wanted to do their Ad campaign in a way that was emotional and optimistic. I liked their idea of downplaying the airlines new features in favor of something much more intangible- its soul. Creating something that communicates on another level is very important these days. I think it was a good idea that Song was trying to cater towards women’s needs and desires; however, I think they went a little too far with limitedly targeting “Carrie.” I liked their tag lines of “founded by optimists, built by believers” and “we are not an airline, we are a culture.” Sadly I think they missed something with their great idea because people couldn’t connect their marketing efforts with the airline. People didn’t know if they were a travel agent or airline? Overall I think the experience that Song airlines was trying to create was a good idea. I feel that Song had bad timing into the struggling airline industry. I guess the real question about creating experiences is should marketing be aimed at the head or the heart? Is less more? Is elegance simplicity? Can simple be beautiful?
Sunday, March 8, 2009
Kenna's Dilemma
Oh how consumers really have no idea what or why they truly want what they want. Confusing?! Yes! The chapter titled Kenna's Dilemma from Gladwell’s book, Blink, revolves around lessons that bring insights about a customer's decision making process and how a judgment might be made. Gladwell uses many different examples of companies who didn’t get to take advantage of these learning curves.
One of the first lessons that I think is most helpful for a marketer trying to gain insight from customers is that context is everything. Companies have to be so careful in how they design their research. Coke made a huge mistake with the “sip challenge” put on by Pepsi. Coke got nervous that they were loosing market share and that Pepsi was winning the head- to head challenges, so they redesigned their secret formula to come up with New Coke. Coca-Cola executives were so excited because it beat Pepsi in head-to-head blind taste tests; however, it failed miserably. Lab coats don’t always know best. The sip test really had nothing to do with real life. Who normally just takes one slip of a soda and drinks it while being blind folded? Hopefully the answer is no one! Coke forgot that there is a link between mind and body. For example, the psychological impact relates to Coke’s red label and the associations that the brand conveys while the physiological impact is how the flavor taste, etc. I love the initial taste of those red and white peppermints, but I can never finish it because it starts to taste weird to me after a while.
Researches say that a CLT (central location test) can produce totally different results than a home- use test. I feel results get distorted when they are taken out of context. For example, people act differently when they know that they are being observed compared to if they had no idea they were being watched. It’s always best to observe people in a natural environment. Market research isn’t always a great indicator of what might actually happen when the product is launched. It bothers me when companies ask potential customer’s hypothetical questions about if they would buy a certain new product. When XM Satellite Radio was trying to launch its commercial free radio they called people and asked them 80 questions. When people are being asked to use hypothetical money to buy a new product, they are typically going to just say yes; however, this is totally different than actually going out and buying it. Snapple doesn’t do research groups on new flavors- they just make up a new formula and put it on the shelves- if it sells- they keep it, if not- they just try a new one.
Another lesson that I found that could be instructive to help gain insight on customers is the fact that it is difficult for consumers to really articulate or to understand their own needs and feelings. In the TED talk podcast, Malcom Gladwell talked about how Howard Moskowitz finally realized that there is just not one prefect product. Now thanks to him there are 36 types of Ragu spaghetti sauce. In surveys no one really ever stated that they wanted chunky spaghetti sauce until they just tasted it. Customers only know what they know, not necessarily what to ask for. In the case of the Aeron chair it was seen as ugly and looked fragile. In all reality, it was just different and people try to go with the safest choice and the norm. People associate not liking things that are not familiar to them. When I was in New York over the break, my husband made me try baby octopus. He loved them, but I said I hated them because it was so different for me. If I probably just got over the fact that it was different I probably would have liked them; however, I was quick to judge and labeled it as something I would not get again. Revolutionary products need to be treated differently and put in their own marketing category. People need to get over the newness factor before they can accurately form opinions about it. Marketers have to sort out if a consumer really doesn’t like a product because of the product itself or because it is something different.
One of the first lessons that I think is most helpful for a marketer trying to gain insight from customers is that context is everything. Companies have to be so careful in how they design their research. Coke made a huge mistake with the “sip challenge” put on by Pepsi. Coke got nervous that they were loosing market share and that Pepsi was winning the head- to head challenges, so they redesigned their secret formula to come up with New Coke. Coca-Cola executives were so excited because it beat Pepsi in head-to-head blind taste tests; however, it failed miserably. Lab coats don’t always know best. The sip test really had nothing to do with real life. Who normally just takes one slip of a soda and drinks it while being blind folded? Hopefully the answer is no one! Coke forgot that there is a link between mind and body. For example, the psychological impact relates to Coke’s red label and the associations that the brand conveys while the physiological impact is how the flavor taste, etc. I love the initial taste of those red and white peppermints, but I can never finish it because it starts to taste weird to me after a while.
Researches say that a CLT (central location test) can produce totally different results than a home- use test. I feel results get distorted when they are taken out of context. For example, people act differently when they know that they are being observed compared to if they had no idea they were being watched. It’s always best to observe people in a natural environment. Market research isn’t always a great indicator of what might actually happen when the product is launched. It bothers me when companies ask potential customer’s hypothetical questions about if they would buy a certain new product. When XM Satellite Radio was trying to launch its commercial free radio they called people and asked them 80 questions. When people are being asked to use hypothetical money to buy a new product, they are typically going to just say yes; however, this is totally different than actually going out and buying it. Snapple doesn’t do research groups on new flavors- they just make up a new formula and put it on the shelves- if it sells- they keep it, if not- they just try a new one.
Another lesson that I found that could be instructive to help gain insight on customers is the fact that it is difficult for consumers to really articulate or to understand their own needs and feelings. In the TED talk podcast, Malcom Gladwell talked about how Howard Moskowitz finally realized that there is just not one prefect product. Now thanks to him there are 36 types of Ragu spaghetti sauce. In surveys no one really ever stated that they wanted chunky spaghetti sauce until they just tasted it. Customers only know what they know, not necessarily what to ask for. In the case of the Aeron chair it was seen as ugly and looked fragile. In all reality, it was just different and people try to go with the safest choice and the norm. People associate not liking things that are not familiar to them. When I was in New York over the break, my husband made me try baby octopus. He loved them, but I said I hated them because it was so different for me. If I probably just got over the fact that it was different I probably would have liked them; however, I was quick to judge and labeled it as something I would not get again. Revolutionary products need to be treated differently and put in their own marketing category. People need to get over the newness factor before they can accurately form opinions about it. Marketers have to sort out if a consumer really doesn’t like a product because of the product itself or because it is something different.
Sunday, February 22, 2009
Coupons!
I absolutely LOVE saving money. If a product has that magic four letter word on it (S-A-L-E), I feel compelled to buy it because I think I am saving money. I use to clip out coupons from the Sunday paper when I was younger because my mom would give me all the money we saved. Ever since then, I love the challenge of finding the best bargain I can find. The Entertainment Book is one of my favorite things! It is a book that is done for different cities and its tag line is “great savings on dining, shopping, travel, attractions, and more.” Through my odd obsession with coupons, it got me wondering what affect coupons had on a customer’s experience. I know for me when I go out to eat and have a coupon, I get more satisfaction out of the meal and enjoy myself ten time more. Even if the food is not that fantastic- in my mind I justify everything by the fact that I saved money. In my paper I would like to explore the relationships between coupons, satisfaction, and store loyalty.
There are so many different reward and store loyalty programs out there. I find it very fascinating that at CVS they track everything I buy, and then give me personalized coupons for things I had previously bought before. Do other people even notice these things? Does it make them feel more connected to CVS? What about punch cards at sandwich shops- does it keep people coming back knowing that eventually they are going to get a free sandwich? There is a serge of online coupon sites where you can get discounts for specific products (Couponcabin.com, couponmom.com, retailmenot.com, etc) The question is: does receiving discounts increase people’s satisfaction with companies? I feel this topic relates a lot to customer insights because I feel coupons exist to drive people to buy a certain product by promoting a discount that could increase the customer’s experience.
According to Motivation Strategies Magazine, the number of people turning to the Web for coupons will soar to 36 million this year, an increase of 10 million since 2005. In an effort to learn more about these so-called "coupon clickers," Simmons/Experian Research and Coupons, Inc. conducted a survey entitled "The 2008 Printable Coupon Consumer Pulse." (http://www.couponsinc.com/corp/pdf/2008_Consumer_Pulse_Survey.pdf) Research confirms the most popular sources for printable coupons are savings-specific sites like Coupons.com. The economic downturn is generating a shift in coupon use and a long-term change in consumer perception and behavior," said Steven Boal, CEO of Coupons, Inc. Some other findings I found interesting from the survey:
• Coupons increase a brand's equity and perceived value; 58% believe a brand providing coupons online is more likely to provide new products they will enjoy; 57% believe these companies care about keeping them as a customer.
• More than 70% of coupon clickers would provide their e-mail address, first and last name and answer survey questions for a $2 coupon.
• Coupons fuel marketing initiatives; 73% of coupon clickers are more likely to open an e-mail if a coupon is offered; 64% are more likely to click on an ad banner or search listing if they know a coupon is offered.
A fear of choosing this topic is that I am afraid that I am not going to have 15 pages worth of content to write about. I am also afraid I will not find enough evidence to find the answers to some of my questions. Any feedback you have would be fantastic!
There are so many different reward and store loyalty programs out there. I find it very fascinating that at CVS they track everything I buy, and then give me personalized coupons for things I had previously bought before. Do other people even notice these things? Does it make them feel more connected to CVS? What about punch cards at sandwich shops- does it keep people coming back knowing that eventually they are going to get a free sandwich? There is a serge of online coupon sites where you can get discounts for specific products (Couponcabin.com, couponmom.com, retailmenot.com, etc) The question is: does receiving discounts increase people’s satisfaction with companies? I feel this topic relates a lot to customer insights because I feel coupons exist to drive people to buy a certain product by promoting a discount that could increase the customer’s experience.
According to Motivation Strategies Magazine, the number of people turning to the Web for coupons will soar to 36 million this year, an increase of 10 million since 2005. In an effort to learn more about these so-called "coupon clickers," Simmons/Experian Research and Coupons, Inc. conducted a survey entitled "The 2008 Printable Coupon Consumer Pulse." (http://www.couponsinc.com/corp/pdf/2008_Consumer_Pulse_Survey.pdf) Research confirms the most popular sources for printable coupons are savings-specific sites like Coupons.com. The economic downturn is generating a shift in coupon use and a long-term change in consumer perception and behavior," said Steven Boal, CEO of Coupons, Inc. Some other findings I found interesting from the survey:
• Coupons increase a brand's equity and perceived value; 58% believe a brand providing coupons online is more likely to provide new products they will enjoy; 57% believe these companies care about keeping them as a customer.
• More than 70% of coupon clickers would provide their e-mail address, first and last name and answer survey questions for a $2 coupon.
• Coupons fuel marketing initiatives; 73% of coupon clickers are more likely to open an e-mail if a coupon is offered; 64% are more likely to click on an ad banner or search listing if they know a coupon is offered.
A fear of choosing this topic is that I am afraid that I am not going to have 15 pages worth of content to write about. I am also afraid I will not find enough evidence to find the answers to some of my questions. Any feedback you have would be fantastic!
Saturday, February 14, 2009
Customization?- to do or not to do, that is the question
While I was babysitting the other night, we were watching TV and a Neutrogena commercial came on. It was about their new “skiniD.” SkiniD supposedly works because it uses the power of personalization to create an acne solution that matches your individual needs. You get on to the website and take this skin evaluation to see what products would work best for you. One of the dermatologist states that, “Personalization is key.” This got me to thinking- is customization really what matters to the consumer and can it actually enhance the customer’s experience?
On the Converse website you can custom design your own shoes. You get to pick the body color, heel stripe, tongue color, lining color, stitch color…the list goes on. You can even personalize the shoes with your own words. Also on sites such as adiamondisforever.com you can design your own engagement ring. Does having the ability to design your own stuff put more pressure on the consumer? To a certain extent I believe it does. Say you spent all this time designing your own product and when you finally receive it, it doesn’t meet your expectations. You have no one to blame but yourself, and that is a very irritating place to be in as a consumer. Everyone always wants to have a scapegoat. However, customization can be a good thing because one size does not fit all. In 1947, Burger King thought customization was the way to go with their slogan “Have It Your Way” and in 2004 they returned back to the expression. Everyone wants their burger to be how they like it so I feel this enhances the customer’s experience. In class we talked about L’Oreal and Clairol, well Revlon gives consumers the ability to create a custom salon look at home with Revlon Custom Effects. I feel most people like to be in control and having the option to personalize things gives the control to the consumer instead of the company.
TimBuk2 allows customers to build their own bag. I do feel having the ability to create something that fits your needs is a fantastic concept, but is customization really customized when a company gives a certain number of different varieties in a product, thinking that one of them has to be the perfect one for a customer? I think the hardest thing for companies is that it is almost impossible to find out what people’s true needs are. Amazon.com does a good job of keeping track of what customers buy and then recommends other products they may be interested in, but this does not get at the heart of meeting customer’s expectations through personalization.
Eighty percent of companies believe they deliver a superior customer experience, but only 8 percent of their customers agree, says Bain & Company. (Harvard Management Update) I read an article about the three "Ds" of customer experience. Unlike most companies, which reflexively turn to product or service design to improve customer satisfaction, leading companies pursue three imperatives simultaneously:
1. They design the right offers and experiences for the right customers.
2. They deliver these propositions by focusing the entire company on them with an emphasis on cross-functional collaboration.
3. They develop their capabilities to please customers again and again—by such means as revamping the planning process, training people in how to create new customer propositions, and establishing direct accountability for the customer experience.
Each of these "Three Ds" draws on and reinforces the others. Together, they transform a company into one that is continually led and informed by its customers' voices. I think listening to customers’ opinions is critical to any business, and I feel some big companies lose sight of their customers and just see dollar signs. I think overall customization can help enhance a customer’s experience, but for now it will still have to walk the tight-rope of consumers’ opinions.
On the Converse website you can custom design your own shoes. You get to pick the body color, heel stripe, tongue color, lining color, stitch color…the list goes on. You can even personalize the shoes with your own words. Also on sites such as adiamondisforever.com you can design your own engagement ring. Does having the ability to design your own stuff put more pressure on the consumer? To a certain extent I believe it does. Say you spent all this time designing your own product and when you finally receive it, it doesn’t meet your expectations. You have no one to blame but yourself, and that is a very irritating place to be in as a consumer. Everyone always wants to have a scapegoat. However, customization can be a good thing because one size does not fit all. In 1947, Burger King thought customization was the way to go with their slogan “Have It Your Way” and in 2004 they returned back to the expression. Everyone wants their burger to be how they like it so I feel this enhances the customer’s experience. In class we talked about L’Oreal and Clairol, well Revlon gives consumers the ability to create a custom salon look at home with Revlon Custom Effects. I feel most people like to be in control and having the option to personalize things gives the control to the consumer instead of the company.
TimBuk2 allows customers to build their own bag. I do feel having the ability to create something that fits your needs is a fantastic concept, but is customization really customized when a company gives a certain number of different varieties in a product, thinking that one of them has to be the perfect one for a customer? I think the hardest thing for companies is that it is almost impossible to find out what people’s true needs are. Amazon.com does a good job of keeping track of what customers buy and then recommends other products they may be interested in, but this does not get at the heart of meeting customer’s expectations through personalization.
Eighty percent of companies believe they deliver a superior customer experience, but only 8 percent of their customers agree, says Bain & Company. (Harvard Management Update) I read an article about the three "Ds" of customer experience. Unlike most companies, which reflexively turn to product or service design to improve customer satisfaction, leading companies pursue three imperatives simultaneously:
1. They design the right offers and experiences for the right customers.
2. They deliver these propositions by focusing the entire company on them with an emphasis on cross-functional collaboration.
3. They develop their capabilities to please customers again and again—by such means as revamping the planning process, training people in how to create new customer propositions, and establishing direct accountability for the customer experience.
Each of these "Three Ds" draws on and reinforces the others. Together, they transform a company into one that is continually led and informed by its customers' voices. I think listening to customers’ opinions is critical to any business, and I feel some big companies lose sight of their customers and just see dollar signs. I think overall customization can help enhance a customer’s experience, but for now it will still have to walk the tight-rope of consumers’ opinions.
Monday, February 2, 2009
Paradox Of Choice
We walk down an aisle in a grocery store and are instantly bombarded by thousands of choices. We spend time vacillating on our decisions. I could be at the grocery store for hours sometimes because I am so horrible at making decisions and there are just too many options!! I feel like once I get use to being a grown up and start to favor certain brands the grocery store will be less of a nightmare for me. To a certain extent I am thrilled that there are options out there because life would be so boring if they didn’t exist. Also, more options means no monopolies, so prices stay competitive; options allow you to find products that suite your needs best. On the flip side, I think that more choices have turned people into bratty consumers because now we always want more. I love variety and having the power to choose, but I hate making decisions. I feel like I am a walking oxy-moron.
Barry Schwarz talked about the official dogma revolving around maximizing a person’s welfare. This happens by maximizing individual freedom because freedom is good and valuable. This is established by maximizing choice because more choice means more freedom and more freedom means more welfare. However, Schwarz thinks more choices paralyzes us because we become less satisfied with the decisions we make. This is due to the possibility that we regret the choice we made because we had so many other choices to choose from. Whenever I go to a restaurant, where there is a large selection and variety of food, such as The Cheesecake Factory, I always regret my decision because I wish I would have made a different choice. So, even if the choice I made was delicious, I am still less satisfied. When a class I need to take has lots of options for professors, I always have a hard time deciding. If there were only one teacher then the decision is made for me, but when there are more, I feel compelled to do research and find out who is the best professor.
Schwarz also talked about the escalation of expectation. Adding options to people’s lives can’t help but increase the expectation people have about how good those options will be and that produces less satisfaction with results even when they are good results. I would have to agree with Schwarz’s opinion that the secret to happiness is low expectations. I got married over the break in Cozumel, Mexico, and my family and friends took a cruise to get there. Well, reading reviews I had gained the impression that the Carnival ship we were taking was one of the older ships and the décor was very outdated. I went into the cruise having low expectations about the actual ship and it worked wonders for me! I wasn’t disappointed at all and was pleasantly surprised that it wasn’t as bad as I had anticipated.
Schwarz says that why choice makes people miserable is 1) regret and anticipated regret 2) opportunity costs 3) escalation of expectations and 4) self-blame. Some choice is better than none, but more choice is not necessarily better than some choice. I remember choosing which university I was going to attend and it was narrowed down to UT and A&M. I knew whatever decision I would make would be amazing, but I would have two totally different experiences. Where would I meet better friends, get a better education, what happens if my future husband chose the opposite school I did?! I was in a paradox. Every other day my senior year in high school I would change my mind because I kept regretting my decision. Thankfully, I ultimately made the right choice- Hook ‘Em Horns! Consumers are in the midst of paradoxes everyday and have to conquer their indecisiveness about what products to buy or services to use. Companies have to work extra hard to make sure their product is most satisfactory so that consumers will be repeat customers and not experience buyers remorse.
Barry Schwarz talked about the official dogma revolving around maximizing a person’s welfare. This happens by maximizing individual freedom because freedom is good and valuable. This is established by maximizing choice because more choice means more freedom and more freedom means more welfare. However, Schwarz thinks more choices paralyzes us because we become less satisfied with the decisions we make. This is due to the possibility that we regret the choice we made because we had so many other choices to choose from. Whenever I go to a restaurant, where there is a large selection and variety of food, such as The Cheesecake Factory, I always regret my decision because I wish I would have made a different choice. So, even if the choice I made was delicious, I am still less satisfied. When a class I need to take has lots of options for professors, I always have a hard time deciding. If there were only one teacher then the decision is made for me, but when there are more, I feel compelled to do research and find out who is the best professor.
Schwarz also talked about the escalation of expectation. Adding options to people’s lives can’t help but increase the expectation people have about how good those options will be and that produces less satisfaction with results even when they are good results. I would have to agree with Schwarz’s opinion that the secret to happiness is low expectations. I got married over the break in Cozumel, Mexico, and my family and friends took a cruise to get there. Well, reading reviews I had gained the impression that the Carnival ship we were taking was one of the older ships and the décor was very outdated. I went into the cruise having low expectations about the actual ship and it worked wonders for me! I wasn’t disappointed at all and was pleasantly surprised that it wasn’t as bad as I had anticipated.
Schwarz says that why choice makes people miserable is 1) regret and anticipated regret 2) opportunity costs 3) escalation of expectations and 4) self-blame. Some choice is better than none, but more choice is not necessarily better than some choice. I remember choosing which university I was going to attend and it was narrowed down to UT and A&M. I knew whatever decision I would make would be amazing, but I would have two totally different experiences. Where would I meet better friends, get a better education, what happens if my future husband chose the opposite school I did?! I was in a paradox. Every other day my senior year in high school I would change my mind because I kept regretting my decision. Thankfully, I ultimately made the right choice- Hook ‘Em Horns! Consumers are in the midst of paradoxes everyday and have to conquer their indecisiveness about what products to buy or services to use. Companies have to work extra hard to make sure their product is most satisfactory so that consumers will be repeat customers and not experience buyers remorse.
Wednesday, January 28, 2009
Generation Y
Generation Y consists of people who were born somewhere between 1979 and 2000. I was born in 1986 so I am on the older side of this generation. So obviously my opinions and experiences will be different than from a kid who is now in 4th grade. My family didn’t get our first home computer till I was in 6th grade and my sister who is also in this generation was a freshman in high school. None of my friends really had cell phones until we turned 16. Facebook didn’t get big until I was a freshman in college. With technology constantly and rapidly expanding, people younger than me have been exposed to technology way longer. Babies born in 2000 already had personal laptops to learn their ABC’s on!
While I was reading the Businessweek article about Generation Y I found myself having to adjust to the fact that it was written in 1999 and was a little outdated. However, there were main points that I agreed with and that got my attention. The fact that my generation comes from families where the divorce rate is 50%, we have working mothers, and are more racially diverse makes us very different from the baby boomer generation. Parent’s preferences in life can impact the way children view those same products. For instance my next car will probably be a Toyota because my parents always advocated how great of cars they were and that is now instilled in me. However, sadly with both parents having to work and spending less quality time with their kids, Generation Y has created their own views about brands which has made it a challenge for marketers to connect with them because they differ greatly from their parent’s generation.
The stereotype may be narrow but there are many truths to how the Net generation is viewed. I agree that this generation is globally oriented and open minded. We have a great desire to be connected- whether it be with friends, family, interest groups, music fans etc. That is why when I look around class I see people texting or while walking to class I see people either talking on their phone or listening to music. We respond quicker to emails and text messages than we do traditionally mail. We want the latest and greatest new gadgets, and we are constantly on the internet. Every time a new phone comes or a new game system emerges out we feel compelled to own it.
We come from a generation where we can fast forward commercials using TiVo or listen to our iPod so we don’t have to hear commercials on the radio. We don’t like to be interrupted! Because we have been so flooded with media, marketers have to refocus how they are going to reach this generation. We want things to be on our time, we want instant gratification, and for us to be making the decision not just some commercial trying to trick us into buying something. I agree with an article on the website ‘Growing up Digital’ that Y Consumers want options, customization, to be able to change their minds, and to try before they buy. I think marketers should be focused on finding ambassadors to share the company’s product with friends. I agree with the podcast when it talked about the Y Generation trusting the opinions of their friends more than seeing something about it on TV. Marketers need to look more into sponsoring events, having interactive websites, and finding way for us to test their products instead of focusing on traditional media outlets such as commercials. Kids are still very influential and can be swayed in certain directions. Marketers just need to figure out how to sway them in their direction. I remember going through the costume closest at my house and pulling out something my mom use to wear way back in the day that was in style right then. So, it is not just that the baby boomers and the Y generation have totally different taste. It is about figuring out how to market these older brands in a new Generation Y way.
I feel I am a fairly typical member of this generation. My life seems to revolve around the internet. Checking my email is one of the first things I do everyday, and I am constantly on Facebook checking out if my friends posted any new pictures. However, I am not as big into music as most people in my generation, and I am also not a huge technology buff, so I am content with my older phone and iPod. I hate commercials, but I love discounts and saving money. I feel I am open minded like the rest of my generation and also hate being told what to do!
While I was reading the Businessweek article about Generation Y I found myself having to adjust to the fact that it was written in 1999 and was a little outdated. However, there were main points that I agreed with and that got my attention. The fact that my generation comes from families where the divorce rate is 50%, we have working mothers, and are more racially diverse makes us very different from the baby boomer generation. Parent’s preferences in life can impact the way children view those same products. For instance my next car will probably be a Toyota because my parents always advocated how great of cars they were and that is now instilled in me. However, sadly with both parents having to work and spending less quality time with their kids, Generation Y has created their own views about brands which has made it a challenge for marketers to connect with them because they differ greatly from their parent’s generation.
The stereotype may be narrow but there are many truths to how the Net generation is viewed. I agree that this generation is globally oriented and open minded. We have a great desire to be connected- whether it be with friends, family, interest groups, music fans etc. That is why when I look around class I see people texting or while walking to class I see people either talking on their phone or listening to music. We respond quicker to emails and text messages than we do traditionally mail. We want the latest and greatest new gadgets, and we are constantly on the internet. Every time a new phone comes or a new game system emerges out we feel compelled to own it.
We come from a generation where we can fast forward commercials using TiVo or listen to our iPod so we don’t have to hear commercials on the radio. We don’t like to be interrupted! Because we have been so flooded with media, marketers have to refocus how they are going to reach this generation. We want things to be on our time, we want instant gratification, and for us to be making the decision not just some commercial trying to trick us into buying something. I agree with an article on the website ‘Growing up Digital’ that Y Consumers want options, customization, to be able to change their minds, and to try before they buy. I think marketers should be focused on finding ambassadors to share the company’s product with friends. I agree with the podcast when it talked about the Y Generation trusting the opinions of their friends more than seeing something about it on TV. Marketers need to look more into sponsoring events, having interactive websites, and finding way for us to test their products instead of focusing on traditional media outlets such as commercials. Kids are still very influential and can be swayed in certain directions. Marketers just need to figure out how to sway them in their direction. I remember going through the costume closest at my house and pulling out something my mom use to wear way back in the day that was in style right then. So, it is not just that the baby boomers and the Y generation have totally different taste. It is about figuring out how to market these older brands in a new Generation Y way.
I feel I am a fairly typical member of this generation. My life seems to revolve around the internet. Checking my email is one of the first things I do everyday, and I am constantly on Facebook checking out if my friends posted any new pictures. However, I am not as big into music as most people in my generation, and I am also not a huge technology buff, so I am content with my older phone and iPod. I hate commercials, but I love discounts and saving money. I feel I am open minded like the rest of my generation and also hate being told what to do!
Friday, January 23, 2009
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