Tuesday, March 31, 2009

After viewing the TedTalks with Michael Shermer, I think it is interesting to point out how his skepticism uncovers the truth behind people’s belief in hearing “satan” in Stairway to Heaven, observing crop circles made by aliens, and the Virgin Mary on a cheese sandwich. Mr. Shermer seems to be a man of science who relies on facts, information, analysis, hypotheses, etc. in order to believe what is rational logic. But I think that he goes beyond his science roots to uncover these myths and hoaxes by pointing out human biases that cause people to believe in the unexplainable. For example, Mr. Shermer discusses how humans look for patterns as visual cues. This is a true bias in human behavior because that is how the brain functions. Humans categorize based on paradigms and other pattern-like linkages in order for the brain to organize thoughts and memories. This pattern seeking bias for categorization is seen in stereotypes. We lump people into similar groups to make it easier on our brains to recall the information. When something does not fit the pattern, our brains label it as different and therefore threatening because it is not like all the rest. The same thing goes for products and services. We as humans look for patterns so that we can easily identify products. I think this is the idea behind the Song airline designing the fusel lodge to look like a woman and her baby. People see the familiar pattern (however subconsciously) and want to fly on the airline. An example that comes to mind is the film Napoleon Dynamite. Netflix for the past couple of years has offered a million dollars to anyone who can design a movie database that will offer films that are similar to your choices; it is a “If you like this movie…you might also like these…” kind of function. But Napoleon Dynamite threw a wrench in the chain. What movies are like it? The film simply does not fit the pattern and so a helpful device like this in improving the customer experience could not easily be created.

Another bias I think that Mr. Shermer was alluding to in his discussion but never explicitly stated it is confirmation bias. Confirmation bias is a human behavior that confirms things only based on available information and information that supports the pre-existing beliefs or assumptions. Perhaps this can explain why people see the Virgin Mary in the window and cheese sandwich. The individuals who believe this to be a sign are religious people who confirm it to be true because their religious background confirms it. This is why people will sometimes dismiss products as being useless and of poor quality when they have no facts to support the claim. For example, Windows Vista is a product that is seen as being of poor quality because people used confirmation bias that it was a bad product. The Windows Mojave marketing program sought to debunk the myth by allowing customers to use the product under the guise that it was not Windows Vista. After the customers used the product and enjoyed it, they were shown that it was in fact Windows Vista. Understanding human behavior can help marketers to gain customer insights that will improve the products and services made available to the public.

Another point Mr. Shermer makes is when people are informed to look for something, their brain will always find ‘something’ even if there isn’t anything really there. He illustrates this with playing Stairway to Heaven backwards. When he provides the words, people automatically assume that the demonic lyrics are, in fact, present. I think this is a good insight to be cognizant of because it helps with when to disclose information about a product or service and when not to. The moment you provide too much information, people will look for it and find it with confidence that it is indeed fact. But leaving out the information lets consumers enjoy the product or service. It is the old cliché that what they don’t know won’t hurt them.

Tuesday, March 24, 2009

The documentary The Persuaders was very insightful in the way it explored the various techniques the study of marketing has employed to tap into that ever elusive consumer mind. One of the sections explored the work of Dr. Rapaille who charges thousands of dollars to provide a code that will unlock the secret to success for whatever company that comes to him. His process is simple and straightforward through several focus groups. In the first stage, he makes the people participating in the focus group use their reasoning skills to perform certain activities and have a discussion. Next, reason is abandoned for emotional responses to stories and discussions about various topics. In the last stage, the participants are confused and unsure of Rapaille’s methods leading them to reveal their “reptilian hot buttons” that are the driving motivation for purchasing products. It is at this stage that Rapaille discovers the code that he reveals to the participants so that they can use it in their own marketing endeavors. One example of Rapaille’s code is for Hummer. He claimed the “reptilian hot button” for wanting a Hummer is because it represents dominance. He suggested that Hummer manufacturers tint the windows and heighten the chassis so that the feeling of dominance is highly pronounced. It is through this method that Dr. Rapaille makes his money. But is this method actually useful? When he was first introduced during the interview, he talked about a woman understanding what it is like to be confined in a small space because women give birth and relate to the baby. I’m not sure that Dr. Rapaille is the expert on understanding the female psyche. On the other hand, he is on to something when he points out that people don’t actually know what they want. His method of tapping into the subconscious to discover the true reasons behind consumer behavior is something that has greatly improved marketing programs. But I don’t think that it can be simplified to a single code. There must be many other factors contributing to the behavior making for consumer behavior to be a very complex issue that is elusive and capricious. For example, why is it that people will not eat white margarine? Why will they eat it when it is dyed yellow? It is questions like these that Dr. Rapaille discover and attempt to answer that help better serve the needs of the consumer.

Song, on the other hand, seems to be going for something that simply does not work. I do believe that they are creating a good experience for fliers through the soft palette colors and unique design. Even the tag line “Let yourself fly” taps into the emotional part of the experience making it something that is enjoyable. But I think the problem lies in the identity of the new brand. Nobody knows what the advertisements are about. Even in the documentary, Song’s research showed that very few people had strong brand recognition with Song. Perhaps one thing that is wrong with it is the word associations that go along with the word song. People think of tunes and lyrics when they hear the word song. There is no association with airlines. The word apple, however, does not have any association with computers. But the Apple brand has spent years forging a strong brand equity that has created a consistent and coherent brand recognition that is thriving even today. It just seems that Song has not clearly defined themselves and positioned themselves in the market of airlines. It is almost like people are turned off by the idea of an airline being called Song; like people are turned away from eating white margarine. That would be my only suggestion to do things better: find an identity through a different name that fits the product category of airlines. People would be able to recognize it better and that “reptilian hot button” would not be turned off by the idea.

Sunday, March 8, 2009

Mr. Gladwell does a particularly good job of illustrating Kenna’s dilemma in this chapter by providing several examples that show how standard market testing doesn’t always work. For me, the two lessons about consumer behavior that stick out the most are that humans don’t actually know who they are and what they want; the second is that things that are different automatically get this stigma of being wrong or undesirable. I find these two lessons that are discussed in this chapter the most important because they say the most about human behavior not only in the context of customer insights, but also in other behavior seen through the lens of self perceptions, taste, and treatment of others. Therefore, Mr. Gladwell’s chapter is not only tapping into the psyche of buyer behavior, but it is discovering true psychological reasoning and processes that all humans utilize in their daily lives. Like the piece on the Pepsi Challenge pointed out, it was the strong brand associations linked to Coke that made the product the number one cola in the world, not simply the taste.

I have always agreed in my mind with Mr. Gladwell’s theory that people don’t know what they want; at least for myself. I can’t even assemble my own ultimate sandwich at Subway because I don’t actually know what ingredients I like. This ends with me selecting one of the sandwiches from the menu. But I think this applies to your average consumer as well. We as consumers attempt to pick out what we like the most but the margarine example proves that we don’t actually know what that is. Instead of consciously trying to decide, our minds revert to the subconscious and tell us that margarine wrapped in foil and dyed yellow tastes better than the same margarine that is white and not wrapped in foil. And since this behavior is performed subconsciously, the consumers can’t put into words their true thoughts or feelings about a product. That is why we are best expressed through the clothes we wear and the items we collect and buy, like Mr. Gladwell suggests. However, I think consumers’ pride steps in and refuses to recognize this. For example, I can’t tell you how many times I have told myself I know who I am, yet I go off and do something completely out of character. Then I’m left with my mom telling me: “I told you so.” She really does know me better than I know myself. And perhaps marketers, through creative and unique research, come to know consumers better than they know themselves because they tap into that subconscious level. It is that elusive subconscious level that makes the human condition so complex and capricious. We try to better understand it through books, music, films and other art forms but it can never be pinpointed.

The other lesson that Mr. Gladwell points out is that difference is too often associated with being wrong or undesirable. His detailed example about the Aeron chair clearly defines how humans who can’t place something different into a familiar category will dismiss it. It is human nature to categorize and find paradigms in order for us to file memories into our brains. Things that don’t fit the paradigm are overlooked or even worse looked down upon. This is a behavior that is seen in stereotypes and discrimination. People who look different, act different, or dress different are discriminated because it doesn’t fit the norm. This can be taken one step further when people fear difference which leads to racist acts. Because this lesson has many implications beyond simple consumer behavior, it makes for an intriguing and important issue that helps marketers as well as consumers understand human behavior. An example of this that I know of involves Roger Ebert, a renowned film critic for the Chicago Sun Times. In 1967, a new movie called Bonnie and Clyde made its way into theaters across America. The film, once hailed for its graphic violence, was panned by critics calling it amateurish and poorly crafted because of its gritty visual style and jump cuts. But Roger Ebert dubbed the film a masterpiece understanding that its style complemented the violence by showing how realistic and raw violence is in society. Critics and audiences simply saw that it was different and instantly dismissed the film. The film went on to be nominated for ten Academy Awards and is considered one of the best films about violence in America. Roger Ebert, needless to say, was justified in his movie review.