Monday, April 16, 2012

Shoplifting

Shoplifting may not be the first thing that comes to mind when one thinks about consumer behavior. However, I thought it was in interesting twist on consumer behavior. There is something driving a consumer to shop lift. Although the consumer is not consuming the product in a way that benefits the producer (through cash), they are none the less still consuming.




There are a different factors that  drive consumers to shoplift. For some it is because they cannot afford a product, but for others it goes much deeper than that. Shoplifiting is a real problem in America. In fact, there is a website for shoplifting prevention. Facts on this website claim there is no profile for a shoplifter. Meaning, any one is a potential suspect in the store.


What consumer behavior theories result in shoplifting? Perhaps you could tie it into Maslow's Heirarchy in the need for acceptance. Products become a part of the extended self, perhaps people allow certain products not within their means to define them that they resort to shoplift. But, perhaps its more than that. It's a thrill seeker.

Whatever it is that causes shoplifters to commit the crime is interesting in all aspects to me. There are deep psychological factors behind the reason one commits the crime.

Thursday, April 12, 2012

A Trip Down Memory Lane

Do you remember toys from your childhood? As I sit down to really think about the products I just HAD to have as a child, it sure brings up many memories. Some of my favorite childhood products included:

I was convinced this thing was alive. I remember putting it on my light up tracer and it said "light", I was instantly convinced. Santa forgot where he hid this so I got it a few days after Christmas. 

Remember the farting noise you could make when you pushed the Gak into the narrow parts of the container?

This list could go on and on. It makes me really wonder how I ever convinced my parents to get me all these toys. Perhaps it was through nagging? Well, whatever it was, it worked. 

Monday, April 9, 2012

Donations


Talking about Non-Profits in my Social Entrepreneur class and working in a Non-Profit has me thinking a lot about donations. Research shows that 80% of donations come from individuals. So the question here is what makes people donate? The answer to this question is highly related to consumer behavior.


Do you donate to a non-profit? Whether it be time or money, there is a driving factor that causes people to donate. I'd say that although donating gives the donor a warm fuzzy feeling, there is more that goes into the decision about who and how much to donate.

My most recent donation was to an organization that I cannot even recall the name. I was walking through the Student Union Building (SUB) and someone grabbed me and gave their pitch for their organization. I let them talk them donated without even asking further questions. How did I make such an impulsive donation?

Was I feel generous or did I really connect with their mission? Well, based on the fact that I barely remember the mission, I'm assuming I was feeling generous. But, this is not what keeps people donating.

People work hard for their money and can be selfish when spending it, yet many don't hesitate to support a local non-profit. Especially when the organization manages connect to the donor on a personal level. Or, when the organization shows a real impact in the community. I was told by a professional fundraiser that, "people donate not because an organization has a need, but because the organization meets a need." I think she nailed it. People donate to make a real impact.

Thursday, March 29, 2012

Grocery Store Avoidance

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I can openly admit that I avoid grocery shopping at all cause. I get so overwhelmed in the grocery store. Grocery shopping is a skill that I'm lacking in. It takes experience and cooking knowledge to have a successful trip to the store.

Ideally, a consumer grocery shops about once a week to get food that they are committing to eat for the next week. I bounce around from isle to isle trying to find things. I never know the best way to go about the trip. Ideally, it makes most sense to know what you need from each isle and work your way through the store. But, when you never know what you want or where it is a problem develops.

Just writing this is making me frustrated. If I were to be observed in a grocery store for market research it would become very obvious to the researcher that I'm a complete idiot in the store.

Then, once I decide on something I need, it doesn't reach my basket until I've carefully compared prices with every item on the shelf. Even when it makes it in my basket, I still manage to pull things out at the end.

The worst part of the whole trip is checkout. The dreaded mess of people in the front of the store all waiting to check out at the same time. How is it that when walking into the store there is no one at the checkout, but when its time to checkout, the lines are packed. After patiently waiting in line, sometimes even to service yourself (Self-checkouts could be a totally separate rant), the total appears on the screen. Ah! I hate that part. How is it that 10 items add up to $40?

Evidence that I'm not the only one who feels the pressure of grocery shopping is all over the place. There are even grocery list apps available for smartphones--perhaps this is yet another reason why I should finally bite the bullet and get one.

Although I'm aware that grocery shopping is something I will always have to deal with, I don't think I will ever like it. As a matter of fact, I think I will add grocery shopping as a criteria when choosing a husband. Until then, happy shopping to me and all the other gorcery shopping haters out there!

Friday, March 23, 2012

Limited Time Offer!


When you see a sign with the magic words "limited time offer!" what emotions do you feel? Exited, intrigued, anxious? One thing for sure is that the phrase sure puts a sense of urgency on the purchase.

Some examples of "limited time offers" are:
McDonald's Shamrock Shakes

"Droid 3 Free" at CellularPlus

Sierra Mist Cranberry

All three of these offers have put urgency on the consumer to purchase the product in a timely manner before it's too late. In fact, creating a limited time offer that works is an art. Limited time offers are especially effective when they are within a short time frame and are able to offer an exclusive product.

Limited edition cars have done an excellent job at mastering this "art" form. Let's take a closer look and consider the Eddie Bauer edition Ford Expedition from way back in day. Ford only created a limited amount of Expeditions with the Eddie Bauer interior. This tactic is a combination of piggybacking and limited time offer. This has been a successful technique used in car sales.


Limited edition products that can be portrayed as exclusive help motivate consumers to buy. When a consumer wants to be different or stand out from the rest, they may be more inclined to buy an exclusive, limited offered product.

When you think about it, sales are limited time offers that consumers jump all over. It is a marketing technique used to get people to buy NOW. Just think about it, when you only have one week to get a product on sale, you are more inclined to purchase now as opposed to later.

Monday, March 19, 2012

Vacation Spending Mentality

There is something that changes in the mind of a consumer when they find themselves on vacation. Vacationers somehow are able to justify spendier purchasers with a few simple words, "It's okay, I'm on vacation."

With Spring break now being over, I'm sure many people are cringing as they look at their bank accounts now that we are all back to reality.

Looking for some great examples of these lavish spendings? Oh, I got you covered.
  • The Ridiculously Priced Drinks--most people would laugh when they look over a drink menu and see a $14 margarita, however, when on vacation..."It's okay, I'm on vacation".

  • The Steeply Priced Activities--in a regular week, the idea of paying $70 for a half hour zip line ride is outrageous, but when on vacation..."It's okay, I'm on vacation".

  • The $30 "Must-Have" T-shirt--back home a lame cotton t-shirt with a funny phrase is hardly worth $15, but when on vacation... "It's okay, I'm on vacation".

It's a reasonable argument to state that everyone has been guilty of the vacation mentality. The best of all marketing techniques is to continue to remind the vacation mentality to tourists when attempting to sell an overpriced product.

Welcome back everyone!

Wednesday, March 7, 2012

Allegories Defined

An allegory is a story about an abstract concept personified in a fictional character, such as a person, animal, or plant. Marketers have used these characters in branding for a long time. I would like to take the pleasur to define popular allegories from my view point.
Mr. Peanut
Mr. Peanut is the spokesperson for Planter's Peanuts. He represents a friendly, healthy man. He is limber and classy. This translates to consumers that Planter's Peanuts are a healthy snack. They are classy. Also, the fact that Mr. Peanut himself has not changed too much over time shows consumers that the product is consistent as well. The brand did it right the first time, so it hasn't had to change much.                      





 
Snuggle Bear
Snuggle Bear is the spokesperson for Snuggle fabric softener. Just looking at him makes you want to cuddle. He is so soft and cuddly. He is a sweet little companion. Snuggle represent the exact qualities that the product of Snuggle offers. The brand is a familiar friend that provides comfort.
Michelin Man
The Michelin Man is the spokesperson for Michelin Tires. He is a cool, strong, man. I'm not sure if he's covered in padding or muscles, but he looks tough and safe at the same time. He is a reliable friend. Michelin has used the Michelin Man to portray this same image to consumers about its tires. They are reliable, tough, and keep you safe. Just like all that padding around the Michelin Man.
Mr. Clean

Mr. Clean is the spokesperson for Mr. Clean cleaning products. He is a squeaky clean kind of guy. From his perfectly white shirt and eyebrows to his sparkling shiny head, he is all around clean. Not only is he clean, he is also strong and a bit rebellious (judging off the gold hoop in his ear). The brand has used Mr. Clean to represent its products. He represents the quality of their product. When consumers are deciding what brand of cleaning products to use, the familiar face of Mr. Clean helps make the decision easy. 

Whether allegories work or not, I find them fun to define. Next time you find yourself feeling a personal connection to an allegory, take a minute to laugh at yourself and think of a marketer. 


Monday, March 5, 2012

Nail Polish...for MEN?!

I thought I'd seen it all, and then I saw this...




Yes! You read this correctly, MAN.

This product was brought to my attention through a small article in Cosmopolitan. Of course the celebrity pictured using it was no other than Johnny Depth. But the real question here is, will the product be successful?

I believe that the product was intended for men to get in touch with their inner alphaNAIL. In fact, they have used the color names to try to maintain their masculine tone. My favorite color name is "Pavement Nail Paint."

Call me close-minded, but I don't think this fad should catch on. I sure hope it doesn't. A man should have dirt under their fingernail, not polish on the top. I sided against the crazy marketers on this one. At the very least, this product has provided some quality entertainment for me.

Monday, February 27, 2012

Sucker

Saturday as I was doing some grocery shopping, I realized something about myself. I'm a sucker for those fancy water drinks. Hate to admit it, but I'm guilty.



As I walked into Albertsons and past the refridgerated beverage isle, I filled up my basket with water. Seriously? It's water for crying outloud. Somehow I can justify spending $1 on a flavored water but I'm too cheap to buy the $3 juice. As I noticed the weight of my basket all I could do was laugh at myself.

After noticing this trait, I found myself stopped in front of another refridgerated water display. I turned to my friend and admited outloud one word: "sucker". This is marketing at it's finest.

Tuesday, February 21, 2012

Nudge



I recently finished the book Nudge: Improvng Decisions about Health, Wealth and Happiness by Thaler and Sunstein (if you haven't read it, I reccommend you check it out). After digesting the book in a six page book report, I have found myself catching inconspicuous "nudges" everywhere. I'd like to share some of my recent discoveries:


  • Grocery Stores: The new Safeway store in town has healthy food nudges all over the store. If a customer walks in the the left door, they enter directly into the produce department. The produce department is the most open area in the store. The fruits and vegtables are the main color source in this area. As you move to the back of the store toward the milk, there are racks in the isle way with bannans. So, even if someone bypasses the produce department, they are bound to come across some fresh food somewhere in the store. 
  • Overdraft Protection: As a former bank teller, I could tell endless stories of upset customers about overdraft protection. Few people notice that overdraft protection is an opt-out default. This means that if you do nothing, you are automatically enrolled in this "expensive when used" service. Banks are nudging customers to participate in overdraft protection ( a great revenue scheme for banks). 



Take a look around, nudges are everywhere! The examples provided above give evidence that nudges can be a good and bad thing for consumers. Simply being aware of the nudges may be the key to finding a way to listen to the good nudges, and ignore the bad nudges.  


Tuesday, February 14, 2012

Consumer Engagement

I spent this past weekend in Seattle, WA for a matching intern event for The Boeing Company. The weekend was jam packed with information all about the company. During a presentation given by a Brand Positioning Manager, I was informed about Boeing's  techniques and importance of consumer engagement. This information got me really thinking about consumer engagement.

Consumer engagement is an important aspect in positing a brand. The more a brand is able to engage its consumers, the more invested its consumers will become. There are many techniques company's use to engage its customers.


How is an airplane producer supposed to engage its customers through the Internet you may ask. Take a look at Boeing's website and the answer to that question is splattered all over.

787 Dream Tour
  • The section allows airplane enthusiasts to follow where the new 787 Dreamliner is and where it will be next. This tactic fully engages people. Followers are encouraged to develop an obsession of being in the know about this new product. 
  • The section also allows customers to view a virtual tour of the airplane and view all the new details in the design. I even found myself engrossed in the extent of information and graphics in this section. 
Randy's Journal

  • The section is an interactive blog with real time updates straight from the VP of Marketing. The blog is an excellent way for Boeing to communicate immediate information to its followers. 
After listening to a mini-presentation on Marketing techniques used by Boeing to encourage consumer engagement I have come to realize the importance of it. Next time you find yourself captivated by a company's website, give credit to the Marketing department. 

Sunday, February 5, 2012

Impulsive Online Shopping

Bargain shopping has become a hobby of mine. I pride myself in being able to walk away from an item with the mentality that I'll wait until it goes on sale. Scrounging clearance racks is like treasure hunting. This obsession with finding a good deal is not just limited to physical shopping, there are many websites out there that do the work for you. Many sites exist that offer a great deal on a few items for a limited time. Examples of these websites include:
All these websites offer a great deal and the infamous countdown timer. The timer ticks away as you asses your purchase encouraging a sense of urgency on the purchase at stake.

These websites create impulsive purchases. Customers purchase items they don't necessarily need. They feel that they are getting too great of a deal to pass up. In reality, these purchases may be unnecessary. Consumers get so caught up in the idea of saving money that they actually end up spending more on things that they don't even need.

Next time you find yourself scrounging one of these bargain sights, ask yourself:
"Is this really a bargain?"

Sunday, January 29, 2012

Just a Little More

The mentality of spending "just a little more" on a purchase has quickly diminished my funds. After a class discussion on the topic last week, I took a moment to reflect on my own behaviors. I regret to admit, I've been guilty of this mentality. Examples of my "just a little more" mentality are endless, but I'd like to share my most expensive one.

MY NEW CAR!



In December I had my first experience of purchasing a new (to me) car from a selection. My past two cars were purchased with no selection because I came across good deals. In the process I was bombarded by pushy sales people who all wanted my hard-earned cash. I had set a strict budget for myself. I made promises to myself to not exceed my limit. I was feeling pretty headstrong about my decision until I came across the car of my dreams.

Never in a million years did I think I would be able to own such a beautiful car while in college. I felt all my willpower disappear as I looked at the price tag--$600 over budget. Suddenly all the excuses and justifications started rolling through my mind.

  • A year from now, the extra money spent will be worth it.
  • I'm already spending a lot, a few extra hundred will be fine. 
  • The car is worth the extra cash.
  • But the seats are HEATED!
I knew the moment I was handed the keys for a test drive that my purchase was going to come in over budget. The car had to be mine. Every mile I drove, I fell deeper and deeper in love. By the time I got back to the dealership it was clear the car was sold.

I don't regret my purchase. I think that if the experience taught me anything it would be that    I'm doomed when it comes time to purchase a home. 

Image Credit: http://www.admiralmotors.com/chicago/2002_Volkswagen_Passat_GLX_01_11349cdf563c9c1338318eb2c09a51bb.jpg

Monday, January 23, 2012

Inconspicuous Haircut

The other day I changed one of my regular inconspicuous consumptions for a cheaper version and the outcome was very pleasant.

I was in desperate need of a haircut. So, in my regular pattern, I texted my Aveda trained hair stylist. To my horror, her response informed me that she had moved. I went into an immediate panic. I've always been very particular about who cuts my hair and in recent years I have developed a strict criteria:
  • Aveda trained
  • Talks to me before touching or cutting my hair
This criteria has seems to always result in a steep price. I've been able to  justify the price tag by telling myself, "your hair is something you wear everyday."

I cringed at the idea of finding someone new to cut my hair. That takes both time and money and with both resources low, I needed a more viable solution to my problem. I decided to take my friend's advise and go to Great Clips. It took me some major mental prep to sit down in the strangers chair, but to my surprise, it had a decent outcome.

My inconspicuous consumption of my non-Aveda haircut has made me realize that the quality of the haircut is not always directly related to the price. I saved money and no one notices that my hair cut was not performed by an Aveda stylist.


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Monday, January 16, 2012

More For Less

The other day while I waited in the 5 o'clock dinner rush line at Taco Bell I carefully looked over the menu to determine what I would have for dinner. As I stood in line examing the menu I pulled my lousy $5 bill out of my pocket, my dinner needed to fall within this budget. The abundance of items on the Taco Bell menu always seems to overwhelm me.

As the workers tackled the line, my turn was approaching quickly and I still had no idea what I was going to order. Just when only two customers remained in front of me I decided what my dinner was going to consist of:

  • cheesey gordita crunch ($2.69)
  • crunchy taco ($1.09) 
  • medium soda ($1.69) 
  • for a grand total of $5.47...SHOOT!

It was just about my turn when the big $5 box sign caught my attention. I read the detail that listed what the box contained: a cheesy gordita crunch, a crunchy taco, a medium soda, AND a supreme burrito.

A double take confirmed that this $5 box contained all the items I wanted plus a supreme burrito for a lower price. So in an attempt to get all that I wanted for dinner within my $5 budget I ordered the $5 box. The $5 box proved to provide more food for a lower cost than 3 of the 4 items seperate.

The look on my boyfriend's face when I presented the supreme burrito to him was the best part. Little did he know that my "thoughtful" gesture of picking him up a snack was the result of saving $0.47 to get my dinner of choice.


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