deb rash.surrounding the consumer.0610
DESCRIPTION
2010 SLA Annual Conference presentationTRANSCRIPT
Surrounding The Consumer
SLA 2010 Annual Conference
Deb Rash
6.16.10
Heads, Hearts, Wallets
ConversationsAdvertising
Marketing
Public Relations
Product Placement
Sampling
Sales
Customer Reviews
Product Recalls
Celebrity Endorsement
Friends
Family
Coworkers
Classmates
“Friends”
Followers
A Little Bit About This Session
• Definitions
• Motivations
• Progression
• Information
A Little Bit About Me
• Education– Illinois Mathematics & Science Academy– Carleton College, BS, English– Dominican University, MLIS
• Work Experience– Freelance, 2008 – present– St. Catherine University, 2004 - present– Iconoculture, 2006 – 2008– Carmichael Lynch, 2001 – 2006– Fallon, 1999 – 2001– Campbell Mithun, 1998 – 1999
Me As Consumer
• Cooking Light recipe maker• DVR multi-tasker• Holder of 3 different health insurance cards
in past year• Mad Men, Melrose Place, 30 Rock watcher• Mazda5 zoom, zoom, zoomer• Mother of two preschoolers• Orla Kiely, Marimekko desirer• Target credit card holder• Young Gen Xer
How Would You Get To Know
More About Me?
• Ask some questions.
• Do some poking around.
"If Edison had done market
research, he would have
invented bigger candles."
Advertising Age, 3.17.10
http://adage.com/cmostrategy/article?article_id=142841
"If Howard Schultz of Starbucks
had done market research, he
would have invented ... Pepsi A.M."
So of course instead we need
marketing research.
And within that
consumer research.
By consumer insight we mean
understanding how consumers are
changing their purchasing habits for
products and services, how they're
changing their media consumption habits
and how we can apply that data through
technology to improving the return on
investment for our clients in their industries.
Sir Martin Sorrell, CEO, WPP, 5.6.10
Huffington Post, 5.6.10
http://www.huffingtonpost.com/sir-martin-sorrell/wpp-turns-25_b_565290.html
According to Andy Murray,
worldwide CEO, Saatchi X, 85%
of purchase decisions have an
emotional basis.
Advertising Age, 3.15.10
http://adage.com/article?article_id=142796
For that reason, Saatchi now has a
psychologist and an anthropologist on
staff to analyze shopper data.
Definitions
What Is Consumer Research?
• Putting together a profile
• Determining what motivates/influences purchases
• Listing the contents of a shopping basket
• Figuring out what sources consumers trust for information
What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative
Primary Vs. Secondary
• What?– Focus groups, surveys, interviews, observation …
• Where?– Focus group facility, mall, online, mail …
• Why?– Can be tailored to specific needs– Immediate follow-up possibilities
• Why not?– More expensive in general– Time needed for set up, gathering, analysis– Results may be skewed by research process
Primary Vs. Secondary
• What?– Studies previously published by research groups,
government agencies, trade associations …
• Where?– Newspapers, magazines, press releases, blog postings …
• Why?– Less expensive in general
– Immediately available
• Why not?– Not as specific
– Not customized
– Magic bullet just may not be available
What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative
Observation Or Ethnography
• Consumers in natural environments
• “Real world” interactions with products, brands, stores, materials, people …
Analytics
• Processing secondary data
• Questionnaire design and coding
• Primary results analysis
• Statistical significance barometers
• Data massaging
What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative
Quantitative Vs. Qualitative
• Quantitative
– Projectable to target population
– Involves analytics
• Qualitative
– Statistical significance not calculated
– Involves observation
Motivations
What Motivates Consumption?
• Friends/families
• Advertising/marketing
• Economic conditions
• Emotions/impulses
• Life stage
• Company behavior
• Innovative technology/products
• News cycle
Motivators – (“)Friends(“) & Family
• Aunt Ellie
• Co-worker Tom’s teen daughter
• Sarah S from high school
• Local mom whose kids won’t eat lettuce either
• Pearl Jam fan/liker
Motivators – (“)Friends(“) & Family
• Pampers Dry Max Diapers protest (5.3.10)
• Moms as “chief purchasing officers,”Teenagers as “chief influencing officers” (4.19.10)
Pampers bring back the OLD CRUISERS/SWADDLERS
Join
http://abcnews.go.com/Technology/parents-protest-pampers-diapers-
facebook/story?id=10537369&page=1
http://www.facebook.com/group.php?gid=230956705705&ref=ts
http://irma.org/2010/04/19/retail-register-no-308/
Motivators – Ads & Marketing
• Old Navy commercial
• End cap display
• Product packaging
• Internet roadblock
- stuck inyour head for days, no years
- oh, that’s whereall the on-sale oatmeal is
- NOW. MORE.FIBER.
- they knowwhere you’ve been …
Motivators – Ads & Marketing
• “Subway effect” – more people expect to pay $5 or less for an out-of-home meal (5.5.10)
• American Express/Dunkin’ Donuts partnership (4.8.10)
http://www.earthtimes.org/articles/show/us-restaurant-industry-must-reinvent,1283376.shtml
http://www.dmnews.com/american-express-dunkin-donuts-partner-on-rewards-
initiative/article/167631/
Motivators – Economy
• Lip Stick Effect
• Playboy model types
• Staycations
• Baggage fees
- Seeking small
pleasures in down times
- When theeconomy goes bust …
- “Outrageous,” butnot unexpected
- In or out, placing bets
Motivators – Economy
• Time to drop “new” from the new frugality (5.6.10)
• Working less, producing as much (5.5.10)
• More than 100 vehicles “New Cheaper Than Used” (4.18.10)
• Buying organic - Paying with food stamps (3.15.10)
http://www.sfgate.com/cgi-bin/blogs/dollarsandsense/detail?&entry_id=62940
http://blogs.hbr.org/cs/2010/05/the_productivity_myth.html
http://www.dispatch.com/live/content/business/stories/2010/04/18/best-deal-might-be-new-car-not-
used.html?sid=101
http://www.salon.com/life/pinched/2010/03/15/hipsters_food_stamps_pinched/
Motivators – Emotions & Impulses
• Chocolate moments
• In-store slack
• Unavoidable nutrition info
• Foursquare
Motivators – Emotions & Impulses
• AT&T dropped call rate (4.5%) much higher than average (2.8%) (5.5.10)
• Independent Record Store Day (4.11.10)
• Mary J. Blige selling perfume exclusively on HSN (5.7.10)
http://arstechnica.com/gadgets/news/2010/05/customer-service-survey-puts-att-at-bottom-of-carrier-
heap.ars
http://www.independent.co.uk/arts-entertainment/music/news/record-shops-stage-fightback-
1941259.html
http://www.taletela.com/news/1262/mary-j-blige-to-launch-fragrance-that-you-cant-smell
Motivators – Life Stage
• Morphed Metrosexuals
• CEO Moms
• Helicopter Parents
• New parents, empty nesters
• Divorced/separated/widowed
Motivators – Life Stage
• Tweens applying mascara (5.2.10)
• Mother’s day spending keeps going up (4.20.10)
• More single female homebuyers (4.24.10)
http://www.thestar.com/living/article/802893--teddy-bear-in-one-hand-lipliner-in-the-other
http://www.nationaljewelernetwork.com/njn/content_display/independents/retail-
surveys/e3i7db724a2489ff4ccf850ef4612d447c0
http://host.madison.com/article_63bb9254-4fbf-11df-a4c8-001cc4c03286.html
Motivators – Company Behavior
• Perceived sustainability
• What is organic?
• Avon pink ribbons
Motivators – Company Behavior
• Crowne Plaza Copenhagen Towers exercise bikes (4.14.10)
• FedEx introduces all-electric delivery trucks (4.12.10)
http://www.reuters.com/article/idUSTRE63D3UC20100414
http://www.latimes.com/business/la-fi-fedex-truck12-2010apr12,0,7478025.story
4
Motivators – Product Innovation
• iPod influence on technology, entertainment, fashion, learning…
• Kindle, Nook …
• There’s an app for that.
• Single-cup coffee brewers
• Reusable shopping bags
• Toyota Prius
Motivators – Product Innovation
• “TiVo effect” a myth (5.10)
• Online bill pay soars (5.12.10)
• Backlash to automated preference predictions (5.13.10)
http://www.theepochtimes.com/n2/content/view/35125/
http://faculty.fuqua.duke.edu/~mela/bio/papers/Bronnenberg_Dube_Mela_2009.pdf
http://washington.bizjournals.com/washington/stories/2010/05/10/daily46.html
http://www.physorg.com/news192989176.html
Motivators - News Cycle
• Big health breakthroughs
• Economic cycles
• Disasters at home or abroad
• Trust issues
Motivators - News Cycle
• AriZona Iced Tea – no really, we’re from New York (4.28.10)
• SafeWay launching SafeWay Health to help other companies set up incentive based plans (3.21.10)
• Texting for charity (1.18.10)
http://www.nydailynews.com/news/national/2010/04/28/2010-04-
28_arizona_iced_tea_brewed_in_new_york_actual_arizona_firms_include_cold_stone_crea.html
http://www.businessinsurance.com/article/20100321/ISSUE01/303219974
http://www.pbs.org/newshour/bb/science/jan-june10/haiti4_01-18.html
Progression
Motivational Growth Areas
• Everything above demographics
• Social networks
• Friends (or not)
• Definitely not traditional advertising (what is advertising?)
• Behavior (anthropology)
• Societal pressure (eco-conscious companies and products)
• Biology (pulse, eye movements…)
Growth – Demographics +
• Psychographics
• Lifestyle/lifestage
• Age is just a number …
• 40 is the new 30 is the new 40
Growth – Social Networks
• Expanded reach
• High school reunion redundancy
• Sound bites of affirmation
• Who needs an opinion poll?
– Or consumer research for that matter
Growth – Friends (Or Not)
• Is it who you know?
• Or who knows you?
• Is it who you “like?”
• Will you ever be able to “unlike?”
• Is it who you follow?
• Or is it who follows you?
Growth – What Is Advertising?
• Used to be a defined media mix
• Now everything is viable
• But we are so much more aware
• And selectively accepting
• More metrics, but challenges remain
Growth – Behavior
• Anthropology isn’t just for budding authors and professors anymore
• Is there any way to keep the environment pure?
Growth – Societal Pressure
• Eco-conscious companies and products
• Work productivity expectations
• Energy consumption comparisons
• No longer about two kids and a dog
– Or about a comfortable pension
– Or about keeping up with the Joneses
Growth – Biology
• Pulse
• Eye movements
• Brain activity
• Sensual reactions
Keywords
• Behavior
• Lifestyle
• Lifestage
• Demographic
• Psychographic
• Segmentation
• Insights
Buzz Words
• Retailer consolidation
• Media fragmentation
• In Store Slack
• Neuromarketing
• Anthropology
• Social media – “listening” “monitoring”“understanding”
• Virtual group interviews
Information
Sources
• Doesn’t matter the format, there are trusted sources to follow for reputable stats and vetted insights
– Smartbrief
– Extra Texture
– ResourceShelf
– New York Times Style Section
– Journal of Consumer Research
Consumer Profiling
• Simmons
• MRI
• Census
• SRDS
• Social networks
• Communities/groups
• Surveys
• Syndicated panels
• Internal customer data
• Shopper videotaping and analysis
Consumer Buying Power
• Bureau of Labor Statistics
• Selig Center
• Market Research reports
– Packaged Facts
– Datamonitor
Advertising/Marketing/Brands
Example Inquiry
• Do consumers respond better to humor in advertising during economic highs or lows?
Sample Sources
• Advertising Age
• AdRants
• Interactive Advertising Bureau
• Brandweek
Automotive
Example Inquiry
• How do kids influence their family’s car purchase decisions?
Sample Sources
• JD Power
• Green Car Congress
Demographics
Example Inquiry• Are Gen Xers with advanced degrees having
more kids than those with just a B.S. or less?
Sample Sources• Pew• Gallup• NPD Group• HispanicTips• Census
Design
Example Inquiry
• Fabric shopping bags are better for the environment. Are they better for shopping?
Sample Sources
• Information Is Beautiful
• The Donut Project
Fashion
Example Inquiry
• What are some examples of brands with success in another category who have made the leap into fashion?
Sample Sources
• Women’s Wear Daily
• WGSN
Food & Beverage
Example Inquiry
• How will nutrition info legislation affect what people will actually order when they go out to eat?
Sample Sources
• Nation’s Restaurant News
• Harry Balzer, NPD’s Eating Patterns in America
Global
Example Inquiry
• How do consumers in Latin America feel about colored toilet paper?
Sample Sources
• United Nations
• Panoramix Global
• Mintel GNPD
Health & Wellness
Example Inquiry
• Is there anything happening with children’s vitamins? New products? New pediatrician recommendations?
Sample Sources
• Chain Drug Review
• Nutraceuticals World
• HealthDay
Home & Garden
Example Inquiry
• What will be new in residential bathrooms in 2011?
Sample Sources
• Harvard University’s Joint Center for Housing Studies
• Hanley Wood
Learning
Example Inquiry
• Do iPods really work when used for instruction in the classroom?
Sample Sources
• Chronicle of Higher Education
• Education Futures
Media & Entertainment
Example Inquiry
• Really, how many teens intend to see The Twilight Saga: Eclipse on opening night?
Sample Sources
• IMDB
• PopCandy
• Nielsen
• Hollywood Reporter
Non-Profit
Example Inquiry
• What is the tipping point for giving after a major disaster and is it different for different parts of the world?
Sample Sources
• Chronicle of Philanthropy
• Center on Philanthropy and Civil Society
• Cone
Politics
Example Inquiry
• Should we expand our retail presence in red state or blue?
Sample Sources
• Pew
• Gallup
• Real Clear Politics
Product Reviews
Example Inquiry
• Do potential purchasers trust the customer reviews on merchant websites?
Sample Sources
• Consumer Reports
• Angie’s List
Retail
Example Inquiry
• Besides Best Buy and Geek Squad, are there other examples of retail/expert partnerships that have worked?
Sample Sources
• National Retail Federation
• National Grocers Association
Science
Example Inquiry
• Does Neil deGrasse Tyson drink coffee?
Sample Sources
• Nova
• ScienceBlog
• Technology Review
Social Media
Example Inquiry
• What are some examples of best practices for brands using both Twitter and Facebookdifferently and effectively?
Sample Sources
• Simple Complexity, Twitter Visualizations
• Scout Labs
• Biz360
Sustainability
Example Inquiry• How much more are consumers willing to
spend to make the “right” purchase decisions?
Sample Sources• GOOD• Natural Marketing Institute• Enviu• BSR
Technology
Example Inquiry
• How many 3-D TVs will be sold in 2010?
Sample Sources
• Parks Associates
• IDC
• TechCrunch
Trends
Example Inquiry
• What’s next?
Sample Sources
• Trendwatching
• Springwise
• Iconoculture
• TED
• World Future Society
Work
Example Inquiry
• If khaki makes a come back will it be allowed back in the office pool?
Sample Sources
• Harvard Business Review
• Society for Human Resource Management
Zeitgeist
Example Inquiry
• What else was the country talking about on 11.4.08?
Sample Sources
• YouTube
• Google Alerts
