Does This Mean It's Time to Graduate?

THE PROJECT

After this course, and specifically the Insight/Experience Audit & Prototype, I feel more confident in my abilities and experience with primary research. As marketing majors, we are given the most instruction on how to create and conduct survey research. This class has opened my eyes to new methods, some of which I believe supply information far more insightful and interesting than any information a survey might reveal.

A survey is a good starting point, but I have learned that these additional methods are effective in supplementing and confirming or disproving the data collected from the survey. Specific to our project, we started initially with only a survey, but we knew we would try another method as well. I will admit, the concept of more vague research methods felt somewhat foreign to us, but through class examples from previous projects we were aware of their effectiveness. We decided to create collage pages with some direct stimuli related to our room in the house, the home office. We also added additional stimuli to the pages that were more vague, such as emotion words, and random pictures that were not related to the room, but were intended to invoke certain emotions in respondents.

What we found was that participants seemed almost as unsure about the method as we were, because many of them either didn’t respond to our request, or replied that none of our stimuli were applicable to them. However, I do not blame respondents for the miscommunication and confusion. This was our first attempt at this sort of research, and I think it is going to take trial and error for us to gain the skills necessary to adequately conduct it. We did receive some insightful responses, which I am proud of for a first attempt. The responses from this portion of our primary research served to reinforce the insights we obtained from the survey methodology, which made us more confident that we were catering to the proper insights while creating our product idea.

Regardless of some bumps in the road, doing this project and getting hands on experience with new research methodology has given me a new tool to use when I embark on a career and/or continued education after I graduate.

Another reason why this project was a valuable experience is that it mirrors how projects will be completed in my professional life after college. First, I appreciated the time management it required. I am usually just given a project and a due date, with very few checkpoints in between. The regularity of the project updates not only kept us on top of our work, but also allowed us to reflect on our methodology in completing the project and adjust it if needed.

Additionally, very few concrete instructions were given, which I found far more useful than if we were to receive a page of succinct requirements. This gave us freedom in that we could be creative and present the data that we felt most relevant. There’s not always going to be someone standing over my shoulder telling me exactly what to do, so this was a great starting point in getting used to that format.

MY TEAM

I feel really fortunate to have been assigned to team 3. Our team could not have been more diverse in regards to our backgrounds and specialties. Toni gave a great international perspective, Josh works for a software company, which gave him access to multiple members of our segment and made him our resident tech-specialist, Lacey’s creativity was an asset to the prototyping process, and Alpana had drive and organization and really kept the team in line. As for myself, I am idea-driven and my brain is constantly churning, which proved very useful when coming up with a product idea in the first place.

Initially, I was worried that we would run into problems because we all have competing responsibilities, in addition to different personalities and interests. I was pleasantly surprised that this very rarely posed a problem, but instead made for a productive team environment. We bounced ideas off of one another and were able to expand on the ideas that team members voiced. It was rare that any one team member would stand behind an idea without actively taking other opinions or criticisms into account. Overall, working with a team made this project valuable because everyone brought something different to the table.

Professor Walls was also quite helpful throughout the course of our project. Like I said before, I liked that his instructions were somewhat vague, giving us the freedom to take the approach that best fit our visions for the project. This had the potential to be problematic if Professor Walls had not been readily available to answer our questions or to provide us with feedback or suggestions. Luckily, he was always there to lend his advice, which I know our team found valuable.

One final note - this class has been a wonderful part of my marketing experience at UT. It really got me thinking about my true needs and desires as a consumer. Also, I have thoroughly enjoyed blogging, and will probably continue since it basically became a part of my routine. It's not as hard as I thought it would be, and it's pretty great having a place to voice my opinions.

Now on to graduation...

Response to Alpana's Blog "I Salute You, iPhone"

I want to use this entry to comment on Alpana Prabhudesai's blog about the iPhone, posted on March 30th. Alpana and I are good friends, and we share a close love for our iPhones. I inspired her to buy a metallic silver case to match my metallic gold case, and her cool backgrounds downloaded from the free background application always get me searching for a new one for myself. I think that’s one thing that customers truly love about the iPhone; we are a club and we have our own language, and I believe that the high-tech consumer is drawn to this kind of exclusivity.

Alpana broke her blog post down into four categories, so I will break my response into four categories as well.

Everything You Need in One Place
Alpana brings up the benefit to iPhone owners of being able to use the Internet 24/7. I fully agree that it is of great value to the consumer to be able to easily manage their schedules, check accounts, get directions, and look things up just as they would on a computer, except from the palm of their hand. However, by having this device that has so many features and so many options, the paradox of choice can very easily come into play. In my own iPhone experience, I was thrilled when a software update allowed me to download games and useful programs through the iTunes application store. As the feature caught on, the number of applications to choose from became overwhelming. I quickly found myself intimidated by the idea of scrolling through lists that felt almost endless, and basically stopped downloading applications all together. My tactic now is to just wait and hear from someone else in the “club” what applications are worth it to download.

Don’t get me wrong; I love that my iPhone does everything and more. But at the same time, this causes me more strife as a consumer than a run-of-the-mill cell phone would. This one device holds so many things that are important to me, and I use it so frequently, that I can’t describe how nervous I am about losing it. I can easily backup my data onto a new phone, but I don’t want someone to get a hold of my personal information. Also, now that I have access to all of these features, I can’t imagine ever having a different phone, and I know a number of iPhone users who hold a similar sentiment. This is great for Apple, but potentially bad for me, particularly from a financial standpoint.

Fun, But Completely Unnecessary Gadgets
I completely agree with Alpana that there is an application out there for everyone. iPhone users can be rest assured that their personal tastes will be accommodated, even if their favorite pastime is popping virtual bubble wrap. However, the number of applications brings me back to the idea I voiced before about the paradox of choice. New applications are developed everyday, and it is growing more and more difficult to locate the perfect applications that make your iPhone uniquely your own.

In Your Face, Interface
I agree that the iPhone interface really is a beautiful thing, but I wanted to expand on a few more things. Although the device is so high-tech which some might think goes hand in hand with complexity, Apple has managed to make the device user-friendly and relatively simply to use, and simplicity is something that I feel consumers strive for in a complicated marketplace filled with choices. The simplicity of the phone is made even more evident by the minimal instructions included with the phone. Most people can dive right in and figure it all out, but for those who need more help, there are interactive videos on the Apple website, or in-store tutorials with Apple employees. Interacting with people, even if is through a video, is much preferred over sitting at home with an instruction manual, and thus, enhances the customer experience.

With Love, From Apple
Apple has done an excellent job creating a unique and consistent customer experience. As I stated above, I agree that the sense of community is strong between apple users, and that it plays a major role in why people love being Mac users. I recently switched to a MacBook when my Sony Vaio crashed a few weeks ago. I am the first to admit that I wanted to switch to Mac because I wanted to join the club. With the attention and suggestions from employees in the Apple store and the interactive displays that allowed me to explore product features, I felt like a member of the club almost instantly.

In addition, Apple has mastered the checkout process. I think it would be hard to find a person who does not place service at or near the top of their list of necessities when purchasing an expensive product. Consumers are already under stress thinking about the amount of money they are about to shell out, and poor service will only enhance that stress and subsequently lead to a negative customer experience. I was in and out of the Apple store in 15 minutes, product in hand, and never once did I have to wait in a line. This is an experience I can truly say I have never had in any other store.

For the most part, it really feels like Apple has done everything right.

Outline

Areas of concern:
- Am I paying enough attention to customer insights and experiences?
- Do my ideas flow?

Note: The reasons why consumers buy cause-related products are my opinions. There was very little secondary research available for that aspect of my paper.

I. Introduction

A. Thesis – Companies are increasingly using cause-related marketing to give consumers new incentives to buy their products. Mission-based companies are more clear in their dedication to a cause, whereas the motives of some preexisting companies who associate with causes are questionable.
i. What is cause-related marketing?
ii. Overview of topics to be discussed
1. There are benefits and pitfalls associated with cause-related marketing.
2. Why do customers buy cause-related products?
3. Some companies are mission-based, meaning they are formed because of a cause.
4. Many preexisting companies create an association with a cause in order to entice customers.

II. Body

A. There are benefits and pitfalls associated with cause-related marketing.
i. Benefits
1. Studies show that cause-related marketing efforts result in increased sales.
2. There will be greater customer loyalty, especially if customers associate personally with the cause.
3. Philanthropic activity enhances the company image.
4. Cause-related marketing solicits positive media coverage
ii. Pitfalls
1. It is difficult to quantify how well cause-related marketing programs work.
2. With so many stimuli in today’s marketplace, it is difficult to attract customer’s attention to philanthropic activity.
3. Cynicism leads consumers to question the true motive behind association with a cause.
4. Companies face the challenge of finding the right cause to associate with. The values of the company must be in line with the values of the cause.
B. Customer insights, and why consumers buy cause-related brands
i. In today’s marketplace, consumers are faced with innumerable product choices.
1. It is hard for companies to “out-advertise” or “out-innovate” their competitors.
2. By associating with a cause, companies differentiate their products, making consumer decisions easier.
ii. Consumers want to feel a connection and involvement with the company.
iii. Consumers want to feel good about the brands they buy.
iv. Consumers want a simple way to support a cause.
C. Mission-based companies
i. TOMS Shoes was founded to provide shoes for children in need.
1. How does TOMS create a customer experience?
a. A unique business-model, known as the buy-one-give-one-away model, differentiates TOMS from other mission-based companies.
b. Shoe-drops give consumers the chance to be directly involved with the brand.
c. All elements of the TOMS website mention giving.
i. Consistent with the mission of the company
ii. Reminds customer that they are doing a good thing at each stage of the purchase process.
ii. Patagonia uses recycled and organic materials and supports grassroots environment groups to reduce strain on the environment.
1. The Patagonia website refers to the brand as a tribe. “Field testers work closely with the design department to test, refine and validate our products in the harshest and most remote locations on the planet.”
a. Consumers experience the brand vicariously through ambassador accounts on the Patagonia website.
b. Patagonia customers aspire to have such adventures, and therefore are enticed to buy products to eventually reach that goal.
2. Consumers get direct involvement with the brand through a recycling program calling for old Patagonia products.
D. An increasing number of companies are associating their brand with breast cancer support.
i. Yoplait’s Save Lids to Save Lives campaign has been running for 9-years.
1. Consumers seek simplicity in a complicated marketplace, and all Yoplait asks them to do is wash off the lids and mail them in.
2. The campaign is easily accessible to consumers via several outlets.
a. General Mills has teamed up with Zeta Tau Alpha Sorority.
b. Corporations can sign up for pink lid donation kits so employees can donate at work.
3. Because of the frequency of breast cancer, most consumers have been touched in some way by the disease. This creates a connection with the brands that associate with the cause.
ii. “Think Before You Pink, a project of Breast Cancer Action, launched in 2002 in response to the growing concern about the overwhelming number of pink ribbon products and promotions on the market. The campaign calls for more transparency and accountability by companies that take part in breast cancer fundraising, and encourages consumers to ask critical questions about pink ribbon promotions.”
1. Their current campaign focuses on Yoplait.
a. Yoplait is made from dairy from cows that have been treated with the artificial growth hormone rBGH, which can cause breast cancer.
b. In response, Yoplait announced they will take rBGH out of their product.
2. The organization provides critical questions to educate consumers.
a. How much money actually goes toward breast cancer? Is the amount clearly stated on the package?
b. What is the maximum amount that will be donated?
c. How are the funds being raised?
d. To what breast cancer organization does the money go, and what types of programs does it support?
e. What is the company doing to assure that its products are not actually contributing to the breast cancer epidemic?
3. Breast Cancer Action is working to reshape the way customers approach purchasing cause-related products.
a. Research will become a part of the experience.
b. Customer experience will be enhanced with the certainty that an educated decision has been made.

III. Conclusion

A. Consumers buy products from mission-based companies and preexisting companies who associate their brand with a cause for similar reasons.
i. Mission-based organizations are very clear in their dedication to a cause, as all of their business practices go towards furthering support of the cause they were founded on.
ii. Consumers are urged to educate themselves before buying products from preexisting companies who associate their brand with a cause.

The Thrill of the Hunt

There was a topic that at first was the front-runner for my paper, but I ended up deciding against it only a few days before our paper topic blogs were due. I originally wanted to explore customer experiences in regards to discount stores such as Ross, Marshall’s, and TJMaxx. Even though I decided to take a different route for my paper, I am still very interested in this topic, and felt that a free-response blog was an ideal outlet to at least scratch the surface as far as understanding how these stores work, what kind of experience they intend to deliver to their customers, and at the very least, to share what I feel when I shop in these stores.

When you walk in to these stores, you see row after row of plain metal clothing racks and rounders, aisles of shoe displays, stark white tile floors and fluorescent lighting. Once you dive into the racks, you find very little rhyme or reason in the organization of the clothing, other than signs hung from the ceiling that feature broad categories such as “pants” or “dresses.” To some, this minimalist setup may allude to a lack of forethought in creating an overall customer experience. However, I feel that such a setup is the most appropriate for this type of store, and that the experience it creates is quite intentional as well. Earlier in the semester we discussed a similar concept, in that Wal-Mart stores utilize similar minimalist displays. If a store image revolves around low prices, it only makes sense that the fixtures should follow suit.

Normally, the experience with a retail store is shaped by a mix of factors over a period of time, including internal thoughts and feelings, the atmosphere in the store, and customer service; just to name a few. From my personal experience, the experience in discount stores is predominantly created in the mind of the consumer, rather than from external factors. It is more likely that realizations in regard to external factors, such as minimalist displays fitting in with the concept of a discount store, occur in the unconscious. I do not go into these stores expecting the pristine customer service that I would expect from a store like Nordstrom or a small designer boutique. I go into a discount store with the mindset that I am going to find a great deal, thus, my customer experience stems from that positive mindset. This presents a key insight for stores in these categories. To some, discount prices signify lower quality, and that negative mindset is my best guess as to why many people don’t enjoy discount shopping like I do.

I initially grew interested in this topic when I thought about it in light of the current economic situation. Penny-pinching is necessary, as so many Americans are suffering huge hits to the value of their assets. Personally, I have always loved shopping at discount stores, even before the recession hit full-force. But there are many consumers who just recently found the value in forfeiting a luxurious experience in return for a great deal.

I found a USA Today article from February 2, 2008 entitled “More Shoppers Head to Discount Stores.” The article says that with a recession looming over their heads, many shoppers switched from stores like Macy’s, The Limited and Ann Taylor, to stores like Ross and Marshall’s. According to the International Council of Shopping Centers, “January retail sales were dismal across the board…it was the worst January showing since at least 1970.” Despite this fact, discounters such as Wal-Mart, Ross and TJMaxx outperformed higher-priced retail outlets, such as Nordstrom and Macy’s. Basically, it has taken a trying time to lead many consumers to suspend their negative associations with discount stores in pursuit of saving money.

It will be interesting to see how these trends are furthered (or hindered) as the economy continues to change. I am most interested to see how many discount store converts remain loyal to the stores, even if a positive economic change finds them in a financial position that allows them to return to stores like Macy’s and Nordstrom.

Clotaire Rapaille...What a Name!

I wanted to start this post by saying that Dr. Rapaille seems like a fascinating man. However, because of the confidentiality of his findings and the brevity of the interviews with him, I am not completely sure how his methods are any more advanced than brain scanning technologies such as FMRI, or brain signal readings, such as those in the Today Show clip we watched on Monday.

The premise behind Rapaille’s method is that because consumers are unable to accurately voice what it is they really want, you have to tap into their unconscious to uncover their unspoken needs. This compels me to research his methods further, because judging by his New York mansion, his cars, and his flocks of Fortune 500 followers; he is obviously doing something right.

From what I was able to gather about Dr. Rapaille’s research method, the first step he takes is to blatantly ask people what they think of first by prompting them with a certain product or product category. In the video clip, the prompt was luxury, to which subjects responded with phrases such as “high quality.” He describes this as starting with the cortex, or letting people voice their conscious thoughts and associations with the prompt.

Dr. Rapaille’s next step involves uncovering consumer emotions. He does this by asking participants to describe the prompt to him as though he were a 5-year-old from another planet. At this point, Dr. Rapaille seemed satisfied with the fact that his participants seemed unsure about tasks ahead of them. The first task was characteristic of a more typical form for marketing research, so I can understand the confusion at such a deviation from the “norm.”

In the final step of Dr. Rapaille’s research method, he brought participants into a room with no chairs and pillows, pens, and paper on the floor. He turned off the lights to create a quiet and almost dream-like environment, wanting participants to go back to their very first experience with or exposure to the subject-matter the researchers are trying to understand. Rapaille believes that the scribbles and words that appear on paper after this exercise hold the code that marketers must use to most effectively sell their products. Rapaille reveals what he calls “Reptilian Hot Button,” or the source of the unspoken needs of consumers.

After going through this process and analyzing the findings, Rapaille comes up with succinct codes to guide marketers in everything from product design to advertising campaigns. For example, Rapaille’s code for SUV was “domination,” which explained why smaller SUV’s manufactured by Cadillac were not selling. His advice was to beef up the vehicles, and tint the windows, giving the car a look and a feel very much in line with the code that Rapaille revealed. Another example involved Rapaille’s advice to French cheese companies selling their product in the United States. In France, cheese is treated almost as though it is alive, and therefore is never refrigerated. In the United States, however, the code that Rapaille revealed showed an underlying desire for safety, in that the cheese needed to be pasteurized and refrigerated to ensure freshness; a completely opposing view to that of the French. I assume that if you asked a consumer what they look for in cheese, they would say something about the taste, when in reality, they are looking for something else. That something else is what Dr. Rapaille is known to reveal.

Delta Airlines made an attempt to tap into the underlying needs of consumers by creating Song, a new, hip subsidiary of the company put in place to compete with Jet Blue. The goal of Song was to create a new culture around flying, and one way they wanted to do this was to not only appeal to an untapped segment of air travelers, but to engage in unique marketing efforts to break through the clutter found in today’s ad-saturated environment.

After learning about song, I was left with mixed feelings regarding the potential success of the concept. Song realized that existing Airlines were ignoring women’s needs, and decided to fill this gap. They created a profile of their target customer named Carrie, a woman living in a dual-income household, with 3 children, multiple cars, the means to purchase high-end goods, but the desire to be practical and save money. Targeting a new, and in some cases unexpected, segment has proven successful for a number of new and innovative products, which made me think this was a smart move for Song. An example I had in mind was the Nintendo Wii. The obvious target for a video game would be young boys, but Nintendo chose to target this particular system to families, and the product is wildly successful.

Despite this realization, I was torn as to whether or not targeting a woman like Carrie would in fact be profitable for the company. I asked myself – how often will a working mother of three engage in air travel? I have had limited exposure to members of this segment, but regardless, I am hesitant to believe they travel often enough to be the most worthwhile segment to which to cater expensive marketing campaigns.

Overall, The Persuaders discusses the need to break through the ad-clutter that consumers experience on a daily basis. There are very few mediums remaining that have not been touched by an ad of some kind. This presents a complex task for marketing students, but at the same time presents an exciting challenge.

Kenna's Dilemma

After reading Kenna’s Dilemma, from Malcolm Gladwell’s book Blink, I found myself questioning the reasons behind my purchasing behavior. The problem with this is that from Gladwell’s perspective, the majority of the decisions that consumers make and the opinions that they form stem from the unconscious, a place that is not easily explored. Thus, these reasons and opinions cannot be accurately verbalized. I can slave for hours over why it is I don’t like Pepsi and much prefer Coke, but chances are slim that I’ll ever come to an accurate conclusion given my limited knowledge of product attributes that go beyond the superficial.

Although Gladwell brings up several valid points, there were two that I found most interesting and useful for marketers trying to gain insight from current or potential customers. The first was a theme that I felt permeated the majority of the chapter, and that is the realization that asking customers how they feel about something directly will not yield accurate results. My initial attention to this point came from our in-class discussions on gaining insights from members of our segments. As marketing students, I sometimes feel as though our initial solution when faced with the task of obtaining information from others is to create and distribute a survey. Gladwell describes that to yield more accurate results, subjects must be in natural settings, interacting with the products as they would in their everyday lives. This concept will have a notable impact on the methods my team and I choose to gain insight from our segment.

I feel that a large part of the problem with surveys is that test subjects often hesitate to admit things. For example, consumers chose E&J whiskey because of a more ornate bottle. As consumers, many would refrain from outwardly admitting to a researcher that they chose something because it was pretty or portrayed an image of status, mainly because we are taught to go beyond the superficial when choosing products. However, whether we are aware of it or not, such attributes do play a role and cannot be overlooked.

I agree that methods such as blind taste tests and surveys do not capture the affect of the complete product offering, as the 4 P’s of marketing tell us that there is more to a company’s offering than just the product itself. Vast resources and human effort are placed into creating a complete package that goes beyond the base composition and the attributes of the product. These efforts might include branding, promotions or packaging the product in an eye-catching way. This idea leads to the concept of sensation transference, which is a transferring of sensation or impression about the packaging of the product to the product itself. My interpretation of this is that all of the internal attributes, external attributes and prominent associations with the product (i.e. spokespeople) are lumped together in the brain, and are not dissected when a purchasing decision is being made. Our inability to separate such stimuli makes it even more difficult to accurately portray how we feel about a product.

I can think of a frequent example from my personal life where packaging plays a significant role, and that is in perfume selection. I like to wear more flowery scents, as opposed to perfumes that are fruitier or on the verge of smelling like cologne. Once I narrow down my options based on this criterion, I am still faced with a number of options that suit my preferences. When faced with the following two bottles, both equal when judged based on my limited scent criteria, can you guess which one I’d choose? (Answer: Daisy).


The second lesson that I took away from this chapter is the need for marketers to persevere in order to get past or disprove the preconceived notions that consumers hold toward a given product a category. In the Herman Miller chair example, Bill Stumpf, an industrial designer for the brand, describes the American idea of comfort as a La-Z-Boy recliner and soft cushions. The Herman Miller Aeron chair fell far from this description and therefore was not initially well-received in the marketplace. Despite this negativity, the product was not abandoned because of the realization that consumers are not in touch with what it is they really want. The chair was not something that consumers were used to seeing, which made them nervous. Gladwell points out that these feelings of nervousness or fear might be interpreted by a consumer as dislike for the product, when in actuality, the two are very different from one another.

In the example of the Mary Tyler Moore show, market research led CBS to nearly pull the show off the air. It depicted a woman who was more interested in her career than in starting a family. Outward disagreement toward the show probably came from women who were raised to believe that a woman should get married, raise a family and take care of the house while the husband financially supports the family. Internally, I imagine that the concept of the show was exciting to most women, even though it may have taken some time for them to get used to.

For revolutionary products like the Aeron chair, or concepts like the Mary Tyler Moore show, I believe that marketers could find a great deal of value in unconventional forms of marketing. In my Consumer Behavior class, we watched a video about a glove video game controller. When you wore the glove, the computer would sense the movement of your fingers, and the game on the screen would respond accordingly (this video was obviously outdated, because now we have the Wii). An employee of the company that created this device would sit in coffee shops with a laptop and would use the glove, waiting for onlookers to question the device and eventually give the product a try. This supports the idea of utilizing a more natural setting in order to gain true insights from customers, and at the same presents a useful method of getting customers over the initial fear of adopting a new product.

Paper Topic: TOMS Shoes and Cause-Related Marketing

Walking around campus you will see tons of people, both male and female, wearing simple canvas shoes with very little detail. They come in multiple colors, but really don’t have much to them other than that. These shoes are called TOMS, and although they might appear simple, there is an intricate story behind them. These shoes also gave me in the inspiration for my paper. For each pair of TOMS purchased in stores or on the TOMS website, one pair is given to a child in need. Since it began, the company has given 10,000 pairs of shoes to children in Argentina and 50,000 pairs to children in South Africa. The motto of the company is “one for one”. For at least part of my paper, I would like to focus on the TOMS business model.

TOMS engages in what is called cause-related marketing. In the case of TOMS shoes, the cause came first and the product was secondary, in the sense that the product idea was created out of one person’s desire to support a cause. I’m sure that there are other products on the market that were created based on a similar mentality, and I would like to look into these companies and their product offerings more in depth. More common, however, are already established companies that decide to associate their name with and give a portion of their profits to a cause. One of the most common examples of this is when companies turn their product packaging pink, signifying that they provide funding for breast cancer research and support.

Another route that would be interesting to explore involves corporate social responsibility in general, and how it affects a customer’s view of a product. For instance, if a company prides itself on being “green” and their attempts at helping the environment are widely publicized, will that better encourage customers to buy products made by that company? People like to feel good about their decisions, and buying something attached to a cause is an easy way to achieve this.

This topic is interesting to me because I see great value in volunteering for non-profit organizations, or providing some kind of monetary support to them. Monetary support does not only come in the form of donations; it can also come from purchasing those products that are connected to a cause. I made the connection between cause-related marketing and customer experiences because I realized that I am the type of consumer to give in to cause-related marketing, and I know there are many people out there who feel the same. When I am faced with a wall of similar products, it makes my decision much easier to see that one is connected to a cause, because that will then become a factor in my purchasing decision. It makes me feel good, so why not? At the same time, I know that there are people out there who do not feel the same way, so in my paper I would also like to explore how much cause-related marketing affects purchasing decisions. From my initial research, it seems that connecting a product to a cause has a very positive affect on sales, so it might be hard to find people who disagree that cause-related marketing is a good thing.

I found a great article on TOMS shoes in Business Week. To see the article, follow this link:

http://www.businessweek.com/smallbiz/content/jan2009/sb20090123_264702.htm?chan=smallbiz_smallbiz+index+page_top+small+business+stories

The article talks about Blake Mycoskie, the entrepreneurial mind behind TOMS. Mycoskie always had a passion for travel, and even finished third on Amazing Race. He launched the company with $300,000 of his own money, and with the help of some major national retailers, sold 10,000 pairs in the first year. Since launch, estimated revenue for TOMS is $4.6 million. In his buy one, give one away model, the purchase of a pair of shoes for $40 provides enough money to create another pair and turn some profit, so basically, the company sustains itself.

I also found a number of articles discussing cause-related marketing in general. I will only post one link because I found several; some focused on opinions on the topic, and some defining what cause-related marketing is and the many ways that companies engage in it. Click the following link for an example:

http://www.businessweek.com/the_thread/brandnewday/archives/2007/07/most_cause_mark.html

This article discusses a 2007 survey that found that “2/3 of Americans consider a company’s business practices when deciding what to buy”, and also found that “87% of U.S. consumers would switch from one brand to another if the other brand was associated with a good cause.” The author of this article shows some skepticism as to the accuracy of these figures. Regardless of the numbers, the survey shows that people want to help, and buying products that support a cause is one way to do so.

I felt good just reading about TOMS, so I’ll take that as proof that this is a good topic for my paper. I don’t own a pair yet because it was just recently that I became aware of the cause - but now it’s next on my list of things to buy. I have also started looking into participating in a TOMS Shoe Drop in Argentina. If anyone is interested in joining me, please let me know!

How I Feel About Whole Foods and Central Market

After reading the Whole Foods and Central Market articles, I realized even more that I am not a high-end, organic grocery store type of person. Maybe I’m just bitter because I’m a college student on a limited budget and I can’t afford much when I shop at these stores, but mostly I think it comes down to an intimidation factor. Stores like H-E-B and Randall’s carry brands that I am familiar with because I grew up grocery shopping with my mother in similar grocery store settings. When I step into Whole Foods or Central Market, suddenly my simple box of whole wheat pasta turns into Whole Wheat Organic Pasta Enriched with Bran and Wheat Fiber (I made that up), or “the life's work of an Italian "authentic food artisan" named Gino Girolomoni”. Without someone behind me telling me what the added benefits of such products are, and why these benefits are worth the added cost, I can’t say that I’d make the decision to purchase them. I was impressed to hear, however, that Central Market has an in-store foodie whose job is to walk around in the store all day to talk with customers about their cooking and eating habits and to give on-the-spot samples. It sounds like this woman would be the perfect person to stand behind me and tell me why I should buy the pasta with the crazy ingredients, but in my few attempts to maneuver the Central Market aisles I have not encountered such an employee.

I bet I could research some of the fancy products that are sold at Whole Foods and Central Market and could be convinced of their value to my health and well-being, but that brings me to another factor that makes shopping at these stores difficult for me – time. If I stumble upon information or hear from someone else that a certain product sold only at a Whole Foods or Central Market is superior to a product sold at H-E-B or Randall’s, I might toy with the idea of going to try that product, but in the end I probably wouldn’t go to the store and buy it. Again, maybe this is just because I am a college student with so many competing responsibilities, but I don’t have time to go pick up a couple of things at Whole Foods or Central Market and then finish my shopping trip at another grocery store that carries my everyday items. In this regard, it is nice that Central Market is owned by H-E-B, because some Central Market products have made their way into H-E-B stores. If I am convinced of a Central Market-esque product that I have to buy, there’s a chance I could find it on my one-stop weekly grocery shopping trip.

What I haven’t revealed thus far in this blog is that I do find myself at Whole Foods and Central Market a few times a month, but my purpose is never to grocery shop. Sometimes if I am in need of a quick, healthy and tasty meal I will visit the prepared food section at either one of the stores. What I have found is that certain items are quite affordable when compared to my other options. For example, I can build my own sandwich at Whole Foods for $7, which is probably pretty close to what I would pay for a sandwich from somewhere like Jimmy John’s. The difference is that a Jimmy John’s sandwich is not piled high with roasted red peppers, field greens, and portabella mushrooms. Not to mention, I enjoy the experience I have when I visit this section in these stores, especially at Whole Foods. Not only are the visual displays appealing, but each section has assigned employees to help ease me in my decisions.

It’s funny to me because the prepared food sections of these stores are just as intimidating as the grocery aisles because there are so many options and everything looks and smells so good. I also realize that the bread, roasted peppers, mushrooms and field greens that make up my sandwich are available for me to purchase in the store so I can make my favorite sandwich at home, but the thought of actually purchasing these items has never crossed my mind. The problem lies in the fact that I am in no way a cook or a foodie, and that there is a certain level of appreciation that one must have for the items sold in these stores that I just don’t have. Both of these articles seem to play up the “foodie” as their most frequent customer, whereas I am the type to let the foodies come up with the recipes and create them for me.

After piecing my thoughts together, I realize that what this comes down to is an issue of segmentation. An article I found online describes the Whole Foods shopper: “College educated, and post undergraduate degree-holders, are key. Upper income is a key demographic as well. Additionally, ethical consumers, "greens" and health conscious shoppers.” Where I stand currently in my life, I do not fit this mold, but it will be interesting to see if my opinions change after I settle into my post-graduate life and my career. Although the attention that Whole Foods and Central Market pay to customer experience might not be enough to draw me in just yet, I do appreciate the efforts that these stores make to offer customers a unique experience each time they shop.

Drowning in a sea of choices

I found this idea of “paradox of choice” not only interesting, but eye-opening. Barry Schwartz explains that in order to maximize welfare, individual freedom must be maximized as well. In the marketplace, this idea of increased freedom translates into an increased number of choices. Rather than freedom increasing, what actually happens is that we grow preoccupied by the many choices that we are faced with in our everyday lives, resulting in an effect that actually negates individual freedom.

Before watching this podcast I would have said that it is a good thing to have a lot of choices. Relating back to our discussion of generation Y, if we all want to be unique and we all want to be individuals, an ample amount of choice aids us in the pursuit of this goal. This podcast, however, reveals that choices are a good thing, but only up to a point. I started to think of more ways in which high levels of choice hinder me as a consumer, in addition to what Barry Schwartz describes as a preoccupation with whether or not the right decision was made. I spend so much time in the grocery store sifting through my choices, and subsequently wonder how my time could have been better spent elsewhere. Therefore, not only am I thinking about whether or not I made the right decisions when I leave the store, but I am conflicted by the amount of time I spent making what potentially could be a bad decision.

My experience leads me to see an important implication for marketers from a new perspective; customer loyalty. As a consumer, I question my decisions much less when I know that I can trust a certain product to never let me down. Not only that, but the time it takes me to shop decreases when I can specifically pinpoint what I want. I can be looking at a wall of product choices, but because of repeated positive experiences with a product, I only see one. In a competitive marketplace the number of choices will remain the same, so companies must take strides toward making our decisions easier.

The example of employees being presented with choices of funds to be matched by their employers is very interesting. Prior to listening to this podcast, I would have found it hard to believe that a decision that has a potentially high payoff could be suspended for fear of the wrong choice. I was reminded of a course I took in consumer behavior that focused predominantly on the difference in consumer’s thought processes depending on whether they are making a low-involvement or high-involvement decision. Decisions that are low-involvement are made with a great deal of reliance on the subconscious, using nodes or associations formed within the brain to decide quickly. However, those decisions that are high-involvement take a great deal more thought and research to convince a consumer that they are making the correct purchasing decision. In most cases, high-involvement decisions involve those items or choices that require a large investment or are categorized as high-risk. If this concept presented the whole picture, the employee would simply do his or her research and make the decision they felt was best. The podcast added a new dimension to my understanding of this concept, in that it is not always that simple. In the end there is always some amount of regret and wonder as to whether or not one of the other choices would have yielded a more positive result.

Whenever I shop on the new Amazon.com I feel like I am a victim of the paradox of choice. Vendors from around the world list their products on Amazon, making the selection in a given product category seem almost endless. My most recent encounter with this was over Winter break when I received a gift card to the website from my grandparents. Forces behind the paradox of choice were strong before I even logged onto the website because I knew what I was going to be faced with. I wanted to order a pair of earrings because I had recently lost one in a set similar to them, which seemed like an obvious choice. I found the perfect item to buy, but when faced with so many other competing choices, the decision suddenly grew far more complex.

I ended up buying the earrings, but I am still in a stage where I think about that decision. When I stumble upon a book or a movie (or anything for that matter) that I really want but didn’t think about at the time I purchased the earrings, it brings me back to that decision.

Talkin' 'bout my generation...

The article quotes an 18-year-old as saying “I find out about things I want to buy from my friends or from information on the Internet.” I completely agree with this sentiment in regards to Generation Y. One thing I have noticed in my experience as a member of this generation is that so many find it important to be the first to adopt a trend. The hope is that you will be admired for having the latest electronic or fashion item, and that it will subsequently filter throughout your social circle.

In conflict with this idea, however, is the desire to be unique. Because of this, the ability to customize plays a huge role in our decisions to purchase, and should be an area of focus for marketers. If a friend gets something new and you decide you want that something for yourself, it is a plus if there is some way to set yourself apart. This allows you to embrace your individuality, and avoid being labeled a follower. Take for instance an iPod. You see people roaming all across campus with the device in hand, but it is rare that you see any two iPods that look the same once it is unwrapped and revisions are made. Cases, skins, colored headphones, neon screen protectors, and more add-on’s than I am able to name, ensure that even though you may not have been the first to discover the product, it is still uniquely your own. This occurs despite the fact that at their core, the devices are all basically the same.

I too tend to subscribe to this idea, which is probably why I have grown so aware of its existence. Right after I bought my iPhone, I went straight to the AT&T store, and now my iPhone is gold. I know so many people that have the iPhone, which is understandable because I am constantly amazed at the things it can do. I don’t expect to be the only person to have it in a generation so deeply entrenched in new technology. But no one I am close with has a gold phone…and I love that.

I agree with and I appreciate the article’s depiction of Generation Y-er’s as individual and diverse thinkers. It specifically cites the J.C. Penny Arizona-Jeans campaign “showing teens mocking ads that attempt to speak their language,” and describes a young man’s lack of care upon hearing that Michael Jordan was being used to push Nike’s. From my perspective, I don’t see how a one-celebrity endorsement can reach enough members of a segment to make such a campaign profitable. For example, just because I would buy any product that Justin Timberlake or Tim Gunn stood behind, doesn’t mean that I expect marketers to cater to that. There is far more that I am interested in, and there is far more that will capture my attention, while simultaneously capturing the attention of those around me. The baby boomers, although larger in size than Generation Y, are described as much more homogeneous. The point of differentiation between the two groups, and a key insight marketers must keep in mind when communicating with Generation Y is diversity. Marketing attempts in all forms must be creative and widespread, in an attempt to not leave anybody behind.

A service that I feel has given companies a simple outlet through which to reach their target markets in a unique way is Mobile Campus. Students who sign up for the service receive text messages from restaurants, shops, and a number of other local businesses offering promotions or just trying to get their name out there. The beauty of the website is that it is fully customizable to student users in the sense that the number and types of messages received can be filtered based on their interests. Not only is this a more creative outlet through which to promote, it addresses yet another key insight into understanding our generation; the overwhelming dependency on technology.

The article and podcast seemed to be describing either the younger members of Generation Y or me when I was 13 years old. I can’t remember the last time I saw or participated in some of the trends they describe. I disagreed with the podcast when it referred to the “kids” using MySpace, and the many safety issues that arise in association with these websites. While I realize that there are many people out there willing to divulge their contact and personal information on the internet, it is not a stereotype that can be made for all of Generation Y. I had a MySpace when I was 16, and I spent hours browsing MySpace profiles just as the podcast describes. When I signed up for Facebook, membership was only offered to college students. I loved the exclusivity of the site and being able to easily keep in touch with old friends while also meeting new classmates. After an influx of unsolicited messages from random men on MySpace, I suspended my account in order to focus completely on Facebook. I have had years of experience on these sites, and have always been one to monitor closely how much personal information I reveal. I can say with great certainty that a majority of my classmates would agree, especially now that Facebook has gone global.

On the other hand, I agree with the podcast when it mentions that if a marketer wishes to spread a message, a digital medium such as Facebook (or the text message method) is the way to go. Companies can capitalize on the fact that so many of us are “addicted to Facebook” and spend at least some portion of our free time each day browsing the site. By creating groups and fan pages for their products and obtaining first-hand information from message boards, marketers can tap into the source rather than just guessing what it is Generation Y-er’s want to see.

To conclude, I really hope that I carry these realizations with me into my professional life. Also, because it was bugging me during the podcast, her name is Rihanna, not Rihannon :).

Here's to a great semester...

Wow. Not only is this my last marketing elective, but my last semester at UT. Although the months leading up to graduation will stir up a range of emotions, I have no doubt that my experience in this course will be a positive and valuable way to end my time as a McCombs marketing major. I look forward to sharing my own thoughts, but more importantly, I look forward to getting to know you all through reading what you have to say and working with you throughout the course of this semester!