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!