Deb Rash.Surrounding The Consumer.0610

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

• Twitter

• Google Alerts

Questions?

Thank you!

Contact me:

drash@q.com

@DebRash