Tuesday, November 30, 2010
The Power of Media
This topic has been analyized many times, typical I know, but I feel like this would not be a consumer behavior blog if I didn't discuss the effects of media on consumers. Starting out as children we do not nesesarily understand the idea of purchasing certain items, we just see something we like and ask our parents for it. We grow older and see things that our peers have and want them. The idea of something being special like an expensieve brand that someone famous also has makes the item more desired by consumers. The funny thing about media and consumers is that the famous person who also has the item may not even be someone we admire. For instance, if we see Britney Spears with Tiffany jewlery, we as consumers may see it and want it. I am not at all saying that it does not matter who the celebrity is that advertises because I do believe that someone highly admired would have a better effect on the target market than a celebrity that is not. I do think that the association of someone rich and famous does increase the social status of the item to a consumer intrested in that certain type of market. Just the other day we talked about the Kardashians credit card, another example of three people who are not particularly admire or in the spotlight for something good. Having these three young, attractive, and famous women on the front of a credit card will attract the young and impressionable audience that the company is hoping to target. Although this is not always true, I do believe that as we grow older we do grow wiser in our purchases. When we do buy something that costs more we tend to buy for quality. There are people that still buy because of image but they are realistic about it and choose to partake in this. In the end it is the consumers decision to physically go to a store and purchase something (whether it was in the media or not), but media does play a role in the determining process of a consumer.
Star(t loosing)Bucks
As I sit here in Grissim Hall writing this blog, I sip on my Peppermint Mocha Starbucks coffee. I have the option to get free coffee, even espresso, from my current residence. Yet I, as a consumer, choose to spend four dollars and something cents for the same thing (with probably more filler). So why do I and other consumers choose to spend more money when we know we can get something similar for cheaper. Personally, during the holiday season I enjoy the winter coffees like peppermint mocha or gingerbread, and this is what motivated me tonight. I believe a lot of other consumers enjoy the flavors of Starbucks coffee like I do and are also motivated to but coffee due to this one factor. Deeper than the flavors you'll find the outrageous amount of caffeine. Starbucks was found in a study to have had a significant amount more of caffeine than the other competition (http://www.slate.com/id/2107807/). I would venture to say that this mass amount of caffeine not only helps feed consumers addiction, but also makes the addiction stronger. I feel I must also say I have never seen a Starbucks empty, in fact I have trouble going to store that isn't packed on campus. I even find myself thinking everyday, "well, I could make myself just a small cup of coffee before class). Do I need it? No, but I also do not consider myself at the addiction point. I can go a few days without any coffee or caffeine and be completely fine. I have witnessed consumers wanting a large coffee like their life depends on it, everyday. Their obsession started probably the same way that my minor enjoyment started, enjoying a cup every once in a while. I have to give other industry competitors credit for keeping a close pace to Starbucks. Dunkin' Doughnuts is known for a good cup of regular coffee, and if a business man is late on his way to work would not be disappointed to stop here for a decent cup. Another surprising competitor is McDonald's. They have always offered coffee for sale but it was just normal coffee and not the best. They have renovated their coffee strategy and now offer flavored drinks among their many available options. They not only offer drinks similar to Starbucks, but they offer them at a much lower price. Personally, as a consumer of these products I believe that McDonalds' coffee has a lot less coffee (caffeine) and a lot more filler. That probably is part of the reason Starbucks keeps consumers flocking to their product. Whatever the reason consumers choose to be a loyal customer to Starbucks, the company has accomplished a successful way to run a business targeting their audience.
Sunday, November 28, 2010
Experience Consumers
We analyze consumer behavior everyday in the real world, but I believe the hardest to measure is a customers experience. Our best sign is looking at the number of repeat customers. Customer surveys are pushed all the time but customers rarely want to participate, even when offered the chance to win a free gift card in return. Being in the hospitality industry myself I should want to help companies out because I will one day be in their position, but I don't. What is it that causes consumers to have such a negative image about these surveys that ultimately would help make their experience better? Another measure that a lot of hospitality industries have been turning to lately are online website like www.travelocity.com. This is supposed to be a website for consumers to talk about their experiences at places like hotels. Websites like this are partly used for what they were intended for, but companies have also used it to advertise their own company and but down competitors. Will they ever admit this? No. So how do customers make decisions on where they will go? A lot I believe has to do with word-of-mouth and brand awareness. If someone was to go out to dinner and wanted to try somewhere new, they would most likely say "Bob tried this new Italian restaurant and said it was great, we should go". I believe that consumers like to have other people take the risk and try somewhere than be the first ones to try it. Also, if consumers have a brand awareness and have had multiple good experiences with an experience related company then they tend to stay loyal. With that loyalty they also expect a certain amount of consistencies in their experiences. These types of customers in this type of industry are the best to have because they are easier to keep than to attract new ones. In the end, treat every customer like they are your best customer.
Real Life Gremlins
Year after year Black Friday turns somewhat normal consumers into crazed monsters. It almost reminds me how the Gremlins acted after the rules were broken. The sole motivation for consumers to partake in this crazy activity is a reduced price. Whoever came up with Black Friday was absolutely genius. They found a way to get normal people to start waiting in line outside of a store, (in some locations) in the freezing cold, about a full day before the event. They were able to bring in mass amounts of "hungry" consumers all at the same time, and all wanting to spend money. This glorious event has also led to very serious incidents. One specific event I remember is when a worker was trampled over by other customers running into a Walmart at the same time. These people push aside all moral values they have for material possessions. It is very common for people to be pushed, shoved, elbowed, hit, etc. by other crazed consumers. It's almost like this is the one day a year that it is socially acceptable to be cruel to people; which is funny considering a lot of people are holiday shopping for loved ones. Not such a loving sport. In a nutshell, Black Friday=crazy consumers.
One of many examples of crazy people. -->
http://www.youtube.com/watch?v=2zBWjlkKDpA
http://www.youtube.com/watch?v=2zBWjlkKDpA
Wednesday, November 17, 2010
Online Security
With the Christmas season rapidly approaching, clearly I have been working on my Christmas list in my spare time. Sending the list over to my parents I quickly realize that even though I have included the URLs from which they could purchase the items, they will use more conventional methods to purchase the items. My parents are Baby Boomers, and when I was younger I remember thinking that they would never come close to keeping up with technology. I have been proven wrong throughout the years, in fact my father is now attached at the hip with his IPhone. Although they have adapted (to a certain extent) to most technology, one thing will never change. My parents absolutely refuse to purchase anything online unless there is no other choice (hotel room, etc.). They will research all types of information concerning the ups and downs of the product and even compare prices. At the end of the day when it comes time to actually purchase the item they will go straight to a store as apposed to using the convenient internet. I believe that my parents have the same issue with internet purchasing as some do in their age group. They are concerned about security. No matter how much it is emphasized how secure a site may be they are convinced that somehow someone will get steal their information. I also feel there are other things consumers feel badly about when purchasing online. When talking to friends about online buying a lot of them had voiced how uncomfortable they feel purchasing clothing or something they have not physically seen before. Even though companies state that they have valid return and exchange programs, I believe consumers feel as though its more of a hassle or just not possible. Personally, as a consumer I like to actually be able to go to a store and try on, test out, hold, and visibly see the object before I buy it. For whatever reason it just makes me feel more comfortable about my purchase. I wonder if one day all consumers won't need physically see their items before they purchase or that everyone will have trust in security online.
Monday, November 15, 2010
Advertising to Consumers
The time we currently live in is just bursting with opportunities for e-business. Companies know that they must keep up with consumers and technology in order to continue to hit their target market. Companies have found ways to target customers who visit certain sites or have certain interests just because that is their target market. Facebook and Twitter are now the main focus of companies, not only for getting their product out, but for reaching potential employees. Do these forms of advertising work for companies, or is it just another form of the pop-up ad? Another development is the collaboration Google has with companies to get their company name to show up on the first page of a search. As a consumer I personally used to feel as though when I was "Googling" something that the results were truly how related a website was to my search, or that it was by complete chance what company got the top slot. How wrong I was. As a consumer I personally feel as though I am being cheated. Although no one actually pays to use the search engine, I still feel as though this service is skewed. Of course knowing this will not stop me from using search engines, because as we all know, our generation relies on finding any answer on Google. As far as Facebook using our information to help companies target their market, I am actually okay with this method. As a consumer I know that no matter what I will not escape the constant advertising that I see everyday, everywhere. With this being said, if I am forced to constantly see ads, I would much rather them be something relevant to me and my interests. I think that Facebook has not only revolutionized social media, but also online advertising. Now not only will companies save money on being able to specifically target the audience they are looking for but also increase their odds of success.
Space Jam...Sponsor?
After talking in class about the power of using a well-known celebrity to advertise a product, I noticed more the number of times this method is used. I don't think that the effect is necessarily something that we notice happening, more of a subconscious effect. For instance, no one really says "Wow, Oprah drinks ____ juice, I want to be just like her". When the consumer goes to the store after seeing the commercial, they may then happen to walk down the juice isle and see the product. They then remember the product because someone famous was drinking it and because of this brand recognition they buy the product. I have experienced something similar, we as consumers for some crazy reason feel as though just because we have heard the name of the product (not in a negative light) that we trust the brand. Even when we see other brands that may be great, we haven't heard the name so we automatically do not trust it. Ironically after our class discussion on the number of things Michael Jordan represents and why, I watched a movie that brought this discussion back into my brain. Space Jam, what a great movie (from my childhood). I never noticed this line before, but after watching this movie over ten years after my first time seeing it, the line jumped out at me. Stanley comes into Michaels hotel room to give him some encouragement and says "C'mon, Michael, it's game time. Slip on your Hanes, lace up your Nikes, take your Wheaties and your Gatorade, and we'll grab a Big Mac on the way to the ballpark". Every single one of these items Michael was currently sponsoring, or had in the past. What a line! In the middle of a movie, and they had just once again advertised all of Michaels items in one sentence. I shouldn't have been surprised but once again I believe it was the mere fact that I failed to realize this when I first came out, my subconscious had.
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