Monday, September 28, 2009

Experience Expectations

The primary lesson from “The Effect of Expectations” chapter of Predictably Irrational is that consumer expectations influence their thought of the product. Ariely begins with an example of how, in a sports game, the team cheered for can honestly make a viewer think that a play should be called a certain way and begs the question, “How can any two parties look at precisely the same event and interpret it as supporting their opposing point of view?” This boils down to the hypothesis that our expectations about an event can affect our overall perception of the event. Having an assumption will cloud our expectations. There is something fundamentally irrational in humans that change our perception. The expectations of adding vinegar to beer changed the amount of enjoyment a drinker experienced. When the consumer knew the vinegar had been added, they enjoyed it less. When the consumer either did not know about the vinegar or found out after the beer had been tried, the taster enjoyed the beer with vinegar more. The timing of the input was critical. The tasters had to know of the ingredient before they had experienced it for themselves for their perceptions to be changed. The experiment found that “if you tell people up front that something might be distasteful, the odds are good that they will end up agreeing with you.” The same was found with perceived value and the ambiance of a coffee testing facility: the better the facility looked, the more the coffee was worth. Even when brain sensory receptors were tested, memory of a brand’s reputation effected the reception of the item.

This information is valuable to customer experience. The brain does not start from scratch with every new situation it encounters. Stereotypes then “provide shortcuts to our never-ending attempt to make sense of complicated surroundings.” People judge experiences with a pool of stereotypes and perform in accordance to those stereotypes. Marketers equipped with this knowledge should give consumers preconceptions about the excellence of their product in order to maximize the consumer’s experience. If they reach a consumer first and tell the consumer that they will enjoy the product, the consumer will be more likely to see value in the product and enjoy their experience with it. Word-of-mouth tactics are especially prevalent here. Marketers who disguise themselves as part of the public can spread the word about a product in a positive light. For example, a marketer who replies to blog entries on engadget.com about their product can put their product in a positive light. This will make the users (who are primarily early adopters of technology) more predisposed to like their product and speak positively about it. These positive responses will affect their less technology savvy friends and more people will see this product positively. Users who are told what to expect will view the product in a biased way.

An example of this type of marketing is the notion that Polo shirts are superior to other shirts. The other day, I had two friends wearing similar grey, single pocket t-shirts. One was purchased at Wal-Mart for less than $5 and one was purchased from a Polo store for about $30. The pockets were in the same location and the same size. The grey looked the exact same shade, and the texture of the shirt had no significant difference. If I had asked a third-party group who had been exposed to the Polo brand which shirt had superior value, they would for sure report that the Polo shirt did. If I asked people who had never heard of the brand, and had no preconceptions or stereotypes for what an embroidered horse decal meant, the results would be about even. The perceptions of the first group have been skewed because they know what the brand means. They view the brand in a biased way and produce a biased response.

Wednesday, September 9, 2009

Ten insights

1. Inexpensive
For the college-age person, price is a dominant factor in any purchase. The average student does not have a lot of money and will not be willing to spend a lot of money. If a marketer is trying to come up with something for everyday college life, it must be cheap, especially if it is an activity. Some things, like phones, lap tops, etc are mostly bought by a student’s parents and can adhere to this policy less. Any purchase that a student must buy themselves must be cheap. In this sense, our speaker talked about Designing for Simplicity and doing one thing really well. This is key for price reduction. Most college-age people are interested in basics, not the upgrade package.
2. Convenient
After having a hard week of school, convenience is key. Activities that require too much thinking or preparation time do not get completed. Living with 58 other girls in a sorority house, I have noticed that Ikea can be both a friend and enemy. My roommate currently has the partially assembled remnants of a desk on our floor. Putting together that desk will take a lot of time and effort. Although the inexpensive aspect t has been met, the prep time and convenience is too great. I doubt she will ever revisit Ikea, especially after the school year has begun. In class, we discussed the ease of using Apple products. The directions are hardly ever used. For Ikea desks, directions are necessary. Students do not like to consult directions, we want to jump into using the product. Universal design is crutial.
3. Dressing up.
For females especially, dressing up is a big part of going out. Getting ready with friends to go downtown is sometimes more fun than the actual downtown experience. If marketer is trying to create an experience geared toward college-age females after hours lifestyles, it should include getting dressed up. The aspect of looking good heightens the positive experience one has while downtown or similar. This is especially important for restaurants or bars. Casual bars in proximity to campus are casual, but if someone is going to go out of the West Campus area at night, it should probably have a more upscale feel, so females will dress the part and want to go back.
4. Involves multiple people.
After high-stress days students need to socialize. It is an important aspect of college. Products that involve multiple people or facilitate socialization are extremely utilized. Facebook, Myspace, text-messaging, etc. are excellent examples. College students go out to restaurants and bars in groups. Students crave socialization post-class. Anything that creates an experience that can house any number of people is a good idea. A marketer should derive a product (game) or location that has potential to aid in socialization and group experiences.
5. Comfortable.
Marketers who design household or lounge items need to focus on comfort level. Austin is all about comfort. People are seen sporting Chacos and lounging in Snuggies not for fashion. It is because they are comfortable. Anything I do, I like to maximize my comfort level. This is especially important when making study rooms. The business school’s Reliant room is always full because it maximizes comfort while retaining utility.
6. Not excessive.
Dieter Rams’s philosophy was to have as little design as possible. He liked things that had function, not decoration. For products that aid in studying, school work, or office work, the simpler the better. I am not as concerned with something that looks nice as I am with something that works well. Simplicity of design is key for everyday items.
7. Fun.
When creating an experience, something needs to be fun. Thought-provoking and interesting are good, but fun brings people in. When I go somewhere, I am predominately interested in enjoying myself. It is a basic college-age want. An atmosphere designed to empower a student to have fun is an atmosphere that will be successful. As Henry Dryfuss theorized, improving the human experience is important, and fun plays a key roll.
8. Trendy.
Everyone loves the latest fad, so marketing something that has the potential to be trendy is important. Designing for the trendy early adopters will make it marketable. Designer handbags are an example. They are a luxury, but they are trendy. Louis Vuitton’s brown and tan bags are actually not that cute, but they are trendy, which makes people want them. Nike shorts are another great example. There are substitutes, but they are utilized all over campus because they are made for the majority of young American women, and they are trendy.
9. Environmentally conscious.
I feel good when I think I am helping someone. Tom’s shoes matched the need to help with trendiness. It empowers a person to know he did his bit in helping the world become a better place. Patagonia is worn by outdoorsy type people because their business model decreases the carbon footprint on the environment. Nalgeen water bottles have skyrocketed, as people found the perils in continually throwing away bottles of water. If something is designed for both the greater good and my immediate good, it is a bonus. I will buy something the fulfills both those categories before buying a substitute that only benefits myself.
10. Healthy.
Especially in food, healthiness is a benefit. In college, women grow out of their lean high school bodies into the freshman 15. This opens their eyes to the world of exercise, yoga, and health food. Products targeted at making someone healthier make people feel better about themselves, which makes them want more.