Voting at Stanford: A glimpse into the democracy day

It is Election Day, and these photos capture an intriguing scene for those who may wonder how American students engage in voting. Here, a line of students stretches out the door, each person waiting patiently to cast their vote—a sight that demonstrates just how seriously these young adults take their role in shaping the future.

Yet, some students saw the long queue ahead questioned: “Does my vote really matter?” and “Do I really make a difference?” These sentiments resonate with many, reflecting the common struggle between civic duty and individual doubt.

Ultimately, these snapshots remind me that, despite geographical and cultural differences, the act of voting holds a universal significance. Whether here in Stanford or in Korea, each vote really matters.

How IDEO pushes boundaries of design thinking: B2B and generative AI

During a recent visit to IDEO‘s San Francisco office, I learned how design thinking can be harnessed in B2B contexts and the transformative potential of generative AI. IDEO’s approach highlighted how design thinking is not limited to extreme end-users but extends meaningfully to B2B industries. By embracing this methodology, companies can reduce development timelines while serving the needs of various stakeholders.

IDEO’s collaboration with Ford highlights how design thinking can adapt quickly to address B2B challenges. Ford identified a gap in van driver security due to the long product development cycles. In response, IDEO designed a van security solution within just 12 weeks, quick prototyping to expedite development. This solution ultimately led to the creation of the joint venture between Ford and ADT, which integrated sensors, cameras, and AI to detect window breakage or unauthorized access.

One particularly inspiring session was learning about the integration of generative AI into design thinking processes. Generative AI, such as ChatGPT, has opened new avenues for, so called, “synthetic research.” Generative AI enables the creation of hypothetical personas that bring fresh insight into understanding potential customer needs. Additionally, by using video prototypes developed through AI, designers can iterate on ideas faster and more creatively than traditional methods allow.

This visit enlightened me about the transformative potential of merging emerging technologies like generative AI with established design thinking frameworks. By continuously pushing the boundaries of design thinking, IDEO opens new possibilities for the B2B sector, fostering faster, tailored solutions to meet evolving needs.

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Reference

Brown, T. (2008). Design thinkingHarvard business review86(6), 84.

In the past, design has most often occurred fairly far downstream in the development process and has focused on making new products aesthetically attractive or enhancing brand perception through smart, evocative advertising. Today, as innovation’s terrain expands to encompass human-centered processes and services as well as products, companies are asking designers to create ideas rather than to simply dress them up.

Brown, the CEO and president of the innovation and design firm IDEO, is a leading proponent of design thinking—a method of meeting people’s needs and desires in a technologically feasible and strategically viable way. In this article he offers several intriguing examples of the discipline at work. One involves a collaboration between frontline employees from health care provider Kaiser Permanente and Brown’s firm to reengineer nursing-staff shift changes at four Kaiser hospitals. Close observation of actual shift changes, combined with brainstorming and rapid prototyping, produced new procedures and software that radically streamlined information exchange between shifts. The result was more time for nursing, better-informed patient care, and a happier nursing staff.

Another involves the Japanese bicycle components manufacturer Shimano, which worked with IDEO to learn why 90% of American adults don’t ride bikes. The interdisciplinary project team discovered that intimidating retail experiences, the complexity and cost of sophisticated bikes, and the danger of cycling on heavily trafficked roads had overshadowed people’s happy memories of childhood biking. So the team created a brand concept—“Coasting”—to describe a whole new category of biking and developed new in-store retailing strategies, a public relations campaign to identify safe places to cycle, and a reference design to inspire designers at the companies that went on to manufacture Coasting bikes.

Bridging theory and practice: My CSULB talk on consumer-centric design

Last week, I had the pleasure of speaking at the Apostle Incubator. This is a course designed by Institute for Innovation & Entrepreneurship (IIE) at California State University Long Beach (CSULB). This interdisciplinary, entrepreneurial program brought together students from diverse backgrounds, creating a lively atmosphere for our discussion on understanding consumers.

In my talk, I shared insights from my project experience with Korean designers, where we explored how companies can use psychology to improve product design and boost sales. One project I discussed involved creating product bundles. I explained how even small changes can have a big impact on whether people decide to buy.

The students were curious and engaged, asking thoughtful questions. One asked, “What’s the difference between Samsung and Apple?” Others questioned about which marketing tools these companies uses now. We even touched on how Google Nest might face similar questions when trying to bundle products effectively.

Overall, it was inspiring to see the students’ enthusiasm. Many left with new ideas on how to think about consumers in their own projects. I am excited to see where these future entrepreneurs take these insights.

In-N-Out’s nostalgia drives a unique experience

I recently visited In-N-Out in Long Beach and found myself immersed in a nostalgic atmosphere. From the iconic red and white decor to the lively staff, the ambiance felt like a step back in time. One detail particularly stood out was that an employee stepped outside to greet drivers at the drive-through, hanging something reminiscent of old-fashioned McDonald’s. This personal, nostalgic touch resonated with many customers, making it more than just a fast-food stop.

Nostalgia can enhance consumer satisfaction, often outweighing price or product quality. When brands like In-N-Out press rewind to create enchantment, they create not just meals but memories. In an era of fast-paced change, such genuine, authentic gestures can be more impactful than any menu update.

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Reference

Hartmann, B. J., & Brunk, K. H. (2019). Nostalgia marketing and (re-) enchantmentInternational Journal of Research in Marketing36(4), 669-686.

Most marketing and branding activities are essentially concerned with enchantment—the rendering of the ordinary into something special. To create enchantment, companies are increasingly marketing past-themed brands and products. Yet, there is little research about why and how such nostalgia marketing creates enchantment for consumers. Building on different modalities of nostalgia identified in sociological literature (reluctant nostalgia, progressive nostalgia, and playful nostalgia), we analyze the creation of enchantment through a longitudinal, qualitative, multi-method program of inquiry. We find three routes to enchantment grounded in different nostalgia modes: (1) re-instantiation (symbolic retrojection into a past), (2) re-enactment (reflexively informing the present with past-themed brands and practices), and (3) re-appropriation (ludic re-interpretation of the past). By unfolding the different ways in which marketers can press rewind to create enchantment, we discern important implications for theorizing and managing past-themed brands in terms of marketing strategy, targeting and positioning, brand experience design, and marketing communications.

Postcards without stamps: How retailers miss simple customer needs

When I recently visited a CVS store in Long Beach, I stood in front of an impressive display of postcards. There were options for every occasion—anniversaries, Halloween, and even postcards designed to send money via Venmo. After choosing a card, I instinctively searched for postal stamps. To my surprise, the store did not sell them. This simple task of sending a postcard turned into a complex process. I had to go to Ralphs store, buy a book of 20 forever stamps for $14.60, and inquire how many were required for international shipping. This endeavor took over two hours. Even finding a post box was a challenge.

This experience echoes findings from Hwang et al. (2022) on goal-based bundling, where understanding consumer goals helps companies like Samsung develop product bundles that address customer needs holistically. If CVS applied a similar approach and emphasized with their shoppers deeply, bundling postcards with stamps could enhance consumer experience. Since the goal of buying a postcard is inherently linked to mailing it, offering both products together would eliminate unnecessary friction, saving time and improving convenience.

Building on this idea, not only retailers like CVS but also postcard makers like Hallmark could improve the postcard experience by launching postcards with pre-attached postal stamps. This would make it easier for customers, especially those who want send mail simply. By making mailing as easy as buying, manufacturers would help meet customer needs directly. This approach could also attract more people to send postcards, creating a new market focused on convenience and simplicity.

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Reference

Hwang, S., Park, H., Sohn, M., Yoo, D., Han, C., & Joo, J. (2022). Goal based bundling: A behaviorally informed strategy to combine multiple smart products. In G. Bruyns & H. Wei (Eds.), [ _ ] With Design: Reinventing Design Modes (pp. 2888–2901). Singapore: Springer.

Contemporary electronic manufacturers struggle with how to develop attractive bundles by combining their existing smart products. In the present work, we propose Goal Based Bundling (GBB) by drawing on the academic research of goal systems theory (Kruglanski et al., 2018) and shed light on two previously ignored aspects of bundling strategy: service and glue product. We applied our GBB to a collaborative project with Samsung Electronics, whose goal was to develop new product bundles for kids by combining multiple smart home products. We constructed a framework of Samsung Electronics’ smart products and then visualized it on its sales website. A UI design conveying the value of smart products bundle was developed based on GBB structure. We discuss the process and the result of our project to provide insights into the product managers who combine existing smart products to develop a bundle.

From push to wave: How California crosswalks adapt to post-pandemic needs

Crosswalk signals in Mountain View, California, have undergone an important upgrade. The old system required pedestrians and cyclists to press a button to activate the walk signal. For cyclists, this often meant stopping and dismounting, creating an inconvenience.

In contrast, the new system is a touchless design that allows pedestrians and cyclists to wave their hand to activate the signal. This improvement makes it more convenient for everyone, especially cyclists who no longer need to stop and manually press a button.

This shift may also reflect changing attitudes towards physical touch in public spaces after the COVID-19 pandemic. Consumer researchers highilghted the importance of the “need for touch,” but this need may have diminished as people increasingly avoid touching shared surfaces. The new touchless crosswalk system may be an adaptation to this evolving preference, signaling a broader trend toward touchless design in public spaces.

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Reference

Peck, J., & Childers, T. L. (2003). Individual differences in haptic information processing: The “need for touch” scale. Journal of consumer research, 30(3), 430-442.

This research details the development of the “Need for Touch” (NFT) scale designed to measure individual differences in preference for haptic (touch) information. The 12-item NFT scale consists of autotelic and instrumental dimensions. Results are reported that support the scale’s hypothesized internal structure as well as its reliability, convergent, discriminant, and nomological validity. Individual differences in chronic accessibility to haptic information across groups varying in NFT were also found in two experiments. Additionally, NFT moderated the relationship between direct experience and confidence in judgment.

Psychology behind dynamic toll pricing in California

A recent drive on an express lane showed tolls as high as $9 to Broadway and $10 to I-380, depending on real-time conditions. What makes this interesting is that the price for using the same road is not predetermined; it is decided on the spot.

Dynamic toll pricing may adjust based on traffic volume, creating an anchor for drivers to evaluate the value of the express lane. If traffic is heavy, the higher toll can feel worth it when compared to the frustration of sitting in congestion. This shifting price serves as a real-time incentive or deterrent, depending on how drivers value their time at that moment.

Mental accounting, the tendency to categorize resources such as money and time, is a key principle at work. The price is not just about the toll but about the potential loss of time stuck in traffic. For many, the higher toll feels like a small price to pay to avoid the larger loss of wasted time, especially during busy hours.

Dynamic pricing taps into our varying perceptions of time. During a stressful commute, paying $10 to save several minutes is more appealing than when traffic is light. The system uses behavioral cues to nudge drivers into seeing the express lane as a valuable, time-saving option.

In essence, dynamic toll pricing leverages human psychology to adjust behavior in real time, making the express lane more than just a road—it is a reflection of what happens when we convert time into money.

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Reference

Soman, D. (2001). The mental accounting of sunk time costs: Why time is not like moneyJournal of behavioral decision making14(3), 169-185.

The sunk-cost effect, an irrational attention to non-recoverable past costs while making current decisions, has been documented widely in the domain of monetary costs. In this paper, I study the effect of past time investments on current decisions. In three experiments using choice situations, I demonstrate that the sunk-cost effect is not observed for past investments of time, but the effect reappears when the investments are expressed as monetary quantities. I further propose that this ‘pseudo-rationality’ is due to the fact that individuals lack the ability to account for time in the same way as they account for money. In two additional experiments, I facilitate the accounting of time and show that the irrational sunk-cost effect reappears. In a final experiment, I test my propositions in a setting where subjects make real investments of time and subsequently make real choices.

The power of defaults: How DMV’s organ donation question shapes decisions

Recently, while applying for my driver license in California, I encountered a section about organ donation. The DMV’s (Department of Motor Vehicles) approach is an example of default.

First, they primed me with two statements:

  1. “One person can save up to 8 lives, and heal over 75, through organ and tissue donation for transplantation. You can register regardless of age or health.”
  2. “Organ donation happens after death, and your decision will not impact medical treatment.”

The first statement emphasizes the positive impact, while the second addresses potential concerns. This balanced approach put me at ease and highlighted benefits.

Then comes the question: “Would you like to register?” with two options: “Yes” or “Not at this time.” This is where default comes into play. By framing the question this way, they make saying “yes” feel like the natural choice.

Interestingly, even if I chose “Not at this time,” I was informed that I am still in the registry but without the pink dot on my license that indicates donor status. This opt-out process requires additional steps, making it more likely for people to remain registered.

This example resonates the findings of Johnson & Goldstein’s 2003 study on how defaults influence decision-making. By designing the process this way, the California DMV is likely increasing organ donation rates without forcing anyone’s hand.

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Reference

Johnson, E. J., & Goldstein, D. (2003). Do defaults save lives? Science, 302(5649), 1338–1339.

“If preferences concerning organ donation are strong, we would expect defaults to have little or no effect. However, as can be seen in the figure, defaults appear to make a large difference: the four opt-in countries (gold) had the lower rates than the six opt-out countries (blue)… One reason these results appear to be greater than those in our laboratory study is that the cost of changing from the default is higher; it involves filling out forms, making phone calls, and sending mail.” (pg. 1339)

Vintage speakers that do not play: The art of deception in cafe design

Salon de Jungui Lee is a cafe in Jeju island. With minimal construction and a commitment to preserving its essence, the owner of the old house transformed it into a cafe that embodies her philosophy of refined simplicity.

This cafe is a popular destination among Korean coffee lovers. Coffee is excellent, but its desserts are not overly sweet, not sticky, nor heavy treats. To me, each bite was a carefully orchestrated symphony of taste and texture.

Beyond taste, its atmosphere was unique. The pinnacle was the air conditioner vent. Instead of a tasteless plastic vent, a repurposed traditional Korean window frame was hanging on the ceiling. It was functional, beautiful, and deeply rooted in cultural heritage.

While enjoying coffee, dessert, and unique air conditioner vent, I naturally assumed that the vintage speaker pumped out the tunes. However, it was actually a cleverly disguised modern Bose system connected to an iPhone.

Salon de Jungui Lee taught me a valuable lesson about experience. It is not just about the individual components – the coffee, the desserts, or the décor. It is about how these elements come together to create something greater than the sum of its parts.

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Reference

Hogarth, R. M. (2005). Deciding analytically or trusting your intuition? The advantages and disadvantages of analytic and intuitive thought. In The Routines of Decision Making (pp. 67–82).

Recent research has highlighted the notion that people can make judgments and choices by means of two systems that are labeled here tacit (or intuitive) and deliberate (or analytic). Whereas most decisions typically involve both systems, this chapter examines the conditions under which each system is liable to be more effective. This aims to illuminate the age-old issue of whether and when people should trust “intuition” or “analysis.” To do this, a framework is presented to understand how the tacit and deliberate systems work in tandem. Distinctions are also made between the types of information typically used by both systems as well as the characteristics of environments that facilitate or hinder accurate learning by the tacit system. Next, several experiments that have contrasted “intuitive” and “analytic” modes on the same tasks are reviewed. Together, the theoretical framework and experimental evidence leads to specifying the trade-off that characterizes their relative effectiveness. Tacit system responses can be subject to biases. In making deliberate system responses, however, people might not be aware of the “correct rule” to deal with the task they are facing and/or make errors in executing it. Whether tacit or deliberate responses are more valid in particular circumstances requires assessing this trade-off. In this, the probability of making errors in deliberate thought is postulated to be a function of the analytical complexity of the task as perceived by the person. Thus the trade-off is one of bias (in implicit responses) versus analytical complexity (when tasks are handled in deliberate mode). Finally, it is noted that whereas much attention has been paid in the past to helping people make decisions in deliberate mode, efforts should also be directed toward improving ability to make decisions in tacit mode since the effectiveness of decisions clearly depends on both. This therefore represents an important frontier for research.

The authenticity challenge: Tim Hortons’ misstep in Korea

Tim Hortons, a Canadian coffee brand, is as iconic to Canada as maple syrup and hockey. It offers free coffee to police officers, making these stores a safe places for night snack lovers. Its reach even extends beyond borders; there was a store in Afghanistan, serving coffee and Timbits to Canadian soldiers who long for a taste of home.

Recently, Tim Hortons expanded into Korea. It successfully kept many core offerings including the most popular coffee called Double Double. However, the chain overlooked the importance of sugar, a key ingredient of coffee, running into some challenges with brand authenticity.

When I ordered my once favorite “a black coffee with two sugars” at a freshly opened store in Korea, I was served coffee with two Korean sugar packets. Unfortunately, they differ from the familiar Canadian sugars that are part of the authentic Tim Hortons experience. This seemingly minor change impacts the unique experience that loyal Tim Hortons customers like me expect.

Brands should consistently deliver on their promises to maintain authenticity (Schallehn et al. 2014). For global brands like Tim Hortons, preserving even the smallest elements of their identity is key. Deviations from established brand expectations—such as using different ingredients or local adaptation—can diminish consumer trust and loyalty, even if those changes seem insignificant.

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Reference

Schallehn, M., Burmann, C., & Riley, N. (2014). Brand authenticity: Model development and empirical testing. Journal of Product & Brand Management, 23(3), 192-199.

Purpose
The purpose of this paper is to develop a model of brand authenticity and analyze the antecedents and effects of the construct. Although there is no doubt about the relevance of authenticity in personal relationships, published research has yet not thoroughly explored the concept’s meaning in reference to brands.

Design/methodology/approach
Based on socio-psychological attribution theories and grounding on the identity-based brand management approach, a causal model of brand authenticity is developed. The hypothesized relationships are analyzed using the partial-least-squares approach. The primary data are based on an online survey conducted in Germany (n = 600). The respondents were asked about fast-food and beer brands.

Findings
The data show that brand authenticity positively impacts on brand trust. Furthermore, the key antecedents in the model (consistency, continuity and individuality of a brand) drive the perception of brand authenticity as hypothesized.

Research limitations/implications
The model should be tested in further product categories and moderators should be integrated.

Originality/value
The findings suggest that authenticity is perceived when a brand is consistent, continuous and individual in its behavior. Nevertheless, the empirical results indicate that the factor individuality has the lowest influence on perceived brand authenticity. This is an interesting finding, as being “unique” is commonly regarded as an important success factor in branding. Although the study’s findings confirm its relevancy, they relativize its importance: being consistent, meaning that a brand fulfills its brand promise at every brand-touch point, and being continuous, meaning that the brand promise reflects the essential core of the brand, are of major importance.

Jaewoo Joo | design thinking, behavioral economics, field experiment, customer experience