All posts by Jaewoo Joo

Jaewoo teaches and writes about design thinking and behavioral economics for customer experience, new product development, and new product adoption. He is an associate professor of marketing and participating professor of experience design at Kookmin University.
Cases

Postcards without stamps: How retailers miss simple customer needs

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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.

Cases

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

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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.

Cases

Psychology behind dynamic toll pricing in California

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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 money. Journal of behavioral decision making, 14(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.

Cases

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

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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)

Cases

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

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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.

Cases

The authenticity challenge: Tim Hortons’ misstep in Korea

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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.

Cases

Broken windows theory: How to motivate citizens to keep their neighborhood clean

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The broken windows theory, introduced by James Q. Wilson and George L. Kelling in 1982, suggests that visible signs of disorder and misbehavior in an environment encourage further disorder and misbehavior, leading to serious crimes. A classic example is a building with a few broken windows. If left unrepaired, vandals are likely to break more windows, potentially leading to more serious property damage.

During a recent trip to Istanbul, Turkiye, I observed this theory in action through a series of urban landscapes. The following image illustrates the problem. An outside trash and garbage collection area was exposed in a busy commercial district.

In contrast, the following three images demonstrate clever solutions, showcasing how to apply the broken windows theory in urban planning. In the first two images, the trash and garbage collection area was enclosed by an artificial ivy hedge to minimize its visibility from pedestrians. In the last image, the back side of a series of market stalls was enclosed by the decorative wall.

Hiding trash and garbage collection areas may not be a permanent solution. However, doing so will motivate citizens to keep their cities clean. By investing in public spaces, urban planners create environments that naturally deter crime and foster community well-being.

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Reference

Kelling, G. L., & Wilson, J. Q. (1982). Broken windows. Atlantic monthly, 249(3), 29-38.

In the mid-1970s The State of New Jersey announced a “Safe and Clean Neighborhoods Program,” designed to improve the quality of community life in twenty-eight cities. As part of that program, the state provided money to help cities take police officers out of their patrol cars and assign them to walking beats. The governor and other state officials were enthusiastic about using foot patrol as a way of cutting crime, but many police chiefs were skeptical. Foot patrol, in their eyes, had been pretty much discredited. It reduced the mobility of the police, who thus had difficulty responding to citizen calls for service, and it weakened headquarters control over patrol officers…

Cases

Adult coloring books are crucial hotel amenities

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Taking a break to go on a vacation is the best way to balance work and life. Hotels or resorts offer many guest activities including yoga classes, spa services, local tours, shopping trips, and food tasting, to name a few.

Among many guest activities, one of my favorite is to color adult coloring books. For instance, Capella hotel at Singapore, offered me a coloring book with colored pencils.

While I was coloring, I focused on a simple activity. This began to relax my brain and quiet my mind. Thankfully, I could stop my racing thoughts when trying to sleep at night. Some studies have shown that focusing on the complex structure of the coloring page can help put our mind into a meditative state.

Quiet your mind with a therapeutic colouring session.

A form of Minduflness-Based Art Therapy, colouring can temporarily draw your attention away from the hustle and bustle of our everyday lives while unplugging ourselves from the digital world.

Now sit back, pick a colour and let loose.

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Reference

Mantzios, M., & Giannou, K. (2018). When did coloring books become mindful? Exploring the effectiveness of a novel method of mindfulness-guided instructions for coloring books to increase mindfulness and decrease anxiety. Frontiers in psychology, 9, 56.

Abstract

Mindfulness has been associated with the use of coloring books for adults; however, the question of whether they do increase mindfulness has not been addressed. In two studies, we attempted to identify whether mindfulness is increased, and whether there is a need for ongoing guidance while coloring, similar to mindfulness meditation. In the first randomized controlled experiment, university students (n = 88) were assigned to an unguided mandala coloring group (i.e., described in mainstream literature as a mindfulness practice) or to a free-drawing group. Measurements of state mindfulness and state anxiety were taken pre- and post- experiment. Results indicated no change in mindfulness or anxiety. In the second randomized controlled experiment, university students (n = 72) were assigned to an unguided mandala coloring group (i.e., same as Experiment 1), or, to a mindfulness-guided coloring group (i.e., same as the unguided coloring group with a mindfulness practitioner guiding participants as in mindfulness breathing meditation, with instructions modified and applied to coloring). Results indicated that the mindfulness-guided mandala coloring group performed better in decreasing anxiety, but no change was observed in mindfulness. Exit interviews revealed that some participants did not like the voice guiding them while coloring, which suggested further differing and significant findings. While mindfulness-guided coloring appears promising, guidance or instructions on how to color mindfully may require further development and adjustment to enhance health and wellbeing.

Publications

How to unlock human potential by merging behavioral science and AI?

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Daeun Yoo and Jaewoo Joo. 2024. BI-CST: Behavioral Science-based Creativity Support Tool for Overcoming Design Fixation.. In Designing Interactive Systems Conference (DIS Companion ’24), July 01–05, 2024, IT University of Copenhagen, Denmark. ACM, New York, NY, USA, 5 pages.

Abstract

Design Fixation refers to the tendency to adhere to pre-existing ideas, which hinders innovative design solutions. This research explores the potential of LLM-powered Creativity Support Tools, the ’Behaviorally Informed Creativity Support Tool (BI-CST),’ to facilitate ideation and combat Design Fixation using ’Behavioral Science Theory.’ BI-CST assists in redefning problems and generating new ideas by presenting experimental fndings from Behavioral Sciences that challenge users’ initial concepts, thus providing a deeper understanding of real human behaviors. We will assign three groups to diferent conditions: one designing without generative AI support, one with open-ended generative AI (e.g., ChatGPT), and one using a model trained in behavioral science. We aim to compare the originality, practicality, and general quality of the designs to assess design fxation. This study addresses design fxation through an interdisciplinary approach combining design and behavioral science, aiming to expand users’ perspectives.

Keywords

creativity support tool, human AI collaboration, behavioral science, design fixation, generative AI

… Behavioral science, a sub field of psychology, aims to understand and predict people’s behaviors through scientific methods ranging from casual observation of daily life to systematic observation to minimize the effects of biases [22, 29]. Its research includes behavioral decision theory, which shows people’s heuristics and biases in judgment [9], and builds nudges that gently alter people’s decision making processes [27]. As this field targets problem-solving by understanding people’s psychology, efforts have been made to apply theories of behavioral science in the HCI field to change users’ behavior [13, 14, 19]. However, there has been limited research on incorporating behavioral science into Creativity Support to aid design processes. We assume that the scientific causal and systematic observational results about human behavior from behavioral science can serve as a ’nudge’ to assist users in gaining more diverse perspectives. (pg. 117)

… We hypothesize that participants using a non-behaviorally informed Creativity Support Tool (CST) in Condition B are likely to reinforce their existing heuristics, which could increase their design fixation. In contrast, participants in Condition C, who will be provided with behaviorally informed guidance, are expected to adopt new heuristics that help reduce their fixation on initial ideas. Specifically, we anticipate that the outputs in Condition A and Condition B will likely exhibit medium to high originality but may have low practicality. Conversely, outputs from Condition C are expected to show medium originality but high practicality, due to the application of evidence-based creative support derived from behavioral science research. (pg. 119)

*Event

Customer activities differ across industries

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Digital Marketing Summit 2024

I was invited by Digital Marketing Summit 2024 to introduce and ask questions to Thales Teixeira. He is the founder of Decoupling.co and Professor at University of California San Diego.

Thales has reminded us of the importance of customer orientation. He introduced that customer activities will differ across industries. Then, he showed from his data that companies in different industries scored low in different customer activities. For instance, Hyundai scores low in the activity where customers compare cars, whereas Sephora scores low in the activity where customers are greeted. This suggests that every single company in different industries should fix different customer activities.

Digital Marketing Summit 2024
Digital Marketing Summit 2024