Jaewoo teaches and writes about design thinking, behavioral economics, and field experiment for customer experience. He is professor of marketing and participating professor of experience design at Kookmin University. Jaewoo has been Visiting Scholar at Stanford University since September 2024.
During my visit to Sports Basement at Sunnyvale in California, I explored their Pre-Loved Section, where people share their used items with others.
This section is more than a collection of secondhand goods. It represents a community effort to extend the life of products.
The term “pre-loved” is appropriate. Unlike the utilitarian terms such as recycling, “pre-loved” speaks to the warmth and emotional bond we feel towards our belongings. This perspective resonates in today’s conscious consumerism. Each item in this section tells its own story.
Although Sports Basement operates as a company, it functions like a flea market, providing a platform where people can reliably pass along items. We often form emotional attachments to our possessions, which shape our decisions to resell them. Platforms that facilitate these exchanges play an important role in enabling such decisions, and Sports Basement’s Pre-Loved Section is an example of such a platform.
Our interpretive research treats meaningful possessions as vessels of public and private meanings. From this perspective, we unpack consumer disposition of meaningful possessions to strangers at garage sales and online auctions. We reveal how a range of valences of self-extension and self-references other than the ideal self shape a meaningful possession’s journey from self to other. We identify a new iconic transfer divestment ritual, deepen and reinterpret other divestment rituals, and uncover how a shared sense of self allows possessions to migrate across seller-buyer boundaries. We present and discuss the implications of a model depicting three paths to disposition.
Stan’s Donut Shop in Santa Clara, California, has been making fresh, hand-made donuts since 1959. It is a favorite place for many people who love classic donuts.
During a recent early morning visit, the shop was crowded with customers. Many were talking to their family members over Airpods which donuts to buy.
The menu offers a wide variety of donuts at affordable prices: classic glazed donuts are priced at $1.75, old-fashioned donuts at $1.25, cinnamon rolls at $3.00, and coffee at $1.50, with refills for just 50 cents.
The shop’s nostalgic ambiance, coupled with the sight of donuts being freshly prepared, evokes a sense of nostalgia that resonates with many customers. This connection to the past, along with the affordability of the offerings, exemplifies why nostalgia marketing is effective at In-N-Out in Long Beach and Cafe Strada in UC Berkeley.
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.
Despite the popularity and high quality of machine-made products, handmade products have not disappeared, even in product categories in which machinal production is common. The authors present the first systematic set of studies exploring whether and how stated production mode (handmade vs. machine-made) affects product attractiveness. Four studies provide evidence for the existence of a positive handmade effect on product attractiveness. This effect is, to an important extent, driven by perceptions that handmade products symbolically “contain love.” The authors validate this love account by controlling for alternative value drivers of handmade production (effort, product quality, uniqueness, authenticity, and pride). The handmade effect is moderated by two factors that affect the value of love. Specifically, consumers indicate stronger purchase intentions for handmade than machine-made products when buying gifts for their loved ones but not for more distant gift recipients, and they pay more for handmade gifts when purchased to convey love than simply to acquire the best-performing product.
When I visited Eataly at Santana Row in San Jose to shop interesting Italian food items, I had a special experience. First, I was greeted by a big circular display of cured meats and cheeses (Salumi e Formaggi). The bright lights made the food look fresh.
Around this circle, I noticed more salumi and prosciutti hanging on the walls, with their origins detailed above.
As I walked further, I found sections for fresh fish (La Pescheria) and handmade bread (La Panetteria), both well-designed and full of options.
There was also a wine area where I could taste.
What impressed me most was the store’s deliberate use of design elements. Bright lighting made items look premium. Each food section had clear labels on the ceiling. The walls had different colors. Glass was used everywhere to make the store feel open and elegant. These details created a vibrant environment.
A high-arousal store environment, like Eataly, is ideal for customers seeking a recreational experience. This grocery store appeals to shoppers, like me, who enjoy exploring new products and are willing to pay more for the enhanced experience. Eataly is more than just selling fresh food; it creates a “wow” moment that encourages customers to perceive value beyond the product.
Addressing inconsistent results in the literature, the conceptual framework that the authors develop proposes that the consumer’s motivational orientation moderates the effect of the arousal produced by a store environment on the pleasantness of the environment. Two experiments support the framework. When consumers have a recreational motivational orientation, high arousal has a positive effect on pleasantness, but when consumers have a task-oriented motivational orientation, high arousal decreases pleasantness. In addition, high arousal increases consumer intentions to visit and make purchases in the store for recreationally oriented consumers, but it has a negative impact on shopping behavior for task-oriented consumers. Pleasantness mediates the effect of arousal on shopping behavior.
At San Jose International Airport, app-based ride share services like Uber and Lyft dominate the curbside scene. Travelers lining up next to the Uber signs look for their cars while taxis become rare.
During the CES 2025, the Uber/Lyft pick-up area at Las Vegas airport was also crowded with people eager to check in their downtown hotels.
Similarly, at Stanford University Hospital, designated areas show that ride share is now mainstream in California.
While many view ride hailing services such as Uber and Lyft as modern conveniences replacing taxis, I see them as cafes such as Starbucks or Tim Hortons where people meet and talk. Over the past two months, I learned a lot about California from numerous drivers.
Some drivers were quiet, but others shared their stories. One driver at San Jose said he worked as a software marketer for 20 years and remembered meeting Steve Jobs. Another driver at Mountain View worked two jobs to support his family. A driver in San Diego was a history teacher driving to make ends meet. Another in LA said he was preparing a birthday party for his son.
In the US, many people do things by themselves and might feel lonely. But inside these “moving cafes,” there is a chance to meet someone and talk. It might help people feel less lonely for a short time.
This study explores self-reports of 241 older adults (aged 63–95) regarding loneliness and social disconnectedness, and the potential for information and communication technologies (ICT) and ride-hailing services to mitigate these phenomena. The samples are drawn from four older adult living communities in Maricopa County, Arizona. Lonelier older adults and older adults desiring greater social connections with friends, family, and outsiders appear to use ICT less and might benefit from ride-hailing services more than their less lonely and more socially connected counterparts. These findings are nuanced and depend on ICT device, type of ride-hailing service, and purpose of use. While desires for ride-hailing services were generally low, these services show promise in alleviating loneliness and increasing social connectedness, especially as older adults prepare to cease driving. Advice for implementing interventions and strategies to decrease the loneliness and increase social connectedness of community-dwelling older adults is elucidated and shared.
Cafe Strada has long been a beloved spot among UC Berkeley students. Its prime location inside the campus, cozy patio, and inviting workspaces make it the perfect place for studying alone or meeting friends.
But for me, Cafe Strada is more than just a popular cafe. It is a personal place tied to a memorable period of my life. In 1999, as an exchange student living at the International House, I often stopped by this cafe in the morning. A five-minute walk there was a comforting ritual.
When I revisited 25 years (!) later, I was amazed that nothing had changed. The International House and Cafe Strada remained just as I remembered it. While everything around me seems to change, their steady presence felt like a journey back in time.
Then, I ended up buying more baked goods than I needed, but it did not matter. When I did this nostalgic consumption, as psychologists argue, my desire to save money was weakened. For me, Cafe Strada is more than just a cafe—it is where memory dominates money.
Nostalgia has a strong presence in the marketing of goods and services. The current research asked whether its effectiveness is driven by its weakening of the desire for money. Six experiments demonstrated that feeling nostalgic decreased people’s desire for money. Using multiple operationalizations of desire for money, nostalgia (vs. neutral) condition participants were willing to pay more for products (experiment 1), parted with more money but not more time (experiment 2), valued money less (experiments 3 and 4), were willing to put less effort into obtaining money (experiment 5), and drew smaller coins (experiment 6). Process evidence indicated that nostalgia’s weakening of the desire for money was due to its capacity to foster social connectedness (experiments 5 and 6). Implications for price sensitivity, willingness to pay, consumer spending, and donation behavior are discussed. Nostalgia may be so commonly used in marketing because it encourages consumers to part with their money.
The class was highly interactive. Students had to prepare in advance by digesting given case studies. In class, they actively participated by sharing new ideas and debating different perspectives. Professor Teixeira encouraged these discussions and helped everyone understand the key points.
This class was unique to me because it did not rely on textbooks. Since the professor knew the background and outcomes of the cases, he guided students to think differently. This approach encouraged students to think comprehensively and rigorously, and over time, this shift in thinking style can lead to more informed business decisions.
A classical approach to collecting and elaborating information to make entrepreneurial decisions combines search heuristics, such as trial and error, effectuation, and confirmatory search. This paper develops a framework for exploring the implications of a more scientific approach to entrepreneurial decision making. The panel sample of our randomized control trial includes 116 Italian startups and 16 data points over a period of about one year. Both the treatment and control groups receive 10 sessions of general training on how to obtain feedback from the market and gauge the feasibility of their idea. We teach the treated startups to develop frameworks for predicting the performance of their idea and conduct rigorous tests of their hypotheses, very much as scientists do in their research. We let the firms in the control group instead follow their intuitions about how to assess their idea, which has typically produced fairly standard search heuristics. We find that entrepreneurs who behave like scientists perform better, are more likely to pivot to a different idea, and are not more likely to drop out than the control group in the early stages of the startup. These results are consistent with the main prediction of our theory: a scientific approach improves precision—it reduces the odds of pursuing projects with false positive returns and increases the odds of pursuing projects with false negative returns.
I realized that California is not as bike-friendly as I had hoped, so I decided to look for a used car. A few weeks ago, I found a car I liked on CarGurus.com and scheduled a test drive it. But just a day before my visit, I received a text saying the car had already been sold. It was frustrating.
Therefore, I decided to visit CarMax in Fremont, the used car dealership many people recommend. I was not expecting much, but to my surprise, the experience turned out to be refreshing.
The first thing I noticed when I walked into the place was clean, bright, and organized it looked. It felt more like an IKEA store. In particular, the lighting gave the whole place a welcoming vibe. It made me feel freshly excited, which is not something I could associate with used car shopping.
What stood out next was how the salesperson worked with me. Unlike my experience at Bank of America, where the teller kept the screen to themselves while I sat behind it, here the salesperson shared his screen with me. We went through the car’s history, the price breakdown, and all the details together. It felt like we were on the same team, not just buyer and seller. Interestingly, he was not knowledgeable about cars, but that helped me feel less intimidating and more relaxed. Sharing the screen was a simple gesture, but it made all the difference.
Finally, the cars and the prices were the same as advertised. When I arrived at the parking lot, the cars I came to test drive were there, just as promised, with no need for negotiation—like a clear price tag. It reminded me of WYSIWYG—what you see is what you get.
CarMax might be slightly pricier than other dealerships, but I am willing to pay a premium for the peace of mind it brings. The bright store design, transparent sales process, and WYSIWYG-style inventory transformed a frustrating car-buying experience into something positive.
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Reference (bright store design for visitor experience)
Store atmospherics affect consumer behavior. This message has created a revolution in sensory marketing techniques, such that across virtually every product category, retailers and manufacturers seek to influence the consumer’s “sensory experience.” The key question is how should a company design its multisensory atmospherics in store to ensure that the return on its investment is worthwhile? This paper reviews the scientific evidence related to visual, auditory, tactile, olfactory, and gustatory aspects of the store environment and their influence on the consumer’s shopping behavior. The findings emphasize the need for further research to address how the multisensory retail environment shapes customer experience and shopping behavior.
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Reference (transparent sales process for user experience)
Purpose: Even as retailers add digital features to their physical stores and equip their service teams with digital devices, no research has addressed the implications of frontline employees (FLEs) sharing a screen side-by-side with customers as a contemporary service practice. This paper aims to identify the potential customer benefits of this service practice.
Design/methodology/approach: Noting the lack of theoretical considerations of screen-sharing in marketing, this paper adopts an interdisciplinary approach and combines learning theories with computer-supported collaborative learning topics to explore how screen-sharing service practices can lead to benefits or drawbacks.
Findings: The findings specify three main domains of perceived benefits and drawbacks (instrumental, social link, individual control) associated with using a screen-sharing service. These three dimensions in turn are associated with perceptions of accepted or unaccepted expertise status and relative competence.
Research limitations/implications: The interdisciplinary perspective applied to a complex new service interaction pattern produces a comprehensive framework that can be applied by services marketing literature.
Practical implications: This paper details tactics for developing appropriate training programmes for FLEs and sales teams. In omnichannel service environments, identifying and leveraging the key perceived benefits of screen-sharing can establish enviable competitive advantages for service teams.
Originality/value: By integrating findings of a qualitative research study with knowledge stemming from education sciences, this paper identifies some novel service postures (e.g. teacher, peer, facilitator) that can help maximise customer benefits.
Roten, Y. S., & Vanheems, R. (2024). The dimensions of phygital autonomy: losing some, gaining some. Journal of Marketing Management, 40(11-12), 996-1029.
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Reference – (WYSIWYG-style inventory for customer experience)
This article examines 40 years of research conducted in the area of Out-of-Stocks (OOS). Two research streams originating from the Progressive Grocer (1968) study are reviewed. The first stream dealt with demand side issues and analysed consumer responses to OOS. The other dealt with supply side issues and analysed the extent and root causes of OOS situations as well as how to improve OOS. Four paradoxes are derived from the review and are discussed: 1) OOS rates largely seem to fall into an average level at about 7 to 8% despite 40 years of research; 2) only sparse attempts have been made to integrate the two research streams; 3) there is an emphasis on minimizing OOS rather than relying on basic trade-offs as addressed by Economic-Order-Quantity theory to optimize OOS levels; and 4) despite clear evidence of the store as the major contributor to OOS situations, the store has largely remained a ‘black-box’ in OOS research. Finally, the study suggests that OOS research can integrate the notions of the two streams by showing how the conditions for consumer responses can be translated into different degrees for costs of understocking taken from Economic-Order-Quantity theory. This will have important implications for the management of OOS.
At Stanford University, the number of seminars available on campus is stunning. I chose to attend a few, and I noticed that many of them focus on artificial intelligence. From engineering to economics, finance, and supply chain management, AI is a topic of discussion across different fields.
Repeated exposure to the AI-focused discussions has sparked my curiosity about technology. As a psychological experiment demonstrated long ago, repeated exposure to unknown stimuli such as Chinese characters leads to more positive attitudes toward them. As I continue to attend these seminars, my interest in AI and emerging technologies-hallmarks of Silicon Valley-continues to grow.
Likewise, Stanford students, surrounded by ongoing discussions, are likely to develop greater interest and a more positive attitude toward AI and technologies. The campus environment fosters enthusiasm for a transformative field.
The hypothesis is offered that mere repeated exposure of the individual to a stimulus object enhances his attitude toward it. By “mere” exposure is meant a condition making the stimulus accessible to the individual’s perception. Support for the hypothesis consists of 4 types of evidence, presented and reviewed: (a) the correlation between affective connotation of words and word frequency; (b) the effect of experimentally manipulated frequency of exposure upon the affective connotation of nonsense words and symbols; (c) the correlation between word frequency and the attitude to their referents; (d) the effects of experimentally manipulated frequency of exposure on attitude. The relevance for the exposure-attitude hypothesis of the exploration theory and of the semantic satiation findings were examined.
During a recent visit to the Huntington Art Museum in Pasadena, Los Angeles, I noticed an interesting design element: the description of each artwork was displayed on plaques with the exact same color as the background wall. This helped me focus on the text while enhancing the aesthetic harmony of the gallery.
This color choice aligns with the research emphasizing that background color harmony enhances perceived aesthetic appeal as well as comprehension and recall of the associated information. In the research, when the background color complements main objects, it minimizes distractions and creates a seamless viewing experience.
As research suggests, in the Huntington Art museum, I could effortlessly shift my focus between the art and its description. This thoughtful integration of wall and plaque color drew my attention to the content without overpowering the art itself. It shows how a simple design adjustment could enhance the experience of visitors, like me.
Visual appeal is an important consideration in the design of interior service environments because attractiveness influences consumer behavior. Employing both an experiment and a field study, we show that visual complexity reduces a service environment’s attractiveness. Furthermore, we find that the complexity-attractiveness relationship is mediated by processing fluency and its instantaneous affective companion, pleasure. Our findings provide novel insights into the underlying process mechanism involved in channeling the effect of visual complexity on attractiveness. Furthermore, both studies confirm that customers’ field dependence moderates the complexity-fluency relationship and that shopping motivation (i.e., hedonic vs. utilitarian shopping goals) moderates the fluency-pleasure relationship. Our findings suggest that it is generally better to reduce the complexity of interior service environments. To achieve this, service firms should reduce the number of objects in the environment, enhance the visual organization and symmetry of their arrangement, and use fewer colors, textures, and materials.
Stanford’s d.school workshop, Unleash Creativity, offers a unique hands-on approach to learning. During my visit, I could feel the creative energy, from the open second-floor view to the iconic d.school truck inside the building to the this year’s course schedule packed with hands-on activities.
Plate says: The Hasso Plattner Institute of Design at Stanford was established in 2005 to recognize an extraordinary gift from the Hasso Plattner Foundation to inspire teaching and research in design thinking and the creation of a home for the Institute. The Institute is dedicated to the spread of design thinking and the application of its principles to real-world problems. The design and renovations of this facility along with Hasso Plattner’s continued role in championing design thinking around the world were celebrated on May 7, 2010.
In Unleash Creativity, participants jumped straight into exercises without explanation. For instance, instead of talking about ideas, they started by drawing, connecting, and coloring dots. The interesting part is that they only learned why they did each activity afterward, as the instructor, Dustin Liu, explained the purpose and effect. This approach—learning by doing—really made them feel the power of creative expression.
One memorable activity had them listen to others share about someone they admire and then draw that person without talking. This helped them see deeper into one another’s perspectives. Through the carefully designed powerful exercises of listening, sharing, and drawing, they experienced the true power of empathy.
This article outlines the origin and evolution of one of the most influential design thinking perspectives in the Innovation Management discourse. This study addresses two significant criticisms of design thinking, namely, theoretical grounding and construct clarity. It also illustrates how this humanistic and creative design practice transcended into a comprehensive Innovation Management approach, facilitating entrepreneurship and innovation. Our research analyzes the evolution of the design philosophy and practices developed at Stanford University from 1957 to 2005 through document analysis. We identified design qualities that have been consistent over the decades, providing further construct clarity and insights on managing Design- driven Innovation. These design qualities elucidate design thinking as a cognitive process, creative practice, organizational routine, and design culture. They emphasize finding profound needs and problems and translate them into tangible designs, creating value for people. This design philosophy is deeply rooted in humanistic psychology theories, particularly on creativity and human values. Collaborations between psychologists, industrial researchers, and designers created this creative and human- centered design approach, known today as design thinking. This value- driven innovation offers a humanistic perspective on innovation theory and practice. It also offers an Innovation Management schema of design qualities essential for developing Design- driven Innovation capabilities in organizations and educational institutions. We emphasize that developing a creative design culture in which people have the human values, abilities, and confidence to collaboratively identify continuous emerging problems and needs and contribute through tangible designs generates an era of innovation and is essentially innovation management.
Practitioner Points
Design thinking as a step-by-step process with tools prevents fluency in thinking and flexibility in approach, which are essential in Design-driven Innovation.
An essential innovation management task is to develop a design culture and capabilities by freeing teams from emerging blocks imposed by the environment.
In organizations, Design-driven Innovation requires the development of micro-foundation, such as abilities and attitudes & values, and capabilities, such as creative routines and environments of support and psychological safety and freedom.
Innovation managers and educators need to consider essential design qualities when enabling people to design tangible solution for open and complex problems.
