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.

Street people: East vs. West

20130717_Street people @ Seoul

Street people are the people who live a public life on the streets of a city. Some ask us to view them as our community members (e.g., Homelessguide) and others consider them as business opportunities (e.g., Fortune at the Bottom of the Pyramid). Regardless of our objectives whether we want to help them or make money from them, we need to understand street people more deeply.

From the psychological point of view, their behavior differs depending on where they live. Most street people whom I have seen in Seoul have avoided interacting with me; they hide themselves from public. In contrast, many street people I have met in Toronto have tried to interact with me; they ask passers-by for change and sometimes chat briefly. It seems that social issues (e.g., losing faces or keeping distant from people) are more critical to relatively passive, Asian street people whereas economic issues (e.g., making money) are more desperate to relatively active, North American street people.

By Jonathan Jenkins, Toronto Sun, August 14, 2011
By Jonathan Jenkins, Toronto Sun, August 14, 2011

If their behavioral difference comes from how WE treat them, we should not ask street people to change their behavior: Instead, WE may need to change the way we treat them. In particular, Asians including me may need to invest social resources (e.g., smile) rather than economic resources (e.g., money) to befriend street people.

Young Members Event, ICED 2013 @ Seoul

ICED13_Young Members Event

The Design Society and the Organizing Committee of ICED13 invite young design researchers and designers, including design students, to participate in this discussion on the future of design and to join the networking of international young design community. Please send an email to dinstitute@skku.edu with your name, affiliation and contact information by August 16th (Friday) to join this free of charge special event. For more information, please visit ICED13 website, www.iced13.org, or send your inquires to the Creative Design Institute, dinstitute@skku.edu.

Dessert design workshop @ Cognitive Science 2013 (2)

* Continued from Dessert design workshop @ Cognitive Science 2013

20130719_Dessert design @ Huffington Post

…Breakthrough innovation occurs when knowledge and experiences from vastly disparate areas are synthesized into new solutions. In this particular instance, someone from a Korean cultural background had combined “The Little Prince” by the French aristocrat, writer, poet and aviator, Antoine de Saint-Exupéry, with a dessert entree, a course that is still relatively new to Korean culture. Not even the French could have come up with that combination!…

Advertising for competitve market

Research framework

 

While the relationship between advertising expenditures and sales has been much discussed, whether product market competition affects their relationship has been little examined. We address this question by analyzing the financial performance data of 6,018 companies for 14 years (1997-2011). Our data analysis supports two hypotheses that (1) increasing advertising expenditures increase sales in the subsequent year and that (2) this effect is stronger when the product market competition is high than when it is low. Our findings advance the academic understanding of advertising effect as well as provide practical implications to advertising managers.

 

What happens if we love artificial plants?

20130606_Ran @ Kyunggi (2)

Most urban dwellers want authentic, natural goods. Unfortunately, growing plants or baking breads requires a significant amount of effort. Therefore, they often buy artificial ones instead.

20130620_@ Paris Croissant

Many artificial products are delicately crafted. I am often confused between an artificial product with a real one. See the two following pictures. The one above is the the real frozen beer in the plastic cup, and the one below is the artificial beer in the glass available at the Kirin Ichiban popup store.

20130621_@ Kirin Ichibang (1)
20130621_@ Kirin Ichibang (2)

In general, artificial products look too good to me. For example, artificial plants are cleanly green, artificial breads are beautifully baked, and artificial beers have a just right amount of foam. The more we are exposed to these perfectly beautiful artificial products, the more we will enjoy the visually best moment of each product and ignore the amount of effort to invest to enjoy it. Artificial products may lead people to discount the value of effort or labor, which is contrary to effort heuristic or IKEA effect.

**

Reference 1

Morales, A. C. (2005). Giving firms an “E” for effort: Consumer responses to high-effort firms. Journal of Consumer Research, 31(4), 806–812.

This research shows that consumers reward firms for extra effort. More specifically, a series of three laboratory experiments shows that when firms exert extra effort in making or displaying their products, consumers reward them by increasing their willingness to pay, store choice, and overall evaluations, even if the actual quality of the products is not improved. This rewarding process is defined broadly as general reciprocity. Consistent with attribution theory, the rewarding of generally directed effort is mediated by feelings of gratitude. When consumers infer that effort is motivated by persuasion, however, they no longer feel gratitude and do not reward high-effort firms.

**

Reference 2

Norton, M. I., Mochon, D., & Ariely, D. (2012). The “IKEA Effect”: When labor leads to love. Journal of Consumer Psychology, 22(3), 453–460.

In four studies in which consumers assembled IKEA boxes, folded origami, and built sets of Legos, we demonstrate and investigate boundary conditions for the IKEA effect-the increase in valuation of self-made products. Participants saw their amateurish creations as similar in value to experts’ creations, and expected others to share their opinions. We show that labor leads to love only when labor results in successful completion of tasks; when participants built and then destroyed their creations, or failed to complete them, the IKEA effect dissipated. Finally, we show that labor increases valuation for both “do-it-yourselfers” and novices.

Holistic approach for furniture sellers

20130606_Ran @ Kyunggi (4)

20130606_Ran @ Kyunggi (6)

Analytic (holistic) approach makes a store look cheap (upscale). I have visited an outlet furniture store in which the whole items are simply piled up. This analytic approach made me difficult to imagine how a room looks like. Therefore, I decided not to buy any item in this store. If the manager in this store uses the holistic approach and displays carefully selected items in different sections with specific themes, not only the store looks upscale but also I purchase some items (e.g., What is the secret of the upscale home deco stores?).

Package design for health supplement

Yuyu

Recently, Yuyu changed the package of its health supplement. Its previous package provides information mostly in the front side and mostly in the verbal format, which makes it challenging for its sale representatives to communicate with potential buyers.

The new package embraces visual design and zoning. It now provides much information visually as well as provides different types of information in different spaces (front/back). First, it has a huge alphabetical name similar to chemistry acronym (LT = Liver Therapy) and provides detailed instruction in a visual format. Moreover, the overview/functional information about the health supplement (what it is for) is provided in the front side, whereas its more detailed/usage information (how to take it) is provided in the back side.

20130602_Yuyu pill design (3)

20130602_Yuyu pill design (4)

Experiment for collaborative office space in Seoul (2)

> Continued from Experiment for collaborative office space in Seoul (1)

The team discovered two issues for building a collaborative office space in Seoul.

  • First, people have a double standard. They generally use the open space for serious reasons such as discussing business issues or having meetings with clients. However, when they notice others occupying the space, the others “seem to” chat over a cup of coffee, read casual books, or just have fun. This unnecessary strictness of others inhibits them from visiting the open space.
  • Second, people prefer the sofas located next to the window over the white table located in the middle. This skewed flow does not allow accidental interactions.

The team decided not to attack the first, psychological issue but to attack the second, technical issue and then conducted a few experiments to smooth the flow with a hope to make the whole space more vital. For example, the sofas and the round tables with chairs switched each other. As shown below, many people followed the sofas and while doing so, they made some accidental interactions, which is a key feature for collaborative office spaces (see Adam Alter’s post).

Space design (1)Space design (3)

This project shows that a minor change in an office space determines the flow, which in turn makes the space where collaboration can happen.

Experiment for collaborative office space in Seoul (1)

Although many people want their offices similar to the Pixar’s office or the Google’s New York office, only few had them. Adam Alter, Assistant Professor of Marketing at New York University, wrote a piece of article on this issue at U99 (How to build a collaborative office space like Pixar and Google). In this article, he argues four key features of a collaborative office space.

  • An open plan and other design features (e.g., high-traffic staircases) that encourage accidental interactions.
  • More common areas than are strictly necessary—multiple cafeterias, other places to read and work that encourage workers to leave confined offices.
  • Emphasis on areas that hold two or more people, rather than single-occupancy offices.
  • Purpose-free generic “thinking” areas in open-plan spaces, which encourage workers to do their thinking in the presence of other people, rather than alone.

**

Dongwha holdings, a company selling interior items and dealing used cars based in Seoul, opened a space called Green Lounge in 2010. This space was dedicated to encourage collaboration among employees. It was equipped with sofas and tables, designer chairs, upscale coffee machines, and a plenty of casual books, etc.

20130306_Action Learning @ Dongwha (6)

This open space, however, was mostly empty. Very different from Californians and New Yorkers, people in Seoul avoided mingle with strangers and thus accidental interactions did not occur. Instead, they stopped by this space with their colleagues and picked up free coffee and left. Alternatively, they occupied meeting rooms for chatting with friends or keeping focused on their own businesses.

In order to revitalize this open space, a team of employees conducted research; they performed deep interviews with others, video recorded others’ behaviors, and collected and analyzed the flow in the open space. This research revealed two issues and the team decided to attack one of those issues by conducting several experiments.

> Go to Experiment for collaborative office space in Seoul (2)

Wood plank for steak choice

Buying a steak is not a challenging task. We can simply choose portion (e.g., sirloin), quality (e.g., AAA), and weight (e.g., 8oz).
Steaknightmagazine.com
Steaknightmagazine.com
However, when I visited the SSG food market, a premium grocery store in Seoul, to buy a steak, I was asked to choose the thickness of the steak. Over there, I was provided with several pieces of wood plank in different thicknesses. Thanks to this tangible decision support tool, I did not have to scratch my head to figure out the numerical value of the steak thickness. Instead, I picked up one piece of wood plank and simply said “I would like to go with THIS thickness.” Wood plank is a great example of evaluability hypothesis. It helps other visitors choose the right steak as well because thickness is difficult for people to evaluate. A specific value (e.g., 2 cm) is hard to tell another value (e.g., 3 cm) because we are not sensitive about it. About this issue, a group of psychologists introduced a concept of General Evaluability Theory about 10 years ago. (Here is a more recent post)

20130601_@ SSG Food market (3)

** Reference
Hsee, C. K., & Zhang, J. (2010). General evaluability theoryPerspectives on Psychological Science5(4), 343-355. A central question in psychology and economics is the determination of whether individuals react differently to different values of a cared-about attribute (e.g., different income levels, different gas prices, and different ambient temperatures). Building on and significantly extending our earlier work on preference reversals between joint and separate evaluations, we propose a general evaluability theory (GET) that specifies when people are value sensitive and when people mispredict their own or others’ value sensitivity. The GET can explain and unify many seemingly unrelated findings, ranging from duration neglect to affective forecasting errors and can generate many new research directions on topics ranging from temporal discounting to subjective well-being.