Category Archives: Cases

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.

Cases

Artists anthropomorphize differently than designers or marketers do

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Anthropomorphism works. When a car has a human schema (e.g., smiley face), people evaluate it positively (Aggarwal and McGill 2007). When a garbage bin has a human message (e.g., “feed me”), people follow it (Ahn, Kim, Aggarwal 2013). When an AR speaker has eyes or when an instruction manual depicts it like a baby, people become generous about its malfunction (Park and Joo 2018).

Historically, an object was anthropomorphize in one of two ways. On one hand, designers add the parts of the human body such as eyes and arms to an inanimate object. For instance, a tip jar has a smiley face, two arms, and two legs. On the other hand, marketers add a phrase describing that the object behaves like a human being. For instance, a garbage bin eats food or a mobile phone becomes stupid.

Today, I noticed another way to anthropomorphize an object, which can be employed by artists. They do not add something to an inanimate object directly; instead they ask us to actively imagine that inanimate objects animate. This is well demonstrated by the artwork, Relatum – The Kiss (2023) by Lee Ufan. We imagine two stones are two people and they are kissing each other.

Kukje Gallery is pleased to present a solo exhibition of Lee Ufan on view from April 4 to May 28, 2023. Lee titles all his scultures Relatum and often provides subtitles to hint possible associations without giving a clear interpretation. Relatum signifies a relation that is different from a readily definable term, relationship, but one that explores the artist’s interest in how individual elements of a work are in a fluid relationship. In this way, the viewer, who directly intervenes in the space of the work as a relatum-along with factors such as the stone representing nature and the steel plate representing industrial society-feels a part of the conversation between the two objects or is led to reflect on the idea of co-presence by observing their conversation.

Lee employes an anthropomorphic metaphor in Relatum – The Kiss (2023), capturing a moment of encounter. As can be inferred by its subtitle, two stones are making a point of encounter as if they are kissing, while two individual chains surrounding them overlap and cross each other, thereby creating a point of intersection. The center of the cirucualr chians leading toward the position of each stone evokes a strong sense of motion…

Cases

Can we teach others how to make Kimchi?

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I enjoy watching The Chef Show, an American television cooking show. It features actor Jon Favreau and chef Roy Choi with guests. This cooking show challenged my stereotype of Asian chefs and Korean food.

In one episode, Chefs Roy Choi and David Chang demonstrated how to make Kimchi. They broke down the authentic Korean food into 16 ingredients. I was surprised by this because I eat Kimchi everyday but have never listed its ingredients. In sum, two chefs analyzed a holistic item successfully, whereas an everyday consumer failed to do so.

Experts are able to analyze holistic items because they are often asked to do so. Two chefs could list sixteen food ingredients because they have to explain to viewers how to make Kimchi. Similarly, wine lovers could elaborate why they like a specific wine (e.g., Tannin, flavor, color, etc.) because they have to explain to others why they like it.

In contrast, novice consumers are rarely asked to decompose their holistic experience. For instance, I do not have to explain to others why I enjoy emmental cheese, why I choose the chicken with classic buffalo flavor, or why I order a smoked salmon with scrambled egg. This is why I need *supports* like vocabulary or category when asked to answer why I like a specific cheese, chicken, or brunch menu.

One of my favorite *supports* is  Brunswik’s Lens Model. This model helped me correct my first impression about Germany, helped designers evaluate concepts in a consistent way, and helped researchers understand how DEOs communicate with their followers. This model help us decompose a holistic item into analytic components.

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Reference

Lee, Younjoon and Jaewoo Joo (2016), “How a Design Executive Officer Can Craft an Organizational Culture,” Design Management Journal, 10 (1), 50-61.

… We collected leadership cues from two parties, the CEO and employees, and then mapped them onto Brunswik’s Lens Model, a psychological framework often used in Social Judgment Theory. Our newly adopted research framework helps us better understand the designer’s unique leadership style; unlike non-design business CEOs, the design CEO or DEO (Design Executive Officer) used a wide variety of visual cues… the DEO tacitly communicates visual (tangible) cues with employees for reward and authorization. In particular, the DEO is good at incorporating a tangible benefit and infusing a live and vivid characteristic into an environment. We found that the DEO utilizes visual cues effectively when communicating leadership.

Cases

What are the constraints contemporary artists overcome?

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People assume that constraint-free activities such as doodling help them become creative. However, psychological researchers suggest a different story, that is, constraints are actually the power house of creativity. Studies showed that people used a given product creatively, enjoyed creative experience, and developed creative toys and when they were provided with a time/input/resource constraint and then overcame it.

Similar to psychological creativity, constraints may contribute to art creativity. I found evidence at the Urban Break 2021, the largest urban and street art fair in Asia.

The Urban Break 2021 proposes the broadened spectrum of the art fair, trying the new contemporary art genre, combined the urban art and the street culture. The urban art is pioneering a new flow, becoming a mainstream icon in the art market. Urban Break is aimed at cultural convergence and extension by embracing native and foreign street artists, galleries and lifestyle brands.

In this art fair, numerous paintings and sculptures made me nervous and confused because I do not understand most of them. Only when I meet the art pieces that look familiar but slightly different, I was able to understand the intentions of the artists, enjoying them. To me, artwork looks creative when its artist communicated with me through something I am familiar with. It does not look creative when its artist communicated with me something I have never seen before.

This suggests that constraint plays a key role to shape creative experience. When artists work with constraints (e.g., something visitors are familiar with such as Mona Lisa painting, David sculpture, or Statue of Liberty), visitors enjoy their paintings and sculptures better and more creatively.

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Reference

Dahl, D. W., & Moreau, C. P. (2007). Thinking Inside the Box: Why Consumers Enjoy Constrained Creative Experiences. Journal of Marketing Research, 44(3), 357–369.

From cooking kits to home improvement shows, consumers are increasingly seeking out products that are designed to help them be creative. In this research, the authors examine why consumers participate in creative activities and under what conditions these experiences are the most enjoyable. A qualitative study explores the diverse motivations for undertaking creative tasks and identifies the role of constraints in such endeavors. Then, the authors conduct two experimental studies to understand the importance of constraints (e.g., instructional guidance, target outcomes) in facilitating a balance between perceived competence and autonomy for consumers involved in a creative task. When consumers engage in creative activities with a sense of both autonomy and competence, they enjoy the experience more. The authors discuss implications for managers and provide opportunities for further research.

Cases

Will be canned wine successful?

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I drink wine often. It goes well with dinner, helps me read papers, and soothes me at night. In the past, I enjoyed numerous marriages of soil, weather, and grape variety. Now, my tongue is developed although I neither remember one nor am able to elaborate why I like one.

Recently, I went to Urban Break 2021 and saw a pop-up store of Babe Wine, a brand name of a canned wine. It attracted a crowd of visitors. Out of curiosity, I sampled a sip of Grigio, Rose, and Red. They differed from the wine I experienced before. They came out from icy-cold cans and had bubbles. I ended up failing to like this wine.

Despite of my disappointment, this canned wine attracts attention internationally. “From 2016-2020, BABE’s CAGR was nearly 2,000% according to IRI. These numbers quickly caught the eye of beverage giant Anheuser-Busch, who acquired Babe in 2019.” According to the article in Forbes, “Babe specifically focused on targeting the wine lover who cracked open bottles on the regular, but “couldn’t name a single brand,” says Ostrovsky.”” 

Why do people like a canned wine I do not? Indeed, I have a long history of prediction errors. On one hand, I once thought that BTS, Tiktok, and Instagram would fail to make a presence. On the other hand, I expected that Clubhouse, a social audio app, and Gathertown, a meta-verse service, would succeed in Korea. Not surprisingly, my predictions were proven to be incorrect.

Then, how could experts like me (e.g., wine lovers) predict whether a product is successful in the market when it is designed for novices (e.g., canned wine)? About 10 years ago, researchers at University of Oxford and New York University suggested that an accurate prediction of an extreme event is an indication of poor forecasting ability. This suggests that even experts who have forecasting abilities predict only non-radical events. Predicting the next hit is beyond our control.

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Reference

Denrell, J., & Fang, C. (2010). Predicting the Next Big Thing: Success as a Signal of Poor Judgment. Management Science, 56(10), 1653–1667.

Successfully predicting that something will become a big hit seems impressive. Managers and entrepreneurs who have made successful predictions and have invested money on this basis are promoted, become rich, and may end up on the cover of business magazines. In this paper, we show that an accurate prediction about such an extreme event, e.g., a big hit, may in fact be an indication of poor rather than good forecasting ability. We first demonstrate how this conclusion can be derived from a formal model of forecasting. We then illustrate that the basic result is consistent with data from two lab experiments as well as field data on professional forecasts from the Wall Street Journal Survey of Economic Forecasts.

Cases

How to force myself to read a book?

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I find myself reading books challenging. Most books are too long to start and I am too busy to finish reading book. Therefore, I have applied numerous insights obtained from behavioral research to force myself to read books.

So far, the most effective method is to buy a physical book. This is particularly effective when the book is not available at a local book store and it needs to be delivered to me in the mail. My intention to finish reading the book *irrationally* increases because it has a physical form and I do not want to waste, interestingly, its delivery cost.

Atasoy, O., & Morewedge, C. K. (2018). Digital Goods Are Valued Less Than Physical Goods. Journal of Consumer Research, 44(6), 1343–1357.

Digital goods are, in many cases, substantive innovations relative to their physical counterparts. Yet, in five experiments, people ascribed less value to digital than to physical versions of the same good. Research participants paid more for, were willing to pay more for, and were more likely to purchase physical goods than equivalent digital goods, including souvenir photographs, books (fiction and nonfiction), and films. Participants valued physical goods more than digital goods whether their value was elicited in an incentive compatible pay-what-you-want paradigm, with willingness to pay, or purchase intention. Greater capacity for physical than digital goods to garner an association with the self (i.e., psychological ownership), underlies the greater value ascribed to physical goods. Differences in psychological ownership for physical and digital goods mediated the difference in their value. Experimentally manipulating antecedents and consequents of psychological ownership (i.e., expected ownership, identity-relevance, perceived control) bounded this effect, and moderated the mediating role of psychological ownership. The findings show how features of objects influence their capacity to garner psychological ownership before they are acquired, and provide theoretical and practical insights for the marketing, psychology, and economics of digital and physical goods.

The second most effective method is to bookmark with sticky notes after briefly reading the table of contents. I often stick only three notes on the pages I want to read to relieve burden. When I see them, I *mistakenly* think I already started reading the book.

Kivetz, R., Urminsky, O., & Zheng, Y. (2006). The Goal-Gradient Hypothesis Resurrected: Purchase Acceleration, Illusionary Goal Progress, and Customer Retention. Journal of Marketing Research, 43(1), 39–58.

The goal-gradient hypothesis denotes the classic finding from behaviorism that animals expend more effort as they approach a reward. Building on this hypothesis, the authors generate new propositions for the human psychology of rewards. They test these propositions using field experiments, secondary customer data, paper-and-pencil problems, and Tobit and logit models. The key findings indicate that (1) participants in a real café reward program purchase coffee more frequently the closer they are to earning a free coffee; (2) Internet users who rate songs in return for reward certificates visit the rating Web site more often, rate more songs per visit, and persist longer in the rating effort as they approach the reward goal; (3) the illusion of progress toward the goal induces purchase acceleration (e.g., customers who receive a 12-stamp coffee card with 2 preexisting “bonus” stamps complete the 10 required purchases faster than customers who receive a “regular” 10-stamp card); and (4) a stronger tendency to accelerate toward the goal predicts greater retention and faster reengagement in the program. The conceptualization and empirical findings are captured by a parsimonious goal-distance model, in which effort investment is a function of the proportion of original distance remaining to the goal. In addition, using statistical and experimental controls, the authors rule out alternative explanations for the observed goal gradients. They discuss the theoretical significance of their findings and the managerial implications for incentive systems, promotions, and customer retention.

Certainly, I want to read more books without these tricks. However, I have insufficient self control resources and frequently mispredict my available time. I wish these tricks drive me to start as well as complete reading books.

Cases

Less is better for flower?

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Less is often better. Chris Hsee demonstrated in his experiment that an overfilled ice cream serving with 7 oz of ice cream was valued more than an underfilled serving with 8 oz of ice cream. However, participants indicated greater willingness to pay for an underfilled ice cream than an overfilled one ($1.85 vs. $1.56). This is because, according to him, when participants determined the value of each option alone (i.e., separate evaluation), they focused on an easy-to-evaluate attribute (whether an ice cream is overfilled or underfilled) and failed to consider a hard-to-evaluate attribute (the amount of ice cream). However when indicating their willingness to pay together (i.e., joint evaluation), they considered the hard-to-evaluate attribute important. Note that a hard-to-evaluate attribute is an attribute that “people do not know whether a given value on that attribute is good or bad.”

I had a similar experience at the Nicolai Bergmann, a flower shop located in Seoul, Korea. A preserved, overfilled flower attracted my attention when I entered the store. However, I found another flower next to it and it was in a square box. Although the overfilled flower attracted me first, I chose the boxed one for several reasons. The primary reason was that when comparing these two flowers side-by-side, I considered their hard-to-evaluate attribute (the amount of flower) seriously. I expect many other visitors may reach the same conclusion.

Hsee, C. K. (1998). Less is better: When low‐value options are valued more highly than high‐value options. Journal of Behavioral Decision Making, 11(2), 107-121.

This research demonstrates a less-is-better effect in three contexts: (1) a person giving a $45 scarf as a gift was perceived to be more generous than one giving a $55 coat; (2) an overfilled ice cream serving with 7 oz of ice cream was valued more than an underfilled serving with 8 oz of ice cream; (3) a dinnerware set with 24 intact pieces was judged more favourably than one with 31 intact pieces (including the same 24) plus a few broken ones. This less-is-better effect occurred only when the options were evaluated separately, and reversed itself when the options were juxtaposed. These results are explained in terms of the evaluability hypothesis, which states that separate evaluations of objects are often infuenced by attributes which are easy to evaluate rather than by those which are important.

Cases

Lay rationalsim leads consumers to choose subscription services

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Subscription-based model attracts attention. It helps firms to stabilize profits, obtain insights, and forecast sales, enabling them sustain.

However, marketers have to pay attention to consumer psychology when they develop a subscription service. That is, pain of payment is detached from joy of enjoyment. When consumers consider subscribing a service or not, they emphasize the realized pain of payment rather than their expected joy of enjoyment. In this case, they tend to rely on “lay rationalism” and base their decisions on reason than on feeelings (Hsee et al. 2014, pg. 134). In order to use reason to guide decisions, consumers may calculate the cost effectiveness of a service rigorously (e.g., how much I will enjoy later based on how much I pay now).

Since payment-enjoyment time gap leads consumers to rely on lay rationalism, they may like a subscription service that is is easy to calculate its cost effectiveness. Take an example of the following 2 TB Dropbox service. The cost effectiveness of the two billing cycle options are easy to calculate and easy to compare because their pay period is identical (month). I subscribed this Dropbox service because I found it easy to calculate cost effectiveness.

In contrast, when cost effectiveness is difficult to calculate, a subscription service may not be chosen. Take an example of the following 3 TB Dropbox space. In this case, the cost effectiveness of the two billing cycle options are difficult to calculate and difficult to compare because their pay periods differ (year vs. month). I assume many others hesitate to choose one of the two options.


Hsee, C. K., Yang, Y., Zheng, X., & Wang, H. (2014). Lay Rationalism: Individual Differences in Using Reason Versus Feelings to Guide Decisions. Journal of Marketing Research, 52(1), 134–146.

People have a lay notion of rationality—that is, the notion of using
reason rather than feelings to guide decisions. Yet people differ in the degree to which they actually base their decisions on reason versus feelings. This individual difference variable is potentially general and important but is largely overlooked. The present research (1) introduces the construct of lay rationalism to capture this individual difference variable and distinguishes it from other individual difference variables; (2) develops a short, easy-to-implement scale to measure lay rationalism and demonstrates the validity and reliability of the scale; and (3) shows that lay rationalism, as measured by the scale, can predict a variety of consumer-relevant behaviors, including product preferences, savings decisions, and donation behaviors.