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How consumers create greenwashing

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I was recently invited by Shelley Takahashi, Professor of Industrial Design at California State University Long Beach, to speak to junior students about sustainability.

During this opportunity, I shared my research on green consumption conducted with Bohee Jung (Jung & Joo, 2021). We borrowed the concept of choice–preference inconsistency from consumer behavior research to test whether consumers over-choose green options even when they do not evaluate them highly.

We found that while 76% chose the green option, only 49% actually rated it more favorably. A similar gap can be seen in real-world cases like the hype around Starbucks plastic reusable cups. Although companies are often accused of greenwashing, consumers themselves contribute by over-choosing green products they do not fully use.

Photo: Nicole Jolliff

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Reference

Jung, B., & Joo, J. (2021). Blind Obedience to Environmental Friendliness: The Goal Will Set Us Free. Sustainability, 13(21), 12322.

In the past, researchers focusing on environmentally friendly consumption have devoted attention to the intention–action gap, suggesting that consumers have positive attitudes toward an environmentally friendly product even though they are not willing to buy it. In the present study, we borrow insights from the behavioral decision making literature on preference reversal to introduce an opposite phenomenon—that is, consumers buying an environmentally friendly product even though they do not evaluate it highly. We further rely on the research on goals to hypothesize that choice–evaluation discrepancies disappear when consumers pursue an environmentally friendly goal. A two (Mode: Choice vs. Evaluation) by three (Goal: Control vs. Quality vs. Environmentally friendly) between-subjects experimental design was used to test the proposed hypotheses. Our findings obtained from 165 undergraduate students in Korea showed that, first, 76% of the participants chose an environmentally friendly cosmetic product whereas only 49% of the participants ranked it higher than a competing product, and, second, when participants read the sentence “You are now buying one of the two compact foundations in order to minimize the waste of buying new foundations,” the discrepancy disappeared (64% vs. 55%). Our experimental findings advance academic discussions of green consumption and the choice–evaluation discrepancy and have practical implications for eco-friendly marketing.

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Why did a ham and beer pop-up beat a fashion pop-up during COVID?

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I was recently invited to speak at the Duncan Anderson Design Lecture Series, hosted by Professor Wesley Woelfel at the Department of Design, California State University, Long Beach. Unlike my previous virtual talk, this time I traveled to Long Beach and delivered the lecture in person.

Photo: Project Rent

My presentation focused on an ongoing collaborative research project with Nayoung Yoon at Aalto University and Wonseok Choi at Project Rent. Nayoung contributes perspectives of brand managers and consumers and Wonseok provides practical knowledge gained from launching over 200 pop-up stores throughout Seoul.

Photo: Wesley Woelfel

The lecture began with three landmark cases including Simmons Grocery Store. Following this, I presented four recent pop-up stores operated by Project Rent, each carefully designed around unique goals. Among them was the Ghana Chocolate House, an innovative pop-up store reshaping brand perception.

Photo: Project Rent
Figure: Yoon and Joo (2024)

The audience paid attention to not only cases but also numbers. To illustrate this, I shared preliminary findings from data we collected during July 2020, at the height of the COVID-19 pandemic in Seoul. The graph shows daily visitor counts for two pop-up stores, a ham and beer pop-up (solid line) and a fashion pop-up (dotted line), alongside daily COVID-19 case numbers (green line). During pandemic restrictions, the food and beverage pop-up consistently attracted more visitors than the fashion pop-up when operating. These findings, highlighting the appeal of experiential consumption, were presented by Nayoung in 2024.

Photo: Wesley Woelfel

We need to provide further insights into how brands can leverage pop-up stores.

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Reference

Yoon, N., & Joo, J. (2024). Experience matters when not restricted: The impact of product type and COVID-19 restrictions on pop-up store visits. Proceedings of the European Marketing Academy, 53rd, (119359)

By taking empirics-first research approach, we study the effect of product type and COVID-19 restrictions on pop-up store visits. This quasi-experimental study uses store traffic and store-entry ratios of four pop-up stores displaying different product types (i.e., experience goods or search goods) at varying times (before or after the COVID-19 restrictions). Our research shows that pop-up store visits were higher when a store displayed experience goods than search goods before the COVID-19 restrictions. However, the store visits to experience goods pop-up stores plummeted after the imposition of restrictions, higher than search goods, suggesting the restrictions’ stronger detrimental effect on experience goods. Our findings advance research on consumer behavior relating to pop-up store products and the impact of mobility restrictions on store visits.

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When less fails: The cost of removing diagnostic design elements

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At the recent O’Malley School of Business (OMSB) Seminar at Manhattan University, I shared our research on minimalist design. This collaborative work with Yooncheol Shin, then a graduate student at the Techno Design Graduate School at Kookmin University and now a UX researcher at the Customer Experience Center at Woori Bank, explores when simplicity enhances consumer preference, and when it backfires.

Photo: Minjung Kim

We conducted one lab experiment and one field experiment to test a key idea: not all design elements contribute equally to how consumers form their preferences.

We found that removing LESS diagnostic design elements (e.g., buttons for play, forward, or backward songs) from an MP3 player increased participants’ preference. However, removing HIGHLY diagnostic design elements (e.g., buttons for equalizer, foreign song translation, or T-base) did not produce the same effect.

Our findings challenge the widely accepted “less is more” mantra. By connecting design practice and marketing theory, we offer practical insights for UX designers and brand managers who want to simplify without losing impact.

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Reference

Pieters, R., Wedel, M., & Batra, R. (2010). The stopping power of advertising: Measures and effects of visual complexity. Journal of Marketing, 74(5), 48–60.

Advertising needs to capture consumers’ attention in likable ways, and the visual complexity of advertising plays a central role in this regard. Yet ideas about visual complexity effects conflict, and objective measures of complexity are rare. The authors distinguish two types of visual complexity, differentiate them from the difficulty of comprehending advertising, and propose objective measures for each. Advertisements are visually complex when they contain dense perceptual features (“feature complexity”) and/or when they have an elaborate creative design (“design complexity”). An analysis of 249 advertisements that were tested with eye-tracking shows that, as the authors hypothesize, feature complexity hurts attention to the brand and attitude toward the ad, whereas design complexity helps attention to both the pictorial and the advertisement as a whole, its comprehensibility, and attitude toward the ad. This is important because design complexity is under direct control of the advertiser. The proposed measures can be readily adopted to assess the visual complexity of advertising, and the findings can be used to improve the stopping power of advertisements.

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

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

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

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

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

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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
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Interpret Voice of the Customer (VoC) from a customer’s perspective

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I was recently invited by Professor Aguinaldo Santos to give a lecture to his design students at Universidade Federal do Paraná (UFPR). In this lecture, I introduced my collaborative project experience with a team of Digital Appliance (DA) Business Divisionan at Samsung Electronics. They develope washers, dryers, and refrigerators, to name a few.

The team members were familiar with the VoC (Voice of the Customer), which is defined as “a hierarchical set of “customer needs” where each need (or set of needs) has assigned to it a priority which indicates its importance to the customer (Griffin and Hauser 1993, p. 2).” They collected tons of feedback and expectations about their products.

Although their effort in comprehensively collecting VoC was impressive, the way they interpret VoC was not rigorous sufficiently. They could not help but rely on intuition or expertise, interpreting VoC in a biased way.

To debias VoC interpretation, we employed the Goal Systems Theory. Since this theory illustrates why people behave in such a way (e.g., I choose rucola because I want to lose 10 pounds), it enabled them to understand VoC from the writer’s viewpoint.

Then, we developed a guideline about how to interpret VoC from a customer’s perspecitve, and examined its effectiveness by testing 3,500 VoC. One lesson we have learned is that frequently reported VoC was not always the right source of innovation. Instead, the VoC connected with an important goal, though not frequently reported, pointed to the right direction.

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Reference 1

Griffin, A., & Hauser, J. R. (1993). The Voice of the Customer. Marketing Science, 12(1), 1–27.

In recent years, many U.S. and Japanese firms have adopted Quality Function Deployment (QFD). QFD is a total-quality-management process in which the “voice of the customer” is deployed throughout the R&D, engineering, and manufacturing stages of product development. For example, in the first “house” of QFD, customer needs are linked to design attributes thus encouraging the joint consideration of marketing issues and engineering issues. This paper focuses on the “Voice-of-the-Customer’ component of QFD, that is, the tasks of identifying customer needs, structuring customer needs, and providing priorities for customer needs. In the identification stage, we address the questions of ( 1 ) how many customers need be interviewed, (2) how many analysts need to read the transcripts, (3) how many customer needs do we miss, and (4) are focus groups or one-on-one interviews superior? In the structuring stage the customer needs are arrayed into a hierarchy of primary, secondary, and tertiary needs. We compare group consensus (affinity) charts, a technique which accounts for most industry applications, with a technique based on customer-sort data. In the stage which provides priorities we present new data in which product concepts were created by product-development experts such that each concept stressed the fulfillment of one primary customer need. Customer interest in and preference for these concepts are compared to measured and estimated importances. We also address the question of whether frequency of mention can be used as a surrogate for importance. Finally, we examine the stated goal of QFD, customer satisfaction. Our data demonstrate a self-selection bias in satisfaction measures that are used commonly for QFD and for corporate incentive programs. We close with a brief application to illustrate

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Reference 2

Kruglanski, A. W., Shah, J. Y., Fishbach, A., Friedman, R., Chun, W. Y., & Sleeth-Keppler, D. (2018). A theory of goal systems. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology (Department, Vol. 34, pp. 331–378). Waterloo, Ontario, Canada: Academic Press.

The theory outlined in the present chapter adopts a cognitive approach to motivation. In the pages that follow we describe a research program premised on the notion that the cognitive treatment affords conceptual and methodological advantages enabling new insights into problems of motivated action, self-regulation, and self-control. We begin by placing our work in the broader historical context of social psychological theorizing about motivation and cognition. We then present our theoretical notions and trace their implications for a variety of psychological issues, including activity experience, goal commitment, choice, and substitution. The gist of the chapter that follows describes our empirical research concerning a broad range of phenomena informed by the goal-systemic analysis.

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Bundle multiple products in a human-centered way

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I recently gave a lecture at Ecobee, a smart home product company in Canada. In this lecture, I compared two different approaches when bundling multiple smart home products.

One is product-centered bundling; they can select a hero product or a product that contributes to their sales significantly and then attach additional products randomly. The other is human-centered (service-centered) bundling; they can select multiple products to form a service which helps consumers achieve their goals.

The product-centered bundling was previously employed among Samsung designers; they selected Galaxy mobile phone or Samsung TV and then added smart door lock or smart plug to create Multi Device Experience. However, we proposed them to adopt the human-centered (service-centered) approach.

The more I become interested in cognitive interventions, the more I delve into motivational goals. This is because we are able to change their behaviors if we know why consumers do what they do. I wish Ecobee designers apply goal to solve their business problems.

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Reference 1

Kruglanski, A. W., Shah, J. Y., Fishbach, A., Friedman, R., Chun, W. Y., & Sleeth-Keppler, D. (2018). A theory of goal systems. In M. P. Zanna (Ed.), Advances in Experimental Social Psychology (Department, Vol. 34, pp. 331–378). Waterloo, Ontario, Canada: Academic Press.

The theory outlined in the present chapter adopts a cognitive approach to motivation. In the pages that follow we describe a research program premised on the notion that the cognitive treatment affords conceptual and methodological ad- vantages enabling new insights into problems of motivated action, self-regulation, and self-control. We begin by placing our work in the broader historical context of social psychological theorizing about motivation and cognition. We then present our theoretical notions and trace their implications for a variety of psychological issues, including activity experience, goal commitment, choice, and substitution. The gist of the chapter that follows describes our empirical research concerning a broad range of phenomena informed by the goal-systemic analysis.

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Reference 2

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.), IASDR (International Association of Societies of Design Research) 2021 – [ _ ] 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.

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Take a deep dive into customer experience with a behavioral lens

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I recently gave a lecture at the California State University Long Beach (CSULB). Two professors at the Department of Design, Shelley Takahashi and Max Beach, invited me for their Duncan Anderson Design Lecture Series.

Through the years, the Duncan Anderson Design Lecture Series has invited top professionals to share their knowledge and experience with design students at CSULB. This coming year marks the expansion of that series to a bi-monthly event. Thanks to Cecelia Anderson-Malcolm and the Duncan Anderson Endowment, CSULB now has an ongoing design lecture series to rival those at private design schools. The CSULB Industrial Design Program is working closely with IDSA-LA, and its student chapters, to schedule an exciting line-up of speakers. Please let your chapter officers know of professionals you want to meet and hear at future events.

In this lecture, I introduced why designers have to adopt behavioral science to understand customer experience deeply. For instance, prospect theory neatly elucidates why once people have a single extraordinary experience, they can no longer revert to previously satisfactory mundane experiences. It is because the extraordinary experience can become a reference point, while the mundane experiences transform into sources of negative affect. Since loss looms larger than gain, people avoid mundane experiences.

Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-292.

Abstract

This paper presents a critique of expected utility theory as a descriptive model of decision making under risk, and develops an alternative model, called prospect theory. Choices among risky prospects exhibit several pervasive effects that are inconsistent with the basic tenets of utility theory. In particular, people underweight outcomes that are merely probable in comparison with outcomes that are obtained with certainty. This tendency, called the certainty effect, contributes to risk aversion in choices involving sure gains and to risk seeking in choices involving sure losses. In addition, people generally discard components that are shared by all prospects under consideration. This tendency, called the isolation effect, leads to inconsistent preferences when the same choice is presented in different forms. An alternative theory of choice is developed, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights. The value function is normally concave for gains, commonly convex for losses, and is generally steeper for losses than for gains. Decision weights are generally lower than the corresponding probabilities, except in the range of low probabilities. Overweighting of low probabilities may contribute to the attractiveness of both insurance and gambling.

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Designers should borrow insights from behavioral economics

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Many design practitioners aim to enhance the beauty of an existing product or develop novel products and services. However, market does not always pay off their effort. Carefully designed products often fail to attract consumers. What should designers do to enhance sales?

One solution is to borrow insights from behavioral economics. Studies show that behavioral economics can increase the adoption rate of newly designed products because it overcomes consumer resistance.

I was once invited by Palermo University in Argentina to share findings about the commercial impact of behavioral economics in the context of design. I shared my experimental findings about three Korean companies.

(1) Samsung’s printer would sell more if its ugly version is placed next to it because joint evaluation helps consumers consider aesthetics importantly,

(2) LG’s Styler would sell more if the clock in the store presents time in analog not in digital because doing so encourages consumers to think abstractly and creatively to appreciate the value of something new, and

(3) SK Telecom’s AI speaker would be used more often if it has a human feature and viewed as a foreigner or child because people become more tolerant about the mistakes of the AI speaker.

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When it comes to customer experience, patience is bitter but its fruit is sweet

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Digital Marketing Summit 2023

I was invited by Digital Marketing Summit 2023 to moderate a fireside chat between two customer experience professionals. They are Jonah Hong, Corporate Vice President and Head of Digital Customer Experience at the Hyundai Motor Group and Dan Gingiss, the author of the Experience Maker.

Digital Marketing Summit 2023

Jonah Hong highlighted bitter patience. He introduced the challenges that Hyundai Motor Group faces. “To address different customers with different tastes and preferences, we have to create tens of millions, or even hundreds of millions of personalized content for a vehicle. To do this globally, organizations have to exchange data each other in the short term and we have to go beyond functional organizations in the long term. To do this work dynamically, automatically, and in real time, investments had to be made in technology.”

Digital Marketing Summit 2023

Dan Gingiss emphasized sweet fruit. In the conversation, he elaborated a wide variety of real life examples in which people spent more and they recommended a company more strongly when the company delivered superior experience to customers. His examples clarifies that having a positive customer experience values more than consuming a high-performing product.

Digital Marketing Summit 2023