Tag Archives: Consumer Behavior

Stan’s donut shop: Classic recipes, loyal customers

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.

***

Reference

Hartmann, B. J., & Brunk, K. H. (2019). Nostalgia marketing and (re-) enchantmentInternational Journal of Research in Marketing36(4), 669-686.

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.

***

Reference

Fuchs, Christoph, Martin Schreier, and Stijn M.J. van Osselaer (2015), “The Handmade Effect: What’s Love Got to Do with It?,” Journal of Marketing, 79 (2), 98–110.

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.

How Eataly transforms food into a Wow moment

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.

***

Reference

Kaltcheva, V. D., & Weitz, B. A. (2006). When should a retailer create an exciting store environment?Journal of marketing70(1), 107-118.

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.

Uber and Lyft: More than just a ride

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.

Similarly, at Stanford University Hospital, designated areas show that ride share is now mainstream in California.

While many view Uber and Lyft as modern conveniences replacing taxis, I see them as cafes such as Starbucks or Tim Hortons—another space where people talk. Over the past two months, I learned a lot about California from Uber 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. But inside an Uber or Lyft, there is a chance to meet someone and talk. It might help people feel less lonely, even for a short time.

***

Reference

Talmage, C. A., Knopf, R. C., Wu, T., Winkel, D., Mirchandani, P., & Candan, K. S. (2021). Decreasing loneliness and social disconnectedness among community-dwelling older adults: The potential of information and communication technologies and ride-hailing servicesActivities, Adaptation & Aging45(2), 89-117.

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.

Memory over matter: Why Cafe Strada at UC Berkeley means the world to me

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 café. It is a personal place tied to one of the most memorable periods of my life. In 1999, as an exchange student living at the International House, I often stopped by Cafe Strada in the morning. A five-minute walk there was a comforting ritual in a new environment.

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 in Korea seems to change, its steady presence in US felt like a journey back in time.

Then, I ended up buying more baked goods and coffee than I needed at the cafe, but it didn’t matter. Psychologists describe this as nostalgic consumption, where nostalgic memory weakens our desire to make or save money. For me, Cafe Strada is more than just a cafe—it is where memory transforms money into something meaningless.

***

Reference

Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia Weakens the Desire for Money. Journal of Consumer Research, 41(3), 713–729.

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.

Lint rollers in lockdown: Is California overreacting?

During a visit to a CVS store in Redwood City, California, I encountered an unexpected barrier to purchasing something as simple as lint rollers. These inexpensive items were locked behind a glass cabinet, requiring me to press a button to unlock it.

The inconvenience of this process immediately raised questions about the rationale behind such measures. Why would store managers restrict access to low-value products, slowing down the shopping experience? This practice seems counterintuitive in a retail environment where seamless customer interaction leads to higher sales.

I speculate that theft prevention might be the motive. One said at Reddit about a year ago,

“We have people that, in broad daylight, will walk right in with backpacks and take everything off a shelf and shove it into their bag and leave. They don’t care if you see them, and they don’t care if they are on camera. CVS would literally not be in business anymore if we didn’t lock things up.”

However, locking up inexpensive items can do more harm than good—it frustrates shoppers and may result in lost sales, as potential buyers could abandon their purchases entirely. This calls for store management to reconsider its approach. After all, a hassle-free shopping experience remains a crucial factor in retail success.

***

Reference

Bitter, A. and Reuter, D. (2024, August 11), Locked-up merchandise is turning off shoppers at CVS, Walgreens, and other big drugstores, Business Insider, https://www.businessinsider.com/locked-up-merchandise-drugstores-annoys-shoppers-cvs-walgreens-rite-aid-2024-8

  • Major drugstore chains have locked up a lot of merchandise to prevent shoplifting.
  • But the anti-theft strategy is pushing some customers to wonder: Why even shop here?
  • Locking up so many items undermines one of drugstores’ main reasons for existing: convenience.

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

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.

In-N-Out’s nostalgia drives a unique experience

I recently visited In-N-Out in Long Beach and found myself immersed in a nostalgic atmosphere. From the iconic red and white decor to the lively staff, the ambiance felt like a step back in time. One detail particularly stood out was that an employee stepped outside to greet drivers at the drive-through, hanging something reminiscent of old-fashioned McDonald’s. This personal, nostalgic touch resonated with many customers, making it more than just a fast-food stop.

Nostalgia can enhance consumer satisfaction, often outweighing price or product quality. When brands like In-N-Out press rewind to create enchantment, they create not just meals but memories. In an era of fast-paced change, such genuine, authentic gestures can be more impactful than any menu update.

***

Reference

Hartmann, B. J., & Brunk, K. H. (2019). Nostalgia marketing and (re-) enchantmentInternational Journal of Research in Marketing36(4), 669-686.

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.

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

Crosswalk signals in Mountain View, California, have undergone an important upgrade. The old system required pedestrians and cyclists to press a button to activate the walk signal. For cyclists, this often meant stopping and dismounting, creating an inconvenience.

In contrast, the new system is a touchless design that allows pedestrians and cyclists to wave their hand to activate the signal. This improvement makes it more convenient for everyone, especially cyclists who no longer need to stop and manually press a button.

This shift may also reflect changing attitudes towards physical touch in public spaces after the COVID-19 pandemic. Consumer researchers highilghted the importance of the “need for touch,” but this need may have diminished as people increasingly avoid touching shared surfaces. The new touchless crosswalk system may be an adaptation to this evolving preference, signaling a broader trend toward touchless design in public spaces.

***

Reference

Peck, J., & Childers, T. L. (2003). Individual differences in haptic information processing: The “need for touch” scale. Journal of consumer research, 30(3), 430-442.

This research details the development of the “Need for Touch” (NFT) scale designed to measure individual differences in preference for haptic (touch) information. The 12-item NFT scale consists of autotelic and instrumental dimensions. Results are reported that support the scale’s hypothesized internal structure as well as its reliability, convergent, discriminant, and nomological validity. Individual differences in chronic accessibility to haptic information across groups varying in NFT were also found in two experiments. Additionally, NFT moderated the relationship between direct experience and confidence in judgment.

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

Salon de Jungui Lee is a cafe in Jeju island. With minimal construction and a commitment to preserving its essence, the owner of the old house transformed it into a cafe that embodies her philosophy of refined simplicity.

This cafe is a popular destination among Korean coffee lovers. Coffee is excellent, but its desserts are not overly sweet, not sticky, nor heavy treats. To me, each bite was a carefully orchestrated symphony of taste and texture.

Beyond taste, its atmosphere was unique. The pinnacle was the air conditioner vent. Instead of a tasteless plastic vent, a repurposed traditional Korean window frame was hanging on the ceiling. It was functional, beautiful, and deeply rooted in cultural heritage.

While enjoying coffee, dessert, and unique air conditioner vent, I naturally assumed that the vintage speaker pumped out the tunes. However, it was actually a cleverly disguised modern Bose system connected to an iPhone.

Salon de Jungui Lee taught me a valuable lesson about experience. It is not just about the individual components – the coffee, the desserts, or the décor. It is about how these elements come together to create something greater than the sum of its parts.

***

Reference

Hogarth, R. M. (2005). Deciding analytically or trusting your intuition? The advantages and disadvantages of analytic and intuitive thought. In The Routines of Decision Making (pp. 67–82).

Recent research has highlighted the notion that people can make judgments and choices by means of two systems that are labeled here tacit (or intuitive) and deliberate (or analytic). Whereas most decisions typically involve both systems, this chapter examines the conditions under which each system is liable to be more effective. This aims to illuminate the age-old issue of whether and when people should trust “intuition” or “analysis.” To do this, a framework is presented to understand how the tacit and deliberate systems work in tandem. Distinctions are also made between the types of information typically used by both systems as well as the characteristics of environments that facilitate or hinder accurate learning by the tacit system. Next, several experiments that have contrasted “intuitive” and “analytic” modes on the same tasks are reviewed. Together, the theoretical framework and experimental evidence leads to specifying the trade-off that characterizes their relative effectiveness. Tacit system responses can be subject to biases. In making deliberate system responses, however, people might not be aware of the “correct rule” to deal with the task they are facing and/or make errors in executing it. Whether tacit or deliberate responses are more valid in particular circumstances requires assessing this trade-off. In this, the probability of making errors in deliberate thought is postulated to be a function of the analytical complexity of the task as perceived by the person. Thus the trade-off is one of bias (in implicit responses) versus analytical complexity (when tasks are handled in deliberate mode). Finally, it is noted that whereas much attention has been paid in the past to helping people make decisions in deliberate mode, efforts should also be directed toward improving ability to make decisions in tacit mode since the effectiveness of decisions clearly depends on both. This therefore represents an important frontier for research.

The authenticity challenge: Tim Hortons’ misstep in Korea

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.

***

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.