Tag Archives: Consumer Behavior

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Why do some stores attract me like magnets?

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It is hard to find souvenirs in California that are not available in Korea. Because of this, I do not usually feel drawn to specific stores. However, Jupiter & Main at Half Moon Bay caught my attention. This store carefully selects items made from natural materials and hand-crafted designs. The collection includes leather goods and handmade decor.

I could not pass by another store, Makers Market at Santana Row in San Jose. This store also features handcrafted goods made from natural materials. The range includes leather, wood, and textiles, all showcasing expert craftsmanship.

I am attracted to these stores likely because of a psychological association between the material of a product and the perception of its authenticity. For example, when a material like leather is local, I may assume that the finished product is also local. While this perception is not always accurate, it becomes stronger when handmade or hand-crafted elements are involved. This association makes handmade crafts using leather or natural materials particularly appealing as souvenirs. As someone who values authenticity, these products feel local, and stores featuring them create local experience.

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Reference

Beverland, M. B., & Farrelly, F. J. (2010). The quest for authenticity in consumption: Consumers’ purposive choice of authentic cues to shape experienced outcomes. Journal of consumer research, 36(5), 838-856.

Drawing from image-elicited depth interviews, we investigate whether consumers pursue the consumption of authentic objects with specific personal goals in mind. We find that consumers are motivated to focus on those particular cues in objects that for them convey authenticity (what is genuine, real, and/or true) and that this decision-making process is driven by a desire to draw different identity benefits (control, connection, virtue) from authentic objects. Our interpretive analysis elaborates contributions to theorizing related to consumer agency in seeking authentic consumption experience. We provide cultural explanations for the desire to assert the authentic self in these particular ways.

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How my misconception shaped my view of Blue Bottle

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At Santana Row in San Jose, the Blue Bottle Coffee store captures attention with its European-inspired design. A shaded patio under a huge tree, cozy seating, and a fountain create the ambiance of a European plaza.

What struck me, however, was my assumption that Blue Bottle was a Japanese brand due to its minimalist design and precise brewing methods. To me, this coffee brand felt synonymous with Balmuda, a Japanese Electronics brand that prioritizes simplicity.

However, the truth surprises me. Blue Bottle is neither Japanese nor European. It was founded in Oakland, California, in 2002. While it embraces Japanese style, the brand’s actual roots are Californian. In 2017, Nestlé acquired a majority stake, expanding its reach to over 100 locations worldwide, including Japan, South Korea, and China.

Despite its true origins, Blue Bottle seems to benefit from the misconception of being Japanese. Although research shows that authenticity of origin enhances value, my observation flips this insight: when a brand’s origin is incorrectly perceived but aligns with its narrative, it can still elevates value. For Blue Bottle, the misperception of Japanese origins strengthens its image of precision and sophistication. Authenticity may not matter as much as perception.

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Reference

Newman, George E., and Ravi Dhar (2014), “Authenticity Is Contagious: Brand Essence and the Original Source of Production,” Journal of Marketing Research, 51(3), 371–386.

It is well established that differences in manufacturing location can affect consumer preferences through lay inferences about production quality. In this article, the authors take a different approach to this topic by demonstrating how beliefs in contagion (the notion that objects may acquire a special aura or “essence” from their past) influence perceptions of authenticity for everyday consumer products and brands. Specifically, they find that due to a belief in contagion, products from a company’s original manufacturing location are viewed as containing the essence of the brand. In turn, this belief in transferred essence leads consumers to view products from the original factory as more authentic and valuable than identical products made elsewhere.

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Why $39 feels worth it for a fake experience in Las Vegas

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I recently visited Las Vegas to attend CES 2025. While many exhibitions were exciting, it was a gondola ride at the Venetian Hotel that kept me thinking afterward.

I was surprised to see people willingly pay premium prices for fabricated experiences. The ride costs $39 for a 10-minute journey along an indoor canal under a painted sky. A private gondola for two costs $156! Why would anyone pay so much for something artificial?

The answer probably lies in the power of social status. These fabricated experiences are designed to be visually stunning. They create shareable moments for platforms like Tiktok or Instagram. I saw many visitors took gondola selfies under the “Venetian sky.” Authenticity may matter less than the emotions people gain from the experience.

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Reference 1

Pine, B. J., & Gilmore, J. H. (1998). Welcome to the experience economy. Harvard Business Review, 76(4), 97-105.

How do economies change? The entire history of economic progress can be recapitulated in the four-stage evolution of the birthday cake. As a vestige of the agrarian economy, mothers made birthday cakes from scratch, mixing farm commodities (flour, sugar, butter, and eggs) that together cost mere dimes. As the goods-based industrial economy advanced, moms paid a dollar or two to Betty Crocker for premixed ingredients. Later, when the service economy took hold, busy parents ordered cakes from the bakery or grocery store, which, at $10 or $15, cost ten times as much as the packaged ingredients. Now, in the time-starved 1990s, parents neither make the birthday cake nor even throw the party. Instead, they spend $100 or more to “outsource” the entire event to Chuck E. Cheese’s, the Discovery Zone, the Mining Company, or some other business that stages a memorable event for the kids—and often throws in the cake for free. Welcome to the emerging experience economy.

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Reference 2

Choi, B., & Joo, J. (2021). Authentic Information on the Back Label of Wine Bottle. Asia Marketing Journal, 23(3), 13–26.

This paper investigates whether including authentic information on the back labels of wine bottles enhances consumers’ confidence and purchase intentions about wine; it also assesses the moderating role of involvement and knowledge about wine. We conducted two experimental studies. Study 1 generated three findings. First, when the back label had authentic information, subjects showed higher confidence levels. Second, this effect was hold for subjects with low levels of involvement. Finally, we did not observe this effect for subjects with high levels of involvement. Study 2 extended study 1’s findings and identified the moderated mediation effect of confidence. The findings highlight the important impact on wine choice of authentic information. However, the findings also suggest that authentic information may not be sufficient to attract people with high levels of involvement and knowledge. This study’s findings provide wine producers with practical marketing insights.

Cases

Stan’s donut shop: Classic recipes, loyal customers

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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.

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Reference

Hartmann, B. J., & Brunk, K. H. (2019). Nostalgia marketing and (re-) enchantment. International Journal of Research in Marketing, 36(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.

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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.

Cases

How Eataly transforms food into a Wow moment

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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.

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Reference

Kaltcheva, V. D., & Weitz, B. A. (2006). When should a retailer create an exciting store environment?. Journal of marketing, 70(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.

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Uber and Lyft: More than just a ride

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At San Jose International Airport, app-based ride share services like Uber and Lyft dominate the curbside scene. Travelers lining up next to the Uber signs look for their cars while taxis become rare.

During the CES 2025, the Uber/Lyft pick-up area at Las Vegas airport was also crowded with people eager to check in their downtown hotels.

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

While many view ride hailing services such as Uber and Lyft as modern conveniences replacing taxis, I see them as cafes such as Starbucks or Tim Hortons where people meet and talk. Over the past two months, I learned a lot about California from numerous drivers.

Some drivers were quiet, but others shared their stories. One driver at San Jose said he worked as a software marketer for 20 years and remembered meeting Steve Jobs. Another driver at Mountain View worked two jobs to support his family. A driver in San Diego was a history teacher driving to make ends meet. Another in LA said he was preparing a birthday party for his son.

In the US, many people do things by themselves and might feel lonely. But inside these “moving cafes,” there is a chance to meet someone and talk. It might help people feel less lonely for a short time.

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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 services. Activities, Adaptation & Aging, 45(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.

Cases

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

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Cafe Strada has long been a beloved spot among UC Berkeley students. Its prime location inside the campus, cozy patio, and inviting workspaces make it the perfect place for studying alone or meeting friends.

But for me, Cafe Strada is more than just a popular cafe. It is a personal place tied to a memorable period of my life. In 1999, as an exchange student living at the International House, I often stopped by this cafe in the morning. A five-minute walk there was a comforting ritual.

When I revisited 25 years (!) later, I was amazed that nothing had changed. The International House and Cafe Strada remained just as I remembered it. While everything around me seems to change, their steady presence felt like a journey back in time.

Then, I ended up buying more baked goods than I needed, but it did not matter. When I did this nostalgic consumption, as psychologists argue, my desire to save money was weakened. For me, Cafe Strada is more than just a cafe—it is where memory dominates money.

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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.

Cases

Lint rollers in lockdown: Is California overreacting?

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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.

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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.

*Event

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.

Cases

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

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I recently visited several In-N-Out burgers in Long Beach and San Carlos and found myself immersed in a nostalgic atmosphere. From the 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. This personal, nostalgic touch probably resonates with many customers.

Nostalgia can enhance consumer satisfaction, often outweighing price or product quality. In an era of fast-paced change, such genuine, authentic gestures can be more impactful than any menu update.

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Reference

Hartmann, B. J., & Brunk, K. H. (2019). Nostalgia marketing and (re-) enchantment. International Journal of Research in Marketing, 36(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.