Tag Archives: Consumer Behavior

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.

***

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.

Cases

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

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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.

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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.

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.

Publications

Orderly spaces can promote impulse buying

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Shi, Y., & Joo, J. (2023). Effect of space order on impulse buying: Moderated by self-construal. Behavioral Sciences, 13 (8), 638.

Abstract:

Objective: Impulse buying is a recognized phenomenon as consumers have abundant shopping opportunities. We investigate whether orderly space encourages consumers to buy impulsively and whether this relationship is moderated by self-construal. Specifically, we hypothesize that consumers show greater impulse buying intentions when space is orderly than disorderly. We also hypothesize that when interdependent self-construal is primed, the effect of orderly space on consumers’ increased impulse buying intentions will be attenuated. Background: Our hypotheses are based on the research about emotions that consumers experience while they shop in a retail store. When the store is orderly, consumers experience pleasure. In contrast, disorganized shelves, unsorted merchandise, and messy clothing racks evoke negative emotions. A recent study shows consumers’ positive emotional responses to a retail environment result in heightened impulse buying. Methods: Two experiments were carried out to test the two hypotheses. Experiment 1 employed a 2 (space order: orderly vs. disorderly) between-subjects design. Participants randomly received one of the two store images and were asked to indicate their impulse-buying intentions. Experiment 2 employed a 2 (space order: orderly vs. disorderly) × 2 (self-construal: independent vs. interdependent) between-subjects design. Participants were randomly given one of the two store images and one of the two self-construal priming tasks to measure their impulse buying intentions. Results: As hypothesized, Experiment 1 demonstrated that participants exerted stronger impulse-buying intentions in an orderly space. Experiment 2 also showed that when participants were primed by inter- dependent self-construal, their impulse buying intentions did not differ, regardless of whether the space was orderly. Implications: Our findings provide insights for offline store managers. To nudge visitors to buy impulsively, managers should organize their spaces orderly. However, the effect of space order on consumers’ impulse buying will disappear when consumers’ interdependent self-construal is activated. Our findings contribute to the academic research into the factors that lead consumers to buy impulsively.

Keywords

impulse buying, space order, self-construal, off-line store, sales

Publications

People choose an aesthetic pen when exposed to a sexual image

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Geng, L., & Joo, J. (2023). A sexual photo and a dolphin shaped pen: Effect of visceral state on hedonic choice. Actas de Diseno, 18(43), 245–249.

Abstract

We investigate whether visceral state and temporal distance influenced their choice between a hedonic and a utilitarian product. We hypothesize that consumers are more likely to choose a hedonic product when they are hot (e.g., hungry or sexually driven) than when they are cold (e.g., not hungry or not sexually driven). We further hypothesize that the effect of visceral state on hedonic-utilitarian choice is moderated by temporal distance; hot-cold choice difference disappears when consumers make a choice in the distant future. Our two hypotheses were supported by two experiments. We discuss academic contributions and managerial implications of our findings.

Keywords

Visceral state, hedonic, utilitarian, temporal distance

Publications

If people have to control themselves, avoid cuteness

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Yoon, N., Park, W., & Joo, J. (2022). Dark side of cuteness: Effect of whimsical cuteness on new product adoption. In G. Bruyns & H. Wei (Eds.), [ _ ] With Design: Reinventing Design Modes (pp. 617–633). Singapore: Springer.

Abstract

A wide range of businesses actively use cute characters such as the globally popular LINE FRIENDS characters for product design to increase consumers’ product adoption. Prior research has found that whimsical cuteness—which elicits fun and playful mental representations—can lead to higher product adoption. The effectiveness, however, has been investigated mostly in indulgent contexts. This article aims to uncover the opposite phenomenon, that is, whimsical cuteness could be detrimental for product adoption, in particular, in a non-indulgent context. In a pre-test, we measured the different types of cuteness of nine LINE FRIENDS characters, selecting one pair of characters differed only in terms of whimsical cuteness. Additionally considering product newness, the main study tested whether product adoption differed depending on the level of whimsical cuteness and product newness. The results demonstrate that participants were less likely to adopt a non-indulgent product when it was highly whimsically cute compared to less whimsically cute because the indulgence provoked by fun and playful mental representations conflicted against the restraint reinforced by a product for self-control. The adverse effect increases when the product has lower product newness whereas high product newness dampens the effect. The findings suggest that practitioners should carefully consider product nature and newness when applying whimsically cute features to product design and marketing promotions. This study has originality in that it is the first to demonstrate the adverse effect of whimsical cuteness on new product adoption and verify the moderating effect of product newness.

Keywords

Whimsical cuteness, New product adoption, Product newness, Self-control, LINE FRIENDS

The key practical significance is that a product design which makes products seem whimsically cute has potentially detrimental effects on consumers’ product adoption, especially when the products are non-indulgent. Although nudge is an interesting lens for designers (Chen et al. 2019), our finding suggests that whimsical cuteness can have counter-nudging effects (Saghai 2013; Sunstein 2017) that make consumers not to adopt self-control products, contrary to the expectation of designers and marketers. For instance, cute characters with high whimsical cuteness might in fact hinder consumers’ adoption of products for self-control such as diet foods and time and study management products. Thus, practitioners should beware of using whimsically cute characters on products related to self-control (pg. 629).

Publications

People feel confident in wine selection when they know the founder

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

Abstract

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.

Keywords

Authenticity; Confidence; Involvement; Knowledge; Wine