Tag Archives: Consumer Behavior

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

Publications

Why do reusable cups turn into unnecessary waste?

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

Abstract

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.

Keywords

behavioral decision making; environmentally friendly; choice–evaluation discrepancy; intention–action gap; preference reversal; goal

Publications

How did Samsung designers overcome an unofficial heuristic?

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Hwang, S., Park, H., Oh, K., Hwang, S., & Joo, J. (2021). Rethinking a Designers’ Rule of Thumb: Influence of Information Seeking and Consumption Goals on Mobile Commerce Interface Design. Journal of Theoretical and Applied Electronic Commerce Research, 16 (5), 1631–1647.

Abstract: We investigated whether adding product information in mobile commerce improved consumers’ attitudes toward a product and whether this relationship was moderated by consumption goals. We conducted two field experiments in which we recruited parents in Korea and the USA and asked them how they evaluated two childcare hybrid products (HPs) newly developed by Samsung Electronics designers. The results revealed that participants exposed to additional information about the HPs evaluated them more favorably than those who were not exposed. However, this relationship disappeared when a consumption goal was activated. Our findings establish a dynamic relationship between information seeking and consumption goals, asking designers to rethink their rule of thumb in the mobile commerce context.

Keywords: information seeking; consumption goal; hybrid product; Samsung Electronics; mobile commerce

Cases

Lay rationalsim leads consumers to choose subscription services

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

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

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

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


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Reference

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

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

Cases

Why are we attracted by Starbucks toys?

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Starbucks Coffee Korea recently launched a set of limited edition Playmobil toy figures. Customers get one of six tall-size beverages with an accompanying Playmobil figure for $12.

Today at a nearby Starbucks, I found several customers paid extra to have a barista figure. Another Starbucks was crowded even though customers have to leave store shortly due to social distancing regulations. It suggests this campaign increases offline store traffic.

Why do adults like Starbucks toys? Although brand power and scarcity play key roles, a more deeply rooted reason is that Playmobil figures are whimsically cute. “Cute products (e.g., an ice-cream scoop shaped like a miniature person or a dress with tropical colors and pink flamingos) can have whimsical nature, which is associated with capricious humor and playful disposition. Whimsical cuteness is … associated with fun and playfulness.” (Nenkov and Scott 2014, pg. 327).

Interestingly, whimsically cute products do not necessarily appeal when they are designed for kids. Contrary to our belief, whimsical cuteness attracts adults. This argument is supported by the experimental findings obtained from a marketing paper.

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Reference

Nenkov, G., & Scott, M. (2014). “So Cute I Could Eat It Up”: Priming Effects of Cute Products on Indulgent Consumption. Journal of Consumer Research,41(2), 326-341.

This article examines the extent to which consumers engage in more indulgent consumption when they are exposed to whimsically cute products and explores the process by which such products affect indulgence. Prior research on kindchenschema (baby schema) has found that exposure to cute babies or baby animals leads to more careful behavior (see the study by Sherman, Haidt, and Coan), suggesting restraint. The present research uncovers the opposite: consumers become more indulgent in their behavior after exposure to whimsically cute products. Drawing from research on cognitive priming, kindchenschema, anthropomorphization, indulgence, and regulatory focus, this research posits that exposure to whimsically cute products primes mental representations of fun, increasing consumers’ focus on approaching self-rewards and making consumers more likely to choose indulgent options. These effects do not emerge for kindchenschema cute stimuli, since they prime mental representations of vulnerability and caretaking. Four empirical studies provide evidence for the proposed effects and their underlying process.

When two cookies were presented under “The Cookie Shop,” participants indicated significantly weaker preference for the healthy entree when they had earlier viewed the whimsically cute cookie than when they had viewed the neutral cookie. However, no such differences occurred when two cookies were presented under “The Kid’s Cookie Shop.”