Tag Archives: marketing

Cases

Searching for my taste at Go Greek Yogurt

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I visited Go Greek Yogurt in Beverly Hills one morning. This place started in 2012, founded by people who wanted to bring authentic Greek yogurt and Mediterranean lifestyle to California.

Inside the store, I noticed a wall sign that explains six reasons why this yogurt is good: low sugar, low carb, low calorie, simple ingredients, high probiotics, and guilt-free indulgence. These messages match well with what young consumers want today.

The store offers nine different yogurts: Plain Tart, Chocolate Classic, Greek Honey, Rose Petals, Hazelnut, Mango, Blackberry, Strawberry, and Vegan Strawberry. I like this variety because I am still searching for the yogurt that fits me. What I love more is that nine different yogurts are stored in big transparent glass containers. This gives the impression that yogurts are home-made.

Variety also appears in the toppings. Some are natural fruits like strawberries and pineapples, while others are processed sweets like chocolates and Skittles. The staff was preparing fresh fruits by peeling and cutting them for the next serving.

The menu suggests combinations such as “House Classics,” mixing Greek Honey, Hazelnut, Rose, and Strawberry.

The portion is generous, enough to share or to replace a meal. Go Greek Yogurt is a nice mix of freshness and taste. It shows how yogurt can be both indulgent and healthy.

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Reference

Deng, X., & Srinivasan, R. (2013). When do transparent packages increase (or decrease) food consumption?. Journal of Marketing, 77(4), 104-117.

Transparent packages are pervasive in food consumption environments. Yet prior research has not systematically examined whether and how transparent packaging affects food consumption. The authors propose that transparent packaging has two opposing effects on food consumption: it enhances food salience, which increases consumption (salience effect), and it facilitates consumption monitoring, which decreases consumption (monitoring effect). They argue that the net effect of transparent packaging on food consumption is moderated by food characteristics (e.g., unit size, appearance). For small, visually attractive foods, the monitoring effect is low, so the salience effect dominates, and people eat more from a transparent package than from an opaque package. For large foods, the monitoring effect dominates the salience effect, decreasing consumption. For vegetables, which are primarily consumed for their health benefits, consumption monitoring is not activated, so the salience effect dominates, which ironically decreases consumption. The authors’ findings suggest that marketers should offer small foods in transparent packages and large foods and vegetables in opaque packages to increase postpurchase consumption (and sales).

Cases

Curating taste in Santa Barbara

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When I stayed at the Simpson House Inn in Santa Barbara, the staff told me to visit the Santa Barbara Company for gifts. They said it is the best place. I went there and saw why.

The store does not only sell items one by one. It makes gift boxes with many different things.

One basket had bath salts, white sage soap, a candle, and a seaside mist. These items are chosen for a calming ritual.

Another box had honey, tea bags, postcards, and a candle, showing the taste of Santa Ynez Valley.

A third box had cookies, a honey lollipop, dried flowers, and a small owl-shaped soap. Each box gave a different feeling.

Making these combinations is not simple. It is difficult to choose across categories and still make the gift feel right. But when it works, it matches well with the personal taste of the receiver. One good example is the wine display by the Inglenook winery.

I do not believe AI could easily perform this task. AI can recommend based on past data, but true curation requires subjectivity. To make new and surprising combinations, human taste and imagination are needed. In that sense, curated gift boxes remind me that human taste is still a unique form of intelligence

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Reference

Hwang, S., Park, H., Sohn, M., Yoo, D., Han, C., & Joo, J. (2022). Goal based bundling: A behaviorally informed strategy to combine multiple smart products. In G. Bruyns & H. Wei (Eds.), [ _ ] With Design: Reinventing Design Modes (pp. 2888–2901). Singapore: Springer.

Contemporary electronic manufacturers struggle with how to develop attractive bundles by combining their existing smart products. In the present work, we propose Goal Based Bundling (GBB) by drawing on the academic research of goal systems theory (Kruglanski et al., 2018) and shed light on two previously ignored aspects of bundling strategy: service and glue product. We applied our GBB to a collaborative project with Samsung Electronics, whose goal was to develop new product bundles for kids by combining multiple smart home products. We constructed a framework of Samsung Electronics’ smart products and then visualized it on its sales website. A UI design conveying the value of smart products bundle was developed based on GBB structure. We discuss the process and the result of our project to provide insights into the product managers who combine existing smart products to develop a bundle.

Cases

Erewhon in LA: Where health feels like luxury

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I visited one Erewhon store in Los Angeles. Erewhon is known as the most expensive grocery store in the world. All items are organic or health-focused, and many are linked to celebrities or wellness influencers.

The smoothies are expensive and some are named after Hailey Bieber or Travis Scott. Even a small sushi wild tuna roll costs $14.

But what surprised me more was how carefully the vegetables were displayed. Each carrot and leaf was perfectly lined up. It looked almost like a vegetable museum. This kind of display, along with sustainable ingredients and celebrity hype, might help customers feel the price is worth it.

Erewhon’s name comes from a novel where people are punished for being sick. The store also seems to say that my health is my responsibility. With its careful curation and premium feel, Erewhon gives me the feeling that I am doing something good for myself.

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Reference

Haws, K. L., Reczek, R. W., & Sample, K. L. (2017). Healthy diets make empty wallets: The healthy= expensive intuition. Journal of Consumer Research, 43(6), 992-1007.

Understanding consumer decision making about what to eat is both complex, as multiple factors can drive food choice, and important, as food choice impacts overall health. This research examines an intuition at the crossroads of two important criteria for food decision making—healthiness and price—finding that consumers believe that healthier food is more expensive than less healthy food. While this relationship may be accurate in some cases, consumers overgeneralize this belief to contexts and product categories where it is not objectively true. As a result, the healthy = expensive intuition influences consumer decision making by impacting inferences of missing attributes and choice between alternatives. Further, consistent with dual process models, the intuition acts as a bias in shaping how consumers process information about health and price when consumers are processing heuristically, including altering both perceptions of how “healthy” a given ingredient is as a function of product price and the amount of information search consumers engage in when evaluating health claims, such that consumers have a higher standard of evidence when evaluating intuition-inconsistent claims. Overall, the healthy = expensive intuition has a powerful influence on consumer decision making, with significant implications for both consumers and marketers.

Cases

Why is 이정후 more expensive than Jung Hoo Lee?

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At Oracle Park, I watched the San Francisco Giants play the San Diego Padres. Jung Hoo Lee, a former star in the Korean baseball league stole a second base that day.

During a break in the game, I noticed a non-Korean person wearing a jersey with his name in Korean (이정후) printed in bold Korean letters on the back. It was not J. H. Lee.

Later, back at home, I went to mlbshop.com out of curiosity. The official Nike t-shirt with “J. H. Lee” was priced at $44.99. But the same shirt, with “이정후” on the back, cost $49.99. It was five dollars more and sold out.

I checked the prices of other players’ shirts. Matt Chapman’s shirt also cost $44.99. Logan Webb’s was slightly cheaper at $39.99. Jorge Soler, who is no longer on the team, was listed for just $19.99. Among them, the version with Korean script was the most expensive.

From a marketing perspective, this price difference reflects the interesting psychology of fans. One reason could be uniqueness. Fans might want to be unique and choose the Korean version to feel rare. Another reason might be authenticity. Wearing the player’s name in his native language could feel more genuine. Finally, there might also be a sense of community. Wearing the Korean version might signal a shared cultural identity.

Fans often sacrifice convenience and pursue originality. They want to express identity, value, and/or a sense of belonging.

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Reference

Smith, R. K., Vandellen, M. R., & Ton, L. A. N. (2021). Makeup who you are: Self-expression enhances the perceived authenticity and public promotion of beauty work. Journal of Consumer Research, 48(1), 102–122.

Although consumers put substantial effort toward their appearance, engaging in beauty work is often seen as inauthentic, posing challenges for beauty companies that increasingly rely on social media-driven product promotion where authenticity perceptions are consequential. This article draws on existentialist notions of authenticity (wherein the true self is created rather than innate) to explore how framing beauty work as self-expression alters others’ perceptions and, in turn, marketing outcomes. First, an archival analysis of Instagram posts demonstrates that rebranding beauty work as self-expression is positively associated with word-of-mouth about beauty products. Six studies then test how motivational information alters perceptions of people who engage in beauty work. Lowered authenticity perceptions arise from observers’ default assumption that beauty work is motivated by self-enhancement and serves primarily to conceal appearances. By contrast, self-expression enhances authenticity by leading others to see beauty work as a form of creation rather than concealment. This pattern extends to when people engage in a variety of beauty work transformations but not when beauty work is designed to restore appearances or is framed as connected to the innate self. These findings provide insight into judgments of authenticity and the management of a stigma associated with product use.

Cases

From ketchup to barbecue sauce: Heinz’s condiment set

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At Heavenly ski resort and Kirkwood ski resort, a full set of colorful condiments stood quietly near the dining area. They include ketchup, mustard, mayonnaise, ranch, barbecue sauce, and even Bull’s Eye sauce. All were arranged in a neat row of colorful pumps, like Lego.

I noticed that every container, no matter the flavor, was marked with the same brand, Heinz. I always thought Heinz was only about ketchup, its hero product. But here, it offered more than that.

Usually, consumers determine the success of brand extension. But in this case, the producer takes the lead. By offering a well-designed and complete set, Heinz makes it easy for lodge managers to decide. Once the managers accept the set, skiers follow. They cannot select a different kind of mustard like Dijon, or switch to another brand. Brand extension may not be shaped only by end users like us, but rather co-created by those in the middle who make the decisions behind the scenes.

The same rule applies to the student cafe in Stanford. There is a set of container of mayonnaise, ketchup, and mustard with Heinz and then there are a few Tabasco pumps.

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Reference

Aaker, D. A., & Keller, K. L. (1990). Consumer evaluations of brand extensions. Journal of marketing, 54(1), 27-41.

Two studies were conducted to obtain insights on how consumers form attitudes toward brand extensions, (i.e., use of an established brand name to enter a new product category). In one study, reactions to 20 brand extension concepts involving six well-known brand names were examined. Attitude toward the extension was higher when (1) there was both a perception of “fit” between the two product classes along one of three dimensions and a perception of high quality for the original brand or (2) the extension was not regarded as too easy to make. A second study examined the effectiveness of different positioning strategies for extensions. The experimental findings show that potentially negative associations can be neutralized more effectively by elaborating on the attributes of the brand extension than by reminding consumers of the positive associations with the original brand.

Cases

Why multiplexes should learn from independent theaters

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On a sunny Saturday, I watched a classic movie titled To Be or Not to Be at the Stanford Theatre, a historic theater in Palo Alto. This movie experience felt like quiet therapy. I want to keep returning to this theatre for several reasons.

First, the analog ticketing gave me human connection. I received a red paper ticket at the tall glass booth, and another person inside cut it in half and handed it back. This mechanical process made me feel warmly connected.

Second, it was affordable in an expensive area. The ticket was $7, which is cheaper than a typical restaurant tip, and a small popcorn was only $1.50. In a place like Palo Alto where everything feels expensive, this low price made me feel comfortable.

Third, and most important, was the atmosphere. Most of the audience were senior couples, quietly watching the movie. Nobody used smartphones and nobody spoke loudly. I did not interact with them, but I felt comfort simply being near them. This calm environment helped me slow down my thoughts that dynamic AI talks never could. Although we often study seniors, we know little about how we feel when quietly sharing space with seniors. Perhaps, we enjoy being near them, watching them chat softly and walk slowly.

Independent theaters like the Stanford Theatre may represent the future of cinema. Multiplexes continue to be positioned as destinations for young couples, but moviegoers are turning away from them. Instead of focusing on couples looking for extraordinary experience, theaters should become places for individuals seeking quiet and reflection.

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Reference

Bargh, J. A., Chen, M., & Burrows, L. (1996). Automaticity of social behavior: Direct effects of trait construct and stereotype activation on action. Journal of personality and social psychology, 71(2), 230.

Previous research has shown that trait concepts and stereotypes become active automatically in the presence of relevant behavior or stereotyped-group features. Through the use of the same priming procedures as in previous impression formation research, Experiment 1 showed that participants whose concept of rudeness was primed interrupted the experimenter more quickly and frequently than did participants primed with polite-related stimuli. In Experiment 2, participants for whom an elderly stereotype was primed walked more slowly down the hallway when leaving the experiment than did control participants, consistent with the content of that stereotype. In Experiment 3, participants for whom the African American stereotype was primed subliminally reacted with more hostility to a vexatious request of the experimenter. Implications of this automatic behavior priming effect for self-fulfilling prophecies are discussed, as is whether social behavior is necessarily mediated by conscious choice processes.

“…We constructed two versions of the scrambled sentence task: one elderly prime version, which contained words related to the elderly stereotype, and another, neutral version. For the elderly prime version, the critical stimuli were worried, Florida, old, lonely, grey, selfishly, careful, sentimental, wise, stubborn, courteous, bingo, withdraw, forgetful, retired, wrinkle, rigid, traditional, bitter, obedient, conservative, knits, dependent, ancient, helpless, gullible, cautious, and alone… In the neutral version, the elderly prime words were replaced with the words unrelated to the elderly stereotype (e.g., thirsty, clean, private).”

“…Participants in the elderly priming condition (M = 8.28 s) had a slower walking speed compared to participants in the neutral priming condition (M= 7.30 s), t(2S) = 2.86,p< .01, as predicted…”

“…Thus, our results are in harmony with those of Carver et al.
(1983), who advanced a “behavioral schema” model as an explanation for modeling effects. According to the behavioral
schema model, the perceptual and actional representations of
the same type of behavior share many features in common and
thus develop strong connections. As a result, if one has just perceived another person acting in a generous or an aggressive way, for example, one’s behavioral schema for generosity or aggression is activated and accessible, and so one is more likely to behave that way oneself in subsequent situations for which generosity or aggression is a relevant response.“

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

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

*Event

Designers should borrow insights from behavioral economics

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

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

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

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

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

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