Saturday, September 26, 2009

Blog 2 - Predictably Irrational Response

The primary lesson learned from chapter 9 in the book Predictably Irrational is that expectations alter a person’s feelings about the situation from what they would have thought if they never had the expectations. This psychological behavior that affects a person’s willingness to do one thing over another suggests huge insights into design and the way a product is marketed. In the article, one of the examples was that when people drank out of a nicer cup of coffee it tasted better. On the other hand, if the coffee was served in a Styrofoam cup it didn’t taste as good. The implication here is that if companies were to apply this lesson in their companies they would have to figure out what packaging draws people towards their product. Another suggestion to increase sales for a company that sells a generic product like Hill Country or HEB branded laundry detergent should spend more money designing the package to where it looks like it would be good quality detergent. The change in the outer appearance changes people’s perception about the product. Looks DO matter. At least, when it comes to Marketing and Advertising! As Professor Walls constantly remind us, it’s about giving the consumers a holistic experience. If you want to attract customers then it’s not just about how great the taste is, but the presentation of the product is equally important. Another valuable question Marketers can ask themselves is, if expectations affect the way you view a situation, then what can the company do to understand consumer’s expectations? Is there a consistent pattern of behavior in the population? Although everyone has different expectations for different products, but is there a general consistency in behavior that Marketers could target?

Ariely’s main example in this book is the beer test between a regular beer and the MIT brew (which has a hint of balsamic vinegar). When he told people beforehand that it had vinegar in it, most people stuck with the regular beer. When he didn’t say anything and told them to just try it, most people chose the MIT brew. Even when he told them afterwards that there was vinegar, people still reacted the same way they did when they didn’t know what was in the drink, because they already tried it before they could EXPECT what was in it. An example I recall, not from my own experience but from a story I’ve heard, is the story of a death sentenced prisoner who was getting blood drawn. The officer said that if the blood coming from this tube keeps going for a couple of hours, then he’ll only have two hours to live afterwards. What the prisoner didn’t know was that the blood coming out of his body, but from a pig. When the prisoner saw that ‘his blood’ kept coming out, he immediately thought he was going to die. So he passed away two hours afterwards. He expected something that wasn’t actually true. Another example I thought of was, what if people were told to taste Pepsi inside of a Coca-cola can? Would their expectations of the brand trick them into thinking that the drink inside is actually coke. They might find the taste a little different, but blame it on their own over-thinking or they didn’t sleep well last night and isn’t clearly there that day, or maybe they just ate and thought the food from before is changing the taste of the coke right now. These are all examples of people’s perceptions and how it affects the way something tastes or the situation. An example that came from my past experience is when I ate frog meat in Asia. They told me it was frog meat after I had eaten it, and although I was still disgusted, the meat actually tasted a lot like chicken. If they had told me, “hey, try some of this meat. It’s frog.” I would probably either not eat it, or force a piece in my mouth and then spit it out, not even giving the flavor of the meat a chance. This example is similar from the Ariely example: Does it matter whether you give them the information before or after the test? It is just information, and anything factual stays the same, BUT it does matter because if you tell someone beforehand, they already have the EXPECTATION of something tasting good/bad so the mental formulations tricks their taste buds into thinking that the flavors really are good or really are bad.

Tuesday, September 8, 2009

What Is My Persona?

1. I identify myself as an Asian American, living in a trilingual family composed of Mandarin, English, and Spanish. However, my father is not Hispanic. In his early 20’s, he started his own business in Santiago, Chile and the company has continued to grow since then. Many of my relatives live there and I have visited the city multiple times.

2. I enjoy working out at the gym and do it 4-5 times a week. I wouldn’t consider myself very athletic because I don’t participate in sports, but I would consider myself a health-conscious person always striving to improve body, health, and mind. Some products I would be interested in would be track shorts, health drinks, and innovative workout routines.

3. I enjoy exploring the city and am always looking for new coffee shops or restaurants to surprise my taste buds. I am especially curious to try foods or drinks from different cultures.

4. I have a small group of close friends, but I enjoy having a large variety of acquaintances. These friendships are not limited to similar majors or beliefs, but I enjoy meeting all types of people especially those that are completely different from me. I enjoy comparing cultural differences with people from other countries and understanding why each person acts the way they do.

5. I’ve always grown up with a strong curiosity for anything that I have not encountered before. I’m constantly catching myself getting hooked onto a new personal project. For example, I have a friend who built her own bike. She inspired me to build and personalize my own bike and use it as transportation rather than drive. She also reuses jars as cups for her home. It’s about how you can take one item and use it again in a new and completely efficient way. It’s thinking outside of the box, getting creative. This idea is an expanding necessity in companies today. In the article, “Get Creative”, they emphasize the importance of creativity and innovation. Companies are laying off employees as they hire more people in the design staff. Innovative consumer-centric products that continue to show the consumers that they do need a certain product before they even know they need it, is what increases profit and growth.

6. I grew up in an expanding suburb outside of Houston, Sugar Land Texas. I went to elementary, middle school, and high school with pretty much the same people. I’ve known most of my closest friends for over 7 years.

7. I didn’t become Christian until my junior year of high school. Most people would characterize that as a born-again Christian. Ever since then, I’ve devoted my life to following God and spending most of my weekends in church. I’ve grown from just a member in church to a leading a college ministry with four other college students and a college Pastor.

8. I have a strong motivation to improve my life and the lives of those around me. I’m always striving to improve my own health, education, and future career. When I join an organization, I start as a member but end as a leader. In the end, my ultimate goal is to earn enough money to support myself, my family, and make a difference in other people’s lives with the money I earn with a strong emphasis in supporting missions and ending poverty around the globe. In Jeff Mulhausen’s presentation he said a couple things that really impacted me such as, “business success is equivalent to social benefit.” He also said, “If we can create something that not only drives profit, but can also help a particular group of people, then that is success.” Lastly, “how can we use our capabilities to improve people’s lives?” These quotes are very inspiring and centered on my personal beliefs.

9. I am a HUGE movie fan. I have seen 80% of the movies in the Red Box. My first choice is always Romantic Comedy, although I do enjoy the other genres as well. Most of the movies I watch are your typical box office hits with famous actors. I rarely watch independent films or documentaries, but I’m not against watching them.

10. I love the holidays – Valentine’s Day, Halloween, Christmas, and Thanksgiving. I enjoy creating mini themed presents for my friends during the holidays to show my appreciation. As a marketing major, I am aware that many of these holidays are strongly advertised and marketed to attract the consumer, yet ironically I am still strongly attracted to little holiday gadgets. The marketing strategies work! For example, last Valentine’s Day I filled Valentine’s mugs with pink and red M&M’s and wrote each person a personalized note.

Thursday, September 3, 2009