2010 SLA Annual Conference presentation

1. Surrounding The Consumer
SLA 2010 Annual Conference
Deb Rash
6.16.10

2. Heads, Hearts, Wallets
Product Recalls “Friends”
Conversations
Advertising
Celebrity Endorsement
Marketing
Friends Followers
Customer Reviews Public Relations
Sampling Family
Coworkers
Product Placement
Classmates Sales

3. A Little Bit About This Session
• Definitions
• Motivations
• Progression
• Information

4. A Little Bit About Me
• Education
– Illinois Mathematics & Science Academy
– Carleton College, BS, English
– Dominican University, MLIS
• Work Experience
– Freelance, 2008 – present
– St. Catherine University, 2004 - present
– Iconoculture, 2006 – 2008
– Carmichael Lynch, 2001 – 2006
– Fallon, 1999 – 2001
– Campbell Mithun, 1998 – 1999

5. Me As Consumer
• Cooking Light recipe maker
• DVR multi-tasker
• Holder of 3 different health insurance cards
in past year
• Mad Men, Melrose Place, 30 Rock watcher
• Mazda5 zoom, zoom, zoomer
• Mother of two preschoolers
• Orla Kiely, Marimekko desirer
• Target credit card holder
• Young Gen Xer

6. How Would You Get To Know
More About Me?
• Ask some questions.
• Do some poking around.

7. "If Howard Schultz of Starbucks
"If Edison had done market
had done market research, he
research, he would have
would have invented ... Pepsi A.M."
invented bigger candles."
Advertising Age, 3.17.10
http://adage.com/cmostrategy/article?article_id=142841

8. So of course instead we need
marketing research.
And within that
consumer research.

9. By consumer insight we mean
understanding how consumers are
changing their purchasing habits for
products and services, how they're
changing their media consumption habits
and how we can apply that data through
technology to improving the return on
investment for our clients in their industries.
Sir Martin Sorrell, CEO, WPP, 5.6.10
Huffington Post, 5.6.10
http://www.huffingtonpost.com/sir-martin-sorrell/wpp-turns-25_b_565290.html

10. According to Andy Murray,
worldwide CEO, Saatchi X, 85%
of purchase decisions have an
emotional basis.
For that reason, Saatchi now has a
psychologist and an anthropologist on
staff to analyze shopper data.
Advertising Age, 3.15.10
http://adage.com/article?article_id=142796

11. Definitions

12. What Is Consumer Research?
• Putting together a profile
• Determining what motivates/influences
purchases
• Listing the contents of a shopping
basket
• Figuring out what sources consumers
trust for information

13. What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative

14. Primary Vs. Secondary
• What?
– Focus groups, surveys, interviews, observation …
• Where?
– Focus group facility, mall, online, mail …
• Why?
– Can be tailored to specific needs
– Immediate follow-up possibilities
• Why not?
– More expensive in general
– Time needed for set up, gathering, analysis
– Results may be skewed by research process

15. Primary Vs. Secondary
• What?
– Studies previously published by research groups,
government agencies, trade associations …
• Where?
– Newspapers, magazines, press releases, blog postings …
• Why?
– Less expensive in general
– Immediately available
• Why not?
– Not as specific
– Not customized
– Magic bullet just may not be available

16. What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative

17. Observation Or Ethnography
• Consumers in natural
environments
• “Real world” interactions with
products, brands, stores,
materials, people …

18. Analytics
• Processing secondary data
• Questionnaire design and coding
• Primary results analysis
• Statistical significance barometers
• Data massaging

19. What Is Consumer Research?
• Primary
• Secondary
• Observation
• Analytics
• Qualitative
• Quantitative

20. Quantitative Vs. Qualitative
• Quantitative
– Projectable to target population
– Involves analytics
• Qualitative
– Statistical significance not calculated
– Involves observation

21. Motivations

22. What Motivates Consumption?
• Friends/families
• Advertising/marketing
• Economic conditions
• Emotions/impulses
• Life stage
• Company behavior
• Innovative technology/products
• News cycle

23. Motivators – (“)Friends(“) & Family
• Aunt Ellie
• Co-worker Tom’s teen daughter
• Sarah S from high school
• Local mom whose kids won’t eat
lettuce either
• Pearl Jam fan/liker

24. Motivators – (“)Friends(“) & Family
• Pampers Dry Max Diapers protest
(5.3.10) Pampers bring back the OLD
CRUISERS/SWADDLERS
Join
• Moms as “chief purchasing officers,”
Teenagers as “chief influencing
officers” (4.19.10)
http://abcnews.go.com/Technology/parents-protest-pampers-diapers-
facebook/story?id=10537369&page=1
http://www.facebook.com/group.php?gid=230956705705&ref=ts
http://irma.org/2010/04/19/retail-register-no-308/

25. Motivators – Ads & Marketing
• Old Navy commercial - stuck in
your head for days, no years
• End cap display - oh, that’s where
all the on-sale oatmeal is
• Product packaging - NOW. MORE.
FIBER.
• Internet roadblock - they know
where you’ve been …

26. Motivators – Ads & Marketing
• “Subway effect” – more people
expect to pay $5 or less for an out-
of-home meal (5.5.10)
• American Express/Dunkin’ Donuts
partnership (4.8.10)
http://www.earthtimes.org/articles/show/us-restaurant-industry-must-reinvent,1283376.shtml
http://www.dmnews.com/american-express-dunkin-donuts-partner-on-rewards-
initiative/article/167631/

27. Motivators – Economy
• Lip Stick Effect - Seeking small
pleasures in down times
• Playboy model types - When the
economy goes bust …
• Staycations - In or out, placing bets
• Baggage fees - “Outrageous,” but
not unexpected

28. Motivators – Economy
• Time to drop “new” from the new
frugality (5.6.10)
• Working less, producing as much
(5.5.10)
• More than 100 vehicles “New Cheaper
Than Used” (4.18.10)
• Buying organic - Paying with food
stamps (3.15.10)
http://www.sfgate.com/cgi-bin/blogs/dollarsandsense/detail?&entry_id=62940
http://blogs.hbr.org/cs/2010/05/the_productivity_myth.html
http://www.dispatch.com/live/content/business/stories/2010/04/18/best-deal-might-be-new-car-not-
used.html?sid=101
http://www.salon.com/life/pinched/2010/03/15/hipsters_food_stamps_pinched/

29. Motivators – Emotions & Impulses
• Chocolate moments
• In-store slack
• Unavoidable nutrition info
• Foursquare

30. Motivators – Emotions & Impulses
• AT&T dropped call rate (4.5%)
much higher than average
(2.8%) (5.5.10)
• Independent Record Store Day
(4.11.10)
• Mary J. Blige selling perfume
exclusively on HSN (5.7.10)
http://arstechnica.com/gadgets/news/2010/05/customer-service-survey-puts-att-at-bottom-of-carrier-
heap.ars
http://www.independent.co.uk/arts-entertainment/music/news/record-shops-stage-fightback-
1941259.html
http://www.taletela.com/news/1262/mary-j-blige-to-launch-fragrance-that-you-cant-smell

31. Motivators – Life Stage
• Morphed Metrosexuals
• CEO Moms
• Helicopter Parents
• New parents, empty nesters
• Divorced/separated/widowed

32. Motivators – Life Stage
• Tweens applying mascara (5.2.10)
• Mother’s day spending keeps
going up (4.20.10)
• More single female homebuyers
(4.24.10)
http://www.thestar.com/living/article/802893--teddy-bear-in-one-hand-lipliner-in-the-other
http://www.nationaljewelernetwork.com/njn/content_display/independents/retail-
surveys/e3i7db724a2489ff4ccf850ef4612d447c0
http://host.madison.com/article_63bb9254-4fbf-11df-a4c8-001cc4c03286.html

33. Motivators – Company Behavior
• Perceived sustainability
• What is organic?
• Avon pink ribbons

34. Motivators – Company Behavior
• Crowne Plaza Copenhagen Towers
exercise bikes (4.14.10)
• FedEx introduces 4 all-electric
delivery trucks (4.12.10)
http://www.reuters.com/article/idUSTRE63D3UC20100414
http://www.latimes.com/business/la-fi-fedex-truck12-2010apr12,0,7478025.story

35. Motivators – Product Innovation
• iPod influence on technology,
entertainment, fashion, learning…
• Kindle, Nook …
• There’s an app for that.
• Single-cup coffee brewers
• Reusable shopping bags
• Toyota Prius

36. Motivators – Product Innovation
• “TiVo effect” a myth (5.10)
• Online bill pay soars (5.12.10)
• Backlash to automated preference
predictions (5.13.10)
http://www.theepochtimes.com/n2/content/view/35125/
http://faculty.fuqua.duke.edu/~mela/bio/papers/Bronnenberg_Dube_Mela_2009.pdf
http://washington.bizjournals.com/washington/stories/2010/05/10/daily46.html
http://www.physorg.com/news192989176.html

37. Motivators - News Cycle
• Big health breakthroughs
• Economic cycles
• Disasters at home or abroad
• Trust issues

38. Motivators - News Cycle
• AriZona Iced Tea – no really, we’re from
New York (4.28.10)
• SafeWay launching SafeWay Health to
help other companies set up incentive
based plans (3.21.10)
• Texting for charity (1.18.10)
http://www.nydailynews.com/news/national/2010/04/28/2010-04-
28_arizona_iced_tea_brewed_in_new_york_actual_arizona_firms_include_cold_stone_crea.html
http://www.businessinsurance.com/article/20100321/ISSUE01/303219974
http://www.pbs.org/newshour/bb/science/jan-june10/haiti4_01-18.html

39. Progression

40. Motivational Growth Areas
• Everything above demographics
• Social networks
• Friends (or not)
• Definitely not traditional advertising (what is
advertising?)
• Behavior (anthropology)
• Societal pressure (eco-conscious companies
and products)
• Biology (pulse, eye movements…)

41. Growth – Demographics +
• Psychographics
• Lifestyle/lifestage
• Age is just a number …
• 40 is the new 30 is the new 40

42. Growth – Social Networks
• Expanded reach
• High school reunion redundancy
• Sound bites of affirmation
• Who needs an opinion poll?
– Or consumer research for that matter

43. Growth – Friends (Or Not)
• Is it who you know?
• Or who knows you?
• Is it who you “like?”
• Will you ever be able to “unlike?”
• Is it who you follow?
• Or is it who follows you?

44. Growth – What Is Advertising?
• Used to be a defined media mix
• Now everything is viable
• But we are so much more aware
• And selectively accepting
• More metrics, but challenges remain

45. Growth – Behavior
• Anthropology isn’t just for budding
authors and professors anymore
• Is there any way to keep the
environment pure?

46. Growth – Societal Pressure
• Eco-conscious companies and
products
• Work productivity expectations
• Energy consumption comparisons
• No longer about two kids and a dog
– Or about a comfortable pension
– Or about keeping up with the Joneses

47. Growth – Biology
• Pulse
• Eye movements
• Brain activity
• Sensual reactions

48. Keywords
• Behavior
• Lifestyle
• Lifestage
• Demographic
• Psychographic
• Segmentation
• Insights

49. Buzz Words
• Retailer consolidation
• Media fragmentation
• In Store Slack
• Neuromarketing
• Anthropology
• Social media – “listening” “monitoring”
“understanding”
• Virtual group interviews

50. Information

51. Sources
• Doesn’t matter the format, there are trusted
sources to follow for reputable stats and
vetted insights
– Smartbrief
– Extra Texture
– ResourceShelf
– New York Times Style Section
– Journal of Consumer Research

52. Consumer Profiling
• Simmons
• MRI
• Census
• SRDS
• Social networks
• Communities/groups
• Surveys
• Syndicated panels
• Internal customer data
• Shopper videotaping and analysis

53. Consumer Buying Power
• Bureau of Labor Statistics
• Selig Center
• Market Research reports
– Packaged Facts
– Datamonitor

54. Advertising/Marketing/Brands
Example Inquiry
• Do consumers respond better to humor in
advertising during economic highs or lows?
Sample Sources
• Advertising Age
• AdRants
• Interactive Advertising Bureau
• Brandweek

55. Automotive
Example Inquiry
• How do kids influence their family’s car
purchase decisions?
Sample Sources
• JD Power
• Green Car Congress

56. Demographics
Example Inquiry
• Are Gen Xers with advanced degrees having
more kids than those with just a B.S. or less?
Sample Sources
• Pew
• Gallup
• NPD Group
• HispanicTips
• Census

57. Design
Example Inquiry
• Fabric shopping bags are better for the
environment. Are they better for
shopping?
Sample Sources
• Information Is Beautiful
• The Donut Project

58. Fashion
Example Inquiry
• What are some examples of brands
with success in another category who
have made the leap into fashion?
Sample Sources
• Women’s Wear Daily
• WGSN

59. Food & Beverage
Example Inquiry
• How will nutrition info legislation affect
what people will actually order when
they go out to eat?
Sample Sources
• Nation’s Restaurant News
• Harry Balzer, NPD’s Eating Patterns in
America

60. Global
Example Inquiry
• How do consumers in Latin America
feel about colored toilet paper?
Sample Sources
• United Nations
• Panoramix Global
• Mintel GNPD

61. Health & Wellness
Example Inquiry
• Is there anything happening with children’s
vitamins? New products? New pediatrician
recommendations?
Sample Sources
• Chain Drug Review
• Nutraceuticals World
• HealthDay

62. Home & Garden
Example Inquiry
• What will be new in residential
bathrooms in 2011?
Sample Sources
• Harvard University’s Joint Center for
Housing Studies
• Hanley Wood

63. Learning
Example Inquiry
• Do iPods really work when used for
instruction in the classroom?
Sample Sources
• Chronicle of Higher Education
• Education Futures

64. Media & Entertainment
Example Inquiry
• Really, how many teens intend to see The
Twilight Saga: Eclipse on opening night?
Sample Sources
• IMDB
• PopCandy
• Nielsen
• Hollywood Reporter

65. Non-Profit
Example Inquiry
• What is the tipping point for giving after a
major disaster and is it different for different
parts of the world?
Sample Sources
• Chronicle of Philanthropy
• Center on Philanthropy and Civil Society
• Cone

66. Politics
Example Inquiry
• Should we expand our retail presence
in red state or blue?
Sample Sources
• Pew
• Gallup
• Real Clear Politics

67. Product Reviews
Example Inquiry
• Do potential purchasers trust the
customer reviews on merchant
websites?
Sample Sources
• Consumer Reports
• Angie’s List

68. Retail
Example Inquiry
• Besides Best Buy and Geek Squad, are
there other examples of retail/expert
partnerships that have worked?
Sample Sources
• National Retail Federation
• National Grocers Association

69. Science
Example Inquiry
• Does Neil deGrasse Tyson drink
coffee?
Sample Sources
• Nova
• ScienceBlog
• Technology Review

70. Social Media
Example Inquiry
• What are some examples of best practices
for brands using both Twitter and Facebook
differently and effectively?
Sample Sources
• Simple Complexity, Twitter Visualizations
• Scout Labs
• Biz360

71. Sustainability
Example Inquiry
• How much more are consumers willing to
spend to make the “right” purchase
decisions?
Sample Sources
• GOOD
• Natural Marketing Institute
• Enviu
• BSR

72. Technology
Example Inquiry
• How many 3-D TVs will be sold in 2010?
Sample Sources
• Parks Associates
• IDC
• TechCrunch

73. Trends
Example Inquiry
• What’s next?
Sample Sources
• Trendwatching
• Springwise
• Iconoculture
• TED
• World Future Society

74. Work
Example Inquiry
• If khaki makes a come back will it be
allowed back in the office pool?
Sample Sources
• Harvard Business Review
• Society for Human Resource Management

75. Zeitgeist
Example Inquiry
• What else was the country talking
about on 11.4.08?
Sample Sources
• YouTube
• Twitter
• Google Alerts

76. Questions?
Thank you!
Contact me:
drash@q.com
@DebRash