The Price is Right?

 

In our Marketing Research class, Omar announced that major companies will display different prices online depending on various factors.  Why had that never occurred to me before?  I did a little research and found an article in the Wall Street Journal about it.

Part of me feels infuriated but then another part is screaming, "Genius!"  Of course I understand that a Big Mac costs more in Jackson Hole, WY than it does in Bozeman, MT.  Why wouldn't those same pricing tactics be used for online goods/services?  This seems like a very sophisticated way to for a company to be focused on segmentation and targeting. 

Immediately I start wondering how I can use this information to my own advantage.  I'm selfish like that.  My husband and I need to book airline tickets to Durban, Africa this August (words of advice:  drinking too much at a fundraiser makes bidding on that African Safari seem like a brilliant move).

The information provided in the article claims that the location of the device makes a difference.  

  

 

It was also determined that the type of device being used to search was a factor.

 

Browsing history is also taken into consideration.

 

 

 

This means there is only one thing for me to do.  Does anyone have an antiquated PC with all the cookies deleted that is set up in the lowest income area of Montana that I could borrow? 

Lullaby and Be Terrified??

Fairy tales have been always been a part of our culture.  Who hasn't heard about Cinderella, The Three Little Pigs, and Robin Hood?  But have you ever heard of Heinrich Hoffman's 1845 bedtime classic Struwwelpeter?  And I thought Brothers Grimm was scary!

I remember being at a Girl Scouts meeting where we were learning about Germany.  The guest speaker, a holocaust survivor, decided to regale us with a fairy tale from her homeland.  ABSOLUTELY HORRIFYING!  This particular story was about a child that lacked proper hygiene and refused to cut their nails.  Ultimately someone graphically cuts their fingers off.  Yep.  I am pretty sure I quit Girl Scouts shortly after that.
 


That's what little girls get for playing with boys!

 Here are some other morals found within the book: A girl plays with matches and burns to death. Another child who won't stop sucking his thumb has them cut off. A boy refuses to eat his soup and starves to death. But the violence in Struwwelpeter is not unusual for children's books from the early nineteenth century. 

Chapter 14 of Consumer Behavior describes how myths function in a culture.  I believe these stories  provided both a sociological and psychological function for the culture of that time period.  These stories definitely involve binary opposition by assuring young readers that if they don't obey their parents something really AWFUL will happen to them. 




Cry your eyes out!

Personally, I am glad that our culture has "softened" and we don't feel the need to frighten our children into behaving.  Believe me, telling them that if they don't behave then their electronics get taken away is scary enough.

Sweet dreams!



Paramount lesson of firearm safety:
 Evil rabbits will steal your guns if you're negligent...

College Tuition Ain't Got Nothing on Summer Camp!

When you are done paying off your student loans I would recommend saving for your future children's Summer Camp expenses.  WOW!  Most are listed at around $250/week but some (of course the ones my daughter likes most) are $400 and up!!

Cute Ad highlighting the plethora of choice options

But that is not the real problem here.  The larger problem as a consumer of these services is that fact that there are so many choices!  I took time off of work to attend Bozeman's annual Summer Camp Roundup.  I left with a bag FULL of pamphlets and registration forms for various options around town.  There is art camp, horse camp, nature camp, swimming camp, gymnastics camp, animal shelter camp, theatre camp, survival camp, bible camp, and actual camp camp.  And so much more!!

Geez.  No pressure here!

I literally spent hours with these pamphlets spread around my kitchen counter and trying to map out my daughter's summer experiences.  "Do you like this one or this one?"  To which she responds, "I like them both!"  This conversation repeats itself the entire afternoon.


This experience made me think of the dilemma Barry Schwartz had in the book The Paradox of Choice when he just wanted to buy a pair of jeans.  Are we really better off by weighing all our options and scrutinizing every decision?  Ultimately, I am sure my daughter would have just as much fun swimming and she would riding horses.

Even with the chapter Keeping Doors Open from Predictably Irrational fresh in my mind, I still could not eliminate options from the table.  I agree with the authors advice that we should just "flip a coin and move on" yet I still kept our options open.

Finally we made the selections and filled out the piles of release forms.  Still unable to make a firm decision in one direction, we chose a little bit of this and a little bit of that.  Here's to hoping they offer Summer Camp loans......

I'll write this blog tomorrow....

Why put off until tomorrow what I could do today?  Because I am human.  That's what we do!  For Consumer Behavior, we have been given the assignment to complete 12 blog entries by the 22nd of April.  That sure sounded like plenty of time in mid-January.  I realized today that we only have 2 weeks left!!!  Plenty of time still??

In the book Predictably Irrational there was an entire chapter on the problem of procrastination and self-control.  Based on his experiments, students who set up mini-goals and deadlines to meet the demands of a larger project were significantly more successful than those that attempted to finish the large project all at once. 

He explained that it was also important to recognize our individual weaknesses in this area.  That kind of sounds like an addiction to me.  First, you must admit you have a problem.  OK OK! 

 

Hello.  My name is Heather, and I am a habitual procrastinator.  I need to complete the remaining 3 blog posts in the next 2 weeks. 

 

Perhaps I will start tomorrow....

 

 

 

Yes, they ARE all staring at you!

As a mother, I avoid shopping the cereal aisle with my children in tow AT ALL COSTS!  I have convinced my son that "Rainbow Cereal" (i.e Froot Loops) only exists in lands 'far far away' (i.e Vacation).  Ok, maybe not the best parenting tactic, I admit. 



I saw a study recently on cereal box marketing called Eyes in the Aisles: Why Is Cap’n Crunch Looking Down at My Child?  This reminded me of the topic in Chapter 10 that discussed children as decision makers. 

Basically, researchers studied 65 different kinds of cereal in 10 different grocery stores.  Of the 86 characters, 57 were marketed to children, and those were the ones that gazed downward to lock eyes on kids.  The researchers said this marketing strategy of having cartoon characters lock eyes with children may influence their connection with a brand, fostering loyalty and inspiring their interest in the products.

But wait!  This "trick" doesn't only apply to children!  They tried a similar experiment on college students as well.  They let them choose between two different boxes of Trix.  One had the rabbit staring directly at them and the other had the rabbit gazing down.  They found the students had a significantly better connection with the brand when there was eye contact involved.

You have been warned.  Now if they could only give spinach eyes to stare at me while I shop.....

ISIS, ISIS Baby! FREE $$$

Now that we are all back from Spring Break, and I am going to guess a bit more light in the wallet, I figured I would reward you with some FREE spending money!  (Admit it, the word 'FREE' just made your brain glitch a bit, huh?)

College students tend to be early adopters when it comes to technology and I rarely meet one without a smartphone.  Have you heard about mobile wallets?  ISIS mobile wallet is an app that utilizes a secure NFC card in your device to pay for goods and services.  Right now, when you download the app and activate the American Express Serve account within the app, American Express provides you with $40 on the mobile card just to try it out.  It is a prepaid mobile credit card so there is no minimum expectations on your credit score and it is backed by American Express.  Your waiting for the "catch," right?  Yep.  Everyone I explain it to gives me the what-kind-of-scheme-are-you-trying-to-pull look.  I am stumped, I CAN'T FIND THE TRICK! 

This concept goes against everything we have ever been taught!  There is no such thing as a free lunch, right?  Where is the gimmick? 

There is no monthly fee, no transaction charges, no obligation AND it comes with extra promotions like $1 back on every purchase of $1 or more (BTW, I use it to get a $1 coffee or tea at McDonald's almost daily and get that $1 back on my card ---FREE BEVERAGES!!!) or 20% back on purchases.  Some businesses are even offering and additional incentive to use it at their location (ex. $10 back at Verizon Wireless and 3 FREE cokes from ISIS-enabled vending machines).

Jimmy Kimmel skit advertising ISIS mobile wallet

and their FREE Jamba Juice promotion.

So I am at a loss.  What kind of marketing plan is this?  How in the world could they be profitable/what is in it for them?  Who is actually footing the bill for the funds they are giving away?  The app developers and backers (i.e AT&T, Verizon and T-Mobile) or the credit card vendors (i.e AMEX, VISA, MC)?  I would love to hear your thoughts.

From a former savings-addict to you,
Enjoy your newly found spending money!

The 'FREE' Mindfreak

Have you ever watched an Extreme Couponing episode?  I remember seeing one years ago and thinking "Why can't I do that?"  These women have grocery stores in their homes!  Did I mention I have kind of an unhealthy relationship with food too?  If my cupboards get low, I get anxious.  Yeah, I should probably see a therapist about that....



Not me  : (

Anyways....before I came back to college I tried it.  I signed up for coupon blogs, had my husband build extra shelves in the coat closet, and even had my in-laws send me all their "big city" newspaper coupons every week.  I promised my family that I would not allow myself to get crazy and buy things we didn't actually need.

Fast forward 2-3 years later:  Among other things, my family has an everlasting supply of shampoo, deodorant, toothpaste, and razors.  I still have boxes of panko breading that I got for 'FREE' and I can't even remember EVER breading anything in my life. 

The book by Dan Ariely, Predictably Irrational, has an entire chapter that highlights the "cost" of paying nothing.  He pinpoints that "Zero is an emotional hot button - a source of irrational excitement."  PREACH.  I had a rational plan but still came home with baskets full of 'Zero'.  Over and over again.

Well, I have been Coupon Sober for 2 years now and keep my cupboards full with Costco goodness.  Besides, couponing takes A LOT of time and with college, a career, and a family...Ain't nobody got time for that.

YouTube Classic

Nudged into Frustration

While reading the book Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard Thaler, I found myself thinking "I totally fell for that!" over and over.  On campus, I am reminded of one example in the book every day.  I, apparently, cannot be trained and am tricked by this failure of architecture on the third floor of our very own Library.

Please tell me I am not alone!  Why not label BOTH sides of the doors?  Thaler agrees, putting a handle on a door that is meant to be "pushed" goes against the basic principles of human psychology!

After I have spent hours increasing my skill set and confidence in whatever subject I am studying, I yank on that door as I attempt to leave and my ego hits the floor.  The shame!






Speaking of confusing our Automatic System, I am sure you have seen the sign in the window at one of Bozeman's favorite burger spots.  Burger Bobs!

It does make you look twice.  Interesting marketing choice....

Disney Me Senseless!

I love to travel.  One of the major factors that keeps me with my current employer is the extremely generous amount of vacation time I am allotted.  Since my husband and I now have two small children, our vacation destinations have changed a bit. 

Recently, we escaped the Montana cold for a tropical respite that had all of our interests at heart....Disney's Aulani Resort in Hawaii! 




My interests

Their interests

After reviewing the Sensory Marketing section of chapter 2, I gained a whole new level of respect for Disney.  They have you experiencing the whole gamut from the moment you pull your rental car up! When we first exited our vehicle we were surrounded by Disney "cast members" that warmly welcomed us to the resort. 

TASTE:  We were handed tropical infused water to sip while they unloaded our luggage.  It was perfectly cold and very refreshing.

TOUCH:  Our children were presented with miniature necklaces that were adorned with a Menehune figurine (basically the Hawaiian version of a leprechaun).  My husband was given a lei of smooth, polished kukui nuts.  The lobby is completely open to encourage a tropical breeze to pass through. It felt wonderful.

SMELL:  I was presented a stunningly beautiful lei of orchids and tuberose blossoms.  Tuberose is quite possibly the most amazing scent I have ever encountered.  I remember them from my wedding so they definitely evoke the emotion of pure bliss for me.  This particular lei perfumed our room for an entire week. 

SOUND:  As we entered the lobby, there was a beautiful Koi pond with a softly flowing waterfall.  The sound reminds me of relaxing by a creek.  It also reminds me of the water feature usually heard during a luxurious spa treatment.

SIGHT:  Explaining will never do it justice.  There was an abundance of tropical flowers, ponds, and beautiful artwork.  Once we entered the lobby completely, a remarkable and expansive view of the ocean and lagoon filled our vision.  It took our breathe away.

All of this sensory overload occurred within the first 5 minutes and continued throughout other aspects of our stay.  I have had the pleasure of visiting Hawaii on several occasions.  This resort utilized my sensory system to create a competitive advantage over other resorts.  I will never stay anywhere else.  Mission accomplished Disney! 

Unfortunately while I was there I forgot about one of my senses altogether.  My sense of BUDGET.  Oh well.  Money well spent I suppose.

My son is never as impressed as we are!



Sheepish Envy

Hey, Grandma needs the latest smartphone too!

I work in a fast-paced technology retailer.  Specifically, we specialize in gadgets like smartphones, tablet computers, and the new world of smart accessories.  I have seen the evolution of how people use their phones.  I clearly remember when the cell phone was a luxury item and not just an average "necessity" for every person age 8 and up.  I remember trying to convince people that text messaging was the future of communication.  Most people laughed.  "Why would I waste my time doing that?  If I want to talk to people, I will just call them!"  Oh, how times have changed! 

 

One thing that struck me by surprise was the cult-like following of iPhone adopters.  During our first launch we were told to hire overnight security and put up rope barricades for the anticipated crowds.  We practiced crowd control and studied our fire code to ensure we did not break any capacity rules.  We did this wondering if it was a complete waste of time.  After all, we did hours and hours (and hours) of iPhone training and not one of us was actually impressed enough to buy one personally.  We underestimated the demand.  Thank goodness for all that practice and preparation!  There were actually people camping in front of our store overnight.  In February.  In Bozeman.  WHAT?!!  Let's just say that I am lucky I survived to tell the tale.  It was at that moment that I was convinced of what others clearly already knew.  Those people at Apple are marketing geniuses!

 

The book Predictably Irrational had a section that described the Herding Behavior of consumers.  Consumers have a tendency to be influenced by a majority of other peoples opinions.  In fact, the iPhone 5 was being hyped so much prior to its release that comedian Jimmy Kimmel was able to prank people by "revealing" it to them on the street.  You have to watch.  It is definitely worth a view. 

 

Jimmy Kimmel's iPhone 5 prank.  Hilarious!

 



I don't believe there is a single product that I would be willing to wait in a huge line for.  In a weird way I guess it makes me a little envious of the obvious passion those folks have! 

 

In the meantime at work, I continue to smile inwardly at the objections I hear to new technology.  "Why would I ever want a tablet when I already own a laptop?"  Oh, consumers.......

 

 

 



 

 

The Pawning of Ourselves

I admit it, I love this show!

During the reading of "Possessions and the Extended Self" by Russell W. Belk, I was fascinated by the Loss Of Possessions section.

As a child, we never really had a distinct home and, to this day, the question of "Where are you from?" is confusing for me.  Recently my children expressed interest in camping and I was talking to my brother about how I wasn't interested in camping even though we did it all the time as kids.  My brother laughed and said "You know we weren't camping right?  We lived there."  Really?!  How did I not catch on to that? Well, I suppose that explains my gut reaction to camping.

Anyways, what I do remember about those years were the frequent visits to various pawn shops.  It was a constant cycle.  When times were good, we would accumulate "stuff" and when times were bad, we sold everything again.  This was difficult for me.  I can definitely identify with the Loss Aversion referenced in the book Nudge.  Things seemed far more valuable to me than they were worth in dollars and cents.

The article refers to a grieving process for possessions that is similar to the grief in losing a loved one.  The grief goes through stages of denial, anger, depression, and finally acceptance.  The mourning is not just the loss of the utility of that item but also the loss of self. 

I wonder if the person negotiating the price often feels a bit like a counselor too?  Do they understand the grief and sorrow?  Comparing their skills to that of a funeral home director is ridiculous but I would think some of the same compassion and empathy would be beneficial.

As for my brother and I, we have chosen very different paths when it involves our extended selves.  I haven't moved in almost 15 years and have acquired a house full of "things" that I would be upset to lose.  My brother can fit all of his possessions in a backpack and happily travels from place to place without a plan.  He still pawns things from time to time...

Now this is something we can all relate to!

Dove Real Beauty: Mothers & Daughters - You Are Beautiful

I admit, I was the middle-aged woman crying in the school library.  While enjoying a coffee and perusing Facebook, I allowed myself to view a Dove video that a friend had shared.  There should be warnings on those things!!  Consider this my warning.  Viewing in public is not advisable. 



This video ties directly to chapter 5 in regards to self-concept and self-esteem.  Self-concept is the belief a person has about their own qualities.  This chapter points out that many of our self-assessments regarding our own appearance can be very distorted.  This video certainly highlights that!  Dove released several video variations of this same concept.  This particular one struck me the most because I have a BEAUTIFUL daughter.  It would hurt my heart if she developed a negative self-concept. 



Back to the video!  Basically, a woman is asked to describe herself to a sketch artist whom has never actually seen her.  The artist then asks someone else (in this video he asked her daughter) to describe the woman.  He produced two very different sketches.  You can imagine the rest.  Or.....just watch the video!



I imagine that Dove is jumping on board with the study mentioned in this chapter that states individuals who are made to feel more powerful, or have a higher self-esteem, spend more money on themselves.  It seems as though Dove is on a mission to increase the positivity of our own self-concept and, therefore, an increase in sales for Dove products.  Bring it on!  Who doesn't want more reminders that we are beautiful?