This Semester Coming to a Close...

Although I'm supposed to be writing about how much this consumer behavior class has opened my eyes to, well, consumer behavior. Instead, I'm going to to tell you what I really learned this semester. I learned that if you show up to MSU 5 minutes before your 9:25 class there are always close parking spots because the 8am people are just pulling out. I learned that sneaking into Linfield 113 is way less noticeable if you go in the door with the teacher's back to you, even though its farther to walk. Coffee, in any form, from any shop, including McDonalds is a blessing. Working on semester long projects never get started until a week before they are due. Going to the gym is often replaced with Reba reruns, homework, and dinner plans with friends, or anything else really. Work is always a good excuse to get you out of things you really don't feel like doing. And finally, if you need to go to student health services on campus, plan for a 2 hour wait, just to see a physician!

OK, now on to consumer behavior, Where I really learned about consumer behavior is my job at the Vision center. They best way to learn about consumer behavior is to be involved with the consumer. Yeah, theories, and articles have their place to help you learn to recognize what's happening in the marketplace, but until you are doing market research or just viewing customers you can't really understand consumer behaviors.

I love viewing customers through an economic looking glass. Why do consumers with the same tastes and preferences buy different products? Which goods are compliments and which are substitutes when buying items? What would that individual's utility curve look like? How do market forces effect the consumer's propensity to buy? All of these questions and so many more can be answered by being involved with consumers.

Marketing is such a dynamic and interesting subject matter, OUTSIDE of the class room! I have learned this semester that marketing and consumer behavior are all around us and probably effects individuals more than any other external factors. If we stop, look, and analyze what is out there, then we can really learn how consumers behave. 

I know that my consumer behavior teacher will probably be reading this at some point in the next few days and I hope I don't offend with my opinion. But the real world of this exciting topic is so much more than theories, terms, books, blogs and exams. The downside is that this course is taught in a classroom setting, which just can't give the full effect of the topic. The best way to teach this course would be to follow consumers and analyze our own purchasing and consumption choices. Then, we might be able to experience consumer behavior in it's glory. 

Netflix Announces Price Hike

CEO Reid Hastings has announced that Netflix will be slowly increasing the price for subscriptions $1-$2 from the known $7.99 per month. Over the last 12 months Netflix has expanded dramatically world wide and acquired over 12 million customers. With sales up 24% why would Netflix need to increase their price? Well, Netflix is spending over $2 billion in video content and stock in the company has been on the steady decline over the recent weeks. Back in 2011, Netflix planned to raise prices 60% which immediate consequences, as Netflix lost one million subscribers and its stock plunged almost 80% in a few months. It's kinda risky to announce the price increase but they have decided to grand-father in current user for up to 2 years. So far the media had not had the same frenzy this time as it did in 2011. It' will be interesting to see how this announcement and future raises affect the number of subscribers and stock prices (http://finance.yahoo.com/q?s=NFLX)

Negative Personal Branding: Tattoos

"Hiring should be about the ability to do a good job, and not about appearance."

Many factors are important when you're applying for a job. Your résumé, letters of recommendation, samples of work from past projects—and tattoos. Yes, tattoos are a form of "personal branding," but as up-and-coming communication professionals, we also need to be aware of how we "brand" ourselves, literally and figuratively

According to a 2010 Pew Research Center study titled Millennials: A Portrait of Generation Next, 38 percent of millennials (ages 18-29) have at least one tattoo. What millennials fail to remember, however, is that although they have the right to express their personal identity, the people hiring them are often from a different generation, and they might feel tattoos are socially unacceptable in the workplace.

In an interview with Mark Brenner, senior vice president of external affairs for Apollo Group, the conversation turned to hiring millennials and how tattoos factor into the process. "Depending on if they are visible or offensive in nature, [tattoos] have an impact on professionalism," he says. Brenner explains that if you are a representative of a company, distracting tattoos can make that company seem less professional.

  Article from: http://www.prdaily.com/Main/Articles/Personal_branding_Tattoos_in_the_workplace_13493.aspx#  

Laughable Products with Infomercials- Who Buys These?!

These infomercials along with many others really makes me question consumer behavior. Some of these products are so crazy I can't imagine that people would actually buy them. However, many people criticized "Snuggie" for being a terrible product, yet millions have been sold. The key to marketing these products is to be seen by millions and reach the consumers who suffer from the unique problem that your product solves. Using infomercials helps the companies reach the masses and give viewers the ability to purchase the product immediately by calling in. This is a great way to offer sales promotions to increases sales too. This is often executed by the lines such as "but wait! there's more!" and "call right now and we will double your offer". I have yet to fall victim to any infomercial products but who knows, one day there might be a product I just can't live without!

Below are some of the worst products which have been seen on TV

My Spy Birdhouse: With all weather suction cups and a wooden perch, WOW!

Potty Putter: Take the time to play with your putter

Kush: The comfortable night-time companion

"The Babes are back" with GLH (great looking hair)

Uro Club- When Nature Calls

Siri Puffery Lawsuit Dismissed

In February 2014, the final decision for the lawsuit of customers suing Apple for false advertising of Siri on the iphone 4s model. The ads show Siri answering a series of question such as how to play a B chord on the guitar, when St. Patricks day is, and other various in depth questions. In reality when customers asked Siri these questions she responded by saying she didn’t understand. Customers said they splurged and ruled out alternative phones when they made their purchase because the commercials showed the iphone 4s as having a technological advantage with Siri’s amped up brain power. The court said Apple’s marketing descriptions of Siri as “the coolest feature,” a “breakthrough” and “an intelligent personal assistant” were just “puffery” and could not be grounds for a lawsuit. According to Judge Wilken, the customers could not point to an Apple statement that was specific enough for the company to be able to respond to a fraud claim.

Change- The Key to Success

 

After a recent visit from our company's district manager it really got me thinking about the key to business and marketing success. If I could use one word to describe the key to business, it would be change. Many corporations and small businesses get into the grove of day to day operations, they forget to be innovative and change with their customer needs and appeal to them in different ways.

Our district manager is all about corporate policy and sticking plans laid out for stores. Our store has some of the lowest sales on glasses cleaners. After reading Nudge, I got to thinking that the way the cleaners are displayed in the store doesn't make customers want to buy them. I ran my idea to change the layout of the cleaner section by my store manager and even he was apprehensive. I begged him to give it 2 weeks and see what happens.

After a month of implementing the new design for the cleaner wall, our store had one of the highest percentage of cleaners sold in the western region. What I learned from this experience is how business is always changing, customers are changing, and their needs are also changing. By taking the initiative in your business it will allow you to drive sales and be more profitable in sectors that are often over looked within the store.

ESSIE!!

I found myself looking for some new spring nail polish colors this weekend and noticed all the colors I absolutely loved were Essie brand. I have always been an Essie fan because the specially designed formula resists chipping and damage. I researched a little about the company and was very surprised to find out the the original Essie line began with 12 colors. Essie Weingarten began the company back in the 1980's. She decided that the best way to market her product was go get it on the fingers of classy, hard working women. She decided to launch the product in Las Vegas. Within weeks of painting the hands viewed by many consumers, Essie had massive orders for the product.  Over the years her unique bottle design, vibrant colors, and product quality has lead many woman to justify the need for an $8 bottle of polish.

April Fools for Business Majors- Impractical Jokers - Worst Marketing Presentation Ever

Burger King Opens it's Big Mouth

Although this Ad was ran in 2009 it goes down in the record book as an extremely controversial campaign. The sandwich, called the Seven Incher, is positioned as a "sexy" sandwich. However, BK, took the sexiness of the sandwich to a whole new level. There is no coincidence that the length of the sandwich is slightly larger than the average male's you-know-what. Also, if you have not gotten the idea of the campaign, the tag line of "It'll BLOW your mind away", reinforces the obscene push toward getting consumers to think sexy. This poster is a good example of how not to use sex appeal in marketing, unless your target market is adolescent boys! ;)

Empowering Women Together- Brought to you by Walmart

Walmart's outreach program: Empowering Women Together is helping women and their families all over the world. 

Cool video to watch!

Check out some of the available products at Walmart-Empowering Women Together!!

So far this program offers more than 200 items from 19 businesses in 9 countries.

Walmart has done many great things for the world, including jobs, incomes, stability, incredible distribution channels for consumers and helps growing businesses and entrepreneurs around the world

Discount Addiction: 2014's Downward Spiral to the Bottom Line

I recently went shopping at the Gallatin Valley Mall. I noticed a ton of stores advirtising incredible sales!! I thought, great for me, but this can't be good for the stores. I thought, I would do some research and find out why so many store are offering such good sales.

Reatilers such as Macy's and Gap have been continuing pre-holiday sales well into the new year. Some other reatil stores have even lowered prices more than they did at the hype of the hoilday shopping season. This is great for consumers because they benefits from the low prices. But the only consumers who are benefitting are those who are actually in the market place and purchasing; unlike most people who are still suffering financially from the cost of their Christmas purchases. The low demands for products in January have been driving prices lower and lower, until retailers can't afford to slash their prices even once more.

Researchers said that Christmas 2013 was the lowest consumption year since 2008 (http://www.cnbc.com/id/101355774). Many people may find this fascinating considering we are supposed to be recovering from the recent recession. This could be a red flag to companies, indicating consumers are not ready to renew their faith in buying material goods.

One way I would suggust to fix this phenenmenon would be to impliment what I call the Victorias Secret effect. This huge 2 week sale is highly publicized and advirtised and occurs every 6-months. This drives massive numbers of women into stores and online to take advantage of their "incredible" deals!! By announcing to customers that they are having a great sale and limiting the deal to a short term window, customers are much more likely to flock to see what all the hype is about. I personally fell victim to this sale. I really didn't need any of their products but because it was such a good price on everything I ended up dropping way more money than I should have on stuff I didn't need! Good job Victoria's Secret, well played! ;)

I also had other impulse buys during January. Maurice's offered and additional 75% off clearence items. I ended up getting numerouse tops for around $5 each, sweaters for around $6 and dress pants for around $8. I couldn't beleive the incredible savings on items they are trying to get rid of to make room for new spring items. A friend and I went to Rue 21, looking for tacky statement jewlrey. All the clearance Jewlrey was either $1 or $2 depending on the piece. I can't tell if I have bad tastes in jewlrey or just a better bargin hunter because almost everything I picked out was $1!

The moral of this story is for the companies trying to drive sales this year, they need to figure out a different approach besides discounting. On the otherhand, I have gotten some sweet deals and purchased many items that I wouldn't have if it weren't for the high amounts of discounting occuring.

Creating a customer experience

I thought I would start this blog from a different side of the consumer. I work at the vision center inside Walmart. The numbers of consumers who enter the store everyday ranges from about 50-150. I often wonder what it would be like to be in their shoes, purchasing their products from me specifically. I think it is important to create an environment where customers want to come, want to look, and want to purchase from us.

Although I do receive a small commission, I truly believe in getting the customer what they need. There are so many different wants and needs when it comes to buying glasses and contacts. Their style, size, options, budget, and need restraints which must be overcome in every sale.

My position as a sales girl takes many different roles with many various customers. Some people just want to come in, get what they need, and get out. Others are looking to make their visit an experience. Its my job to create the best experience for them. I love when people come in, with an idea of what they are looking for, and I can guide them through the sales process to help them get their perfect pair of glasses.

Just a few days ago I had a lady who came into the store. She was a joy to be around from the start. She had an idea of what she was looking for, but I helped her fulfill her need and style in a way that would maximize her prescription needs. She later shared with me that she is a 54- year old cancer survivor that believe life, and sight, are the most precious things a person could ask for. Although it my job to serve her, I believe, my customers are truly the people who make my job worth it.

Over the past 18 months I know that my job has changed my life forever. Yes, I have learned a lot about optical. How to adjust glasses, how to verify prescriptions, basic optics, product knowledge, lifestyle selling, among other clerical aspects. The most important thing I have learned is how to be inspired by differences in consumers and use their differences and their personal stories to meet their needs.

I know I have been there to help people through milestones in their life. From the first pair of pink Hannah Montana glasses, to the first time practicing with new contacts, to helping people admitting that its time for a bifocal pair.  From trials to triumphs, I have been there for my customers. I have taught them and learned from them, and together we have created their consumer experience.