Download Week 4 05.10.2010

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Creative Service Design
Week 4
05.10.2010
Users, Consumers and Creative Consumption
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Key issues for today:
 ‘What
does the customer want?’
 What
is ‘Consumer-driven’ service design
 Where is ‘Users’ in the design process
 Some
key concepts in understanding
customers’ minds and behaviors.
 What
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is ‘Creative Consumption’
What is the Typical 7-11 Customer profile?
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alexroch.co.uk
engineering design, product design,
industrial design, ceramic design,
decorative design, graphic design,
illustration design, information design,
typographic design, advertising design,
2006 design, interior
packaging design,~Heskett,
brand
design, fashion design, textile design,
pattern design, software design, systems
design, interactive design …
~Heskett, 2006
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What is Consumer Behavior?
You are what you buy!
“Those activities directly involved in
obtaining, consuming, and disposing of
products and services, including the
decision processes that precede and follow
these actions”
•Therefore, a large part of CB = mind of consumer!
•CB = Entire Decision process
Model of Consumer Behavior
Product
Price
Economic
Marketing and
Other Stimuli
Technological
Place
Psychological
Promotion
Personal
social,
Cultural
Buyer’s
Decision
Process
Product Choice
Brand Choice
Dealer Choice
Buyer’s Black Box
Buyer’s Response
Characteristics
Affecting
Consumer
Behavior
Purchase
Timing
Purchase
Amount
Inside The Black Box
Consumer Decision-Making Process
Need Recognition
Present Status- Preferred state
Cultural, Social,
Individual and
Psychological
Factors
Information Search
Internal + External
Evaluation
of Alternatives
Purchase
Post-purchase
Behavior
Buyer Behavior
Other people often influence a consumers purchase decision. The marketer
needs to know which people are involved in the buying decision and what
role each person plays, so that marketing strategies can also be aimed at
these people. (Kotler et al, 1994).
Initiator
User
Buyer
Influencer
Decider
Types of consumer involvement
and decision making
Routine
Limited
Extensive
Involvement
Short
Low to
moderate
High
Time
Low
Short to
moderate
Long
Cost
Short
Low to
moderate
High
Information
Search
Internal only
Mostly internal
Internal &
external
Number of
alternatives
one
few
many
Preparation
Incubation
Illumination Verification
Boundary Concept
Concept Concept
Concept
setting
generation selection evaluation realisation
‘Novelty’ criteria:
‘Value’ criteria:
New to individual
Fit for purpose
New to the field
Solves the problem
New to the world
Meets definitions of quality
~Bilton 2008, 2007
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Where is the User in the Design process?
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kevinbury.com
What is ‘Creative Consumption’

In cultural studies, social and media theory*,
the product (‘text’) is often seen as raw
material (‘symbolic resources’) for consumers
to make up/create their own meanings,
interpretations and experiences.
*e.g. Stuart Hall, David Morley, Paul Willis, John Fiske, etc.
~Bilton 2009
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Three Models of Marketing
PRODUCT
LED
MARKE
LED
EXPERIENCE
LED
Product
Art for everyone
Customer benefits
personal interpretation
Customer
everybody
specific groups
individuals
Marketing attenders vs. nonsegments attenders;
and tools overcoming barriers
Demographic approach;
stable market segments
relationship marketing
Psychographic approach;
unstable segments;
customisation
Marketing Promotion and
activity
sales
Strategy and
segmentation
Personal relationships
Theory
uderpinnings
Modernity
Sociology of culture
Rationalism
Control
Post-modernity
Reflexivity
Relativism
Participation
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Romanticism
Cultural idealism
Liberalism
Access
~Bilton 2009
What do the models mean to customers?

‘PRODUCT-LED’




‘CUSTOMER-LED’




Example: technology companies, 3G phones, HDTV
Building the installed base
Loss leaders / bribe the customer
Example: Apple I-Pod Nano, Warner Music downloads, budget airlines
Rethinking /redesigning product in response to customer needs / wants
Customer-friendly formats and delivery methods
‘EXPERIENCE-LED’



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Example: arts education, websites for TV programmes, ‘interactive’ extras
Changing the way the customer experiences / interacts with the product
Adding complexity / difficulty rather than simplifying
What are the implications to ‘creative
service design’?
Products and Services~

Subjectivity of experience - ‘SYMBOLIC GOODS’

Every aspect of the experience has a potential economic and
cultural significance – the multiplicity of product

Marketing mix - the 6 Ps (product, price, place, promotion,
people and preference )

Product and product surround, services

Customer is part of the product
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What are the implications to ‘creative service
design’? Customers~

From tangible goods to intangible experiences

From basic needs to higher level needs

From product attributes to consumer perceptions

Market segmentation vs. Individualisation

Predictable wants and needs vs. ‘Unprecedented experiences’
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The Marslow’s Hierarchy of Needs (1)
The Engel’s Law:
the richer people are, the
higher is the share of their
total consumption
Marslow A. (1943) A Theory of Human Motivation
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The Marslow’s Hierarchy of Needs (2)
Higher level needs more
differentiated and
unpredictable
Basic Needs
Overlap
~Bilton 2009
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Theories about Motivation I

Maslow: Theory of Human Motivation

McClelland: Human Motivation Theory





Achievement motivation: seeking to get ahead, to
strive for success, and to take responsibility for
solving problems.
Need for affiliation: to make friends, to become
members of groups, and to associate with others.
Need for power: refers to the desire to obtain and
exercise control over others.
Need for uniqueness: refers to desires to perceive
ourselves as original and different.
Social-Learning Theory
Theories about Motivation II
Opponent-Process Theory
 The Desire to Maintain Behavioral Freedom
 The Motivation to Avoid Risk
 Attribution theory: the Motivation to Attribute
Causality

Motivational Research: It seeks to learn what motivates people
in making choices. The methods and techniques to look into the
conscious, subconscious and the unconscious. Explain human’s
emotional reactions, perceptions, responses and motivation
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The Adoption Process for Innovations
maturity
Number of
consumers
growth
decline
emergence
Innovators/
Technologists
Visionaries
21 2.5%
Time
Early
Adopters/
13.5%
Early
Majority/
Late Majority/
Conservatives
Pragmatists
34%
34%
Laggards/
Sceptics
16%
•72% male
•Average age 31
•31% between the age of 15-24
•32% between the age of 25-34
•31% between the age of 35-49
•6% over the age of 50
•58% completed college (43% national average)
•Average household income $75,600. (26% higher than national average)
•The iPhone user base consists mainly of young early adopters about three quarters
of whom are previous Apple customers.
http://theappleblog.com/2008/11/24/profile-of-an-iphone-user-interesting-statistics-about-yourself/
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The
Cas Case
How can we better understand customers:
Six things that the Google product teams have in mind:
1.
They like to design a product that preserve the Google brand and maybe extend
it
2.
They want to solve the problem and getting the remote teams coordinate
around the world
3.
Different countries, different markets have different needs, how do we tailor our
product to those different places?
4.
How to avoid confusing our customers with too many products?
5.
Can we find out what people really want? quickly, and inexpensively ways to find
out what costumers want?
6.
What about products that don’t even exit yet , that customers don’t quite relate
to? how do we know that whether costumers will buy it or not?
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Ask Yourselves?
What is ‘consumer-driven’ service design?
 Where is ‘users’ in the design process?
 Understanding customers: Art or Science,
any creative methodology?

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montajeycomercializadorajocool.com
For Next week
Industry and Business Research
 Readings:

Bryson J.R. and Daniels. P.W (2007) Small and medium,-sized enterprises and
the consumption of traded (producer service expertise) vs Untraded
knowledge and expertise . In Bryson and Daniels (eds) (2007) The Handbook
of Service Industries.

Good win, K. (2009) Designing for the digital age: how to create human-centered
products and services. Chapter 11 Persona

Website:

‘Business Link:’ http://www.businesslink.gov.uk/bdotg/action/home

Self-help portal of action-focused information for small and medium businesses, in the
UK linking to all relevant ministries and departments.
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References

Boorsma, Miranda (2005): ‘A Strategic Logic for Arts Marketing: Integrating Customer Value
and Artistic Objectives’ in International Journal of Cultural Policy Vol. 12 no. 1, pp. 73 - 92

Harvey, David (1989): The Condition of Postmodernity (Oxford: Blackwell), pp. 119 – 197

Kotler, Philip (1999): ‘Managing the Marketing Process and Marketing Planning’ in
Marketing Management: Analysis, Planning, Implementation and Control, 9th edition (London:
Prentice Hall)

Kotler, Philip (1997): Standing Room Only : strategies for marketing the performing arts
(Boston, MA: Harvard Business School Press)

Kim, W Chan and Mauborgne (2005): Blue Ocean Strategy: how to create uncontested
market space and make the competition irrelevant (Boston MA, Harvard Business
School Press)

Levitt, Theodore (1960): ‘Marketing Myopia’ in Harvard Business Review (July / August
1960) pp. 45 – 46

Rifkin, Jeremy (2000): ‘Commodifying Human Relationships’ in The Age of Access
(Harmondsworth: Penguin), pp. 96 – 113

Seabrook, John (2000): No brow: the culture of marketing, the marketing of culture (London :
Methuen)

Tomlinson, Alan (ed.) (1990): Consumption, identity, and style: marketing, meanings, and the
packaging of pleasure (London: Routledge)
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