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masternewmedia.org Creative Service Design Week 4 05.10.2010 Users, Consumers and Creative Consumption 1 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 2 is ‘Creative Consumption’ What is the Typical 7-11 Customer profile? 3 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 4 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 10 Where is the User in the Design process? 11 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 12 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 13 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’ 14 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 15 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’ 16 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 17 The Marslow’s Hierarchy of Needs (2) Higher level needs more differentiated and unpredictable Basic Needs Overlap ~Bilton 2009 18 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 20 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/ 22 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? 23 Ask Yourselves? What is ‘consumer-driven’ service design? Where is ‘users’ in the design process? Understanding customers: Art or Science, any creative methodology? 24 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. 25 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) 26