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0:00
[ MUSIC ]
0:15
>> HELLO AND WELCOME TO TALKING POINTS. I'M DAVE KELLY, DIRECTOR OF ADVANCED MEDIA PRODUCTION AT CAL STATE LONG BEACH. TODAY WE'RE GOING TO TALK ABOUT CONSUMER BEHAVIOR AND HOW MARKETING COMPANIES ANALYZE IT AND ALSO TRY TO MANIPULATE IT. MY GUEST TODAY IS DR. CHRISTINE KANG. DR. KANG IS AN ASSISTANT PROFESSOR OF MARKETING IN THE COLLEGE OF BUSINESS ADMINISTRATION. WELCOME, CHRISTINE, AND THANK YOU FOR JOINING US ON TALKING POINTS. >> SURE. I'M HAPPY TO BE HERE.
0:42
>> WELL, AS WE TALK ABOUT CONSUMER BEHAVIOR, WE SHOULD START BY ACKNOWLEDGING THAT ALL CONSUMERS HAVE TO BUY THINGS. WE HAVE WHAT ARE CALLED NECESSITIES, FOOD, SHELTER HOUSING CLOTHES. ALSO, TRANSPORTATION IS A BIG NECESSITY. SO, AT SOME POINT, WE EITHER BUY A CAR OR WE HAVE TO BUY A BUS PASS OR SOMETHING FOR PUBLIC TRANSPORTATION. WE ALSO, TODAY, CAN ACKNOWLEDGE THAT WE HAVE COMMUNICATIONS DEVICES THAT HAVE BECOME ALMOST AN ESSENTIAL PART OF OUR DAILY LIVES LIKE SMARTPHONES
1:13
SO WE BUY THOSE PERIODICALLY. SO WITH ALL OF THOSE NECESSITIES, IT SEEMS LIKE CONTEMPORARY SOCIETY WOULD BE A MARKETER'S DREAM. WE HAVE ALL THESE CONSUMERS. THEY HAVE TO BUY PRODUCTS. THEY'RE NECESSITIES. SO WHAT ARE THE COMPONENTS OF DEVELOPING WHAT'S CALLED, "BRAND LOYALTY?" >> SO, BEFORE WE TALK ABOUT BRAND LOYALTY, I THINK IT'S IMPORTANT TO IDENTIFY THAT THERE ARE SOME PROBLEMS THAT CONSUMERS FACE IN EVERYDAY LIVES. SO, BY PROBLEM I MEAN THAT IT COULD BE A NEED THAT YOU NEED
1:44
TO FULFILL OR IT COULD BE AN OPPORTUNITY THAT YOU CAN LIKE BRING UP THE QUALITY OF YOUR LIFE TOWARDS -- SO THAT YOU MIGHT WANT A PRODUCT THAT YOU DON'T NECESSARILY NEED, BUT AT SOME POINT THAT YOU WANT TO HAVE. SO, AS MARKETERS, I THINK IT'S IMPORTANT TO, YOU KNOW, HELP THE CONSUMERS ACTUALLY RECOGNIZE THOSE PROBLEMS EITHER AS A NEED OR OPPORTUNITY, AND, IF YOU POSITION YOUR PRODUCT OR SERVICES AS THE SOLUTION TO SOLVE THE PROBLEM, THEN,
2:13
I THINK, YOU KNOW, YOU CAN START BUILDING UP A RELATIONSHIP BETWEEN YOU AND THE CONSUMER AS A BRAND. AND I THINK THAT'S THE STARTING POINT FOR BRAND LOYALTY. SO LIKE, YOU KNOW, CONSUMERS RECOGNIZE THAT, "OH, I HAVE THIS PROBLEM. I HAVE THIS NEED OR OPPORTUNITY, BUT MAYBE IF I CHOOSE THIS BRAND, THEN I'LL BE ABLE TO SOLVE THE PROBLEM THAT I'M FACING." RIGHT? SO, YEAH. >> OK. AND SO WHEN WE'RE TALKING ABOUT NECESSITIES, WE'RE TALKING ABOUT EVERYTHING FROM SOAP AND DETERGENT,
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WHICH IS A LOW PRIORITY FOR MOST CONSUMERS. >> RIGHT. >> IT'S NOT VERY EXCITING. YOU HAVE TO HAVE IT. >> YEAH. >> BUT IT'S NOT AN EXCITING PURCHASE. >> MM-HMM. >> BUYING A CAR IS A LOT MORE EXCITING AND MARKETERS HAVE A LOT MORE TO WORK WITH THERE. >> RIGHT. >> SO, IF WE'RE TALKING ABOUT THOSE LESSER PRODUCTS, THINGS THAT WE NEED ON A DAILY BASIS, HOW DO WE DISTINGUISH ONE PRODUCT FROM ANOTHER FROM A MARKETING STANDPOINT? >> SO FOR THOSE PRODUCTS THAT DON'T REQUIRE MUCH HAVE AN INVOLVEMENT --
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LIKE FOR THE CARS YOU'RE INVESTING A LOT OF MONEY AND YOU'RE DRIVING IT EVERY DAY SO LIKE YOU MIGHT FEEL LIKE IT'S REALLY AN ESSENTIAL PART OF YOUR LIFE, BUT, AS YOU SAID, LAUNDRY DETERGENT AND SOAP, THOSE DON'T INVOLVE -- I MEAN, THOSE DON'T REALLY REQUIRE MUCH HAVE AN INVOLVEMENT. SO, FOR THOSE LOW INVOLVEMENT PRODUCTS, I THINK MARKETERS' CREATIVITY AND HOW TO EXPOSE THEMSELVES TO THE CONSUMERS WOULD MATTER. SO, FOR INSTANCE, WHAT DO YOU DO AT THE POINT OF PURCHASE?
3:39
YOU KNOW, HOW DO YOU DISPLAY YOUR PRODUCT? SO IN ORDER TO CAPTURE THOSE CONSUMERS' ATTENTION, THEY MIGHT HAVE FANCIER PACKAGING THAT'S SIMPLER TO UNDERSTAND OR YOU MIGHT HAVE, YOU KNOW, YOUR PRODUCT'S PLACE ON THE SHELF THAT'S LIKE AT THE EYE LEVEL OF THE CONSUMER SO THAT THEY MIGHT RECOGNIZE YOUR BRAND MORE THAN THE PRODUCTS THAT ARE LOWER ON THE SHELF SPACES. >> AND PEOPLE PAY FOR THAT PREMIUM SHELF SPACE, DON'T THEY? >> UH-HUH. YES. EXACTLY.
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YEAH. THAT'S WHY SOME MARKETERS ARE PAYING EXTRA MONEY TO ACTUALLY SECURE THOSE SPOTS THAT ARE MORE, YOU KNOW, ATTENTION GRABBING FOR THE CONSUMERS. AND ALSO EVEN FOR THOSE LOW INVOLVEMENT PRODUCTS, YOU CAN TRY TO CONNECT WITH THE CONSUMERS BY SORT OF LIKE TELLING THEM A STORY. LIKE, OK, WHEN YOU BUY A SOAP, WHO DO YOU GET REMINDED OF? MAYBE YOUR MOM AND IF THOSE EMOTIONAL ATTACHMENTS CAN BE CREATED THROUGH YOUR ADVERTISEMENTS OR, YOU KNOW, YOUR MARKETING ACTIONS, THEN, YOU KNOW,
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CONSUMERS WOULD VIEW YOUR BRAND AS A LITTLE BIT DIFFERENT FROM LIKE OTHER COMPETITOR BRANDS. >> SO EVEN WITH THE LESSER PRODUCTS ARE TRYING TO DEVELOP AN EMOTIONAL BOND. >> EXACTLY. >> WITH THE PRODUCT AND WITH THE MEMORY THAT WE HAVE? >> RIGHT. THAT'S WHAT DOVE, YOU KNOW, WAS PRETTY SUCCESSFUL AT DOING. THEY CREATED THIS, YOU KNOW, REAL BEAUTY CAMPAIGN SO THAT EVEN THEY'RE JUST A SOAP COMPANY, THEY WANTED TO ADDRESS THIS IMPORTANT CONCEPT OF BEAUTY TO,
5:05
YOU KNOW, MODERN CONSUMERS, ESPECIALLY WOMEN SO THAT CONSUMERS WHO USED TO HAVE A VERY CROOKED IMAGE OF BEAUTY WOULD BE HELPED TO, YOU KNOW, REGAIN THEIR SELF-ESTEEM AND, YOU KNOW, VIEW THEMSELVES AS A MORE BEAUTIFUL PERSON THAT THEY USED TO THINK OF THEMSELVES AS. >> WELL, LET'S MOVE UP TO THE LUXURY ITEMS, THINGS THAT PEOPLE DON'T NEED. WE'VE BEEN TALKING ABOUT NECESSITIES UP 'TIL NOW, BUT NOW LET'S TALK ABOUT LUXURY ITEMS. >> YEAH. MM-HMM.
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>> FOR EXAMPLE, I TALKED ABOUT TO A MAN A FEW YEARS AGO ABOUT A PRODUCT THAT HE WAS SELLING AND IT WAS FANCY CHROME WHEELS FOR CARS. >> OK. YEAH. >> AND HE WAS VERY FRANK AND HE TOLD ME, "NOBODY NEEDS TO BUY WHEELS. WHEN THE CAR COMES OFF THE PRODUCTION LINE AT THE FACTORY, IT ALREADY HAS WHEELS ON IT." >> MM-HMM. >> SO, TO BUY LUXURY WHEELS OR MAG OR CHROME OR ALLOY WHEELS, YOU HAVE TO OBVIOUSLY CREATE A DESIRE FOR THAT. >> RIGHT. >> AND YOU HAVE TO CREATE AN IMAGE
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THAT PEOPLE WANT TO BE PART OF. >> RIGHT. >> WHAT ABOUT THAT? HOW DO MARKETERS TRY TO ADDRESS PEOPLE'S MOTIVATIONS? WE TALKED A LITTLE BIT ABOUT THE EXAMPLE OF THE SOAP MAYBE CONNECTING THE SCENT MAYBE CONNECTS TO THE LAUNDRY THAT YOUR MOTHER USED TO DO OR THAT KIND OF THING. BUT WHAT ABOUT A PURELY LUXURY ITEM? HOW DO THEY DO THAT? >> SO, WHEN WE THINK ABOUT WHY CONSUMERS WOULD BE MOTIVATED TO EVEN LIKE CONSIDER AND PAY MORE FOR THOSE LUXURY ITEMS WOULD BE
6:25
BECAUSE THOSE LUXURY ITEMS ARE PRETTY SYMBOLIC IN ESSENCE. SO LIKE YOU CAN SIGNAL YOUR STATUS OR LIKE YOUR WEALTH OR AFFORDABILITY BY BUYING SOME OF THOSE LUXURY ITEMS. SO A LOT OF TIMES CONSUMERS ENGAGE IN THOSE CONSPICUOUS CONSUMPTION, MEANING THAT YOU WANT TO SHOW OFF YOUR WEALTH OR LIKE, YOU KNOW, YOUR CERTAIN LEVEL OF STATUS THAT YOU'VE ACHIEVED, YOU KNOW, IN THE, YOU KNOW, PAST YEAR OR LIKE, YOU KNOW, IN YOUR LIFETIME. SO THOSE LUXURY ITEMS HAVE SOME SIGNAL VALUE TO IT.
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AND, AT TIMES, SOME CONSUMERS ARE MOTIVATED TO EVEN PURCHASE THOSE LUXURY ITEMS AND GO OUT OF THEIR WAY IN ORDER TO RESTORE THEIR OWN SELF-ESTEEM. LIKE, LET'S SAY YOU GOT FIRED FROM A COMPANY WITHOUT KNOWING WHY, THEN YOU MIGHT ENGAGE IN LIKE AN UNNECESSARILY, YOU KNOW, EXPENSIVE OR LIKE, YOU KNOW -- >> EXTRAVAGANT. >> EXTRAVAGANT CONSUMPTION BECAUSE THAT HELPS YOU TO RESTORE, "OH, YEAH. EVEN IF I GOT FIRED FROM THAT COMPANY, I STILL HAVE WEALTH OR I STILL HAVE THIS ABILITY TO, YOU KNOW,
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PAY FOR THIS LUXURIOUS ITEM." SO YEAH. >> SO, FROM A PSYCHOLOGICAL STANDPOINT, THESE LUXURY ITEMS HELP US TO QUOTE UNQUOTE, STRUT OUR STUFF A LITTLE BIT? >> YES. YES. >> IN TERMS OF OUR STATUS. >> UH-HUH. >> AND OUR VIEW OF OURSELVES. >> RIGHT. >> WHAT WE WANT THE PUBLIC TO SEE. >> UH-HUH. >> ABOUT US. >> MM-HMM. >> LET'S TALK ABOUT SOME PRODUCTS THAT MAYBE AREN'T ESSENTIAL ITEMS THAT MARKETERS ARE DOING THEIR BEST TO TRY TO CONVINCE US THAT THEY ARE NECESSITIES. >> MM-HMM. RIGHT.
7:56
>> SUCH THINGS AS MAYBE DIET PILLS OR VITAMIN PILLS OR VARIOUS KINDS OF OVER-THE-COUNTER PHARMACEUTICAL PRODUCTS THAT YOU CAN LIVE WITHOUT THAT MARKETERS ARE TRYING TO MAKE US BELIEVE, "WELL, YOU'RE BETTER OFF IF YOU HAVE THESE PRODUCTS OR YOU TAKE THESE PRODUCTS." >> RIGHT. >> WHAT KINDS OF PSYCHOLOGICAL DIMENSIONS ARE THEY WORKING WITH THERE? >> SO I THINK THOSE PRODUCTS, IN ORDER TO CONVINCE CONSUMERS THAT THEY ACTUALLY NEED TO BUY THEM, I THINK CONSUMERS' VALUES SHOULD BE ADDRESSED.
8:25
SO EVEN IF, LIKE, IT'S NOT A NECESSITY, BUT IF THAT PRODUCT IS REALLY HELPFUL IN, YOU KNOW, PURSUING CERTAIN VALUES THAT YOU HAVE IN LIFE, FOR INSTANCE, LIKE, YOU KNOW, APPEARING -- I MEAN HAVING A VERY POSITIVE AND ATTRACTIVE APPEARANCE IN YOUR BODY, IF THAT'S YOUR VALUE, THEN THOSE DIET PILLS OR, YOU KNOW, OTHER, YOU KNOW, PRODUCTS THAT CAN HELP YOU GET FIT AND LIKE, YOU KNOW -- THAT CAN MAKE YOU, YOU KNOW, APPEAR A LITTLE MORE HEALTHIER,
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THAT WOULD BE LIKE SOMETHING THAT YOU GOT TO HAVE IN ORDER TO PURSUE THE VALUE THAT YOU HAVE. SO I THINK MARKETERS ARE TRYING TO CONNECT THE ATTRIBUTES OF THEIR PRODUCTS OR SERVICES OR THEIR OFFERINGS SO THE CONSUMER CAN SEE HOW THESE ATTRIBUTES OF A PRODUCT CAN, YOU KNOW, LEAD TO FULFILLING OF THE VALUES THAT THEY WANT TO HOLD IN THEIR LIVES. >> WHAT I'M HEARING IS A LOT ABOUT IMAGE, BOTH SELF-IMAGE, HOW WE WANT TO FEEL ABOUT OURSELVES. >> RIGHT. >> MARKETERS ARE VERY KEEN ON IDENTIFYING
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THAT ASPECT OF OUR PSYCHOLOGY. AND ALSO BEING ABLE TO PRESENT OURSELVES TO THE OUTSIDE WORLD. >> RIGHT. RIGHT. EXACTLY. >> AND SO IT'S ALL ABOUT IMAGE. OK. LET ME GO DOWN A LIST VERY QUICKLY OF SOME ITEMS, SOME ASPECTS OF EVERY PRODUCT THAT MARKETERS CAN USE FOR MARKETING PURPOSES. >> RIGHT. >> FOR EXAMPLE, THE COST, THE COST OF A PRODUCT. >> RIGHT. >> IF YOU'RE COMPETING ON COST AND IT'S THE CHEAPEST PRODUCT LINE OF THE OTHER COMPETITORS, THAT'S ONE ADVANTAGE. OK. THERE'S RELIABILITY.
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YOU BUY IT, IT WORKS, IT ALWAYS DELIVERS. THERE'S AVAILABILITY. YOU CAN BUY IT AT ANY STORE, ANY GROCERY STORE, ANY BIG BOX STORE. ENDORSEMENTS CELEBRITY ENDORSEMENTS PRO ATHLETES, THINGS LIKE THAT. OR IT COULD BE AN ENDORSEMENTS BASED ON A GOOD RATING FROM CONSUMER REPORTS. >> RIGHT. >> JD POWER, ONE OF THOSE RATING COMPANIES. ALSO THERE'S STATUS AND PERSONAL LUXURY VALUE. WE'VE ALREADY STARTED TO TALK ABOUT THAT. THERE'S ALSO FEATURES AND POPULARITY
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AND THE QUOTE UNQUOTE, "COOL," FACTOR, THINGS LIKE IPHONES, NIKE AIR JORDAN TENNIS SHOES, XBOX, ANYTHING HAVING TO DO WITH STAR WARS IS IN THE "COOL FACTOR" CATEGORY. AND JUST A COUPLE MORE. WE ALSO HAVE DURABILITY. THAT KIND OF GOES BACK TO RELIABILITY. >> RIGHT. >> BUT DURABILITY BRINGS TO MIND THE SEARS DIE HARD BATTERY OR THE EVER READY BATTERY OR THE ENERGIZER BUNNY THAT ALWAYS GOES ON FOREVER AND EVER. AND THEN THE LAST ONE IS BECOMING MUCH MORE POPULAR TODAY
10:46
AND THAT IS THE SUSTAINABILITY FACTOR. >> RIGHT. >> SO IT'S ENVIRONMENTALLY CONSCIOUS IF YOU BUY THIS PRODUCT. NOW, IF YOU'RE A MARKETER CONSIDERING THAT LONG LIST, WHAT ARE THE FEATURES THAT YOU WOULD PREFER TO HAVE AS A MARKETER TO WORK WITH? >> LIKE -- I THINK IT'S HARD TO JUST CHOOSE TWO OR THREE OUT OF THE WHOLE LIST, BUT I THINK MY CHOICE OF, YOU KNOW, THOSE FACTORS COULD BE GUIDED BY WHAT PRODUCT CATEGORY I VIEW MY BRAND TO BE IN. SO IF MY PRODUCT CATEGORY IS MORE FOR THE FULFILLMENT
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OF THE NEEDS THAT CONSUMERS HAVE TOWARDS MORE OF THE UTILITARIAN SIDE, LIKE, YOU KNOW, IF CONSUMERS ARE LOOKING FOR SOME FUNCTIONALITY IN THEIR PURCHASES OR THEIR CONSUMPTION, THEN I THINK, LIKE, RELIABILITY OR DURABILITY WOULD BE LIKE VERY INFLUENTIAL IN TERMS OF, YOU KNOW, ATTRACTING CONSUMERS, YOU KNOW, FAVORABLE ATTENTION, OR FAVORABLY ATTITUDES. BUT IF YOU ARE MORE ABOUT FULFILLING THE NEEDS OF THE CONSUMER IN THE HEDONIC WAY, MEANING LIKE CAN YOU GIVE SOME PLEASURE TO THE CONSUMERS
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WHO ARE CONSUMING YOUR PRODUCT, THEN I THINK THAT "COOL" FACTOR OF, YOU KNOW, BEING ON TOP OF THE TREND AND ALSO, YOU KNOW, WHO'S ENDORSING YOUR PRODUCT. "IS MY FAVORITE CELEBRITY ENDORSING THIS PRODUCT?" "CAN I CONNECT TO THEM BY PURCHASING THESE PRODUCTS?" THOSE FACTORS -- OR LIKE EVEN THE DESIGNS OR AESTHETICS OF A PRODUCT OR THE SERVICE THAT YOU ARE OFFERING TO THE CONSUMERS MIGHT MATTER MORE. YEAH. >> AND, AS YOU SAID, THE TERM HEDONIC, THAT'S BASED ON HEDONISM OR LIVING IT UP. >> RIGHT.
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>> AND SO THAT'S WHY WE WANT THE LUXURY ITEMS ARE THE "COOL" ITEMS. >> YES. EXACTLY. >> SO THAT WE CAN SHOW THAT WE'RE REALLY LIVING IT UP. OK. SO AS FAR AS THE SUSTAINABILITY FACTOR, THAT'S BECOMING MORE AND MORE IMPORTANT TODAY. >> RIGHT. >> ARE MARKETERS LOOKING AT THAT AS ANOTHER ONE OF THE ARROWS THEY HAVE IN THEIR QUIVER, SO TO SPEAK? >> I THINK YEAH. SO MORE AND MORE CONSUMERS, AS I MENTIONED EARLIER, I MEAN -- SO CONSUMERS ARE ACTUALLY SPENDING THEIR MONEY TO FULFILL THEIR VALUES.
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RIGHT? SO IF THERE IS A SIGNIFICANT NUMBER OF CONSUMERS WHO ACTUALLY VALUE THE SUSTAINABILITY, THEN AS A BRAND YOU SHOULD ALSO ACT ACCORDINGLY. RIGHT? SO IN YOUR MAYBE MARKETING CAMPAIGN, YOU INCORPORATE LIKE A MESSAGE THAT ACTUALLY DELIVERS TO THE CONSUMERS THE MESSAGE THAT, "OH, ENVIRONMENT IS REALLY IMPORTANT AND THIS IS LIKE SOME MEANS THROUGH WOULD WE TRY TO, YOU KNOW, ENSURE THE SUSTAINABILITY OF YOUR CONSUMPTION AND ALSO OUR PRODUCTION AS WELL." SO.
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>> RIGHT. AND IT PROBABLY DEPENDS ON THE PRODUCT. IF YOU'RE SELLING PRODUCTS FOR A CAMPING SUPPLY BUSINESS LIKE REI, PROBABLY SUSTAINABILITY FITS RIGHT IN WELL WITH THAT. WE HAVE TO GO TO THE BREAK RIGHT NOW. WHEN WE COME BACK, WE'LL CONTINUE ON. AND STAY WITH US. WHEN WE COME BACK FROM THE BREAK, WE'LL TALK ABOUT GENERATIONAL MARKETING. WHAT'S THE DIFFERENCE BETWEEN MILLENNIALS, GENERATION X, AND BABY BOOMERS? STAY TUNED. [ MUSIC ] >> SHOULD YOUR COMPANY BUY OR SELL? EXPAND OR NOT?
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RELOCATE? OR SIMPLY STAY THE SAME? IF YOU LIKE TO EXAMINE PAST AND PRESENT PREDICTIONS INTEGRATING FINANCES AND PEOPLE AND MAKE FUTURE PREDICTIONS BASED ON ALL THAT INFORMATION, A CAREER IN ECONOMICS IS FOR YOU. YOU CAN BECOME A PART OF THIS EXCITING FIELD WITH A DEGREE FROM CAL STATE LONG BEACH. [ MUSIC ] >> WELCOME BACK TO TALKING POINTS. I'M DAVE KELLY. MY GUEST TODAY IS DR. CHRISTINE KANG. AND WE'RE TALKING ABOUT CONSUMER BEHAVIOR. CHRISTINE, BEFORE WE WENT TO THE BREAK WE SPENT A LOT
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OF TIME DEFINING WHAT THE PSYCHOLOGICAL MOTIVATIONS WERE FOR CONSUMERS, ESPECIALLY WHEN WE GET INTO THOSE LUXURY ITEMS OR THOSE COOL ITEMS. >> RIGHT. >> BUT NOW I WANT TO TALK A LITTLE BIT MORE ABOUT THE BUSINESS OF MARKETING AND WHAT IT REALLY ENTAILS BECAUSE A LOT OF PEOPLE WILL CONFUSE MARKETING WITH SALES. NOW, THEY'RE VERY RELATED, OF COURSE, BUT REALLY MARKETING IS THE PRECURSOR TO SALES. IN OTHER WORDS, IT HAS TO HAPPEN BEFORE YOU GET TO ANY SALES. >> RIGHT.
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>> AND SO MARKETING REALLY CONSISTS OF TWO COMPONENTS. ONE IS THE RESEARCH FACTOR. THAT'S REALLY CRITICAL. AND THEN THE SECOND PART IS THE PRODUCT PRESENTATION AND THE BRAND IMAGING THAT WE'VE BEEN TALKING ABOUT. SO, FIRST OF ALL, LET'S TALK ABOUT THE RESEARCH. >> OK. >> WHEN WE SAY MARKETING FIRMS ARE DOING A LOT OF RESEARCH, WHAT ARE THEY RESEARCHING AND WHAT'S SO CRITICAL ABOUT THAT RESEARCH? >> OK. SO I VIEW MARKETING RESEARCH AS THE FUNCTION THAT CAN ACTUALLY LINK CONSUMERS
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WITH THE MARKETER THROUGH INFORMATION. SO MARKETERS DO NEED TO GATHER SOME INFORMATION FROM THE CONSUMER SIDE, I THINK, BEFORE AND AFTER TAKING ANY MARKETING ACTIONS. SO BEFORE THEY ACTUALLY LIKE PURSUE A SPECIFIC MARKETING STRATEGY, THEY SHOULD VERIFY IF WHAT THEY'RE THINKING IN THEIR MIND IS SUITABLE FOR THE CONSUMERS AND CONSUMERS WOULD RESPOND WELL TO THOSE IDEAS. SO THAT'S WHY MARKETERS ARE TRYING TO EXPLORE CONSUMERS' THOUGHTS THROUGH LIKE FOCUS GROUP INTERVIEWS OR, YOU KNOW,
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IN-DEPTH INTERVIEWS ONE-ON-ONE, OR LIKE EVEN HAVING SOME SURVEYS BEFORE THEY ACTUALLY LAUNCH A PRODUCT OR BEFORE THEY LAUNCH A COMMERCIAL SERIES AND SO ON SO THAT, YOU KNOW, BY HEARING FROM DIFFERENT PARTS OF THE MARKET, YOU ARE SEEING WHETHER YOUR CONCEPT'S ACTUALLY ADDRESSING THE NEEDS FROM THE CONSUMER SIDE, NOT NECESSARILY ONLY FOCUSING ON YOUR OWN CAPABILITY AS A COMPANY OR AS A PRODUCT DEVELOPER. SO. >> SO, WHAT I HEAR YOU SAYING IS THAT THEY NEED THE DATA TO VALIDATE THEIR ASSUMPTIONS.
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>> YES. >> ABOUT HOW THEY INTEND TO MARKET THIS PRODUCT. >> MM-HMM. EXACTLY. >> AND IF THE DATA IS NOT WHAT THEY THINK IT IS, THEN THEY HAVE TO CHANGE THEIR APPROACH. >> UH-HUH. SO YOU NEED TO REFINE YOUR MARKETING STRATEGIES. YEAH. >> EXACTLY. SO WHEN WE GET TO THE SECOND PART OF THIS, THAT'S THE PRODUCT PRESENTATION AND THE BRAND IMAGING. AND THAT'S WHERE WE START THE TELEVISION ADVERTISING CAMPAIGNS AND THAT SORT OF THING? >> RIGHT. >> AND SO BASICALLY YOU HAVE TO HAVE -- THROUGH THE DATA,
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YOU'VE ESTABLISHED A TARGET AUDIENCE. >> RIGHT. >> AND THAT TARGET AUDIENCE COULD INCLUDE A PARTICULAR SLICE OF THE POPULATION. IT COULD BE A GENERATIONAL THING. IT COULD BE MALES OR FEMALES OR SOME OTHER COMBINATION OF THAT. >> RIGHT. >> AND THEN, THROUGH IDENTIFYING THAT TARGET AUDIENCE, THEN WE'RE GOING TO TAILOR THE CAMPAIGN TO APPEAL TO THEM DIRECTLY. >> EXACTLY. UH-HUH. >> SO WHAT DO THEY THINK ABOUT AS THEY'RE COMING UP WITH THESE ADVERTISING CAMPAIGNS? HOW MUCH CREATIVITY ARE THEY GIVEN?
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I GUESS IT DEPENDS ON WHO THEY ARE AND WHAT COMPANY THEY'RE REPRESENTING, BUT HOW MUCH CREATIVITY GOES INTO THIS? HOW MUCH BEING REALLY SPECIFIC TO ADDRESSING THE DATA OR THE NEEDS OF THE TARGET POPULATION THROUGH THE DATA, WHAT GOES INTO ALL THAT? >> SO THROUGH MARKET RESEARCH I THINK, AS YOU MENTIONED, MARKETERS CAN DEFINE MORE THE REALISTIC TARGET. "OH, I THOUGHT WE WOULD APPEAL TO LIKE, YOU KNOW, 20 YEAR OLDS AND EVEN THE 40 YEAR OLDS, BUT LIKE THROUGH RESEARCH WE FIND
17:55
OUT THAT MAYBE 40 YEARS OLDER ARE NOT REALLY INTERESTED IN OUR PRODUCT." SO WE ARE SETTING UP MORE OF THE REALISTIC TARGET THROUGH MARKET RESEARCH, BUT WITH THE DATA YOU ALSO CAN GAIN SOME INSIGHTS ABOUT THOSE CONSUMERS. "OH, THEY ARE MORE LIKELY TO PURSUE THIS TYPE OF LIFESTYLE AND, LIKE, YOU KNOW, THEY ARE, YOU KNOW, CONNECTED MUCH MORE THAN WE THOUGHT BEFORE." AND SO ON THOSE INFORMATION CAN COME THROUGH MARKET RESEARCH, BUT THEN WITH THOSE INSIGHTS I THINK IT'S THE MARKETER'S
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CREATIVITY THAT COULD ACTUALLY CREATE SOME NOVEL APPROACHES THAT CONSUMERS WOULD FIND PRETTY INTERESTING TO ENCOUNTER. >> I'M GOING TO USE ONE EXAMPLE BECAUSE I THINK WE'VE ALL SEEN IT AND THAT'S PROGRESSIVE AUTO INSURANCE WITH FLO AS THE MAIN CHARACTER. THEY'VE REALLY HIT PAY DIRT WITH THAT IN MY OPINION BECAUSE THOSE COMMERCIALS ARE ALWAYS FUNNY, INTERESTING CREATIVE. YOU LOOK FORWARD ACTUALLY TO SEEING THOSE COMMERCIALS. I DON'T KNOW IF IT HELPS SELL INSURANCE.
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IT PROBABLY HAS, BUT I KNOW THAT THE COMMERCIALS ARE FUN TO WATCH IN ANY EVENT. >> RIGHT. >> OK. AND SO LET'S TALK A LITTLE BIT ABOUT GENERATIONAL MARKETING. I PROMISED THAT BEFORE WE WENT TO THE BREAK. >> RIGHT. >> FIRST, LET'S TALK ABOUT THE SO-CALLED KEY DEMOGRAPHIC THAT TELEVISION NETWORKS ARE ALWAYS LOOKING FOR AND THEY REALLY WANT TO SCORE WELL WITH THE KEY DEMOGRAPHIC AND THAT IS ADULTS AGED 25 TO 49. WHY THAT PARTICULAR SEGMENT OF THE AUDIENCE?
19:15
I KNOW THEY'RE WORKING ADULTS SO THEY HAVE MONEY BASED ON -- INCOME BASED ON WORK. BUT WHY THAT PARTICULAR SEGMENT OF THE POPULATION? >> YEAH. SO BECAUSE THEY'RE LIKE IN EARLIER STAGE OF THEIR, YOU KNOW, CAREER, THEN LIKE, YOU KNOW, OLDER ADULTS OVER AND BEYOND 50, THEY -- I CAN SEE THAT THEY WOULD HAVE LESSER AMOUNT OF MONEY TO SPEND ON DIFFERENT PRODUCTS OR DIFFERENT SERVICES. HOWEVER, COMPARED TO THOSE OLDER GENERATION I THINK PEOPLE IN THAT AGE SEGMENT ARE MORE FLEXIBLE IN A WAY.
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SO THEY COULD, YOU KNOW, GIVE AND TAKE SOME INFLUENCE FROM THE MARKETERS RATHER THAN PEOPLE WHO ALREADY HAVE FORMED THEIR ATTITUDES OR THEIR IDEOLOGY OVER THEIR LIFETIME AND THOSE BECOME SET IN STONE. SO I THINK THAT FLEXIBILITY PART WITH A LITTLE BIT OF, YOU KNOW, PURCHASE POWER IS WHAT'S ATTRACTING MARKETERS SO MUCH TOWARDS THAT AGE POPULATION. >> SO BASICALLY THEY'RE NOT SET IN STONE LIKE THE BOOMERS LIKE MYSELF. WE'RE PROBABLY, YOU KNOW, PRETTY WELL, YOU KNOW,
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WE'VE DEFINED OUR BRAND LOYALTY. WE KNOW WHAT WE LIKE. YOU HAVE A GREATER OPPORTUNITY TO REACH PEOPLE, I GUESS, IN THAT OTHER -- IN THAT YOUNGER DEMOGRAPHIC. >> RIGHT. UH-HUH. >> OK. LET'S TALK ABOUT THE GENERATIONS AND HOW MARKETING IS CHALLENGING FOR EACH ONE OF THESE SEGMENTS OF THE POPULATION. OK. WE'LL START WITH THE MILLENNIALS. >> SURE. >> AND THOSE ARE THE FOLKS THAT ARE AGED ROUGHLY AGE 18 TO 35. >> RIGHT. >> AND THAT GROUP WE'RE TALKING ABOUT YOUNG FOLKS
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WHO ARE VERY ADEPT AT SOCIAL MEDIA. THEY'RE VERY INVOLVED IN THE LATEST TRENDS, THE LATEST FADS. THEY'RE ALSO RATHER FICKLE BECAUSE AS SOON AS A FAD HAS BURNED ITSELF OUT -- AND THAT COULD BE VERY QUICKLY -- >> YES. >> THEY'RE MOVING ONTO THE NEXT THING. >> UH-HUH. >> SOME OTHER ATTRIBUTES OF THE MILLENNIALS AND THEN I'LL LET YOU RESPOND. WE KNOW THAT A LOT OF THEM ARE CHALLENGED TODAY FINANCIALLY BECAUSE OF HIGH STUDENT LOAN DEBT COMING OUT OF COLLEGE.
21:19
WE ALSO KNOW THAT RENT IS VERY HIGH FOR A LOT OF THESE FOLKS. THEY END UP LIVING AT HOME LONGER THAN PREVIOUS GENERATIONS HAVE BECAUSE OF THE HIGH COST OF HOUSING. THEY ALSO TEND TO BE SOCIALLY MORE LIBERAL THAN SOME OF THE OLDER GENERATIONS. THEY SEE SOCIALISM MORE FAVORABLY THAN THEIR ELDERS AND THEY'RE LESS FAVORABLE ABOUT CAPITALISM EVEN THOUGH THEY DO SPEND THEIR MONEY. >> RIGHT. >> AND THEY SPEND THEIR MONEY ON ENTERTAINMENT, ON TECHNOLOGY DEVICES, A LOT OF MONEY IS SPENT ON VARIOUS KINDS
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OF EXERCISE, 24 HOUR FITNESS CLUB, YOGA, THOSE KINDS OF THINGS. AND SO WHAT ARE SOME OF THE CHALLENGES WITH THAT PARTICULAR GROUP, THE MILLENNIALS? >> SO I THINK THOSE MILLENNIALS ARE LESS RECEPTIVE AND THEY DON'T LIKE AUTHORITIES LIKE PUSHING THEM TO -- OR LIKE, YOU KNOW, DEMANDING THEM TO CHOOSE ONE OR THE OTHER. SO I THINK, YOU KNOW, ASSURING THAT THEY HAVE THIS AUTONOMY OF LIKE THEY CAN CHOOSE WHATEVER THEY WANT FACTOR THROUGH MARKETING I THINK IT'S AN IMPORTANT WAY
22:23
TO ACTUALLY APPEAL TO THOSE CONSUMERS AT THAT AGE RANGE. SO IT'S NOT THAT, "OH, BECAUSE OUR SOCIETY HAS BEEN THIS WAY, YOU GOT TO FOLLOW THAT, YOU KNOW, PATH OR ROUTE." THOSE KIND OF MESSAGES WOULDN'T REALLY APPEAL TO THE MILLENNIALS. BUT, LIKE, YOU KNOW, EVEN THOUGH THEY'RE TIGHT ON BUDGET, I THINK MORE OF THE LIFESTYLE THAT THEY'RE PURSUING IS LIKE YOLO -- YOLO, LIKE, YOU ONLY LIVE ONCE. SO LIKE YOU KNOW WE HAVE THE FREEDOM TO CHOOSE WHATEVER WE WANT.
22:49
THAT'S WHY EVEN THOUGH THEY DON'T HAVE MUCH OF THE DISCRETIONARY FUNDS, THEY MIGHT CHOOSE TO SPEND THOSE ON EXPENSIVE ELECTRONICS OR, YOU KNOW, MORE LIKE VERY EXPENSIVE, YOU KNOW, MEMBERSHIP FOR THE GYMS AND SO ON. SO LIKE, YOU KNOW, YES, YOU CAN DO WHATEVER YOU WANT, BUT, YOU KNOW, ALSO BE CONSCIOUS BECAUSE YOU ARE THE FUTURE OF THIS -- OR LIKE, YOU KNOW, SOCIETY. THOSE TYPE OF MESSAGES THAT CAN ASSURE THEM SOME FREEDOM, BUT AT THE SAME TIME EDUCATING IN A WAY.
23:19
I THINK THAT'S HOW YOU SHOULD ADDRESS THE NEEDS OF THE MILLENNIALS WHEN YOU APPROACH THEM. >> OK. WELL, LET'S MOVE TO THE NEXT GENERATION, THE ONES THAT ARE OLDER THAN THE MILLENNIALS. NOW WE'RE TALKING ABOUT GENERATION X. GENERATION X, THOSE FOLKS ARE ABOUT ROUGHLY AGE 36 TO ABOUT 53. >> RIGHT. >> THAT GENERATION GREW UP AT A TIME WHEN THERE WAS GREAT SOCIAL UPHEAVAL IN THE COUNTRY. WOMEN STARTED ENTERING THE WORKFORCE AS A RESULT. MANY OF THE GENERATION X FOLKS, PROBABLY MOST
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OF THEM SPENT SOME TIME IN DAYCARE. FOR THE FIRST TIME WE HAD MASSIVE DAYCARE IN OUR SOCIETY SINCE WORLD WAR II. >> RIGHT. >> AND ALSO THE DIVORCE RATE WENT WAY UP BECAUSE OF PART OF THESE SOCIAL CHANGES THAT WERE OCCURRING. THE UNITED STATES HAD SOME ECONOMIC DIFFICULTIES DURING THE DEVELOPING YEARS FOR THESE YOUNG FOLKS AT THAT TIME. AND SO, AS A RESULT, THEY BECAME MORE CYNICAL THAN MAYBE PREVIOUS GENERATIONS. AND THEY ALSO BECAME MORE SELF-RELIANT AND THEY'VE ALSO BEEN CONVINCED
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THAT SOCIAL SECURITY IS NOT GOING TO BE THERE TO TAKE CARE OF THEM. AND SO THOSE ARE SOME OF THE SOCIETAL FACTORS THAT HAVE SHAPED THEM. THEY ALSO, IN TERMS OF CONSUMERS, THEY'RE WILLING TO TRY OTHER PRODUCTS. THEY DON'T NECESSARILY FORM THE BRAND LOYALTIES THAT THEIR BABY BOOMER BROTHERS AND SISTERS ARE DOING. BUT, YOU KNOW, THEY'RE WILLING TO TRY OTHER PRODUCTS. SO WHAT ARE SOME OF THE CHALLENGES FOR THAT GROUP? >> I THINK IT'S IMPORTANT TO ACTUALLY CONVINCE THEM THAT,
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YOU KNOW, AMONG ALL THE DIFFERENT, YOU KNOW, OPTIONS THAT YOU HAVE IN THE MARKET, MAYBE OUR PRODUCT IS ACTUALLY THE ONE THAT COULD DELIVER THE BEST PERFORMANCE FOR YOU. RIGHT? BECAUSE THEY'RE LIKE MORE SELF-RELIANT, THEY WANT TO BE ABLE TO ASSURE THEMSELVES THAT THEY CAN CHOOSE THE BEST PRODUCT IN MANY OF THE DIFFERENT CONSUMPTION DOMAINS. SO LIKE EMPHASIZING THE FUNCTIONALITY OR LIKE MORE OF THE FUNCTIONAL BENEFITS TO THOSE CONSUMERS CAN PROBABLY,
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YOU KNOW, BUILD SOME FAVORABLE ATTITUDES FROM THAT GENERATION. >> OK. WE'RE STARTING TO RUN LOW ON TIME SO WE'LL GO THROUGH THE BABY BOOMERS TOO. OK. SO THE BOOMERS, ROUGHLY AGE 54 TO 72 IN THAT BALLPARK. THEY GREW UP WHEN AMERICA WAS PROSPEROUS, THE 1960S. >> RIGHT. >> EVEN THE LATE '50S UP TO THE '70S AND SO ON. THAT GROUP HAS BEEN VERY INTO MATERIALISM AND CONSUMERISM, AT LEAST IN THE LAST 20 YEARS OR SO. >> RIGHT. UH-HUH. RIGHT. >> THEY'RE ALSO GETTING OLDER.
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THEY'RE EASING INTO RETIREMENT MANY OF THEM. THEY HAVE A LOT OF MONEY BUILT UP FROM STOCK MARKET INVESTMENTS AND SO ON. >> UH-HUH. >> SO THEY'RE WILLING TO SPEND. >> MM-HMM. >> AND THE YOUNGER GENERATIONS MIGHT BE SAYING, "WELL, THEY'RE NOT LIVING SUSTAINABLE LIVES BECAUSE THEY LIVE IN BIG HOUSES, THEY DRIVE BIG CARS, THEY USE A LOT OF FOSSIL FUELS." BUT THEY'RE GOING TO START TO TAPER OFF SOON. >> RIGHT. UH-HUH. >> BECAUSE AS THEY AGE THEY'RE GOING TO WANT TO DOWNSIZE.
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THAT'S GOING TO LEAVE A GAP OR A VOID IN THE ECONOMY AND WHO'S GOING TO PICK UP THAT GAP? SO WHAT ARE SOME CHALLENGES WITH THE BABY BOOMERS? >> SO, YEAH, I THINK STILL LIKE 70% OF THE CONSUMER, YOU KNOW, SPENDINGS ARE FROM THE BABY BOOMERS BECAUSE THEY, YOU KNOW -- THEY ARE USED TO LIVING THOSE EXTRAVAGANT LIFESTYLE. BUT, AT THE SAME TIME, I THINK AS THEY GROW OLDER, THE SENIORS MIGHT HAVE THIS GREATER VALUE PLACED ON, YOU KNOW, THE ALTRUISM AND HOW YOU CAN GIVE BACK TO THE SOCIETY.
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SO EVEN IF THEY DOWNSIZE SOME OF THEIR SPENDINGS FOR THEIR OWN SELVES, THEY MIGHT BE WILLING TO SPEND SOME OF THEIR, YOU KNOW, WEALTH ON THE NEXT GENERATION. SO I THINK HELPING THOSE CONSUMERS TO FIND SOME CONNECTIONS TO THE FOLLOWING GENERATION COULD, YOU KNOW, HELP MARKETERS, YOU KNOW, FILL THAT VOID. THAT COULD BE POSSIBLE. >> SO WE'RE TALKING ABOUT A GENERATIONAL TRANSFER OF WEALTH, WHICH IS INEVITABLE FOR ALL GENERATIONS I GUESS ULTIMATELY. >> RIGHT. UH-HUH.
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>> CHRISTINE, WE'VE RUN OUT OF TIME, UNFORTUNATELY, BUT I WANT TO THANK YOU FOR BEING HERE TODAY. >> ALL RIGHT. SURE. MY PLEASURE. >> AND THANK YOU FOR JOINING US FOR THIS EDITION OF TALKING POINTS. JOIN US AGAIN SOON FOR THE NEXT EPISODE. UNTIL THEN, I'M DAVE KELLY. HAVE A NICE DAY. [ MUSIC ]
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