Keep New Technology Simple to Use and You Will Be Rewarded.

Posted by truecreek on August 13, 2009 under More Dam News | Comments are off for this article

By Stacy L. Wood and C. Page Moreau

New high tech products are a way of life for today’s consumers, but many innovative new products face a special hurdle to marketplace success: their complexity makes them difficult for consumers to learn how to use. While consumers may desire the functionality of a particular new product feature—say, the ability to hot-sync one’s mobile phone’s calendar feature to a desk-top computer’s calendar program—learning how to use such a feature may take some learning effort. How do consumers react to the learning curve? The answer often is, “not well.” Consider your own experience with complex products such as computers, software, mobile phones, mp3 players, TiVo, etc.

Likely, our own experience mirrors what has been shown through marketplace research—consumers’ expectations of usage difficulty have caused a significant number to delay purchases, while actual usage difficulty has caused many to return purchased products.

Easy StreetThis research investigates the consumer’s new product learning process. What we find is that learning has an influential emotional component. Specifically, learning to use a new product can evoke an emotional response, (independent of the emotions produced by the attributes or benefits of the product itself), and that learning-based emotional response can influence product evaluations over time.

We used two empirical studies to demonstrate this consumer-centric process of innovation. The first study was a laboratory study examining participants’ reactions as they learn how to use an innovative new PDA.

The second was a longitudinal quasi-experiment examining participants’ reactions to a new web-based course management interface throughout the course of a semester. While the frustrations of wrestling with a new product’s instruction manual are familiar, three surprising findings emerge from these studies.

First, positive or negative emotions that arise from the learning process are not related to the products’ benefits (or lack thereof) but are independent assessments of the process of learning. In other words, difficulty in learning to use a product can create negative emotion even if the product is good (i.e., has strong net benefits). For example, a consumer may find a new product feature is both desirable and works well, but still have a difficult time learning how to use that feature. While the product features themselves might generate positive emotions if they are good, the learning process creates distinct emotions that are independent of the more traditional “consumption emotions.”

Second, although these “learning” emotions are process-oriented, they still have a significant and stable influence on product evaluations. In this way, we evaluate a product more positively when it offers a smooth learning process, independent of our assessment of the product’s net benefits. While it may not seem rational (since the pain of learning is only experienced initially and the product’s use may far outlast this initial learning period), these learning emotions can impact more stable overall evaluations of the product. Perhaps, as consumers, we blame a product when it has made us feel stupid and reward a product when it has made us feel smart.

Third, the emotion experienced by the consumer during this learning process is driven primarily by the consumer’s expectations for learning and early use. Thus, a consumer may experience the same challenging learning experience as positive if she anticipated difficulties prior to use or as negative if she did not. This last finding suggests that consumers’ emotional experiences can be influenced by both managers, via the early formation of expectations, and by the consumer’s own product-related expertise. Consumers with expertise in the product category will be differently impacted than novice consumers.

Marketers or salespeople may be tempted to make unreasonable claims about how easy a new product is to use as such claims are likely to increase a consumer’s likelihood of trial. But this research shows that setting unreasonable expectations for ease of use can cause a backlash of negative learning emotions that will impact the consumer’s evaluation of the new product.

Marketers must take care to encourage trial while setting fair expectations. How might this be done? Best Buy’s new Geek Squad program may be one humorous way to remind consumers that it sometimes takes a “special kind of person” (i.e., a nerdy technophile) to set up complex consumer electronics. The mere presence of the Geek Squad offer may serve to set consumers’ expectations so that, if they set up the product on their own, they are happy, but they are neither surprised nor upset if they find that they need to call in the experts.

Given the growing problem of innovation discontinuance (i.e., when consumers reject a new product after purchase or trial), understanding how marketing communications (e.g., product demonstrations, advertising, programs) and consumers’ own expertise interact to influence expectations is important. Especially for quickly evolving electronic and high tech products, product returns are costly both in terms of retail logistics (e.g., lost sales, restocking costs, repackaging and selling used products) and lost opportunities.

If a consumer has successfully made it through the early steps of the innovation adoption process—awareness, evaluation, and purchase—and then rejects the innovation post-trial, he or she may be unlikely to consider other alternative choices or related innovations in the future or, even worse, may be a source of negative word-of-mouth.

Lights. Camera. Action!

Posted by truecreek on July 21, 2009 under Opinions. Everyone has them. | Comments are off for this article

As advertisers, we are all aware that it is becoming increasingly difficult to cut through the clutter of the multitude of messages we are receiving daily from those companies that want to share their wares with us.

Cinema AdvertisingSo many in fact that it has become extremely difficult for an advertiser’s message to stand out from the pack.  Add in the prospect of the increasing use of DVR’s and other time shifting technologies and you have a real advertising challenge on your hands.

There is however, one advertising tactic that is gaining greater acceptance. That tactic is cinema advertising.

In “The Arbitron Cinema Advertising Study”, the evidence is very clear:  consumers are showing increasing acceptance of movie theater advertising. Younger viewers and those who frequent movies now see the on-screen commercials “as part of the entertainment experience.”

What a wonderful treat.  We finally have “a willing and attentive audience.”

According to the study, more than 45% of the respondents had gone to the movies at least once, with 60% of those watching the commercials prior to the start of the movie.  It was also determined that the perception of the method of advertising is positive, with over 63% stating that they “did not mind the advertisements they put on before the movie begins” with the younger audience being even more receptive.

So, give cinema advertising a try.  Better yet, just give us a call and we’ll get things moving.

Out of Bounds.

Posted by truecreek on July 20, 2009 under Opinions. Everyone has them. | Comments are off for this article

Seth tells it like it is.

By Seth Godin.

Sometimes people push back on posts of mine they don’t like by telling me I’m out of bounds. Somehow, they say, I’ve crossed the boundary of what I’m allowed to write about. They are angry that I’m now writing about something outside my defined area.

I’m usually taken aback by this, because I didn’t realize I’d actually agreed to any boundaries.

dont do it!Brands run into this all the time. Consumers give them boundaries. Nike isn’t allowed to make a computer, for example (unless they partner with Apple). It turns out, though, that marketers decide to believe in these boundaries a lot more than consumers do.

A beautifully made product or service (one that we agree with) gets a lot of slack, regardless of its source. Virgin is a great example of this. Branson can market cola and airplanes with the same brand, largely because we like what he makes. In Korea, there are a few massive brands that are ‘allowed’ to market anything they like, from dishwashers to cars. Google is allowed to market the very cool new Squares, of course.

The real problem is that when marketers believe they are going out of bounds, the work they do tends to be lousy. Starbucks attempt at chocolate, for example, wasn’t as good at being chocolate as their coffee is at being coffee.I think that’s because the marketers at Starbucks feel they have permission to care about coffee, but chocolate is merely an extension, an additional profit center, not a passion.

I’m not arguing for carte blanche craziness with your brand. American Express can do travelers checks and credit cards and could have done PayPal… but no, they probably shouldn’t launch a line of whiskey any time soon. I am, however, arguing that once you have permission to talk to someone, finding new products or services for them is a smart way to grow.

What to do with Special Requests.

Posted by truecreek on under Opinions. Everyone has them. | Comments are off for this article

By Seth Godin.

The bike shop is busy in June. If you bring your bike in for a tune up, it will cost $39 and take a week.

A week!

What if someone says, “I have a bike trip coming up in three days, can you do it by then?”

At most bike shops, the answer is a shrug, followed by, “I’m sorry, we’re swamped.”

The problem with telling people to go away is that they go away. And the problem with treating all customers the same is that customers aren’t the same. They’re different and they demand to be treated (and are often willing to pay) differently.

So, why not smile and say, “Oh, wow, that’s a rush. We can do it, but it’s expensive. It’ll cost you $90. I know that’s a lot, but there you go.”

Outcome: Maybe they’ll still leave. But maybe they’ll happily pay you for the privilege of doing business with you. Why should this be your choice, not theirs?

If you do tax accounting for mid-size businesses, why not offer a special last-minute service? A service in which you process shoeboxes filled with unsorted papers? A service that costs less but happens during your slow season?

There are two really good reasons to turn down special requests:

1. Because you’re marketing yourself as extremely busy and perfectly willing to turn down good work.

2. Because you want to market yourself as someone who is a rigid artist, a stick in the mud or a crotchety perfectionist. This works great for pizza places.