Interns in the Field: Part 2

Posted July 27th, 2010 by cubicans | No Comments

Cubic Interns Stephanee Rice and Meggie Clemens spent a whole Friday observing shoppers. We were comparing interactions between folded items (most often pants or sweaters) and hanging items as shoppers moved through the store. The GAP and Banana Republic were gracious enough to let us slink around their stores.

We spent 2 hours at each store and watched a total of 26 subjects; five were notated as groups or families shopping together but counted as one subject. Shoppers were watched as they moved through the store and their behavior was detailed on a checklist measuring how many times shoppers:

  • Touched items casually – In passing or without looking closely at item
  • Touched items with intent – Close inspection of item’s style, size, price, etc
  • Picked up items – Unfolded or taken off hanging rack
  • Held items up to the shopper’s body – Checking sizes or color against their body
  • Tried on items
  • Made a purchase – We could not observe what items were purchased to determine if they were originally folded or hung up.

GAP has an open layout with displays breaking the space visually, and Banana Republic has walls dividing it into several small areas customers maneuver through as they shop. We found that the layout differences did not affect the results and similar shopping patterns were found regardless of the store.

What we did find

Customers were at least 3x more willing to touch and pick up hanging items then folded ones. Our 26 patrons only touched 73 folded items with intent, and 40 were picked up and looked at more closely, as compared to 263 hanging items that were touched with intent and 129 taken off the rack and inspected. On average shoppers would touch 10 hanging items to only 3 folded items. So if you have the space and means to hang your clothing, please do so.

Shoppers strongly interacted with 30% of the folded items they picked up and 41% of hanging items. But 38% of subjects (10 of the 26) did not pick up any folded items. The range between these categories also indicates that shoppers don’t just touch more hanging items than folded ones. When shoppers touch and interact with folded items they do so with fewer total items then with hanging clothes.



Why do shoppers avoid folded items?

There are a number of reasons, but we think the intimidation factor of having to unfold and refold items could be the key.  There is a certain amount of effort in inspecting folded clothes, and let’s be honest if we don’t fold them back properly then we feel guilty.  So folded clothes require more time and effort that many consumers aren’t looking to spend.  Folded items may also look too much like a ‘display’ that is not to be touched while hanging clothes remind us of our closets making them more accessible. The major exception is folded pants, which are easier to fold than a cashmere sweater, and are often stored folded in our homes. We noticed that shoppers who touched primarily folded clothes were looking specifically for pants.

Display mannequins accompanied almost all of the tables with folded items. A mannequin may present the folded item in hopes of alleviating the unfolding burden for shoppers, but this does not increasing a consumer’s ability to ‘make it theirs’ which happens as they hold, feel, and interact with items during the shopping process.

Solutions: The trick is to remove the intimidation around a shopper ‘messing up’ a display and still allowing them to interact with the items. We only noticed two subjects acknowledge the mannequins and their contact was brief, although one did find the displayed item and take it.

  • Having a ‘Tester’ item that is not on a mannequin or folded neatly with the rest should tell shoppers that it is okay to touch this and encourage interaction. This could be done with the ‘Tester’ being on a hanger near the table, or on a display that tells customers it is ok to touch.
  • Having signage encouraging interaction will also help. ‘Touch me, I’m soft’ said the cotton crew neck. This blatantly tells customers that they should interact with the merchandise and can create a fun store atmosphere.
  • Mirrors always make people stop and check themselves out. Having a mirror near folded items (perhaps with a sign that says, ‘How’s it look?’) will increase item interaction.

We had a great time observing shoppers, and learned a great deal about consumers and how they shop. We’d like to again thank the GAP and Banana Republic at Utica Square for letting us conduct our retailing research. Let us know of any other solutions you’ve found to this issue or if you would like the Cubic Interns to observe at your business.

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Interns in the Field: Part 1

Posted July 22nd, 2010 by cubicans | 1 Comment

Recently, Cubic’s two social media interns Stephanee Rice and Meggie Clemens got inspired for a taste of marketing research.  In a quest for new ideas and projects, our astute interns finally landing on consumer behavior, specifically the science of shopping. This new found enthusiasm based on consumer behavior is sparked by the work of Paco Underhill, who is known for “Call of the Mall, and Why We Buy.”

Two stores gave Stephanee and Meggie permission to observe their customer’s shopping behavior as part of their internship and school project.  We would like to sincerely thank Gap and Banana Republic in Utica Square for allowing our interns to carry out their research, and will be receiving copies of our findings.

Last Friday, July 16, Stephanee and Meggie ventured out into the wild to partake on a little marketing research by observing shoppers and their behavior.   The mission: to set out and observe shopping behaviors to see what makes people tick while giving our interns some invaluable insight while answering the age old question, “How do people shop?” Various factors and shopping behaviors were measured from a random selection of shoppers, including: gender, casually touching items (both folded and hanging), intently touching items (both folded and hanging), holding items up to body, trying on item, and buying item.   Our interns were very excited to embark on this venture and learned the basic steps of stealth observing.

We look forward to post another blog soon about the findings from their research, so stay tuned.  In the meantime, please tell us what you think about consumer behavior or other types of marketing research.

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Marketer, Know Thy Audience: A brief look at Consumer Profiling

Posted July 21st, 2010 by cubicans | No Comments

Granted we want everyone to buy our products, but is it really possible to catch new customers with a wide marketing net? Doubtful considering the barrage of advertising that an individual sees every day. The best way to get someone’s attention is to speak directly to him or her. This doesn’t mean direct mail or cold calling the phonebook, that would cost your advertising budget more time, effort, and tears than it is worth. What you should do is know your customers and talk to them where they already are.

Who do you think is your potential customer? Who is the product intended for? Who is actually purchasing the product? When you create a marketing campaign it is integral that you know your audience so that you can speak to them directly and address their needs selling points.  Look at the following areas to discover the identities of your shopper.

  • Demographics – Age? Is there a generation gap, why? Can you expand your product to new age groups, how? Gender, who does the buying? Is there an ethnic identity that is predominant for your product, why?
  • Geography – Where are your customers and potential customers? How does their location affect the way they buy your products? Can you make the buying experience easier for customers to reach physically?
  • Psychographics – What are their hobbies and interests? Where do they socialize and look for information? Can you advertise there? Does your firm/product offer you the ability to interact with customers based on these interests?
  • Attitudes – How do they feel about your (or comparable) products? What are they looking for in products? Do they buy your product because it is the only option or because of a specific benefit (what is that benefit)?
  • Buying Behavior – How do they encounter and interact with your product (in the store, online or both)? What and how do they buy? Can you make their buying experience easier, faster, or more enjoyable?

If you know the customer, it increases your interactions’ effectiveness. You can communicate meaningful brand values and product benefits to the people who are most likely to buy it.  Firms get a better understanding of the selling points of a product when they know who is using it and why. They can improve on and create companion products to further build brand loyalty.

Once you have a handle on who your customers are you can further categorize them as to how profitable they are to you. Creating a matrix that distinguishes between high profit customer profiles with large growth potential down to the one time purchase customer profile. Identifying these groups will help create ad campaigns focused on the customers you want the most and cut wasted advertising on low growth profiles.

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Shopping Senseless

Posted July 15th, 2010 by cubicans | No Comments

Online shopping is a world away from traditional retail therapy.  Shopping online is an escape, it enables us to get away from work, school, and lets us purchase from the convenience of our own home.  Home is the ideal place for our senses, we are relaxed and comfortable; most importantly we aren’t bombarded by obnoxious music or head clouding scents.  But what are we really giving up by shopping online?

Using our senses is the foundation for how we shop.  We initially inspect the style of our clothing by looking at the color, cut, and label of our items.  After we look, we touch.  Touching inspects the quality, texture and fabric of those items.  This is the make it or break it moment for clothes. For some, if we detect the slightest hint of polyester, rayon, acrylic, or spandex we are inclined to say nay.

Shopping online has limited our senses.  Four senses of traditional shopping are now limited to one, vision.  Websites must focus on the visual aspects of clothes, because without it they would have nothing. The goal is for vision to create a full user experience by allowing features like close up views of the fabric and different angles of the clothes without physically touching or wearing the clothes.  A short description of the clothes is made in attempt to compensate for the inability to stimulate other senses with a hope to persuade the shopper to make the final “check out” with full bags.

Online shopping has created a wall.  We can no longer tediously inspect a pair of jeans, measure the color, fabric, and style with the ultimate goal of trying on the jeans asking the million-dollar question, “How do these make my butt look?” This is the selling point of clothes.  Trying clothes on allows us to sit in the car before we take it for a ride.  Obviously, by shopping online we are missing out on a fundamental step of purchasing behaviors.  So how do we compensate for this step? Unfortunately it is not easy to compensate for the in store experience.

If online purchases are unsatisfactory, then returns are made easy with pre-labeled shipping returns and prompt refunds. Besides that we are left in the dark.  We can only hope the measurements for each size is accurate and that the clothes fit properly. Until the day comes where shoppers can upload life-sized digital versions of themselves and touch potential clothing online shopping will be at a loss for our senses.

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Quick Tips to Survey Success

Posted July 13th, 2010 by cubicans | No Comments

Is conducting a survey as easy as just asking questions? Well, yes and no. A survey is a series of questions you ask a particular group of people. Common marketing research goals are to somehow better the business or product. There are, however some pitfalls that stop research from being productive. Below are some general tips on how to create a survey.

1. What are the goals of the project? Just asking questions for the sake of ‘doing research’ is expensive and wastes time for all involved. Any project needs to have a specific question it is trying to answer through the research. Examples: Customer opinions on a current (or new) product. Employees’ job satisfaction levels. Testing new advertising promotions before launching the campaign

2. Who is the target sample? Who you ask the questions to is integral to research if you want reliable results. You may want to get answers from current customers, non-customers, your own employees, or a segment of your geographical area. It is important to get a representative sample so that results do not show a bias and can be generalized to the greater population.

3. Where to ask the questions? There are several ways to conduct a survey, each with advantages and disadvantages. Choosing a method relies heavily on who the target sample is and where they naturally interact. Meet them where they are so they will be more willing to participate.
  • Personal Interviews offer great qualitative incites, however they are expensive, require well-trained interviewers and are time consuming to conduct and then to code later.
  • Telephone Surveys are usually reliable ways to contact respondents, however current trends show that landline phones are on the way out and mobile phone numbers are not readily available; they are also time consuming like interviews.
  • Mail Surveys are less expensive and offer more visual elements to the respondent, however they can take longer to receive results and multiple requests to any respondent increases costs, especially if addresses are not current.
  • Computer Direct Interviews & Web Page Surveys are surveys conducted on a particular website. They offer anonymity to respondents and the computer can cater the survey based on previous responses, however you will only get respondents with access to computers and the Internet who are already on the site.
  • Email Surveys are FAST & GREEN, however limited to those with Internet access and email addresses (this is becoming less of a factor, but should be considered for certain sample groups). Being categorized as SPAM can also be a problem.
4. How to design the survey? The physical appearance (online, email, mailed surveys), the question order and quality of the information given (introductions, instructions and the questions themselves) all influence whether or not a respondent will take the survey and the quality of their answers.
  • Introductions should appear in a cover letter or front page of the survey and include a survey title, identify who you are (or disguised as), the intentions of the survey, and how respondents are to complete it (such as offering a link, address, or phone number). Appeal to a respondent’s altruistic senses: Your answers will help us make a better product, company, buying experience, etc. Their answers are important to you and here is where to tell them.
  • Question Order needs to keep your respondent engaged. Open with questions that are interesting and focused on your topic to create a rapport. Group questions by topic; if there are several in one group split them up with a smaller set of questions so the respondent does not get frustrated and quit. If you have recall questions make sure the information is not presented in an earlier question. Demographic and sensitive questions should be put towards the back of the survey.
  • Keep it short; overwhelming respondents with too many question or complicated instructions will decrease response rates. If a question does not measure something pertinent to the project drop it! Be consistent in how you set up questions; common types are multiple choice, Lickert (rating) scales, and open-ended questions.
  • Simple Symbolism can help respondents maneuver through the survey. Be sure to use common symbols anyone in the sample would understand. Arrows and stop signs are universally understood.
  • Pretest, PREtest, PRETEST your survey with a small group to ensure that the instructions are clear, your questions make sense, and answers are exhaustive. Test links to the survey, format and ease of use for the medium.
These tips should keep your response rates up and results relevant. We’ve all come across survey opportunities, and we’ve all turned some down for one reason or another. So keep it short and sweet, engaging and if you think it’s boring so will your audience. We would love to hear some of your tips and comments.
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Which social networks appeal to Hispanic students?

Posted July 8th, 2010 by cubicans | No Comments

Our Online Marketing Specialist, Javier Flores, recently conducted several focus groups on Hispanic high school students ranging from freshmen to seniors. To keep one gender from influencing another we split the groups up into an all male and an all female group, given that Latin men are known for being machistas (Exaggerated pride in masculinity) when there are females around.

Our objective for the focus groups was to understand the answer to this question, que es social media to you? This topic opened additional topics around social media, such as civil rights, culture and family. The male students were more receptive to the topics compared to the female students.

We started by asking students what social media meant to them. The majority of the students stated that it is a way to communicate with their amigos and familia. The Hispanic culture is very family oriented and as result parents are very influential in their children’s life. Most of the students from the focus groups were born in either Mexico or in the U.S. but they all seem to speak Spanglish at school. At home most students speak both languages and in some cases it depends on which parent they are speaking too if they speak English or Spanish.

Which social networks appeal to the students? MySpace and mun2 (a national Cable TV station aimed at young Latinos in the United States) were the top two social networks among the Hispanic students. The name mun2 is pronounced “moon dos” which is written “mundos” in Spanish meaning “worlds” in English. MySpace is appealing to them because you can customize your page, express your individuality and embrace your culture. mun2 is focused on the Latino entertainment industry, where you can discuss with your friends about novelas (Latin soap operas), music videos or check out what your favorite artist is doing. It’s similar to MTV but with a focus on the Hispanic market.

There are two very unpopular social sites among Hispanic students, and they are rather surprising … Facebook and Twitter. They find Facebook boring and state that only older people use it. Twitter does not interest them because you can’t interact directly with your friends. The most prominent emerging social site for Hispanics is QuePasa, now with 15 million users, followed by MTVtr3s and MySpace Latino.

Here are some stats on social sites used by Hispanics:

YouTube.com, 15 million monthly Hispanic visitors

MySpace.com, 8.8 million monthly Hispanic visitors

Facebook.com, 6.2 million monthly Hispanic visitors

Twitter.com, 3.0 million monthly Hispanic visitors

Univision.com, 1.9 million monthly Hispanic visitors

Statistic Reference: Hispanic Online Marketing

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Toy Story 3 meet Social Media

Posted July 6th, 2010 by cubicans | 1 Comment

Finally, eleven years after the popular animated movie Toy Story 2 the long awaited sequel Toy Story 3 is here. And Disney-Pixar is pulling out all the cards to ensure proper exposure for the film’s debut. Toy Story 3 has appeared in various commercials including US Postal Service priority rate shipping, Visa debit card, and Aflac.  But how are these efforts going to surpass other blockbusters like Shrek Forever After, geared toward the same target audience?

Disney-Pixar has aimed for the social media target, using both Facebook and Twitter to allow for more exposure of the popular film. On Facebook, Toy Story 3 has over 2 million likes, a very funny toy creator, interactive video games, and ticket purchasing options.  Fortunately, these features are fun for both adults and children and a wide variety of customers may be reached because of this.

On Twitter, Disney-Pixar is the first company ever to have a successfully promoted trending topic. Just like regular tweeting trends, Toy Story 3 appears at the bottom of the trending list but it’s highlighted yellow and clearly labeled “promoted.” The response has been great and Toy Story 3 has been a large topic of discussion on twitter and has countless retweets.  Yes, Toy Story 3 has become quite a buzz topic for their use of promoted tweets.

This popularity of promoted tweets leads us to think, has Disney-Pixar’s release of Toy story 3 sprouted a revolution for promoted tweets?  Well, slightly.  Twitter has stated they will not be running promoted tweets for every brand, but that promoted tweets have to “resonate with users.” This is aimed to cut out potential promotional tweets that will not be discussed or accepted by twitters users.  Other brands such as Best Buy, Red Bull, and Starbucks were brands that first used promotional tweeting, yet none have experienced such success as Toy Story 3.  The success from Disney-Pixar’s promotional efforts appears to be a perfect mixture of all the right ingredients which has no doubt made Toy Story 3 this summer’s biggest blockbuster.

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Nike Not Afraid of FIFA in the Least

Posted June 30th, 2010 by cubicans | No Comments

If you have been rummaging through the World Cup videos on Youtube you probably have noticed that the only FIFA sponsor to consistently rank at the top of the list is Visa, but pay close attention, that ranking is not organic but instead a paid placement. No matter what, Visa is hoping for a big marketing GOOAALLLL by inviting people to post their ‘Goal’ videos, and offering gift cards and prizes for watching the entries.

In light of FIFA’s attacks on small firms it seems interesting that a World Cup search on Youtube lists on top many non-sponsors like ESPN and Pepsi’s Oh Africa ad. Nike’s WRITE THE FUTURE commercial features world wide soccer pros playing their hearts out and striving to be the best in their sport and fans celebrating their skills and success. There are no direct mentions of the World Cup. However, soccer players striving to ‘Write their future’ would seem to imply making it to the World Cup.

Nike faced off with FIFA (Federation Internationale de Football Association) in 2003 before the Women’s World Cup, disputing the use of “USA 2003” which was the FIFA slogan and Nike’s ‘Swoosh’ + “USA 03” logo used for clothing and media. Nike won that suit because FIFA’s repeated use of the country name plus the year of the event is not distinctive enough to establish a secondary meaning and thus a trademark to be infringed upon. This argument did not take any precedence in the South African court case FIFA v. Metcash (most likely due to the different jurisdictions of the courts).

Nike’s WRITE THE FUTURE campaign has swept the world on Youtube, receiving more than 17 million views, while competitor and FIFA sponsor Adidas does not even show up on the first page of videos. When found (and you have to literally search “Adidas world cup commercial”), the Adidas ad features the cantina scene from Star Wars with David Beckham and Snoop Dogg, and has only been viewed by fewer than 4 million people. Both companies sponsor multiple teams in the tournament and hope to have their team win it all, but marketing between these rivals has been rather one sided.

Nike has also kicked it up a notch by constructing a huge statue in the Carlton Center shopping mall in Johannesburg, SA. Nike’s Ballman was constructed of 3000 yellow soccer balls suspended from the ceiling of the atrium inside the mall. Nike is throwing their influence in the face of FIFA who had bought up all the advertising rights inside the stadiums as well as along high traffic streets throughout Johannesburg. There are no reports of a lawsuit against Nike this year.

Courtesy of weheart.co.uk

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Meet iAd, Apple’s custom mobile advertising

Posted June 16th, 2010 by cubicans | 1 Comment

When Apple released the new iPhone 4 they also released some advance details of Apple’s own mobile advertising, iAd, and other ad platforms should find it intimidating.  But why does Apple need its own mobile Advertising? According to Steve Jobs the whole purpose in creating iAd is, “To help our developers earn money so they can continue to create free and low-cost apps.” True to his word, developers of iAd receive 60% of Ad revenue, an industry standard. Not to mention Apple has about 100 million iPhone users, and a projected 1 billion iAd opportunities totaling $60 million, meaning Apple is in a prime position to head the mobile advertising wave.

So how is iAd different than all the other mobile advertisers? iAd is designed specifically for iPhone apps, so users are kept in their app after clicking an ad, thereby streamlining the ad-viewing process without opening a browser or leaving the app to explore the ad. This new type of mobile advertising makes for effortless viewing of ads and enhances the overall user experience. iAd integrates the emotion of TV ads with the interaction of web ads to allow for a better type of mobile advertising that has not yet been explored. Each Ad is matched with apps in corresponding categories to best meet target markets. iPhone users are able to play games, watch videos, use Google Maps, or even purchase games using iAd. Apple demonstrates the effectiveness of iAd with examples of Toy Story 3, Nike Air Jordan, and Target. To see an example of Nike Air Jordan using iAd watch the first two minutes of this video.

The controversy begins with Apple’s restrictions on who can develop ads for the iPhone; Apple’s current position is that ads may only be created by app developers and small independent advertising companies who don’t develop mobile software or mobile devices. This policy leaves out big advertising competitors such as Google, Nokia and Microsoft, and these companies are not happy about it.  Google is especially concerned, with their recent purchase of mobile ad leader AdMob for $750 million; Google is now locked out from the iPhone ad market, which AdMob previously dominated.  This could mean a potential loss of huge ad revenues for Google and a diluted valuation of their AdMob purchase.

iAd is now being scrutinized for being a possible monopoly. While Apple has not stated why their policy is designed to leave out big companies such as Google, speculators believe Apple does not want its competitors to have access to some sensitive information such as the iPhone’s OS and usage of apps on Apple’s platform.  Seems like Apple could be on thin ice but will leave that up to the lawyers to decide. In terms of advertising, Apple has done it again; iAd has incorporated ads in ways we’ve never seen before.  Apple has developed another revolutionary tool that will pit the mobile advertising world in a battle over mobile ad space.  If Apple can maintain its position on rules and regulations for its developers, then the mobile ad leader will no longer be Google but another development of Apple.

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iPhone 4 revealed, and it’s even better than the hype

Posted June 7th, 2010 by cubicans | No Comments

It is finally here, after 18 months in development, the iPhone 4 is three weeks away. It is the thinnest smartphone on the planet, 9.3mm thick, 24% thinner than current iPhone, glass on front and rear with stainless steel running around the side. “When you hold this in your hands, it’s unbelievable,” said Steve. Multitasking is the highlight on the iPhone 4.

Features:

There are over 100 new features; one of the biggest components is the battery, 40% more talk time, 7 hours talk time, 6 hours of 3G browsing, 10 hours of WiFi browsing, 10 hours of video,  40 hours of music and 300 hours of standby.

Video Calling: Apple calls this “FaceTime.” There’s no set up required, iPhone 4 to iPhone 4, anywhere there is WiFi (planned for 3G on a later release). All you have to do is make a phone call. iPhone 4 comes with both front and rear cameras, and both can be used with FaceTime, and both portrait and landscape modes are supported. Today’s WWDC Conference shows a father watching his kids while on a business trip, grandparents watching a graduation, two girls showing off to each other what they’re wearing. “Video calling was a dream, but it is real now!” said Steve.

The iPhone 4 is powered by the incredibly small Apple’s A4 chip, designed and manufactured by Apple’s team. Plus, the chip is environmentally friendly. With higher resolution artwork, apps and games on Retina Display “look stunning.” Retina Display is 326 ppi and is 4x better than 3GS.

The camera uses IPS technology for superb color and wide viewing angle, and It can record, edit, and share HD video right on your phone, with embedded geolocation. It can record directly into your timeline or you can choose from clips and photos on the device. Other new features include a 5x digital zoom in camera app and tap to focus (in both photo and video) with LED flash (or always-on in video mode). Music can easily be added from your iPod or iTunes library.

Price and Availability:

With a 2 year contract, the iPhone 4 is priced at $199 for 16GB model, $299 for 32GB model and it comes in two colors, white and black. On sale June 24th, pre-sale June 15th.  AT&T is making an “incredibly generous” upgrade offer, up to 6 months of early eligibility for an iPhone 4. Canada is not in the initial batch of countries that will get the iPhone 4 on the initial launch date, but iPhone 4 will sell in 88 countries by the end of September.

“This is going to change everything all over again.”

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