Ride the Wave

I think that one of the most innovative products that should soon be entering the market is Google Wave. I learned about Google Wave through my most recent internship at ConocoPhillips through our Direct of Digital Media. While it is not yet available to the public, Google Wave possesses many characteristic which classify it as an innovative product.

Real Time Updating & Integration

Google Wave integrates many of the most utilized and positive aspects of many other social networking sites. It has the ability for users to update their respective “waves” and embed rich text, media, video, etc, and then playback their wave to see who has been updating what and when. In addition, when users are updating their waves, other users can see them updating the wave in real time.

Entertainment

Google Wave’s inception was initially for social networking purposes and for an entertainment purpose. Many companies have partnered with Google Wave to provide entertainment value to the customers who are using Google Wave. This integration of rich audio, video, and games makes Google Wave very appealing to younger customers.

Business Usage

In addition to entertainment value – the ability to update in real time and playback waves of updating, business uses for Google Wave have also begun to develop. SAP and Salesforce have also begun to develop business uses for Google Wave. It integrates into the theory of cloud computing and the opportunities and positive impacts of cloud computing.

The Effect of Expectations

The Effect of Expectations

The main example that Ariely uses to illustrate his point is the beer example. In the experiment three different scenarios were presented. In the first scenario the college students were given the choice between MIT Brew and Budweiser without receiving prior information of the balsamic vinegar additive in the MIT Brew. In this case, the MIT Brew won over Budweiser. In the second scenario the students were again given the choice between MIT Brew and Budweiser but were informed of the vinegar prior to choosing which beer they wanted. In this case, Budweiser won. In the third case the students were given the choice between MIT Brew and Budweiser but were informed of the vinegar additive after tasting both beers. In this case, MIT Brew won. This scenario demonstrates that preconceived notions/incoming information can significantly impact consumer behavior.

Consumer’s premature judgments can create self fulfilling prophecies. If a customer perceives your product or brand in a negative light it can have a negative impact on their experience. For example, if a customer has a negative perception of your product and subsequently trials the product, the likelihood of satisfaction will be lower and likelihood of repurchase or recommendation is also low. On the same token, we have the influence of positive associations – in cases where a product or brand can build on existing positive associations in the consumer’s mind, they are essentially building their brand equity at little to no cost. Due to the fact that the customer will associate the brand/product with existing schemas, the brand doesn’t need to work as hard to become a part of the consideration set of the consumer; subsequently building brand loyalty is easier.

In order to combat the effect of negative perceptions, prudent marketers should positively prime subjects in order to create a better perception on the brand or product. By priming the customer with positive associations and reinforcements, the marketer can increase the likelihood that a customer will purchase or repurchase a product.

To extrapolate this theory, we can consider two books with identical content.

Case 1: Book with positive endorsements from a celebrity author providing praise in support of the book

Case 2: Book with no endorsements from a celebrity author

In such a case, the likelihood of a customer to purchase a book in Case 1 would be higher than the likelihood of someone to purchase a book in Case 2.

Personally relating to the theoretical scenario, I recently purchased the book “The Lovely Bones” by Alice Sebold. On the front cover of the novel, there is a quote from Time magazine which says

“A triumphant novel…it’s a knockout”

This influenced my decision to purchase the novel as I maintain a set of perceptions about Time magazine as credible, knowledgeable, and an expert in publishing. It appears that the publishers of “The Lovely Bones” built on the positive associations I have with Time magazine to influence my purchase decision.

This Is What I Want From You

1. Clean Design: I’m immediately drawn to anything that has clean, polished look to it. It doesn’t matter whether it’s a product, a designed room, an advertisement, an outfit. As long as the design is clean and polished, yet warm. I’m attracted.

2. Pop Culture References: Any reference to pop culture will immediately catch my attention. The title of today’s blog was inspired by Bravo’s Flipping Out’s Jeff Lewis. It’s a quote he said on the show. I’m obsessed with TV and all things on it. I constantly have new shows to record on my TiVo and use TV shows as a basis of many of my conversations. It’s an addiction. I know. I don’t care. If a marketer can relate to me on that level, reference something in pop culture. I connect instantly.

3. Make it Integratable: With anything I get, I want to be able to integrate it into my existing processes or products. Case in point, I have a TiVo. When I wanted to buy Flipping Out Season 1 from Amazon Unbox, I learned that I could watch it on my TiVo AND online. Perfect. I love when things integrate without having to be “hacked” personally modified to fit my specifications.

4. Authenticity and Originality: I love to see an original and fresh point of view. Bring me something that I haven’t seen, something that is distinctly your own. For example, the musician Jay Brannan. Something I haven’t heard but something distinctly him. He isn’t on a big record label and there is nothing else out there like it and that draws me to it.

Can't Have It All - Jay Brannan

5. Local Flare: Relate to me on the local level. Recently, I travelled to Portland, Oregon. Where I subsequently fell in love. I love to find local magazines. Find the local hotspots, where the locals like to go. I find that when a marketer can get me at the local level, wherever I am Austin, Portland, or Boise (my hometown) and communicate at that level. I’m instantly sucked in.

6. Fashion & Trendiness: I like to be up to date with my fashion and like to follow trends; whether it be the Pashmina scarf or my skinny jeans. I spend a good percentage of my extra cash on clothing. With that in mind, if an item is currently trending in and is a little more expensive I’ll spend the money to stay up with it.

7. Affluence Aspiration: Closely associated with fashion and trendiness is the factor of affluence. I will buy a pair of Rock Revival/Rock and Republic/Seven Jeans even though I know I could get a nearly identical style for half the price. I buy expensive cologne and hygiene products (shampoo, hair products, etc) even though I could get something that would achieve a similar result. When something is priced higher and promises better quality with a connotation of affluence I am more likely to purchase it.

8. Creature Comforts: I love all things comfortable. I’m not willing to sacrifice my comfort for the sake of a lower price. I’ll spend the extra money on a Tempur-Pedic mattress or an 80 dollar oversized “Nap” blanket from Brookstone. The same goes for clothing. If it’s wool, I won’t wear it. It must be soft, it must be comfortable.

9. Family Oriented: Anything that brings me closer to my family is a major plus. I’m originally from Boise, Idaho and don’t get to see my family that often. Any service I can use to make me feel closer to them I will spend the money to get. Unlimited texting, Picture/Video Mail, Skype; these services connect me to my family, and that’s just with my phone. I appreciate when a marketer can bring me something that makes me feel at home.

10. Fitness: I subscribe to two magazines Men’s Health. As a former “fatty” I try to go to the gym 5 days a week. I listen to Jillian Michael podcasts online and purchase fitness books as well as use online sites like Livestrong.com’s “Daily Plate” function and more recently have been tracking workouts through Bodybuilding.com’s workout logs. I’m constantly using different forms of media to gain knowledge about fitness and health.