Blog 2 - Ron C.

How has consumer behavior has shifted in the past, and will shift because of this recession?

Consumer behavior is influenced by many factors. Technology is always progressing and causing changes to the interaction between customer and product/service. For instance, the revolution in the film world when VHS became popular and people no longer relied on movie theaters to see movies. Economic changes can affect how much consumers spend versus how much they save as well as what they spend money on. Recession usually causes people to save more. When consumers spend during a recession they are more likely to seek out the best deal or buy lower quality products that are less expensive than their favorite brands.

www.walletpop.com/blog/2009/11/05/recession-tales-saving-vs-spending-a-tough-battle

I would argue that consumer behavior has already been affected by this recession. With such a high unemployment level and costs that continue to rise, most people have already changed the way they buy.

http://blog.nielsen.com/nielsenwire/consumer/new-rules-the-crisis-has-changed-consumer-behavior/

How does design develop brand truth?

I think design develops whatever the client would like to suggest to the customer is the truth about the product. Design can obscure the truth by focusing attention on the brand’s message, while downplaying any possible negative truths about the product. For example, many new drugs on the market like Lunesta, which is disguised as a helpful drug that helps you fall asleep...never mind the fact that it has been shown to cause suicidal thoughts, hallucinations, amnesia, depression, anxiety, headaches, nausea, constipation, and severe allergic reactions. The design focuses on the possible beneficial effects, and only mentions the other things because the company legally has to.

http://www.drugs.com/lunesta.html

Is there a difference between producing happiness and producing brand loyalty?

Sometimes happiness and brand loyalty can be fused into one, like maybe Apple, but I would argue that the two are different. A product or service may increase my happiness, but it’s not necessarily the brand that gets the credit. The brand is one of many vendors who offer the product I desire. If one outshines the rest I may stick with it, but it’s not the brand that makes me happy...it’s the product/service. For instance, roller coasters make me super happy, and the one at Six Flags may be my favorite because it’s closest and consistently fun, but the roller coasters at Knott’s Berry Farm will provide the same thrill when I’m there.

http://scottjeffrey.com/2009/11/source-of-happiness/

Blog 2 James

Consumer bahavior has made a dramatic shift from consumer behavior. Primarily, more and more people are wanting creting control over the branks that they identify themselves with. The products that they consumer are the products that the consumer wants to have creative control over.
Due to the recession, modeling products first digitally for the consumer, involving them in making structured choices, to give the consumer an exact idea of what their self created end product may look like.
The Recession too blankets society in a cover of fear and worry. Worrying if their standard of living is going to change as their dollars buy fewer and fewer goods.
One of the great things that makes Nike ID so successful, is exactly what the brand implies. It's taking "Nikes" and it take "you" the consumer. Through means of technology, parts of peoples lives that may take a hit dorectly due to the recession, may still enjoy the same standard of living through wireframing the consumer/consumption process.
The recession to makes people worry that everything with be commodified and everything that we look like is a brand of some commercial entity.
When talking about design and develping design truth, truth in design come from the interactive process that is enveloped in the design. The process and the visualization of the actualization of any product, from start to finish, given a period of time, helps reaffirm design truth.

Is there a difference between producing brand truth versus brand loyalty? Absolutely. Cosmetics typacally are brands that have claims that they just can't live up to; claims that are more justly found on the business end of the plastic surgery knife. But purchasing a brand of cosmetics for a woman can be an exilirating experience, especially based on the precept that this cosmetic may actually do something for them. The cosmetics give the consumer a sense of happiness, satisfaction and contentment and the reassurance of a consistent brand, keeps the customer loyal and coming back. Loyalty, comes from the consistent reinforcement of what the brand stands for to the customer. During a time of recession, companies need to make sure that they position themselves as accutely and accurately as posible.

Intersting...where does the reponsibility of happiness lie. As to whether or not we should be happy, the question is are we happy and where does that happiness come from? From within, from the things and items that we seek out?

http://www.responsibilityproject.com/blog/post/the-pursuit-of-happiness-are-we-responsible/?src=keyword_s=yah_K=SearchForHappiness_C=Altruism_G=PursuitOfHappiness_Happiness_M=broad&OVRAW=what%20is%20the%20difference%20between%20brand%20truth%20and%20brand%20happiness&OVKEY=and%20happiness&OVMTC=advanced&OVADID=28960431521&OVKWID=253534770021&OVCAMPGID=4115649521&OVADGRPID=12304091409&OVNDID=ND2&ysmwa=_sUeHUWMJPn2aYSI7Q_yIWgcSMpAGukhijCU1ifLN52dOOek9qltgqDh7G5TzhVI

Elliott's Blog Post #2

· How has consumer behavior shifted in the past, and will it shift because of this recession?
I believe that consumer behavior usually changes when new products and new technologies are created. Personal CD players used to be the item to own in order to listen to music on the go. As soon as mp3 players like the iPod were invented, consumers ditched their CD players and jumped on the mp3 player band wagon. We as consumers always want to be up to date with the current trends and the newest technology.
Consumer behavior will probably not change during the recession if no new devices or gadgets are being produced. However, if a new method of listening to music is created that is better than the iPod, then consumers will doubtlessly follow the new trend regardless of whether they are in a recession or not.


· How does design develop brand truth?
Every aspect of design is trying to support the brand and develop brand truth. Take Quiksilver for example, they describe themselves as a company that "produces and distributes clothing, accessories and related products for young-minded people and develops brands that represent a casual lifestyle driven from a boardriding heritage." The design of their website (http://surf.quiksilver.com/index.aspx) reflects this feeling and helps give the brand some truth. They are more believable as a brand with their surfer imagery and hand written typography than if their designs were say grayscale with small typography and fewer images.


· Is there a difference between producing happiness and producing brand loyalty?
I think so. To me producing happiness is very short term whereas creating brand loyalty is more long term. You can create a good advertising campaign that will win over customers and they may buy your product and experience "happiness", but as a company you must be able to deliver in the long term and keep your customers satisfied. Creating a brand that customers become loyal to is more important than producing short bursts of "happiness" for your customers that eventually wear off.

Blog2-Tyler Kellogg

Customer behavior will always fluxuate in order to accommodate the economic times, however I feel that because of our current economic situation, also known as a recession, customers are looking for a way to become more individual. Companies such as Nike, Oakley, and even Burton are the ones that are providing this for their consumers with NikeiD, or customizable goggles from Oakley and personalized phrases or artwork on the bottom of your snowboard deck from Burton. Although for these corporations, now that they have given the customer this amount of power, it is not really something that can be taken back from the consumer. It will be interesting to see how Nike and companies who adapt to personalizing their products for consumers adjust to this in the future.
Burtons Series 13 Project
http://www.series13.com/Default.asp

Design helps to develop brand truth in many ways. From beginning to end the design process determines the direction of any company or idea. These different elements of design from everything from color palette to a TV commercial are ways to tell the customer what exactly this company is about and also why they are important. If a single element of a companies branding strategy is off, it can completely mislead a customer in the brands message. If a customer is misinterpreting a brands message the there is a quite obviously something wrong within the design and the way that the brand is being represented. These two elements must work hand in hand in order to reach the consumer in a way that is both interesting and important in order for the brand to become successful and gain a loyal consumer base. In addition to this the brand must establish itself in a way that is able to differentiate itself from the rest of the marketplace and establish some sort of meaningful connection with its audience.
http://www.smithandjones.com/content1264

Personally I feel that there is a difference between producing happiness and producing brand loyalty. Although I also feel that these two must follow a similar path in order to create a successful brand. If a customer is not happy with a product or brand, chances are they will not return to buy or use that product again. As a brand you must be able to make the customer happy with the product that you create before you can even begin to think about them becoming loyal to the service that you provide. In this way I feel they are quite similar, however there are many products out there that may make me happy, but this does not necessarily mean that it is going to make me loyal to that specific brand. Although chances are I may feel more comfortable buying that particular brand again, I may feel that there is another brand out there that could possibly do it better. I truly feel that happiness and brand loyalty fall within the product that is being sold and the consumers wants and needs. This issue also deals with the idea that although one product may taste, look, or feel better or worse, the consumer may still buy a particular brand based specifically on status of the brand. For example, take our recent study of Starbucks. Many people love the taste of Starbucks coffee. It makes them happy even when paying $3 to $5 per cup. Even though the taste and status of this coffee may the consumer happy, there are other factors that come into play when discussing brand loyalty, such as what type of ethical business decisions the company is making. I know that I am not the only person who feels this way about this particular coffee giant. Although drinking a cup of their coffee may make me happy in terms of my own taste buds, this does not mean that I will return to their store again simply based on their business decisions.

Blog 2

People today are given the luxury of providing their own look and feel for certain products. Marking will soon have to adjust a considerable amount more than they have over the past several years in order to retain interest in the market place and keep up with the competition. With the arrival of the Web a new form of advertising was possible where companies are able to pinpoint their target demographic by tracking user habits or advertising based on page content. Furthermore, classic mediums for advertising have been loosing attention to the web as younger people are finding interest in rich media online, and social networking sites. This article in New York Times discusses the newest trend in advertising, which is advertising on Webisodes.
http://www.nytimes.com/2009/11/24/business/media/24adcol.html?_r=1&src=twt&twt=nytimestech
Halfway through last year there were over a hundred newspapers to close down because of general interest moving towards the web.
http://www.businessinsider.com/the-death-of-the-american-newspaper-2009-7
As people get more and more used to the interactive and pinpoint style marketing techniques, reaching a customer base by way of print will soon part of antiquity.

Design is the communication tool that companies have to inform and promote. When good design brings clarity of your message to a customer they know and understand the purpose of a brand. Truth can partly be the message that you are trying to communicate but that’s only half of the formula. You have to be sure that people understand your message.

Happiness is a fleeting moment that can’t be produced by a product or a brand. The best you can do is to provide accommodations for a person to be happy. You can lend a positive attitude that some may follow and if you do this with efficiency and consistency you may be able to gain brand loyalty from those who are receiving your message, but they are definitely not the same. People can be loyal to a brand through some very unhappy times, and it could even be the product making them unhappy (e.g. Microsoft makes people unhappy all the time but they still sell computers).

Blog 2 Jacob Imlay

• How has consumer behavior has shifted in the past, and will shift because of this recession?

The following blog outlines consumer behavior shifts and it’s effects during the great depression. http://tribalinsight.wordpress.com/2009/05/23/part-four-recessiondepression-whats-going-to-happen/ During the Great Depression consumers had less money so they rarely save and purchased only necessities. Resulting in companies changing identities to make products and services cheaper as a way to attract consumers. The author of the article made many predictions dealing with consumer behavior in the current recession; believing that low-priced goods will be more desired, services will be acquired less often and put off purchasing current technologies. Consumers in the current economic state are more conscience of what they spend their money on, so it is not surprising that one would think that non-essential commodities would be acquired less often. The author’s last prediction however is not accurate, new technology continuously produced and rapidly consumed.The technology market strategy has started to move towards quality, affordable, sustainable products. This is evident in the new iPad, which advertises it as a revolutionary device at an affordable price. http://www.apple.com/ipad/

• How does design develop brand truth?
Design finds an element the brand already contains which is exclusive or specialized and brings it to attention making it the brand truth. MasterCard’s identity is a great example; they did not change the company service they only advertised that they care about “What Matters”. Lawrence Flanagan’s developed the identity, “What Matters”, after extensive consumer research. He said 'Listen to the consumer' they will explain what is important in the brand and their expectation. Developing a brand identity that can be supported through out the brand is needed to develop brand truth. This should be a single, memorable expression of what the brand encompasses. An example of how this can go wrong is the rebrand of RadioShack to The Shack; the new identity does nothing to support the brand while making it seem ambiguous, by shorting its name, confusing customers. http://creative-brand.com/thestory/?p=800 Showing how a poor brand identity can lead to loss of brand truth, even for an established company.

• Is there a difference between producing happiness and producing brand loyalty?
Yes there is a difference because brand loyalty is a product of consistent consumer happiness. Brands can produce happiness but be inconsistent in pleasing the consumer, causing the brand not to build loyalty. People will be more inclined to trust a brand that they have had previous positive experiences. Happiness broad term an can encompass many aspect of a customers experience. The customer can be happy with their overall experience with a brand but not be satisfied with certain aspects and associations, causing the brand not to gain the consumer’s loyalty. This is evident in the following study, which details how poor customer services leads to the loss of consumers. http://www.physorg.com/news157300871.html One interesting aspect of the study is that customer service build emotional ties between a customer and their service provider. Happiness is an emotion while brand loyalty is an emotional tie.

Blog 2

Consumers often choose a specific brand out of personal experiences or their social and economic situations. Brands must be aware of this and either adjust themselves accordingly or make a convincing case for why they should still be chosen over the trending brand. Our current recession is a particularly interesting example of consumer behavior shifts and the design of brands because of the complexity involved in markets right now. http://www.forbes.com/2010/01/04/consumer-spending-recession-leadership-managing-mckinsey.html Betsy Bohlen, Steve Carlotti and Liz Mihas tap McKinsey Quarterly for information about current consumer behavior trends and analyze its projected impact on brands. A shift is occurring in which consumers are being more conservative with their purchases and testing the waters of off brand products instead of the better-known companies. As a result of this shift some companies will design a brand that evolves with the consumer market and begin creating products and advertising for cheaper versions of their once popular product driving the idea that the customer truly effects the direction of the design and brand itself. But at the same time we will see companies who continue their current brand strategy no matter the economic situation because they deem themselves a reliable brand that the cheaper alternatives cannot compete with in quality.

The Forbes article also takes note of an important new influence on brand in the form of customer research of products before purchase. Brand truth can be tested by whether a consumer community has positive or negative experiences with not only company aspects as; product, price, costumer service and convenience but also the brands design which influence general appeal and marketing. Essentially brand truth identifies what the limits of your company’s image are in the minds of the consumers. What is your brand and what is it not? (http://www.corporatelogo.com/articles/sales-strategies/brand-truth.html) Design will develop brand truth by exemplifying all the positives the brand will do for the consumer over the competitors and take it to the edge of its limitations. The design will reveal hidden aspects of the brand that are important to its customers and illuminating a clear, concise identity in their minds.

According to Essortment.com’s article on brand loyalty (http://www.essortment.com/all/brandloyalty_pqk.htm), “Consumer behavior is habitual because habits are safe and familiar.” A brand’s trust is essential to developing a habitual ‘safe’ and ‘familiar’ net in which the consumer can fall in when they are unsure of which product to choose. If a consumer is happy about a product and repeatedly turns to it for continuous positive use then it has generated loyalty. The two ideas go hand in hand.