Tag: Consumer Behavior

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A Strange, Brief History of Subliminal Messages in Advertising

It all began in a Fort Lee, NJ movie theater in 1957. Psychologist James Vicary projected images on the screen at 1/3,000 of a second urging viewers to “drink Coca-Cola” and “eat popcorn”. Vicary conducted this study over a six-week period and claimed to have increased popcorn sales by 50 percent and Coca-Cola sales by 18 percent compared to the previous period.[1] Here’s the problem, it was all made up.[2] Yep, when other researchers couldn’t replicate these results, he admitted it was completely fabricated. Since this fabricated study, there have been numerous others that have been conducted. I would guess that everyone reading this believes that subliminal advertising is a thing that has, or at least could work. Why? Well, because it’s used EVERYWHERE. So could it work? Keep reading, I get to that at the end.

The pervasiveness of this idea has infiltrated so many brands and even many areas of pop culture. Why would so many brands try subliminal images and messages if they didn’t work? The Simpsons use it, KFC and Coca-Cola have done it, there are even many famous logos that are intended to have hidden images. And of course, who can forget Kevin Nealon’s character, Mr. Subliminal from SNL’s Weekend Update in the 90’s, who always gave a hilarious parody to the notion that our minds could be controlled by subliminal means?

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However, if we notice something, is it subliminal? I’m guessing the answer to that would be no. Although it’s not illegal, the FCC will revoke the licenses of any company that uses subliminal or deceptive marketing. However, if it’s truly subliminal, how would they ever know? Where is the subliminal threshold in our minds? How much is subliminal advertising being used and is it secretly controlling our minds, turning us into brainless zombie-like consumers? I’m guessing if you’ve ever seen the aftermath of a big music festival, or been to Wal Mart on a Saturday, you might say yes, but don’t fall into the anecdotal evidence trap just yet.

Subliminal Advertising is a Sticky Idea

Dan and Chip Heath’s groundbreaking book, Made to Stick, outlines why so many people believe that subliminal advertising might secretly be controlling everyone’s minds even though that is (probably) not the case. The creepy mind-control idea is one that is sticky, and a sticky idea is one that will perpetuate throughout the cultural zeitgeist. As humans, we really just want a good story and it doesn’t really matter if it is true. Also, there was the whole CIA mind control experiments, MK Ultra, that were actually a thing, regardless if the hat you wear is made out of tin foil or not.

Once you hear about the idea of subliminal advertising and your brain ties it to being controlled into doing something, it’s hard to shake. To add to this problem, consumers experience what’s known as source confusion. Source confusion is basically when you hear one of these sticky stories, forget about it, and when it comes up later, you can remember the story, but not where you heard about it or if it is actually true. Do you remember hearing that KFC officially changed their name to just KFC from Kentucky Fried Chicken because their “chicken” doesn’t actually contain chicken? Or that McDonald’s uses pig fat in their ice cream? Well, these stories are not true, but they remain true in people’s minds regardless of the actual truth. These and many other myths about companies stay in our minds because they are sticky.

These stories are strange enough to be remembered and they’re on the fringe of being believable. They’re the type of story that you could tell a friend and their response would simply be “Yep, I could see that” and the myth spreads. So, the stickiness of the story that subliminal advertising controlling our minds continues to permeate throughout our society, all just because it is a weird and interesting story. But not so fast, there may actually be some evidence that it can impact our behaviors (more on that later).

The 1950s

After Vicary’s bogus “experiment”, he went on to write one of the most influential books on the subject of subliminal advertising, The Hidden Persuaders. This book sold over a million copies and became one of the major influences that shaped our views of the possibilities of subliminal advertising. Should a guy that lied about his experiment be taken seriously? Again, back to the stickiness idea, did it matter? Not really, it was a good story, so it went straight to the top of the bestsellers list and people like me are writing about it 60+ years later.

1960s & 1970s

Well, dust off your tin foil hats again because this is a weird one. Forever ago, TV used to not broadcast 24/7. In the ’60s, before the networks would go off the air, they would play the Star-Spangled Banner, complete with subtitles. However, if you slow those subtitles WAYYYYY Down, you can see subliminal words briefly flash across the screen. You can even try it yourself, slow this down to the slowest setting on YouTube, which is 0.25.

There are several series of subliminal words that you can find like: trust the US government, God is real God is watching, and rebellion is not tolerated. That was creepy. Moving on…

In the ’70s, Premium Corporation of America marketed a memory matching board game called Husker Du (not the punk band from St. Paul). In the process, they created a TV ad that showed the gameplay, but they also flashed several frames with the words “get it”.[3] This ultimately led to declaring that subliminal ads were contrary to the public interest.

The 2000s

Who would have ever thought that tobacco companies would try to break the rules? Well, in the early 2000s, Marlboro was a major advertiser in Formula One racing sponsoring the Ferrari team. In 2005, in order to try and subvert an EU ban on advertising cigarettes, they decided to replace their logo with a really strange barcode. Well, if the barcode is blurry, it sort of looks like the Marlboro logo (sort of). Nice try Marlboro. Years later, they tried this other approach by creating a “company” called Mission Winnow (win now:). So, it’s a new strange company and if you are curious enough to look it up online, you’re going to land on a website owned by Phillip Morris. Is that subliminal advertising? Again, people noticed it. It’s not completely hidden, so probably not. Is it subversive and right up a tobacco company’s modus operandi? Absolutely.

In 2007, in an episode of Food Network’s Iron Chef America, a McDonald’s episode flashed across the screen. Both McDonald’s and the Food Network claim that it was a glitch. Check it out for yourself:

In 2008, KFC was pushing a chicken sandwich called the KFC Snacker. In one of the closing shots, you can see a dollar bill hidden among the lettuce. They claimed that they were running a contest for the first people that spotted the dollar, but the contest was never announced until they started hearing about people accusing them of subliminal advertising. Again, is it subliminal if you can see it? Check it out here:

Also of note, check out @kfc on Twitter. They follow 11 people: Herb Scribner, Geri Horner (Halliwell), Melanie Brown, Emma Bunton, Mel C, Victoria Beckham, Herb J. Wesson, Jr., Herb Waters, Herb Dean, Herb Sandek, and Herb Alpert. If you don’t get the joke, you might claim that they’ve engaged in some form of subliminal advertising, but I presume you weren’t born yesterday.

Special Categories:

Hidden Messages in Logos

I’m guessing that you probably know about most of these, but I think that if nothing else, the artistry for pulling off the hidden elements in a logo needs deserves a special mention in a blog post about subliminal messages in advertising. Designing a really cool logo is tough enough, but it’s even harder to design something that looks great and has a hidden message. Let’s get to it.

FedEx

Created in 1994 by Landor Associates, the FedEx logo is one of the most brilliant logo designs ever created. Although it’s possibly one of the most boring looking logos (on the surface), it has a hidden message. What hidden message? Well, the arrow between the E and the X. Once you see the arrow, you can never unsee the arrow.

Baskin Robbins

I actually did a case study on this in one of my MBA marketing research classes, but in 2007, Baskin Robbins was feeling the heat from people like Cold Stone Creamery. In addition to a logo redesign, they were considering complete store redesigns. Their new logo design featured the 31 making up the B and the R of the logo, which is a nod to their original claim to fame of having 31 flavors. Something you might not know, they actually have something like 1,300 flavors now, the 31 flavors was originally created in the ’50s and was built on the idea that someone could have a different flavor for each day of the month.

Toblerone

Toblerone originated in Bern, Switzerland, which is a city that is famous for bears. They were able to integrate a hidden bear in the mountain in the logo.

Toyota

The Toyota logo is in a category all its own. There’s not really a hidden graphic or anything, it’s just that you can spell the name of the company with the shapes in the logo. Go ahead, try it.

There are other really cool hidden items in logos, I just didn’t include them because I couldn’t find any good legal photos that I could use to illustrate. If you’d like to see more, check out the following:

  • The word MOM in the collar of the Wendy’s logo
  • Two people sharing a bowl of salsa in the Tostito’s logo
  • Bike rider (possibly on steroids) in the Tour de France logo
  • Hidden Hershey’s Kiss hidden in their logo
  • Pin in the Pinterest logo
  • The bird in the Atlanta Falcons logo makes an “F”
  • The M and the B in the Milwaukee Brewers logo

Backmasking

Depending on how deliberate it is, backmasking is either a technique or in most cases, it’s just pareidolia, like seeing a face in a tree or the virgin Mary on a piece of toast. Backmasking is essentially where you play a record backward and it reveals a hidden message, or someone finds something that sounds pretty vague, they say that it says something, and then a bunch of people start believing they heard the same thing. I use the term record, and not song, because this phenomenon really took off in the ’60s and 70s when you could literally take the turntable and spin the record backward. I actually did this a bunch with my Led Zeppelin records as a kid when I heard about this. Sometimes it’s deliberate, sometimes it’s borderline, and sometimes it’s probably just a coincidence.

Here are some examples:

The Beatles

In 1966, The Beatles kicked off this technique on the song “Rain”. When played in reverse, you can hear, “Sunshine … Rain … When the rain comes, they run and hide their heads”. The White Album sparked the Paul is Dead conspiracy (that he died in a car crash and was replaced with a lookalike and that’s the reason they stopped touring). For instance, when you play Revolution #9 backwards, you hear “turn me on dead man”, and when you play “I’m So Tired” backward, you hear “Paul is a dead man, miss him, miss him, miss him”. Actually, this kind of makes Revolution #9 actually makes sense…

Led Zeppelin

Stairway to Heaven is one of those songs that was intertwined in the now-debunked Satanic Panic era of human history. The famous line is “here’s to my sweet Satan”, although I tend to hear, “Yish de maze we zaydin”. Now I loved Led Zeppelin as a kid, but if you really want to have a conversation about subliminal messages and Led Zeppelin, let’s discuss their huge catalog of “borrowed” work and how Stairway to Heaven sounds eerily similar to the song Taurus by Sprit.

ELO

After being pulled into the controversary and being accused of satanic messages in their music, ELO explicitly placed some backmasked tracks on the instrumental, “Fire on High” that says (in crystal clarity when played backward, “The music is reversible, but time is not. Turn back! Turn back! Turn back! Turn back!” They even doubled down on this further, when they released an entire album called Secret Messages.

Others

There are so many others to choose from, it’s hard to pick but here are the artists, the song, and the backmasked message that can be heard:

  • Pink Floyd – Empty Spaces – “Congratulations. You have just discovered the secret message. Please send your answer to Old Pink, care of the Funny Farm, Chalfont”
  • The Waitresses – The Smartest Person I Know – “Anyone who believes in backwards masking is a fool.”
  • B-52’s – Detour Through Your Mind –  “I buried my parakeet in the backyard. Oh no, you’re playing the record backwards. Watch out, you might ruin your needle.”
  • Devo – Whip It – “Hey come over here!”
  • Weird Al – I Remember Larry – “Wow, you must have an awful lot of free time on your hands”
  • The Simpsons – Drop da Bomb – “Join the Navy” (This was from the episode where Bart joined a boy band and had a hit song with the repeated lyric “Yvan eht nioj”.)

So, does backmasking even qualify as subliminal messaging? Does it fit the theme of the article of “subliminal messages in advertising”? I would argue that it could qualify for both. For the messages that are gibberish when played forwards and clear when played backward, these are deliberately placed by artists, often just to have fun. These are definitely not subliminal. This is just taking the track and reversing it. However, when there is clearly no gibberish played forwards, there’s a chance it’s subliminal, although it’s likely just pareidolia. However…listen to Queen’s “Another One Bites the Dust” backward and I would have to say, that might actually be a subliminal message.

Is it advertising? Well, sort of. For many of the bands that either did this deliberately or just got accused of adding messages to their songs, it’s generated a ton of PR. Any press is good press, right? The best part is that they didn’t have to spend anything extra to generate the buzz. Have I ever mentioned how musicians are inherently the best marketers? PS, read between the lines of this article and let me know if you can find the hidden message.

Why Do I Think Subliminal Advertising Could Work?

The Elaboration Likelihood Model

Thirty years after The Hidden Persuaders was written, a couple of researchers, John Cacioppo from the University of Iowa, and Richard Petty (not the drives real fast guy) from the University of Missouri-Columbia published a paper that would completely change the way that we study consumer behavior. The Elaboration Likelihood Model describes two distinct methods of persuasion: central-route processing and peripheral-route processing. Central-route processing occurs when the receiver of the message has both the ability and motivation to think about a message. Central-route processing occurs when the recipient is thinking about the content of the message and carefully considering the pros and cons of selecting a particular product.[4] Think of evaluating a new car, or a home. This type of reasoning involves central-route processing.

Peripheral-route processing, however, is when the consumer doesn’t think very much about their purchase. During this type of processing, a purchase is made for reasons other than the strength of the arguments. Think of grabbing a snack or choosing a toothpaste. Unless you’re a crazy person, you don’t spend much time evaluating all of your alternatives on low-effort items that you pick up at the grocery store. With peripheral-route processing, a consumer is more driven by unconscious influences and the environment and simple beliefs about a product or a brand. During low-effort consumer behavior and peripheral-route processing, feelings, and emotions toward a product can be swayed by a consumer’s mood, attitude toward an ad, or just being familiar with the brand.[5] Yep, it can be that easy. If you like a product or an ad or are even just exposed to an ad enough times, you could be influenced to purchase the product.

So What Does This All Mean?

So this is where it gets interesting. In one respect, we know that we prefer familiar products over unfamiliar ones, and this can be done by repeated advertising or messaging.[6] On the other hand, we have numerous studies that are unable to recreate the success from the Vicary “study”. So, I guess this raises several questions, what counts as subliminal? Does it need to be noticeable to the consumer? Is 1/3,000 even noticeable? How many frames of video would you need for this to have an impact? What frequency would you need to combine with a noticeable amount of subliminal advertising to make a statistically significant impact on someone’s purchasing behavior?

Since you can’t prove a negative, it is impossible to say that subliminal advertising or subliminal messages have no impact. What could be said is that there are no credible studies that show that any type of subliminal advertising had the intended effect on the advertiser. To prove that subliminal advertising or messaging worked, you’d have to create a really clever lab or field study. Well, it turns out that a few studies have actually shown that subliminal influence had long-term effects on decision making[7], can change our mood[8], and showing logos subliminally can actually alter our brand behavior[9]. There are more but come on, I’m not doing a doctoral dissertation literature review here…

So it has been shown to change people’s behaviors and if you dive into a research library’s database, you can find a bunch of credible studies. This leads me back to one of the original questions if it’s truly subliminal, how would anyone ever know? How would the FCC catch an advertiser that is using subliminal advertising? I’m personally not willing to believe that many advertisers are actually doing this. I’ve worked in marketing for 15+ years and I’m about to get a marketing certificate in an MBA program and I can tell you that the topic of subliminal advertising gets very little attention. I don’t think it’s happening that much, but it’s certainly happening and has happened for decades. Does it have much of an impact on our behavior? That’s something that I can’t really definitively answer.

[1] Fullerton, R. A. (2010). “A virtual social H-bomb”: The late 1950s controversy over subliminal advertising. Journal of Historical Research in Marketing, 2(2), 166-173. doi:http://dx.doi.org.prox.lib.ncsu.edu/10.1108/17557501011042533

[2] Broyles, Sheri J. 2006. Subliminal Advertising and the Perpetual Popularity of Playing to People’s Paranoia. The Journal of Consumer Affairs.

[3] https://www.nytimes.com/1973/12/27/archives/subliminal-ad-pops-up-in-national-tv-promotion-but-mr-choate-stated.html

[4] Cacioppo, J. T., & Petty, R. E. (1984). The elaboration likelihood model of persuasion. Advances in Consumer Research, 11, 673.

[5] Consumer Behavior P 129

[6] Baker, William E. “When Can Affective Conditioning and Mere Exposure Directly Influence Brand Choice?” Journal of Advertising 28 no. 4, Winter 1999. pp. 31-46

[7] Ruch, S., Züst, M. A., & Henke, K. (2016). Subliminal messages exert long-term effects on decision-making. Neuroscience of consciousness, 2016(1), niw013. https://doi.org/10.1093/nc/niw013

[8]  Monahan JL, Murphy ST, Zajonc RB. Subliminal Mere Exposure: Specific, General, and Diffuse Effects. Psychological Science. 2000;11(6):462-466. doi:10.1111/1467-9280.00289

[9] Muscarella, C., Brintazzoli, G., Gordts, S., Soetens, E., & Van den Bussche, E. (2013). Short- and long-term effects of conscious, minimally conscious and unconscious brand logos. PLoS One, 8(5) doi:http://dx.doi.org.prox.lib.ncsu.edu/10.1371/journal.pone.0057738

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Mind Share – The Currency of the Future

This is an article about addiction. It’s a new kind of addiction. One that isn’t as taboo as substance abuse. It’s not one that you would go to a treatment center for. It’s not one that you’d see on Intervention, but make no mistake, advertisers want to make you addicted and keep you addicted. It’s also an article about economics. The currency is your time and attention. This is an article about something I am calling mind share, which is the amount of attention and time that you pay to something.

From an economic standpoint, the same principle applies to your attention that applies to your dollars. Economics is based on scarcity. Value is simply the equilibrium of the supply available and the quantity demanded. However, whereas you could always make more money, you will never be able to take back your time. Unfortunately, we already live in the Black Mirror future where advertisers know how much you are worth to them based on how much you engage with their brand and this attention can be quantified with a dollar amount.

The old-school way of quantifying attention is called CPM, which basically means cost per 1,000 impressions (using the Latin reference of M=1,000). While an advertiser is much better served with a CPC or cost-per-click type of model, a lot of advertising platforms still use the CPM metric as it takes less of the burden off of the advertising medium. However, there are so many other ways of measuring your attention. It’s not just impressions, those are cheap. Engagement is worth so much more than impressions. As an advertiser, I really don’t care too much about how many people see my ad, although that’s nice. I care if someone is actually doing something with what they see. While impressions are a passive medium, engagement is active and engagement=mind share. So why is engagement so valuable? Well, your engagement, your…addiction, is worth a ton of money.

They Call Your Addiction “Average Revenue Per User” (ARPU)

light man people woman
Photo by Darlene Alderson on Pexels.com

Facebook and other social media companies make money from your engagement. They do this by advertising to you. They make money off of your clicks and you only click if you are engaged. So they created the cute term “average revenue per user”, or ARPU. I’m guessing they made an acronym so they didn’t have to think about it as much. They didn’t have to think of the things that you’d have to do to increase that number. They didn’t think of how manipulating the platform would impact someone’s mental health, but I digress…

The more ways you can become engaged, the more likely you are to click. Interested in a robot vacuum? Maybe you join a social media group dedicated to different types of robot vacuums. This keeps you on the site. It keeps you engaged with the community. From an advertising perspective, it puts you into a potential target bucket of people likely to purchase a robot vacuum soon, and increases your likelihood to click on an ad that is targeted to you. The more you do this inside the platform, the more valuable you are to them. The more you do this outside of the platform, the less valuable you are.

In November, Facebook reported a $7.26 quarterly ARPU. To put this into perspective, Snapchat’s ARPU was $2.12, Pinterest was at $0.90, and Twitter was estimated at $5.68.[1] So Facebook makes about $30 per year off of you. Although it doesn’t seem like much, take that $30 multiplied by 2.7 billion monthly active users and you get one of the largest brands in the world built off of getting and keeping your attention. If this quarterly ARPU drops just by a dollar, that’s an annual loss of 10 billion dollars, which is far more than most companies make annually. That’s more than the GDP of 49 distinct countries.

In addition to the actual revenue produced per user, you also have to consider the opportunity cost. If you’re not familiar with the concept of opportunity cost, it’s basically the loss of potential gain from doing something else. One economist found that adult Americans engaged with ad-laden content 58% more than they worked in 2019. He also found the amount we consumed this content equaled $7 trillion in opportunity cost[2], or over $33,000 per American adult. So if you were making money instead of scrolling social media, you could be up $30K, but I get it. Part of being on social media is like bubble gum for your brain. For some people, it fulfills something missing like seeing photos of their grandkids or keeping up with their friends. For others, this race for mind share can lead to addiction.

Facebook and Social Media Addiction

children lying on sofa and using gadgets
Photo by Jessica Lewis on Pexels.com

Is Facebook addictive? Good question. Many social media sites use certain tactics that can keep users on the platform and keep them coming back. The most obvious and possibly the most infamous tactic is infinite scroll. The creator, Aza Raskin, now advocates for social media to change their practices has been cited as saying:

“It’s as if they’re taking behavioral cocaine and just sprinkling it all over your interface. And that’s the thing that keeps you like coming back and back and back.”[3]

Many social media websites also use a “pull to refresh” feature, which has the ability to give reinforcements intermittently, much like a slot machine.[4] There are also opportunities for dopamine hits such as other users liking your content and continually engaging in a (probably angry political) ongoing conversation. Our brains crave dopamine. If your brain starts to think that you will get all the dopamine it needs from Facebook, maybe you’ll spend more time on Facebook. There are also push notifications and constant emails giving you updates to keep you from fear of missing out (FOMO). All of these items, again, are to increase your mind share. They’re there to keep you there and keep you coming back.

I can also point out that is there has been a psychological scale since April of 2012, called the Bergen Facebook Addiction Scale. This helped to link psychological problems with the use of Facebook.[5] I can also point out a 2018 study of Portuguese emerging adults (adolescents) that found their most addicted participants used Facebook an average of over three hours per day. These participants showed an increase in depression, anxiety, and interpersonal sensitivity.[6]

Time Distortion

Social media distorts our perception of time. One study found that both low and at-risk social media addiction groups actually had an upward trend of perceived time after abstaining from Facebook for a week[7]. This basically means that they thought time was taking longer than it actually was.

Netflix Addiction

couple love sitting evening
Photo by cottonbro on Pexels.com

Remember when Netflix made you actually click on something before it would play? That was nice. Well, there was a long period of time where autoplay was the only way that the platform worked. You couldn’t even browse the selection without everything that you pass by starting to autoplay. When you were done with a show, you didn’t have to do anything. The next show would come up and play, skipping the intro before you can even get a chance to decide if you want to continue watching. Why did they do this? Mind share, that’s why.

I personally think this feature sucks, and apparently, a ton of other people did too which is why you can now turn that feature off. Honestly, I stopped logging into Netflix because autoplay was really annoying and I didn’t even know you could turn off the feature until I started researching the Netflix section of this article, about…10 sentences ago. But yeah, they now made it an option[8] which is pretty amazing. However, you have to do this through a browser. Who watches Netflix on a browser? Weirdos, that’s who. Netflix knows you don’t watch on a browser (unless you’re a serial killer), so they allow you to turn off the feature, but they don’t make it easy.

But let’s get into the mind share for Netflix. Should they really care about mind share? Absolutely, but the reason they care about mind share is much different than the reasons social media sites care about mind share. Netflix needs you to keep coming back so you don’t drop their service. Once you are a customer, the purpose of Netflix’s mind share strategy is to keep you a customer. As customers evaluate their monthly expenses, Netflix has a goal of moving toward a need, rather than a want. How can they get customers to feel an urge so strong that they don’t even consider dropping their service? Creating a greater market share of the customer’s mind, that’s how. They do a great job of creating content that customers cannot live without. Shows like “Orange Is the New Black”, “Stranger Things”, and “Mindhunter” are shows that you cannot get ANYWHERE else so customers feel the need to keep their subscription active.

In addition to current customers, Netflix has had an amazing ability to attract new customers with this same strategy. With the publicity they receive from their regular shows, they’ve been able to continually pique curiosity to attract new subscribers. With their limited run documentaries, however, they’ve found a way to dominate the mind share of both traditional and social media. Shows like “Tiger King” and “Making a Murderer” have been limited-run smash hits. If they can get someone to try to log on to see one of those shows, their goal should be how they could create mind share with a subscriber while they are there. That’s why their algorithms are targeted to feed you content they think you will like. They even show different preview images for the same show to different audiences, based on your customer profile. You’ve got to admit, this is slightly creepy.

One term that is commonly associated with Netflix and other streaming services is binge-watching. Binge-watching could impact your mental health. Seriously, have you ever heard the word “binge” referred to as anything that would have a positive impact on your mental health? One study from the University of Toledo showed that binge-watching increased anxiety, depression, and stress.[9] So what does your brain get out of binge-watching? Well, it’s back to good old dopamine. When you get sucked into a story for a show you are watching, your brain gets a dopamine hit. Since your brain likes dopamine, it will typically crave any source that is known and available.

You’ve Been Targeted

black and white dartboard
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Your data, everything electronic that can be scraped and known about you, every website you visit, every button you click in an email, every time you swipe on an app that is “swipe tracing”, all of this is being collected and categorized. You probably have a Gmail account. You probably use Google Chrome. Guess why Google is so powerful. Data. You willingly tell them what websites you visit. You trust them with your email. That’s fine, I do too. What do you think they do with that data? Well, create more mind share, that’s what. They try to sell your data to advertisers and keep you on the platform so they can keep selling even more of your mind share back to advertisers. It’s really an endless loop.

You are being targeted not only by your demographics but from your psychographics as well. This includes your attitudes, opinions, values, and your interests. Why? Well, combined with your past behavior, psychographics can be great predictors of future purchasing behavior. They can also give some insight to an advertiser where you might be in the buyer’s journey so they can target you effectively. Ironically, the retail store Target is great at this. You may recall the story from the New York Times in 2012 of a father complaining to a manager at a Target store that his high-school-aged daughter was receiving coupons for maternity clothes from Target. Well, turns out she was pregnant, and Target was able to predict this before her father knew. This was done with a combination of buyer behaviors including unscented lotions, cotton balls, and other supplements which constructed Target’s “pregnancy prediction score”.[10] While I question the validity of the anecdote given in the story, the data analysis is likely pretty accurate.

So why is this important? What should Target try to do with this data? Well, it is obviously great information in trying to make an immediate sale, but from a long-term perspective, it’s better to create mind share. Being relevant to a customer helps increase build a relationship with that customer for the future. In this instance, a woman who is shopping at Target throughout her pregnancy is likely to continue that customer journey well into the early years of the child’s life and beyond. In this case, mind share=wallet share.

I can tell you from first-hand experience, the mind share Target creates around maternity and the early childhood years is strong. Their store brand of essentials for babies like wipes and diapers are much cheaper and in my opinion, much higher quality than national brands. Their baby section is easy to navigate. They have just enough choices to give you options, but few enough that you don’t feel too overwhelmed, especially as a new parent. The prices on their higher-end items like baby furniture and strollers are right in line with what you would find if you shopped for competitive products online. I’m not sure if Target has their baby items priced as loss-leaders, but their strategy of focusing on maternity and baby items certainly has led to a greater mind share for me, which has translated into a sickeningly high level of wallet share.

The thing that is interesting to me is I know they are doing this. I know that they are trying to create a relationship with me (and my family) as a customer. I know they are trying to establish long-term brand loyalty by creating mind share. I know they’re probably manipulating me and walking me through a buyer’s journey that they have defined, but I still fall into the trap. Why? Well, probably because it’s easier. Like just about everyone on the planet, my brain is a cognitive miser, which essentially means it likes to take the path of least resistance. In a situation where I have a lot of baby stuff to buy, or even just grab something and go, am I looking for a perfect solution? Probably not. I’m looking for a solution that is good enough. If it means that the pricing is similar to what I can find somewhere else and I don’t have to go to Walmart, I’m in.

Micro-Influencers

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A micro-influencer is someone that has a niche following. They don’t have a mass following like Taylor Swift, but they have a very dedicated and loyal following for some particular type of follower. For instance, I listen to a podcast called “The Ultra Runner Podcast”. It has a really niche following for crazy people that like to run distances longer than a marathon. This could be 50K, 50 miles, 100 miles, all sorts of insane distances. There aren’t many people that are interested in this type of behavior, let alone, people that like to do this and listen to the show. I would guess they have somewhere around 10,000 active listeners.

The show has been around for around a decade and has had the best athletes in the niche appear to tell their stories. The loyal following of this podcast would be an excellent opportunity to try and advertise something that people that run that much would need, namely shoes. Who is going to go through shoes faster than someone that puts 100+ miles every week on a pair of shoes? Micro-influencers have already created the mind share. They already have an audience. Their fans are loyal. A brand will pay more per potential customer for that level of loyalty than for a much less engaged and targeted audience. Someone with a wider appeal doesn’t have nearly the mind share as a micro influencer’s audience. The reason you’ve heard the term micro-influencer gaining so much popularity in the past few years? They know how to create mind share, and advertisers want to harvest that connection.

Account-Based Marketing ABM

Possibly the biggest trend in marketing right now is called Account-Based Marketing (ABM). ABM is essentially a diversion from mass-marketing techniques to a more strategic, segmented approach. The basic idea is that your company identifies key accounts within your organization to try to enhance your relationship. This is done with a behavioral-based approach. Generally speaking, it is a fancy lead nurturing system that is based on content. This content could be articles or white papers, videos, or even an audio podcast. Once a potential customer enters the marketing ecosystem (generally your website), AI and some other fancy tools track the person’s engagement with different content on your website. Based on their behavior, they receive the next piece of content, which is a little more relevant, and possibly a little more value for the customer. Based on their behavior, the AI tries to predict someone’s next action. This funnel continues to narrow until there is some type of action, whether it be a lead form filled out, a call to a sales rep, or some other deemed action by the sales team. Some of these software packages are around $25,000 per year or more. What are all of these software platforms trying to do? You guessed it, create mind share. The longer and more items you interact with, the more likely you will be to become a customer.

Wrapping Up

I opened this by saying that mind share is the currency of the future, but the more I wrote, the more I realized that the future is now. And it’s not even the future. This has been happening for hundreds, if not thousands of years. If your customers are not thinking about you, regardless of how fancy your marketing tech stack might be, or how smart your analytics team members are, if you don’t occupy a space in your customer’s brain, you’re sunk. Amazing brands know this and are continually evolving their brand for the ever-changing needs of their customers. Customer needs are not static. There are likely many brands in your niche vying for your customers. They’re trying to figure out how to convert your customer into being their customer. Many companies will stop here. They’ll try to get a customer in the door and make the sale. When you design your strategy, however, realize that the secret to keeping and maintaining your customer relationships is a longer-term approach. The secret that the world’s greatest brands truly understand comes down to two words: mind share.

[1] https://www.cnbc.com/2019/11/01/facebook-towers-over-rivals-in-the-critical-metric-of-revenue-per-user.html

[2] Evans, David S., The Economics of Attention Markets (April 15, 2020). Available at SSRN: https://ssrn.com/abstract=3044858 or http://dx.doi.org/10.2139/ssrn.3044858

[3] https://www.businessinsider.com/silicon-valley-insiders-tell-bbc-how-tech-firms-turn-users-into-addicts-2018-7

[4] https://www.sciencefocus.com/future-technology/trapped-the-secret-ways-social-media-is-built-to-be-addictive-and-what-you-can-do-to-fight-back/

[5]https://www.medicalnewstoday.com/articles/245251#:~:text=Researchers%20in%20Norway%20have%20published,of%20the%20journal%20Psychological%20Reports.

[6] da Veiga, G.F., Sotero, L., Pontes, H.M. et al. Emerging Adults and Facebook Use: the Validation of the Bergen Facebook Addiction Scale (BFAS). Int J Ment Health Addiction 17, 279–294 (2019). https://doi-org.prox.lib.ncsu.edu/10.1007/s11469-018-0018-2

[7] Turel, O., R. Cavagnaro, D. Effect of Abstinence from Social Media on Time Perception: Differences between Low- and At-Risk for Social Media “Addiction” Groups. Psychiatr Q 90, 217–227 (2019). https://doi-org.prox.lib.ncsu.edu/10.1007/s11126-018-9614-3

[8] Mishra, M. (2020). Netflix finally turns off autoplay. B & T Weekly, Retrieved from

https://proxying.lib.ncsu.edu/index.php/login?url=https://www-proquest.com.prox.lib.ncsu.edu/docview/2352237197?accountid=12725

[9] https://www.researchgate.net/publication/313236736_Viewing_Patterns_and_Addiction_to_Television_among_Adults_Who_Self-Identify_as_Binge-Watchers

[10] https://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/#51f13a946668

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Why You Still Want That Rolex

How Rolex Sells Watches by Creating Problems

I was 16 years old when my dad came home from New York with a gift. He opened his bag. “I thought you needed a new watch”, he said and handed me this gorgeous silver and gold watch.

“Woah, this is a Rolex,” I was surprised. At 16, the only thing I really knew about Rolex was that they were expensive. How expensive? I had no idea, but I probably shouldn’t be wearing this to my job at the grocery store where I pushed carts and stocked shelves.

He just kind of laughed. My mom laughed too. “It’s not real,” he said.

“What do you mean, it’s not real?” I asked. Still, I had no idea what was going on. Well, he didn’t get me a Rolex. As my friend Brendan put it, he got me a Fauxlex. Yep, a fake Rolex. It looked real to me, but I was pretty clueless. I’d never seen the real thing. Now, I’m almost 40 and I’ve still only seen a few real Rolex’s. At least, I think they were real.

I really didn’t care that it was fake. I thought it would be impressive if I could pull one over on someone. I wore it to school. I wore it to work. I didn’t really fool anyone. It clashed with my hoodies, Led Zeppelin tee shirts, and my giant green Doc Martens. Since it wasn’t fooling anyone, I leaned into the joke. I wore that Fauxlex everywhere until it finally met its demise falling 3 feet onto the concrete when I was banging on the glass at a minor league hockey game. It never really worked ever again.

Even at 16, I knew one thing about the Rolex brand. It’s what Rolex has built their brand on for over 100 years. A Rolex was a sign that you had “arrived”. You wore a Rolex because you could wear a Rolex. I knew that even at a time when a watch was more necessary than it is today, that the Rolex brand didn’t really fit much of a practical need. My Folex told time just as well until it broke. So how had they made such an aspirational association with a clueless 16-year-old when I wasn’t their target audience?

Photo by Carlos Esteves on Unsplash

Rolex Creates Problems

Problems. As marketers, we’re pretty good at creating them. It’s a technique known as poisoning the well. The strategy is thousands of years old. You essentially tell someone their well is poisoned and that you are the only one that has the antidote. In high-effort consumer behavior, problem recognition is the first step in the purchasing journey. However, some products that involve high-effort behavior do not necessarily involve a practical problem, so problems have to be created. The way marketers typically create problems is by telling you that what you have is not enough. They then make a promise that what they are selling will make you fill in the blank: (happier, healthier, thinner, more successful, etc.)

So, how does Rolex do this? Does anyone need a Rolex? For that matter, does anyone ever really need a watch? Seriously though, there are ways to tell time all around us. We have clocks on our phones, tablets, in our car, just about everywhere. So how does a company like Rolex still exist? Does anyone need an archaic, analog device, that costs $7,500 for the “base” model? Although they have built a strong brand for over 100 years, how does a product thrive to be a $5 billion-dollar company when by all accounts, it should be on its way to obsolescence? Rolex has done what every high-effort consumer behavior expert dreams of doing. In my opinion, they nailed step one of creating problems.

One of their messaging strategies involves the same tactics any motivational speaker uses to get you to buy their products. It’s the “dress for the job you want, not the job you have” method. This strategy is on full display in their “Every Rolex Tells a Story” campaign where they feature people that have “made it”. Check out this ad with James Cameron.

https://youtu.be/RgpoRGq3oBs

So what did they do here? Again, it’s the “dress for the job you want” tactic. Wow, James Cameron. Who doesn’t want that kind of success? Since he’s doing an ad for Rolex, the watch must have somehow contributed to his success, right? They’re planting the seed that James Cameron and everyone else that is part of this campaign can attribute their success to Rolex. The beauty of what they are doing is that they are communicating that message (associating success with Rolex) without overtly saying this. If you hadn’t thought of what they were doing with this type of ad, would you be able to recognize this tactic? Maybe, but Rolex isn’t relying on their advertising appealing to logic. They’re relying on their advertising to appeal to emotion.

They do a fantastic job of convincing affluent consumers that if they don’t have a Rolex, they haven’t arrived. This strategy has been so successful that the basic concept of their messaging has never really changed. Rolex spends big money advertising in high-net-worth sporting events, publications, and websites. The way they advertise relies heavily on indirect normative influences. They realize that the person that is purchasing the Rolex is heavily influenced by the group of people they associate with. It’s the whole “if your friend jumped off a bridge, would you?” lecture that your mom gave you when you would blame your behavior on your friends. It’s not an uncommon strategy. For example, many companies do this with an overarching message of sustainability. Toyota does this with Prius. Burt’s Bees does this with everything they sell. Rolex just has a much smaller niche, and in my opinion, they do it better than anyone else.

High-effort consumer behavior, like the decision to buy a $7,500 watch, relies on problems. Sometimes, though, your problem involves a legitimate need. You need a car for transportation, your computer quit working and you need to finish your work, or your phone battery won’t hold a charge anymore and it can’t be used for more than an hour off of the charger. Although the way that you arrive at the problem when there is a legitimate unmet need is different than a manufactured problem, the way you buy things is the same. Rolex is just amazing at creating perceived problems that only they can solve. It doesn’t really matter if the problem is real or not.

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Consumers are Lazy

Once a problem is realized, the second step of a high-effort behavior is to look for information on how to solve your problem. This type of search could really be anything. It could be internal, like remembering past experiences or ads. It could be external, like getting a referral from a friend or researching alternatives online.

You might think that we put in a lot of effort into making a major purchase but that’s not really the case. There’s a term in cognitive psychology called the “Cognitive Miser”. Our minds are considered to be cognitive misers. This essentially means that when we make decisions, we’re sort of lazy, regardless of our intelligence. In general, we would much rather put in little effort to solve our problems than putting in extra effort and meaning. (Stanovich, 2009)[1]

This can’t really be true, can it? Yep. It’s true. What’s one of your biggest monthly bills? I’m guessing you said mortgage, well, either that or daycare. You would think that we do a considerable amount of research when finding a home lender, right? Nope. Definitely not. Our brains want to take the easy way out and find a solution that is good enough. One major study found that the average number of sources the consumer consulted when selecting a place that was likely going to determine the amount of their largest monthly expense…was two. (Lee & Hogarth 2000)[2] Yep, two. Let that sink in.

This can’t really be true, can it? Yep. It’s true. What’s one of your biggest monthly bills? I’m guessing you said mortgage, well, either that or daycare. You would think that we do a considerable amount of research when finding a home lender, right? Nope. Definitely not. Our brains want to take the easy way out and find a solution that is good enough. One major study found that the average number of sources the consumer consulted when selecting a place that was likely going to determine the amount of their largest monthly expense…was two. (Lee & Hogarth 2000)[2] Yep, two. Let that sink in.

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How Can You Use This Information?

Alright, let’s say you’re a marketer and your potential customer realizes there is a problem, whether you created the problem or not. The next step is to be able to nail the information search portion of the high-effort consumer behavior journey. Now you know the secret that all good marketers know. If consumers only check out two sources before they make a purchase, and one of those sources is yours, you’re pretty much halfway there. So, the question is, how are you going to provide this information? Is it going to be through video? An informative blog, or series of blogs? Email to a customer curated list? Social media? Old-fashioned snail mail?

For a well-defined niche market, I usually take an omnichannel approach. This is a just fancy way of saying all of the above. Why? It doesn’t take an in-depth analysis of consumer behavior to understand that people are all different. While some prefer reading in-depth articles, others will skim just for the key points and takeaways. Some need the information delivered directly to their email, some want it sent to their desk, some want to watch an informative video, and some would prefer the interaction and community found on social media. This has been especially effective when you are dealing with a niche market because regardless of the medium, you are not dealing with massive media budgets. The types of markets I work with max out around 5,000 target consumers. I often work with targets of 500 or less. That takes a pretty targeted media approach, one where you can cover just about every type of communication for a pretty reasonable budget.

Can You Combine the Two?

Realizing that consumers are lazy, Rolex has done an excellent job in combining both step one and step two. Their advertisements create problems but they offer solutions. The solution, conveniently, is to buy their watches. One clever headline reads: “A Rolex will never change the world. We leave that to the people that wear them.” As a consumer, this plays to my ego and I just realized that I have a problem. I want to change the world, but I’m not changing the world. Bingo, step one of high-effort consumer behavior, check! How about step two? Well, they just told you. People that change the world wear Rolexes. Are we that gullible? Maybe. Maybe not. Are we that lazy? See Cognitive Miser theory.

What’s Next?

Once we realize there is a problem and consume information on how to solve that problem, we reduce our alternatives down to a few. This is typically 2-8 alternatives, which we often call the consideration set[3] (Allen et al., 1991). However, if you’ve already built your brand to be a frontrunner like Rolex, if you get to this stage, you’re going to have a higher probability to make the sale.

The final steps involved in a high-effort purchase are the actual purchase and post-purchase behavior. The interesting thing about the post-purchase behavior of Rolex customers is that the product is so coveted that the owner will always want it to be seen or noticed. By wearing a Rolex, they’re walking advertisements for the brand. Given the price point of the watch, it is highly likely that the person wearing it is monetarily successful. This perpetuates everything that the brand stands for.

Takeaways

For high-effort behavior, the first step in the customer journey is to get someone to realize there is a problem. Once that problem has been recognized, a consumer tries to find a way to solve that problem. Then, they narrow their choices and buy a product. How can you help them along the way? If you can do this as well as Rolex, you can roll the first two or three steps into one, giving you a greater likelihood of being chosen over your competition.

[1] Stanovich, Keith E. (2009). “The cognitive miser: ways to avoid thinking”. What intelligence tests miss: the psychology of rational thought. New Haven: Yale University Press. pp. 70–85. ISBN 9780300123852. OCLC 216936066.

[2] Lee, Jinkook & Hogarth, Jeanne M. Consumer Information Search for Home Mortgages: Who, What, How Much and What Else? Autumn 2000 Financial Services Review, Volume 9, Issue 3. Pp. 277-293.

[3] Shocker, Allan, Ben-Akiva, Moshe, Boccara, Bruno and Nedungadi, Prakash. 1991. Consideration Set Influences on Consumer Decision-Making and Choice: Issues, Models, and Suggestions. Marketing Letters: A Journal of Research in Marketing, Vol. 2, No. 3: 181-197.

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How Bringing a Multimillion-Dollar Jet Through the Streets of Las Vegas Created a Niche Market

In Order to Create a Niche Market, You Have to Take Risks and Dare to be First

In 2015, I was sitting in the back of a brand new Dodge Ram at 11 PM at the McCarran Airport in Las Vegas trying to stay warm. It was freezing to the point where it snowed the next day. I was wearing multiple layers because I was about to walk with a newly refurbished multimillion-dollar jet through the streets of Vegas. My company was displaying this aircraft inside of the convention hall during our largest trade show of the year. Actually, NBAA is one of the largest trade shows in the US attracting owners, pilots, mechanics, and industry leaders from all over the world. I was pretty terrified because this was the first time I had ever done anything like this. Although I was confident we had a great product, there was no way of knowing if the major risk we took as a company was going to pay off.

This wasn’t just my first time. To my knowledge, this was also the first time anyone had displayed a jet of this size inside of the convention hall, so we didn’t really have the proxy to measure our success. I had a major case of imposter syndrome. At this show, we were competing with huge companies like Bombardier, Textron, Gulfstream, and Dassault. How could we compete with multibillion-dollar companies and stand out? They have teams of people who are much smarter and more capable than me.

My mind was racing and I was nervous about all of the things I couldn’t control. What if they didn’t measure the traffic signals properly and the tail runs into a stoplight? What if the belly scrapes coming out of the airport ramp onto the street? What if the tow bar head damages the landing gear? What if they couldn’t get it in the hall? (To be fair, the wingspan was larger than the opening of the door, so that last concern was somewhat legitimate.) I ordered carpet to be laid after the aircraft arrived so it didn’t get chewed up from a jet rolling over it. How was that even going to work? Did I order enough spotlights? No matter how nervous I was, it didn’t matter. All of the hard work, engineering, and craftsmanship that went into this airplane; now it was my job to make it pay off at the trade show. I had to stay confident and let all of the months of planning pay off. Our team had imagined this concept over a year ago and it was finally time to execute.

They opened the north gate at the airport. Since we were the biggest airplane, we were the last in line and we would be the last ones in the hall. After waiting nearly an hour for the caravan of airplanes to progress far enough to where we could actually get out of the gate, we were finally on the road. The Nevada State Highway Patrol was providing an escort, blocking the streets in front and behind the caravan as we slowly made our way up Paradise Road.

Nearly three hours later, we arrived at the Las Vegas Convention Center. We sat outside for a few hours as each airplane was carefully brought onto the trade show floor by a special tug which was operated by a guy that flew in from the UK. An hour and a half after we attached the airplane to the special tug, we were placed in the hall, ready for finishing touches before the show.

Creating the Niche Market

So, how did we arrive at the Las Vegas convention center with a refurbished jet? Was it just to display our quality of work? Was it just to be noticed? No, we were creating a niche market. To be successful in a niche market, you have to have a team that is willing to take huge risks to create an outstanding product at a reasonable price. You work together to create the niche. That makes the advertising pretty easy. Let me explain.

The Problem

Garmin was launching a new avionics program, known as the G5000, for a light jet called a Beechjet 400A (and the newer iteration, the Hawker 400XP). Our company was and still is, the industry’s leading Garmin retrofitter. So much so, that we have done more Garmin retrofits in King Air turboprops than all other dealers in the world, combined. However, this was the very first jet that would be certified for a Garmin retrofit, so transitioning from our expertise in King Airs to Jets was critical. We needed to leverage our experience in completing large Garmin retrofits to a completely new niche. This new market had a different type of buyer, with different buying behaviors. Although the audience was small (this system applied to less than 600 airplanes across the world), even conservative projections for the overall market saturation rate and our projected market share made financial sense for us to pursue this niche.

In our industry, being the first to complete a major project like this particular Garmin retrofit was critical. The business aviation community is small. Since our brand was so closely aligned with Garmin, an early lead in a new niche would establish credibility with the new target audience and lead to early success. Once that credibility caught on, we would be hard to catch.

Why This Niche Made Sense

As stated, we were Garmin’s largest aftermarket dealer and as they expanded into new niche markets, we wanted to expand with them and maintain our position as the industry leader. This market made further sense because we were an authorized service center for this kind of aircraft and we had many maintenance technicians that had 20+ years of experience working with the airplane. As a one-stop-shop, we would also be able to handle any avionics, maintenance, paint, interior, or landing gear overhauls the customer might need when receiving a large retrofit.

Action – The Big Risk to Be First

I remember the meeting. We were all sitting around the small conference room table discussing how we were going to become industry leaders. If we wanted to be the frontrunners, we would have to take some major risks. If we were going to pursue this niche and be the first to market, everyone who owned this type of aircraft, and everyone in the industry would need to know how serious we were.

“What if we bought an airplane, completed all of the refurbishments, brought it down the street, and parked it inside the convention hall?” The room got quiet. I don’t remember who asked the question, whether it was me or one of our other team members. It didn’t really matter because we were all thinking the same thing, but we knew there were huge risks. We would have the initial multimillion-dollar risk of the acquisition cost of the airplane. We would have additional costs tied up in the refurbishment. We would also have the opportunity cost of turning away some customers for the number of hours that this refurbishment required.

Although we knew there would be major risks, we knew there would be huge rewards. In addition to being able to sell the airplane after the show, if we succeeded in receiving several orders for the Garmin system at the trade show, we would have a major lead in the industry. As stated earlier, a head start in this program was all we needed.

For this November trade show, we started sourcing an aircraft in late spring. We found a 2006 Hawker 400XP, but the challenge with this airplane was that it needed engine overhauls. This added a major expense and additional downtime in our already compressed timeframe. Despite the challenges, we purchased the aircraft and began work. The entire scope of work included a major inspection, engine overhauls, Garmin G5000 avionics retrofit, special Vegas gold pearl paint job, and a refurbished, weight-saving interior with WiFi and color-changing LED lighting.

Marketing Actions to This Niche

From a marketing perspective, the biggest goal was to create an associative network in potential customers’ minds linking our name with the new Garmin G5000 system in this particular aircraft (Beechjet 400A/Hawker 400XP). This type of plan involves understanding how the brain works and how an associative network influences retrieval. As marketers, we know several things about this type of network. The first, and most obvious, is that stronger links are more accessible. That’s why we try to strengthen the links between brands (in this case, we were trying to strengthen the association with the Garmin brand).

Good marketers also know that there is a spreading activation effect, which allows for the free association between like-products. For instance, when you think of BMW, you may think of luxury cars. As another German brand, you may think of Mercedes or Audi. However, due to the luxury nature, you may also think about Rolex. Your brain could also think about leather. By putting a top-of-the-line avionics system in a pristine looking airplane, we were building a spreading activation centered around the Garmin system but also associated with “the best” quality. This included the best quality Garmin installation, but the best quality paint, interior, and engineering.

We also know that there is a sleeper effect, meaning that the actual message stays tied to recall much longer than the recall of the source of the information. Basically, I wanted to create a plan where we were seen as the experts in any and all sources that I could use.

So, to the best of my recollection five years later, here’s what we did.

Public Relations

There were several hooks that we identified in this story that made it interesting to the press. The first, and most obvious, was that we were the first Garmin dealer in the world that was going to attempt this type of retrofit. Even before the project started, we took the risk and committed to being the first dealer to deliver. That alone got the attention of the press in our industry. However, to truly make a good story before launching the PR strategy, we had to fully develop the five basic elements of the story. By committing to purchase an airplane and displaying it in Vegas in a short time frame, we had all of the components we needed. We had the characters (our team and brand), setting (Vegas), plot (buying and retrofitting an airplane with something that had not been done before), conflict (short time frame), and the resolution (successfully completed everything).

Once we developed the story arc, we sent and press releases and landed coverage with industry publications from the day the airplane was purchased. Our initial press release outlined our entire plan. We then had follow-up press releases that highlighted when we started the avionics system, and when the aircraft delivered.

From the day the first press release was sent, the top publication in our industry ran a feature on the project. The subsequent releases were also picked up by several other outlets. From a PR standpoint, all of the major trade publications wanted to know more and track the progress of the project. During the trade show, we had several articles published in the daily publications. Media outlets also conducted video interviews with our team members going over the project details.

After the show, there were residual public relations opportunities which included press releases when we sold the aircraft and after each milestone delivery (the first company to five installs, first to 10, 20, etc.)

VIP Event

We set up a cocktail event for owners and operators of this type of aircraft where they could come by at a certain time and have a drink on us. This was exclusive to our industry partners as well as owners and operators of this type of aircraft.

Digital Advertising

Our team developed a digital strategy to target operators of this type of aircraft via email prior to the show to let them know what all was included in the aircraft upgrade, where they could find us, and when they could attend our VIP event. We also created a preview video on YouTube and targeted our customers through YouTube ads.

We also set up retargeting ads to any viewer that visited our G5000 page and targeted emails to anyone who had visited this page a certain number of times.

Direct Mail

Our team designed eight-page brochures introducing the new system. To add to the feeling of luxury, we used a combination of soft-touch and high-gloss UV coatings. We had also mailed special invitations to our target audience including VIP identifiers to attend our VIP trade show event.

Social Media

Social media posts were scheduled before, during, and after the event on Facebook, Twitter, Instagram, and LinkedIn. Posts were boosted to the target demographic.

Result

Although we were all nervous about the huge risk that we were taking, this series of events of buying and retrofitting the airplane had major rewards. Prior to the system even being certified, we were able to pre-sell a dozen Garmin G5000 retrofits, which was more than all other dealers in the world combined. From the very beginning of this program, our team put a considerable amount of effort to be the industry leaders. However, it was not the result of just one series of actions. It took our entire company to believe that we could do it. When diving into a project of this magnitude, the first thing you have to do is believe that you can do it. With the entire company behind the success of the program, we were able to create a great niche market, one that has now ballooned nearly 30 systems sold, which again, is more than all other dealers in the world, combined. Throughout this process, we also found an opportunity within the LED lighting market. We have since created and now manufacture LED aircraft lighting and currently have 13 US dealers.

What I Learned

Building a niche market involves creating a product that truly connects with your target audience. Your market can be incredibly small. In this case, there were less than 600 potential customers in the entire world. However, the financial case for us to pursue this market made sense and it perfectly fit our brand. When you create a niche, what you are selling will apply only to a small group of people, and that’s okay. The bottom line is this: create something of incredible value to your audience that no one else can provide.

You can find out more about niche marketing here.

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How Your Brain Hijacks What You Buy

And That’s Not Necessarily a Bad Thing

For a good portion of my career, I fell into the trap of thinking that good marketing was driven by great advertising, so I would spend all of my time focusing on how to create a good ad. I’d carefully try and choose an image with stopping power, a clever headline, compelling ad copy, and a call to action. I’d do this over and over with mixed results, never thinking about the psychology of consumer behavior and how to use it to make my job easier.

Although I was also really interested in psychology, I had never tried to understand the psychology of why we buy what we buy. It wasn’t until I started getting interested in consumer behavior that I really started to understand the key elements of how the brain works. Having an understanding of consumer behavior allows you to apply an understanding of why customers choose certain products to the building blocks of marketing: product, price, place, and promotion. Fully understanding these concepts can give you an edge to be a better marketer, or just help you grasp why you do what you do.

Low-Effort Consumer Behavior

Consumer behavior is a fascinating topic. There are two main ways that your brain processes purchasing decisions, central-route processing, and peripheral-route processing. In central-route processing, you engage in what’s known as high-effort behavior. This is just a fancy way of saying that you think deeply about your purchases. Peripheral-route processing, however, considers little thought (Petty & Cacioppo 1986: 191).[1] It’s the reason that you only buy name-brand peanut butter. It’s the reason you’d never overpay for milk or butter. Ironically, it’s the same reason you’d never be caught buying cheap wine.

You have very little control over how your brain manages peripheral-route processing, so the best that you can do is to try and understand how it works. Typically, low-effort consumer behavior products are everyday items (think groceries, toothpaste, toilet paper — if you can find it), although they don’t have to be. These are purchases that you make every week, if not every day.

Heuristics — The Things You Do That You Don’t Realize

Low-effort purchases rely heavily on heuristics, which is just a pretentious way of saying shortcuts but hey, it makes you sound smart…so we’re going to use it! Heuristics are so subtle that you probably don’t even realize that you are using them. Although they can lead to bad habits and are prone to errors, the fact that you use heuristics isn’t necessarily a bad thing. Think about it, you’d be living a pretty miserable life you agonized over what kind of butter you should buy or spent an hour comparing toothpaste. Consumers just don’t have time to worry about trivial items and although they can be prone to error, heuristics help us manage our time without us having to do much thinking.

Types of Heuristics

Price

Price-related heuristics are incredibly common. If you’re a cheapskate like me, for many low-effort items you buy the cheapest item available. This type of purchasing is commonplace for grocery staples like cans of vegetables, bread, and milk. However, if you again are like me this can translate beyond low-effort items and you end up buying the cheapest (vacuum, cooler, lawnmower, coffee maker) every year for the rest of your life. Earlier I mentioned that heuristics are prone to errors and this is exactly why they don’t always work.

How Marketers Use This

A strategy based on being the low-price leader is one that rarely allows your brand to ever increase your prices in comparison to the market or to gain any value. Committing to being a price leader in a category can be a dangerous strategy that should be based on favorable volumes and variable cost structures. Many companies will attempt to temporarily interrupt lower-priced competitors by offering coupons or sales. This allows them to potentially disrupt a customer’s brand loyalty or purchasing habits. It’s sort of like saying to the consumer, “Hey, you know that brand you always buy sucks, so try ours. It’s better and worth a higher price.”

Brand Loyalty

Brand loyalty is another low-effort purchasing heuristic. Brand loyalty often occurs when we have tried a certain brand and had a great experience. Until that brand lets us down, or we have a better experience with a different brand, we will likely maintain that brand loyalty. It’s the reason that you buy Oreo’s and not “chocolate sandwich cookies” because, well Oreos are great, and chocolate sandwich cookies are trash.

How Marketers Use This

The only reason to have a brand is to build market power and that market power is directly tied to the loyalty that you create with your customers. Your brand should represent something. It should give your customers a reason to not only choose your products but to return to your brand. Building loyalty ultimately strengthens your customer lifetime value and can decrease your customer acquisition cost. That’s fancy marketing speak for “your customers will pay you more money and you will spend less getting new ones”. In addition, the intangible asset of a strong brand can help financial analysts determine the future value of a company. A strong brand commands a higher price over a longer period of time. Another thing to note, a brand has a target audience. It’s not for everyone. If you build a strong enough brand, you may have people that hate your brand, and that’s okay as long as you have people that love your brand. A watered-down brand that tries to appeal to everyone appeals to no one.

Habits

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Habits are different than brand loyalty. Although they involve continual purchases, sometimes of the same brand, they don’t necessarily involve loyalty to that brand. A habitual purchase can be the corporate coffee that you drink every day or the junk food from the vending machine that you buy in between meals. It can even be the really bad morning radio show that you listen to every morning. The main difference is that a habit doesn’t require a strong preference for the brand that is being purchased. Habits also involve little evaluation of other options and little information seeking for other alternatives. Habits make decisions easier because it reduces our risk when we have purchased the item several times in the past and it has satisfied our needs (Hoyer, MacInnis, & Pieters 2018).[2]

How Marketers Use This

Marketers of low-effort products spend a lot of time either trying to create or break a habit. Companies that have habitual buyers are always trying to maintain a cycle of perpetuating a customer’s habits. Grocery stores may attempt to maintain a habit of a customer returning to their store by honoring coupons from other stores or matching their prices. If a marketer is trying to break a customer’s habit to get them to purchase their product, they may offer a lower price than a competitive product or offer free samples. If you’re a tobacco company, you might try to do evil things like advertise to children or say that more doctors smoke your cigarette than any other cigarette.

Emotions

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Your emotions also have a profound impact on the way you make your purchases. When you are emotionally connected to a brand, you are buying it because it makes you feel good. One example might involve purchasing a Tom’s of Maine product because of their corporate commitment to sustainability. Another example might be buying a local brand as even though the product might be similar to other brands, we might feel better about supporting local members of their community. Your emotions can also cause you to make altruistic choices like donating to charities. Your emotions can also drive you to eat a pint of Ben and Jerry’s you eat when you are having a bad day, or if it’s just a Wednesday.

How Marketers Use This

Companies can attempt to appeal to emotions by adopting a cause that aligns with their product. They may also position their advertising with certain imagery and advertising copy that focuses on how the product makes you feel instead of simply listing the features and benefits. For instance, a pizza restaurant may run a commercial that represents togetherness with images of a family watching a movie. One thing to keep in mind, however, is that several studies have shown that different emotions mean different things to different people (Mogilner & Kamvar, 2012). [3] The challenge for marketers is to determine the temperament of their customers and to understand how emotions impact their purchases.

Unfortunately, consumer’s emotions can also be manipulated by strategies that are purposefully made to misinform the customer. One of the most popular types of this type of manipulation is misleading packaging. A common example is labeling unhealthy foods as fat-free. While this may be true, this label often shows up on foods that are loaded with sugar or sodium. A marketer may believe that a consumer has a negative association with the word fat, and by labeling their product fat free, they are implying that the food is a healthy option. This makes you feel better about your decision.

Normative Influences

Normative influences occur when other people guide our choices. This can be a direct influence, like purchasing something that your kids want. This could also be an indirect influence, like buying a brand because a friend or a group you belong to tend to buy that brand (Hoyer, MacInnis, & Pieters 2018). An example of an indirect influence might be buying an overpriced luxury car because everyone you know, or at least the Jones’s, have one.

How Marketers Use This

Since the person making a purchase isn’t always the decision maker, marketers need to consider advertising to all appropriate audiences. This is why there are so many commercials for cereals and toys during kid’s shows. Even though they are not making the purchase, they are a direct influence on the purchaser. To reinforce an indirect influence, a brand could institute a referral program.

Representativeness

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The representativeness heuristic is a way that our brains try to link things that are similar together (Tversky & Kahneman, 1974). [4] This is the heuristic that is the reason that hilarious knock offs and intellectual property lawsuits exist. In marketing and branding, this often occurs when a consumer compares a brand to a prototype, or category leader (think Coca Cola for all colas, Kleenex for tissues, and Band-Aid for bandages).

How Marketers Use This

The most common way that marketers use the representativeness heuristic to their advantage is to mimic the prototype brand. Private-label brands often try to make knock offs, like Dr. Thunder, Panburger Partner, Mountain Lightning, and Butter It’s Not. Although these brands are pretty hilarious, they do a great job capitalizing on imitating the prototype and take advantage of a representativeness heuristic.

Availability

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The availability heuristic happens when a consumer views the probability of having a good experience with a product on how easy information about the product is to recall (Tversky & Kahneman, 1974). For instance, you could have a friend that told you that every time they order from a certain pizza place, they get her order wrong, the pizza was cold, and it took two hours. Would that make you want to place an order with that restaurant? Probably not. This story may influence your future decisions.

How Marketers Use This

To address the availability heuristic, a marketer can try and reinforce the information if it is positive or reframe the information if it is negative. In 2010, Domino’s pizza took extreme steps to address the availability heuristic that their pizza was garbage. To regain credibility, they completely changed their recipes, focusing on their ingredients and flavors (Brandau, 2010).[5]

Humans Are Variety Seeking

For low-effort purchases, unless you are the type of person that has an entire closet full of plain white shirts, you probably seek variety in your purchases. This is the reason there are so many flavors of yogurt, ice cream, soft drinks, and even bread. One study showed that this is particularly true when repetitive purchases are viewed as negative. The boredom of repetition triggers the need to seek variety (Fishbach, 2011).[6]

How Marketers Use This

Coupled with a strong brand, a company can take advantage of a consumer’s need for variety by introducing new items. This could be something like new flavors or seasonal items.

Wrapping Up

Heuristics are a way for consumers to make quick decisions about items that don’t require a lot of thought. They’re almost like a built-in time management system for our brain. They’re not necessarily good, but they’re not inherently bad. At best, they can save you a lot of time and opportunity cost making decisions that would not have a negative impact on your life. At worst, they could lead to habits that turn into harmful addictions. One thing is certain. Your low-effort purchases, which make up most of what you buy, are governed by heuristics. These short cuts are something that are generally out of your control. By understanding the way consumers think about these low-effort decisions, marketers can create more demand for their products.

[1] Cacioppo, J. T., Petty, R. E., Kao, C. F., & Rodriguez, R. (1986). Central and peripheral routes to persuasion: An individual difference perspective. Journal of Personality and Social Psychology, 51(5), 1032–1043. https://doi-org.prox.lib.ncsu.edu/10.1037/0022-3514.51.5.1032

[2] Hoyer, W., MacInnis, D., & Pieters, R. (2018). Consumer Behavior (Seventh Edition). Cengage Learning: 180–199.

[3] Mogilner, C., Aaker, J., & Kamvar, S. (2012). How Happiness Affects Choice. Journal of Consumer Research, 39(2), 429–443. doi:10.1086/663774

[4] Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124–1131. Retrieved August 2, 2020, from www.jstor.org/stable/1738360

[5] Brandau, M. (2010). Domino’s do-over. Nation’s Restaurant News, 44(5), 44. Retrieved from https://proxying.lib.ncsu.edu/index.php/login?url=https://search-proquest-com.prox.lib.ncsu.edu/docview/229384734?accountid=12725

[6] Fishbach, A., Ratner, R.K. and Zhang, Y. (2011), Inherently loyal or easily bored?: Nonconscious activation of consistency versus variety‐seeking behavior. Journal of Consumer Psychology, 21: 38–48. doi:10.1016/j.jcps.2010.09.006

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One-Minute MBA Concepts - High-Effort Consumer Behavior: Decision Making

High-effort consumer behavior involves central-route processing, meaning that it takes a consumer a conscious effort to change or to form their attitudes about your product. High-effort purchases are often thought of as cars, homes, or other high-priced items, but they aren’t always determined by price. High-effort behavior consumers follow a specific, five-step process. This involves: 1. Problem recognition 2. Information search 3. Evaluation of alternatives (often called the consideration set) 4. Purchase decision and 5. Post-purchase evaluation.[1]

In high-effort behavior, depending on the consumer and their habits, a typical consideration set ranges from 2–8 alternatives.[2] Marketers of high-effort consumer behavior need an in-depth understanding of each step of this decision-making process for their brand to be part of a customer’s consideration set. A high-effort marketer’s typical day involves trying to get their target consumer to recognize a problem by introducing an incongruence between their actual state vs. their ideal state. Basically, we try to create reasons for them to want something better than what they currently have. In my experience, however, the really good high-effort marketers understand cognitive miser theory and are experts at information search. This approach is less about style, and more about substance. They are experts at providing information that helps their consumer solve a problem.

What’s been your experience with high-effort behavior?

[1] Hoyer, W., MacInnis, D., & Pieters, R. (2018). Consumer Behavior (Seventh Edition). Cengage Learning: 180–199.

[2] Shocker, Allan, Ben-Akiva, Moshe, Boccara, Bruno and Nedungadi, Prakash. 1991. Consideration Set Influences on Consumer Decision-Making and Choice: Issues, Models, and Suggestions. Marketing Letters: A Journal of Research in Marketing, Vol. 2, №3: 181–197.