Big Data AND Consumer Anthropology

We shouldn't be choosing between leveraging big data to make decisions vs. conducting in-depth qualitiative research about our customers.  We should be using both methodologies, as they are often quite complementary.  As market researcher and Kellogg Professor Gina Fong states, "“Big data’s having a real moment right now. Numbers don’t lie—and big numbers sometimes give people more confidence in the data. But they only give you the what. Consumer anthropology and qualitative research are there to address the why behind people’s choices.”

Qualitative research can be most effective when we study people in their natural environment - retail stores, homes, workplaces, public parks, mass transit stations, etc. The key is to see what they do, rather than relying simply on what they say. After all, as Margaret Mead once said, "What people say, what people do, and what they say they do are entirely different things.”  Fong offers a wonderful example of how qualitative research can deepen our insights into consumer behavior and even prevent us from jumping to the wrong conclusions. Kellogg Insight describes her powerful example:

For example, a colleague of Fong’s loved eating avocados, but he had stopped purchasing them in the grocery store. Looking solely at patterns in the data, the store’s brand team might conclude that he and others like him didn’t like avocados anymore, or that avocados had become too expensive. Armed with this information, the team might react by discounting avocados or displaying them in another part of the store.  But his motivation for passing up avocados was more complicated.

“He really liked avocados, but he didn’t know how to pick one when it was perfectly ripe,” Fong says. “Either the avocado would ripen too fast and spoil, or it would take too long to ripen, and he would forget about it. This was frustrating to him, so he just punted the whole activity.”  On a recent store visit, he saw a display with avocados categorized in three groups: “ripe today,” “ripe in a couple of days,” and “ripe in four to five days.” This has led to him once again buying avocados.

New Thoughts about Brand Extensions

For years, scholars and consultants have argued that companies should stick to brand extensions that fit closely with the core brand image and identity.   The logic goes as follows:  It's ok for Coke to make Diet Coke, but it does not make sense for the firm to offer Coke-branded laundry detergent. 

Researchers Tom Meyvis, Kelly Goldsmith and Ravi Dhar noticed something interesting though.  A few firms did extend their brands successfully in a way that seemed to fit much less closely with the core brand's image and positioning.   If these firms had succeeded, then perhaps the notion of fit needed more clarification.  

The scholars conducted an experiment, and in that study, they found that visual cues make a difference with consumers.  Seeing the physical product, as opposed to just hearing about it, can cause customers to genuinely consider a brand extension that appears to be low fit.  According to Kelly Goldsmith, “When you give people pictures, preferences shift because [people] are focused on quality—they are more interested in quality than fit.  Whereas when you show the brand concept without pictures … the reaction is more focused on fit than quality. Allowing product comparisons leads to the same results.”

Goldsmith explains the practical implications of the study: “If you get your brand-extension concept out of the lab and into the store, all of those [benefits from visual cues and brand comparison] are taken care of.  If you are a brand like Nike or Häagen-Dazs, or one of these very large national brands associated with quality, and you want to make money by extending that very successful brand even further—to new [but] lower-fitting categories—what our research shows is that you really need to show people what that product looks like and show it to them in the context of other brands in that category."

I find the research very interesting.  I still believe firms need to be very attentive to fit when it comes to brand extensions.  However, the notion of offering visual cues, sampling, and physical displays does seem to make sense.  Those tactics certainly do help a consumer understand and appreciate a new product offering that may not seem to fit with a brand's prior identity. 

Understanding Your Customer: The Unasked Question Problem

As consumers, we receive tons of requests from companies to complete surveys these days.   During most restaurant visits, the waiters or waitresses ask us to complete a questionnaire.   Retailers print a phone number or web address on their receipts, and they request that we complete a survey.  After we purchase a car, the automobile company calls our home trying to solicit responses about our car-buying experience.    Do companies learn a great deal from these surveys, or might they be drawing erroneous conclusions at times?

Researchers David Gal and Derek Rucker at Kellogg Business School have examined a key form of response bias that may trip up companies. Specifically, they have demonstrated that consumers get quite frustrated when the survey instruments fail to ask them about key issues about which they would like to comment or respond.   In those cases, the unasked question becomes a serious problem.  Why?  It turns out that consumers often engage in a behavior that the scholars call "response substitution."   As researcher Derek Rucker says, "People don’t answer the question they’re asked. Instead, they supply an opinion they want to share." 

For example, a consumer may report that they did not like the food at a particular restaurant, when in fact, they really had an issue with the ambiance.   Perhaps the restaurant was a bit too loud.   However, if the survey doesn't ask about the ambiance, then the consumer may substitute their displeasure on a different question, such as one related to the quality of the meal.   In those cases, the restaurant may come to two misguided conclusions.  First, they may determine that the food quality must be improved, when the consumer actually likes the meals provided.  Second, the restaurant may not even realize that they have an ambiance problem.   The scholars recommend providing the consumer with a chance to offer an open-ended response in an "additional comments" section, so as to dig a bit deeper regarding consumer displeasure. 

Research on New Book

I am working on the research for my next book, and I am seeking my readers' assistance.  I'm studying successful or unsuccessful duos, with a particular emphasis on innovators in a variety of fields.   For instance, Dwight Eisenhower and George Marshall would be an example of a very successful duo, as would Andy Grove and Gordon Moore at Intel.  I'm looking for examples from the military, business, sports, etc.  How can you help?  Please send me ideas for successful or unsuccessful duos that I can analyze.  In addition, if you know of individuals that I could interview for this research, please reach out to me.  I appreciate your assistance and recommendations.