Consumer Behavior Changes due to Technology.

Are there some "behavioral ecosystems" (driven by technology, or otherwise) and "contexts" that are simply "better" for human behavior? Are there "contexts" that "stretch" human behavior?

Executive Summary: A quick three pronged approach- a question to start us thinking about the impact technology has on the world we live in, a thought experiment to help us think through this impact, and then some quick thoughts as a check, and as an inflamatory contrast, to throw our own thinking in sharp relief. From the desk of Three-Pointers-Aren't-Just-All-Basketball.

The Question

A conversation with some bright digital media folks bubbled up this question: how has technology changed consumer behavior?

To each of us, the answer may be obvious, however, it is well worth stepping back and taking a moment to think through this as an exercise. This helps us become more aware of technology's impact on consumer behavior.

A Thought Experiment

Here is a visualization thought experiment, with apologies to the GEICO Caveman- The Neanderthal cave paintings were a "Gossip Girl" of the age.

Some Quick Answers

A wise, experienced response:
Within the framework of behavior in a country, nothing much has really changed. The context? As far back as the 80's and across the pond, folks were leveraging consumer analytics to sell financial products (Hats off, Ritesh).

Another view: Technology impact consumer behavior by 

1. aggregating numerous individual decisions,
2. making consumers aware of these aggregations, and,
3. allowing game theory to have a field day via exchange of, or lack of exchange of, information.

The underlying theme across these points is the development of markets- either intra or inter country- and the development of context for human behavior.

I know, your first reaction here would be- do you really think Facebook, Twitter, and Groupon have not changed how we live? Sure, they have helped "cultures"/ "markets" evolve, by changing their context. However, have these forces of technology changed fundamental human behavior?

The Twist in The Tale

This leads a different line of thought:

1. How is technology changing the context we live in?
2. How does human behavior adapt to changed context?
3. Are there really new contexts that have not existed before?
4. Are there some contexts that are simply "better ecosystems" for human behavior than others?

What do you think?

Brands, Economics, Blink, Twitter & Facebook: Part II

Almost titled Part II: Economics, Brands, Blink by Malcolm Gladwell, and Social Networking- Twitter & Facebook. Brevity is the soul of the blog... oops.

Part I of this Post:
Thanks to Twitter, I was reminded of an article on “Predictably Irrational” behavior:
http://www.npr.org/templates/story/story.php?storyId=19231906

Some more background can be found in my Part I post here:
http://randomjunkyramblings.blogspot.com/2009/06/economics-brands-blink-twitter-facebook.html

Marketing and Behavioral Economics.
The day care center experiment on the effects of social and market norms colliding provides interesting results. More importantly, it can serve as an interesting starting point for marketers to think about how to participate in conversations with their customers on social media sites.

Looking at the social media marketing vehicle as a "participant" on the social marketplace, it may help illuminate patterns that help the marketing vehicle navigate uncharted 'mindfields' with their experiential partners (read customers).

While this perspective should not be news to skilled brand managers, the key here would be developing patterns and tools that help brand managers make more effective decisions.

These theories could be used to:
1. Create markets with specific incentives (watch out for unintended consequences),
2. Make decisions that drive the market entity's/ brand vehicle's behavior within a marketplace, and,
3. Leverage various market players' behavior in a marketplace to your market entity's/ brand vehicle's advantage.

Points 2 & 3 can be interpreted as old school, carpet bombing, bulk-broadcast-media-buying strategy & social network or conversational marketing respectively.

Social Media and Behavioral Economics.
A potential application- could it help a brand decide which social media site to develop its presence on, especially if the brand could utilize all 3 approaches to negotiate? There are social marketers that would recommend using the third approach listed above as it is more "authentic". This seems to have become the prevailing thought in the B2C arena.

Where does Microsoft's strategic investment in Facebook, more a B2B deal that has B2C impact, fit across the 3 approaches listed above?

What do you think?

Update: To be even more explicit in my messaging:

1> Everything Must Go!?
As a marketer looking at the channels to reach out to your customer, you may need to understand how to leverage the new channels that have sprung up where your customer is not a "couch potato". As you learn more about the new channels and more about your customer, you will find new ways to apply your experience, knowledge and acumen in the new channels. You do not necessarily have to toss everything out of the window. :-)

2> Marketing Future 2.0
Marketing Future 2.0 arrives in baby steps- while there is an advantage to be being ahead of the learning curve, your best friend is still your ability to distill it into impact on consumer buying.

Now, what do you think?

Economics, Brands, Blink, Twitter & Facebook: Part I

Almost titled Part I: Economics, Brands, Blink by Malcolm Gladwell, and Social Networking- Twitter & Facebook.... As if that wasn't enough, did I mention Physics? I will, however, refrain from mentioning Star Trek... oops.

Some thoughts on Bob Pittman's perspective of the money making potential of the internet in this post, to give you some background:
http://randomjunkyramblings.blogspot.com/2009/02/consumer-behavior-and-robert-pittman-on.html

Behavioral Economics: Isn't that an oxymoron?
Have you read Blink by Malcolm Gladwell? There is an economics' field that seems to agree with Gladwell that human beings are not all rational masters of their emotions.

Behavioral Economics around us.
Thanks to Twitter (Paula Drum RT), I came across an article talking about behavioral economics:
http://www.npr.org/templates/story/story.php?storyId=104803094

Most of us have helped implement a behavioral economics based solution to the pension enrollment challenge: If you want people to enroll in the pension plan, then automatically enroll them — and let them opt out if they want to.

The article also covers an example of how government intervened to incentivize teens against getting pregnant. Predictably, this will get you thinking about how this theme ties in with prevailing thoughts on financial market regulation. The article cautions that the government could itself become an "imperfect decision maker" as a market participant.

The physicists amongst us must be wondering whether economics and psychology got together to give birth to either the observer effect or the uncertainty principle.

Behavioral Economics and Game Theory.
The article got me thinking about the interplay between behavioral economics and game theory. How would an approach to less-than-fully-rational-decision-making impact game theory cases like prisoners dilemma where rational decision making leads to "seemingly sub optimal" outcomes?

I found a paper that talks about behavioral game theory:
http://faculty.haas.berkeley.edu/hoteck/PAPERS/BGT.pdf

The tweet also reminded me of another article on "Predictably Irrational" behavior:
http://www.npr.org/templates/story/story.php?storyId=19231906

Now, what has all of this got to do with Marketing, Tweeting and Authentic Branding?

What do you think?

Part II of this post can be found here:

http://randomjunkyramblings.blogspot.com/2009/06/brands-economics-blink-twitter-facebook.html

Innovation, Sentiment, Economics, and the Market

The thought “one company’s cost savings are another company’s lost revenue” below offers interesting economic insight:
{ On Private Equity: Scott Schoen, THL }
http://randomjunkyramblings.blogspot.com/2009/04/on-private-equity-scott-schoen-thl.html

As I have pointed out in this blog based on Shiller’s and Stiglitz’s articles, “sentiment”/ “perception” and other such “soft” or “behavioral” aspects play an important part in the economic engine of a region: {Financial Transactions, Trust and Keynesian "Animal Spirits"} & {Financial Markets, Economic Crises And Global Co-ordination}
http://randomjunkyramblings.blogspot.com/2009/01/financial-transactions-trust-and.html

Economic contraction would lead to a destruction of value through the destruction of existing market players, structures and relationships, before the economic engine restarts. This may lead to a slower recovery. This can be a good rationale for a central bank investing in an economy to keep it afloat in such a way.

However, once we accept that “sentiment” is a factor in the economic engine; could the effort to maintain existing market players, structures and relationships also impact the incentives for the economic engine to generate lasting recovery?

What do you think?