Toilet Paper and Consumerism

Valuable toilet paperWe all use it, we all need it and we all buy it every week: toi­let paper.1.

Buy­ing toi­let paper is one of those many decisions we make in the super­mar­ket every time we visit. The amount of energy we are will­ing to invest in a decision depends on the level of involve­ment we have with the product.2.

Research sug­gests that the type of toi­let paper we use is a mat­ter of low involve­ment.3. Low involve­ment products are hard to sell because, by defin­i­tion, con­sumers don’t pay much atten­tion to them. This is why mar­keters developed tech­niques to increase the level of involve­ment and in effect cre­ate a mar­ket where one pre­vi­ously did not exist. This prac­tice star­ted in the 1890s when the Scott Paper Com­pany became the first to offer toi­let paper on a roll and advert­ise it with a range of images show­ing luxury.

Product involve­ment demon­strates the import­ance of the mean­ing of the object to the ego struc­ture or the consumer’s inner self. The products we pur­chase are an exten­sion of our self, a means to con­struct an iden­tity.4. Toi­let paper man­u­fac­tur­ers have used this psy­cho­lo­gical con­struct to cap­ture the mar­ket. In super­mar­ket aisles we are bom­barded by a pleth­ora of types of toi­let paper to choose from. The bewil­der­ing array of choices ranges from one, two or even three ply, scen­ted, non-scented, hypo-allergenic, recycled, non-bleached, rain­forest cer­ti­fied and so on, and so on. There is a type of toi­let paper for every seg­ment in the mar­ket. It is only because we are sub­jec­ted to this wide range of choices that we are forced to make it.

involved con­sumers pay higher prices

The main reason toi­let paper man­u­fac­tur­ers spend so much money on devel­op­ing new types of toi­let paper and advert­ising their product is because they want us to care about toi­let paper. Not only by devel­op­ing a product vari­ant for every ima­gin­able pref­er­ence, but also by adding emo­tion to an oth­er­wise bor­ing product. Toi­let paper advert­ising fea­tures cute puppy dogs, baby’s and other images that trig­ger emo­tions. When con­sumers are involved they are hes­it­ant to choose lower price altern­at­ives and sup­pli­ers of toi­let paper use this by cre­at­ing a high level of involve­ment and char­ging higher prices than they oth­er­wise could.5.

This is no bet­ter illus­trated than by what I observed dur­ing a recent visit to a super­mar­ket in Kangaroo Flat in Aus­tralia. They sell rolls of spe­cially prin­ted Christ­mas toi­let paper for $4.49 each, almost ten times as much as nor­mal toi­let paper. Clean­ing your bot­tom with jolly mes­sages and images makes life just that much more worth living.

Christ­mas is a time when people are pre­pared to spend money on silly items and a roll of spe­cial toi­let paper can provide a lot of value because it becomes an instant con­ver­sa­tion starter, as evid­enced by this post.

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Notes
  1. This post is inspired by a dis­cus­sion between Ian Wat­son and prof. Rhett Walker on this topic. []
  2. Zaich­kowsky, J. L. (1985). Meas­ur­ing the involve­ment con­struct. Journal of Con­sumer Research, 12(3), 341–352. []
  3. Ratch­ford, B. T. (1987). New insights about the FCB grid. Journal of Advert­ising Research, 27(4), 24–38. []
  4. Belk, R. W. (1988). Pos­ses­sions and the exten­ded self. Journal of Con­sumer Research, 15(2), 139–168. []
  5. Cohen, M. (2000). Con­sumer involvement–driving up the cost. Con­sumer Policy Review, 10(4), 122–125. []

Wage war on your inbox

This year it was forty years ago that the first e-mail was sent, start­ing a double-edged revolu­tion in com­mu­nic­a­tion. Most of us are bom­barded by mes­sages each day, their in-boxes over­flow­ing into an uncon­trol­lable tor­rent of inform­a­tion, action requests and trivial mat­ters. An over­flow­ing full in-box ser­i­ously under­mines your effect­ive­ness. A full in-box is stress­ful as there is always this pile of stuff to deal with.

Pro­ductiv­ity gurus such as David Allen have developed meth­ods to help us deal with busy lives.1. Oth­ers, such as Mer­lin Mann, stated the Inbox Zero website.

The best method to man­age your in-box in inspired by bat­tle­field medi­cine and the prin­ciples of triage. Triage is the pro­cess of determ­in­ing the pri­or­ity of treat­ment for the wounded based on the sever­ity of their condition.

To be able to man­age your inbox and achieve the goal of a zero inbox you should apply ruth­less triage on every e-mail that come across your accounts.

  • Archive: Any­thing that con­tains inform­a­tion for future ref­er­ence — save the mes­sage some­where out­side your in-box.
  • Del­eg­ate: If you have the lux­ury of being able to del­eg­ate, do so.
  • Respond:
  • Defer: If it does not have to be done imme­di­ately, place the e-mail in your action list or cal­en­dar. Don’t use your in-box as an action list.
  • Do: If it takes less than a few minutes, just get it done.
  • Delete: Any­thing that does not require fur­ther action should be removed from your in-box.

Six simple prin­ciple to min­im­ise the amount of stuff in your e-mail accounts. Be ruth­less like a bat­tle­field sur­geon. Our resources and time are lim­ited and apply­ing these simple prin­ciples a few times a day will help you keep your in-box clean.

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Notes
  1. David Allen (2003). Get­ting things done: The art of stress-free pro­ductiv­ity. New York: Pen­guin. []

The Enlightened Manager

One even­ing at the din­ing table:1.

Han­nah: “What is your job mum?”

Olyvia: “I man­age a team of dentists.”

Han­nah: “So you drill holes in people’s teeth?”

Olyvia: “No, I am a manager”

Han­nah: “What is that?”

Olyvia: “I make sure my cowork­ers have everything they need to do their best pos­sible work.”

Man­age­ment is the craft of achiev­ing object­ives vicari­ously; achieve­ment through other people. The manager-employee rela­tion­ship is de facto hier­arch­ical. The idea of the man­ager to con­trol work­ers was pop­ular­ised by Hypotheticorp’s mor­tal enemy, Freddy Taylor. Simply put, the man­ager con­trols resources and staff fol­low instruc­tions. This is, how­ever, a great mis­con­cep­tion of the true nature of the manager-employee relationship.

When Pres­id­ent Nixon met Premier Zhou Enlai (???) in 1972, he asked his thoughts about the French revolu­tion of 1789. Zhou Enlai reportedly con­sidered the ques­tion for quite some time before finally answer­ing, “It’s too soon to tell.”

Zhou Enlai was right. The ideals of the enlight­en­ment of people as inde­pend­ent thinkers has after over two hun­dred years still not been fully real­ised. The struggle between Ancien Regime think­ing and Enlight­en­ment ideals can also be seen in man­age­ment the­ory. The Taylor inspired sci­entific view of man­age­ment versus a more human centred view is a recur­ring theme in man­age­ment lit­er­at­ure. At Hypo­thet­icorp we believe in Enlight­en­ment ideals and pro­claim a human­istic view on management.

Man­agers are sub­ser­vi­ent to their employees

Man­agers are essen­tially sub­ser­vi­ent to their employ­ees. It is the manager’s task to select the right people, make sure they are provided with suf­fi­cient resources, have the right know­ledge and provide a good work­ing envir­on­ment. The man­ager is also respons­ible for main­tain­ing net­works with external stake­hold­ers. Every activ­ity of the man­ager is aimed at enabling employ­ees to get the work done effect­ively and effi­ciently. The man­ager makes sure that staff are able to provide value to cus­tom­ers. To refer back to Chinese wis­dom, Lao-Tzu wrote 2500 year ago:

The highest type of ruler is one of whose exist­ence the people are barely aware.

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Notes
  1. Based on a true story. The names have been changed for pri­vacy reas­ons. []

Pigeons and Gambling Addicts

A lot has been said lately in Aus­tralia about new rules to com­bat prob­lem gambling. Spe­cially slot machines, poker machines, or whatever they are called in your coun­try, are caus­ing fin­an­cial prob­lems for many people around the globe. These machines are pro­grammed to be addict­ive as they tap into found­a­tional psy­cho­lo­gical mechanisms.

Fol­low­ing the the­ory of instru­mental con­di­tion­ing, our beha­viour is motiv­ated by rewards and pun­ish­ments. This is the basic mech­an­ism used to edu­cate chil­dren, the infam­ous car­rot and stick approach.

With a poker machine, every time we press a but­ton there is a pre­defined, albeit unpre­dict­able, prob­ab­il­ity that we are rewar­ded for that beha­viour. In instru­mental con­di­tion­ing this is called a variable-ratio sched­ule of rein­force­ment. This method has proven to be very addict­ive. Even anim­als in exper­i­mental situ­ations have been seen to become addicted to the con­di­tioned behaviour.

Watch the video below to see how gambling oper­at­ors tap into non-rational drives to make us addicted to gambling.

Should the design of poker machines be changed to intro­duce a less addict­ive rein­force­ment schedule?

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Using Queuing as a Marketing Tool

The release of a new iPhone model or other Apple gad­get always seems to be accom­pan­ied by long queues of people. Even though cus­tom­ers can pre-order their desired gad­gets, stocks always seem to run low quickly and there are always lines of people in front of the iconic Apple stores come release date. Just like fast food com­pan­ies have lim­ited time offers on themed bur­gers, Apple sim­u­lates scarcity to stim­u­late demand.

In the epic battle between Sam­sung and Apple queues of cus­tom­ers are used to cre­ate the per­cep­tion of increased value. Sam­sung has recently taken a line out of Apple’s book and estab­lished a store close to the flag­ship Apple store in Sydney, selling $2 phones. Eager punters for this great deal did of course quickly queued up in front of the Sam­sung store.1.

Accord­ing to Robert Cialdini, scarcity is one of the Six Weapons of Influ­ence, a power­ful way to influ­ence con­sumer atti­tudes.2.

The use of scarcity to gen­er­ate demand has recently been sci­en­tific­ally val­id­ated by Jef­frey Parker and Don­ald Lehmann at Columbia Uni­ver­sity.3. Parker and Lehmann found that retail­ers can shift demand to a more prof­it­able brand by keep­ing it less fully stocked.

Scarcity has a largely pos­it­ive effect on con­sumer pref­er­ences when they believe that it is cre­ated by mar­ket forces. Scarcity is not a pos­it­ive influ­ence when cre­ated by acci­dental causes, such as failed deliv­ery. The power bal­ance is, how­ever, always in favor of the mar­keter as they con­trol the flow of information.

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Notes
  1. Ben Grubb, Sam­sung ambushes Apple’s iPhone 4S launch in Sydney, Sydney Morn­ing Her­ald, 12 Octo­ber 2011. []
  2. Cialdini, R. (2007). Influ­ence sci­ence and prac­tice. Gard­ners Books Ltd. []
  3. Parker, J. R., & Lehmann, D. R. (2011). When Shelf-Based Scarcity Impacts Con­sumer Pref­er­ences. Journal of Retail­ing, 87(2), 142–155. []