Social media is a phenomenon that has revolutionized the way we interact with each other and do business. Companies are using blogs and Twitter accounts each day that reach millions of people instead of a simple press release. Small firms are using the Facebook Fan Page as a way to advertise to customers in their area. Facebook has become such an “epidemic” that college students everywhere are seeing their GPA’s plummet right in front of their eyes. I may be on Facebook right now as I am writing this blog – doing “research” of course.

Companies have begun to realize the potential of social-media through the implementation of user-generated content. Businesses have learned that user-generated content creates greater customer engagement with the company and ultimately can lead to higher customer satisfaction. Companies can easily capture and display customer opinions and experiences on their website about products or uncover insights that make their business more effective. Insights gained from customers help these businesses understand how consumers buy, what they value most in a company or product, and how they can fulfill their customers’ needs. As one expert put it, it is the “first step to revolutionizing business through the voice of the customer.”

There are several ways companies can employ user-generated content. I was recently on Best Buy’s website reviewing a digital camera and came across several different kinds of customer-generated content. I was looking at the Canon PowerShot 12.1 Megapixel Digital Camera. Best Buy’s website allows customers to rate products on several different aspects: Value for Price, Picture Quality, Ease of Use, and Features – overall this camera received 4.6 stars out of 5. The website goes further by asking customers “What’s great about the product”, “What’s not so great”, and “Would [they] recommend this product to a friend?” This really gives customers the freedom to express how they feel about a product and where much of a company’s insights will come from. Just from reading a few posts, I noticed the one customer did not like the “noise” from the camera. Product developers could dig deeper into this insight to see if that means the noises are too loud or if the sound was unpleasant to hear. Finally, Best Buy allows the reader of the reviews to become involved by asking, “Was this review helpful?” as well as offering them the option to share the review through Facebook, Twitter, and other various social media outlets. Even these opportunities provided to the reviewer are creating user-generated content and giving insights for the company to use.

Google, being at the forefront of everything creative, now has applications where it can track trends of anything a person wants. So I decided, what company is more interesting to Google, than Google? Once I searched Google on the zeitgeist website, the first thing I noticed was the ‘Search Volume Index’, which correlates the amount of online searching about Google to the news or business strategies the company was making at the time. There is a huge spike in the data in 2008 that correlates to the announcement of Google Chrome and then again when the browser made news in 2009 that it would rival Windows. Another feature is that a user can compare several different components to each other. I added Apple to my trends analysis, where it compared Google and Apple, and there was a noticeable spike in 2009 when the iPhone 3G made news. Other features of the zeitgeist include that you can narrow down your search by years, regions, cities, and even languages. Under the “Trend for Websites” section, users can observe ‘Daily Unique Visitors’ over the last few years. With Apple’s website, the spikes again correspond to important business advances previously seen with the trend tracker such as the introduction of the iPhone. Only with this section, ‘Trend for Websites’ gives other visited websites. For example, with Apple, the first correlated website is iTunes, which makes perfect sense that people using Apple would also be using iTunes.

Social Media had truly changed the way people choose to interact with each other and the way companies do business. The next important step for companies though is learning how to harness all this data and apply it to benefit business.

Predictive Technology

Every week roughly 100 million customers walk through the doors of Wal-Mart to fulfill their shopping needs at the number one ‘every-day-low-pricing’ retailer in the country. What these customers don’t know is that Wal-Mart is collecting hundreds of terabytes of data about their shopping habits. Wal-Mart has so much information warehoused that it is about twice the information stored on the Internet!! So, with all this shopper history, Wal-Mart has a unique competitive advantage: Predictive Technology. Wal-Mart can “start predicting what’s going to happen, instead of waiting for it to happen.” They are using this information as a competitive advantage, while trying to not invade customers' privacy too much and keeping a balanced relationship with their suppliers.

Wal-Mart has been very successful at creating an experience that serves as a competitive advantage through the enormous amount of data they have collected. They use the data they have gathered to push for greater efficiency at all levels of its operations, especially its supply chain. And because of this, I believe they are one of the most successful companies in efficiency and inventory management. I cannot ever remember a time when I visited a Wal-Mart and they were out of stock of the product I was looking for. I usually shop at HEB because it is closer, however they are often out of something on my shopping list. This can be very frustrating because I don’t have the time to come back in a few days to pick up the one item they didn’t have earlier in the week. Collecting all this data allows Wal-Mart to keep the right about of inventory in stock. Always having the right amount in stock creates a unique advantage for Wal-Mart because it keeps their customers happy, but also saves them money in warehousing and transportation.

With Wal-Mart amassing all this data, some shoppers are concerned about their privacy. Wal-Mart is capturing data not only about who these customers are and what they bought, but also outside information like mortgage amounts, court dates, driving records, and credit levels. However, I trust Wal-Mart with this data. I do not think they will misuse it because the consequences would be severe. A corporation is seen as a separate entity, and just like people, they cannot use this data for dishonest purposes. And just because Wal-Mart has access to this data, does not mean that they will even use it. Wal-Mart is much more interested in how products sell as part of a larger basket. Knowing what items go into a shopping cart will tell Wal-Mart much more than a customer’s address and telephone number. Personally, I am not fearful of giving my information to Wal-Mart or allowing them to have access to other kinds of information. I don't have anything to hide, and if my information helps them in market research, then I am ok with that - maybe that’s just because I'm a marketing major.

Another way Wal-Mart is using this information is in their relationship with their suppliers. Eventually Wal-Mart will institute scan-based trading, where manufacturers own each product until it is sold. This allows Wal-Mart to never put inventory on their books and will shed 50 billion dollars of inventory each year. This will have a huge impact on their suppliers however. Wal-Mart's strict attitude with their suppliers, I believe, will result in driving them too hard and reducing their profitability. If these suppliers can't sell their inventory to Wal-Mart, then they will lose millions of dollars upfront. And if a certain supplier cannot perform up to Wal-Mart's standards, there will always be another company on their heels trying to take their place. However, this could make suppliers more efficient so they will not lose their contracts with Wal-Mart.

Smart Phones - Smarter than Me?

I was recently due for a new phone when I renewed my contract with Sprint this summer. I’m not going to lie, I am not technology savvy. Yes, I own a Mac, which makes me look a lot cooler than I am. I use it for about four things – the Internet, Word, PowerPoint, and storing photos (which only happened recently because I “killed” my old digital camera). The main reason my parents even purchased my Mac when I came to college was so I wouldn’t download any viruses and fry my hard drive (please refer to the two previous computers that I “killed” along with my digital camera). So, back to the phone – all I needed was a device that will allow me to place calls, make texts, and has an alarm clock. Does that type of device exist anymore?

No. Not even close.

The final choice I came to was the Palm Pre with feature likes Sprint TV and Microsoft Documents, just in case I decide to type this blog on my phone instead of my laptop. It has applications like Facebook, Email, HotSync, IM, and countless other features I do not use. But even though I don’t use these features, I am still amazed that if I really wanted to, I could type this blog on my cell phone, upload it to the course website, while checking my Facebook, editing photos and videos, and ordering a new pair of shoes from Macy’s.

Apple’s iPhone, the device that shaped the path for smart phones like the Palm Pre, is one of the most interesting and creative innovations that has occurred in the last few years and it still continues to outline the path for other devices like it. It was truly the first of its kind and is persistent in being the most creative and innovative phone through its use of technology and applications. For example, the accelerometer allows the iPhone to respond to motion and when a customer rotates the phone from portrait to landscape and then changes the display accordingly. That is just one feature of many that Apple has identified through research that customers enjoy. And no other phone that I know of offers a feature like this. It is something simple, but it sets Apple apart in their creativity and innovation. Apple has also partnered with Nike and created a product in which customers can place a sensor into their shoe and their iPhone measures their workout. The iPhone has now transformed into a personal trainer. Talk about innovation and creativity.

Apple is a company with truly great insights into their customers. Through these insights they are able to gain much better understanding of how their customers behave and what they want. These insights give products and marketing efforts a better shot at success when introducing new and innovative items such as phones with touch screen, ITunes, voice control, Google Maps… I could keep going. Just on the website Apple has listed several different features that come with the 3GS (I’m still wondering what 3GS even means).

The new shift toward collecting data instantly from research done through the Internet has allowed companies like Apple to test new ideas and technologies right away. They also try new things because the cost of failure is much lower than typical research methodology. This ultimately has better results for customer because their preferences have much more of an impact on a company’s decisions since they can gather this information instantaneously. Apple can test new gaming applications online by allowing customers a trial run and gauge the interest of potential customers. This will have explosive potential in the future as more and more companies follow in Apple’s lead and harness the power of customers’ insights through the Internet.

The Effect of Expectations

Every day we accumulate pieces of knowledge that shape our expectations of daily life. This idea is the primary lesson taken from Predictable Irrational, by Dan Ariely. This knowledge we accumulate forms stereotypes and impressions which can cloud our point of view. These expectations that we form from these impressions then influence our experiences. Ariely explains, “expectations can influence every aspect of our life,” allowing us to gain valuable insights for our customers. When our expectations change, our experiences change as well, something marketers strive to do with brands and products.

We can use experiments like Ariely’s to truly discover how marketing affects the underlying reasons people act the way they do. Marketing provides information that amplifies someone’s anticipated and real enjoyment. If we can change the way customers expect a product to work, then we can most likely change their experience with it. Ariely provides an excellent example correlating with this thought. If a person hears of how amazing and exciting a new sports car is, are they more likely to agree with that evaluation after test driving the car - especially compared to someone who did not receive this review? Marketers strive for product endorsement in hopes that it shapes how the customer interacts with and perceives the product. Coke’s brand presence is so strong that even though customers like the taste of Pepsi better, they choose Coke because of the expectations that Coke has created around their product. I’m sure all companies wish their brand was this strong.

Ariely described several experiments he performed to discover how deep these expectations actually influence and affect our lives. He wanted to learn if previous knowledge actually modified not only our thinking, but the way something could affect brain activity. He began experimenting with different types of beer and if information provided about the beer would affect the way students at MIT perceived the beverage. His result was predictable – students without knowledge of the strange ingredient, balsamic vinegar which was added to the beer, chose the altered beverage. When students were informed about the vinegar in advance of the tasting, they chose the standard beer. What Ariely learned from this was that if you tell people something might be distasteful, they will likely agree with you. This is not because their experience with the beverage tells them this, but because their expectations tell them it will taste bad.
He took this research one step further to discover if knowledge that comes after the experience would it have the same effect as if it came before? He also wanted to learn which one (before or after) had a greater impact on the experience of the participants. He states that the implication of research is that if knowledge only informs us, then it shouldn’t matter whether the students received the information before or after tasting the beverage. He discovered that students who obtained the information after drinking the beer liked the beverage much better than those who were told before. These students liked the beer just as much as those who weren’t aware that there was vinegar in their beer at all.

Ariely briefly mentions giving great review of movies as a way to increase the enjoyment of others seeing the movie. I strongly believe that family and friend’s personal reviews of movies are more valuable than Ebert and Reoper’s evaluations. People respect the ideas and values of others around them and probably have similar views about various issues. I trust my friend’s opinions about current movies and often follow their advice if I should spend my valuable time and money on it. Also, no one likes when they hear that a movie is the funniest movies of all time because it expands their expectations of what they are about to see. Even if the movie is very funny, our expectations are so high that our experience is lacking.

This article shows the importance of customer expectations about products and brands. What I’ve learned is that marketers should attempt to create positive expectations to influence customers’ experiences.

My Persona

Every single day businesses all over the world aim to target different types of consumers with all kinds of different products. But do they even really know what their customers want? I would like to say I am the typical college student and companies could study me to find out about the other thousands of college students around the country. But that is a lie, because the typical college student does not exist. I’m pretty sure we don’t even understand each other most of the time, so good luck to the rest of the world! However, certain qualities seem to permeate this segment of society and can be harnessed by marketers to really learn about their customers. And with the help of user-centered designs and the persona lifecycle, companies have a better chance of figuring out their customers’ needs and wants.

I think one of the most modern and significant characteristics that has emerged for our segment of society is the constant need to be connected to the outside world. We are the first generation to grow up with personal computers, cell phones, and the Internet and I believe it has had a profound effect on us. I can’t go a day without checking my Facebook or my email (usually I check it several times a day) and I certainly can’t leave home without my cell phone for the fear of missing a call or text. We even have the Internet and Facebook on our cell phones so we can be connected at all times of the day when we aren’t in front of our laptops.

The second characteristic that describes my persona is the need for social interaction. I’m not saying it is necessary for college students to go out drinking every weekend (even though we do), but it is definitely something we enjoy. I can’t even imagine how much money 6th Street makes on a Thursday night. But it is more than that; it is the fact that our friends become our new family as we move away from home. We depend on each other and spend most of our time together. Even when we are by ourselves social networking websites such as Facebook, Twitter, and MySpace allow us to continue to be social.

The ability to identify myself with the University is another characteristic of my persona and the person of most college students. I may only be a University of Texas student for four years, but I will always be a Longhorn. There is nothing better than waking up on a Saturday morning and tailgating with thousands of other people who are just as excited. I had friends literally counting down the hours for the Louisiana-Monroe game last weekend. We all get nervously excited just talking about a possible trip to Pasadena. It is also quite an amazing experience that while I was in Missouri last Christmas, wearing a TEXAS sweatshirt, I got “Hook ‘Em” from several people. It’s quite a remarkable club to be a part of.

Another characteristic describing my segment of society is our need for self-expression. Through our clothing, hair, make-up, shoes, and even sometimes tattoos we try to express ourselves and be individuals. However we also use this self-expression to identity other people that communicate themselves the same way. Sorority girls wear their oversized t-shirts and Nike shorts just like hipsters wear their skinny jeans and v-neck shirts. They use this to set themselves apart from other groups, but also as a way to identify with their own crowd.

A fifth characteristic that explains the person of a college student, is the need to find oneself. College students are hit with a million different ideas and opinions everyday and we must figure out which we agree or disagree with. We are trying to figure out what is important in life and what makes us happy. It is a common belief in the business school that money and status creates happiness. I’m not sure if this is true, but as a marketing major in this economy with no current job positions available, I hope it’s not. This leads me to my next characteristic…

The fear of the next step. We have approximately eight and a half months till we are out in the real world all on our own and that is quite a scary feeling. We have been preparing for the last three years to take this next step, but I find that many of us do not feel equipped. Hopefully the economy will be on the rebound and we will all have jobs.

The seventh characteristic that describes my persona is the need to be fashion conscious. This predisposition may be a bigger tendency of the female population, but no matter what men say, we know they care too.

I also believe that environmental consciousness is a characteristic of my persona. “Going Green” is the big fix for people my age who know that we are the ones who will have to deal with the environmental problems of the future. We recycle, ride bikes or walk; we are trying to reduce our carbon footprint. It’s a trend that won’t go away anytime soon.

Another characteristic of our segment in society is being technology savvy. We use Macs, PCs, Iphones, Smart Phones, DVRs, PS3s, Wiis and televisions with over a 100 channels. I could go on and on. We can download music and movies instantly from the Internet and watch them on our High-Definition televisions. We can use Skype to talk to friends and family around the world. However, I can already see how we use technology as a status symbol. My boyfriend recently bought a new television with features I’ve never even heard of or know how to use. His roommate and best friend also bought TVs, but my boyfriend was so proud because, according to him, it was so much better. (I honestly couldn’t care less about the stupid 20-hertz and 1080p that made his TV so amazing.)

Instant Gratification is the final important characteristic of my persona. In our society we can get almost anything we want, immediately. McDonald’s and Starbucks allow us to get food and gourmet coffee in less than 10 minutes. The Iphone and the Ipod give us instant satisfaction as we can play games, download applications, and listen to music anytime, anywhere. We can order anything online and have it expressed shipped to get them the next day. DVR and T-Vo even allows us to record and watch television shows anytime we want.

First Blog

Test Blog!!!