Saturday, November 28, 2015

Welcome to the Gun Show?


At last, this is a topic that I hold near and dear to my heart but one I typically shy away from--especially when talking with Montanans.  However, I would like to take advantage of this blog platform to discuss one of the perplexing consumer behaviors I have experienced...... gun ownership.


Just to get it all out in the open, I am all for gun control. I think it is ridiculous that there are enough guns in this country for every citizen to have TWO and would love to see more regulation and rules. However, rather than just looking at just my perspective, I would like to compare the behaviors and attitudes between the USA and other first-world countries such as Australia.

First, the USA:

Starting with our 2nd Amendment which grants us the right to bear arms, Americans have quite the love-affair with firearms. 5.5 million firearms are made in the US every year and in 2014, 31% of American households reported having a gun.


Especially in Montana, where gun ownership is over 50%, people are keen to own their weapons either to hunt, protect, or to "fight the bad guys". 


However, our guns are getting out of control. America is top of the charts by far when it comes to firearm homicides and school shootings. 

Comparison of firearm homicides 

School shooting incidences around the world
Americans are quick to defend their guns after seeing such statistics saying "guns don't kill people, people kill people" or "we need our guns to protect ourselves against the bad guys". 

However, in other developed countries, people question these reasons and think that less guns would make for less gun violence. 


In 1996, a gunman opened fire on tourists in a resort in Tasmania and killed 35 people. 12 days later, Australia enacted gun-control measures and did a buyback of more than 600,000 semi-automatic shotguns and rifles. The government also required that all weapons be individually registered and to present a genuine reason when purchasing a weapon (self-defense does not count). Between the years of 1995 and 2006, homicides by firearm plunged 59% in Australia -- with no corresponding increase in non-firearm-related homicides. 


These different behaviors towards guns around the world is perplexing to me. I do not understand why one country views guns as the solution to gun violence while other countries view guns as the problem and what causes there to be such a drastic difference. The only reason I can identify to account for these differences is fear. Fear is such a powerful force and has the ability to alter behavior drastically. Americans are constantly surrounded by media that is telling us who the bad guys are and how they are out to get us. In response, we feel the need to be afraid and protect ourselves. We are also faced with strong nudges (more like shoves) from the NRA to be anti-gun control and to take up a weapon ourselves. 

A interesting advertising campaign for gun control
I, like many other Americans (including our President), realize there is a large mountain to overcome when it comes to making any changes to this pro-guns behavior. While ads and simple nudges towards gun control are a start, they are only small dents in the problem. Major reform in government and our constitution are needed which in turn will require a change in American mindset and behavior.

To change this behavior, I would recommend we look at the root of this behavior which is fear. We need to address the fear in our nation in order to bring about real change. Without looking at the root of the behavior, we will only be able to tackle surface level problems and real change will never occur. 


What Do You Think: What is your opinion of the state of American gun consumption? 



Wednesday, November 25, 2015

L'Oreal -- Defying Supply and Demand


When I was living in Korea, one of my friend's dad was in charge of marketing for L'Oreal in Korea. When L'Oreal first arrived in South Korea, it faced poor sales and limited demand by the Koreans. This perplexed my friend's dad because there would be no reason for Koreans not to buy L'Oreal as it provided quality cosmetics as decent price.


So what's the problem with that?

Well, it turns out that the affordability was exactly what was causing the problem. Koreans place the quality of a cosmetic based on the price and will buy more of a product if the price is higher.

That's a bit different from what we all learn in ECON 101. I was always told that as price decreases, demand increases.....right?



As it turned out, as soon as the L'Oreal raised their prices, Koreans began buying a lot more of L'Oreal cosmetics. This strategy worked so well that L'Oreal is now one of the most frequently purchased cosmetic brand in Korea.

L'Oreal in Korea 
This all goes to show the difference in consumer behavior around the world. One might assume that females in Korea and America are similar as they both wear make-up and probably want to find some for a reasonable price. However, making those assumptions can hurt a company when bring a new product taking it overseas without understanding the way the customers there behave.


In addition, it is also important to look at all aspects of a product (remember the 4 P's!). Just because the Product itself appears to have a demand and all the changes have been made to the Packaging, the Price and Promotion also need to be considered as important aspects of the marketing. 


What Do You Think: Can you think of any other products that as the prices increases, the demand also increases? 


Saturday, November 21, 2015

Check out my Nokia 105


I'm guessing if I were to ask you what the most popular phone brands are, you would probably rattle off Apple... Samsung... Android... possibly HTC.

And if I were to ask you about Nokia, you would probably roll your eyes and tell me how outdated that phone is.

What surprises me when I go abroad, especially to developing nations, is how Nokia has capitalized these markets. For example, in Tanzania, it is not an uncommon sight to see Maasai tribal men chatting away on their Nokia phone while wearing their traditional dress.

Maasai man on his cell phone
As it turns out Nokia is still in second place in the mobile phone market. Nokia currently has 11.5% of the global mobile-phone market with shipments of 47 million phones. Samsung leads the global mobile-phone market with a market share of 27.7%. Apple, despite its huge market share in the US, only has a 10.7% market share.

Most popular mobile phone brands in countries 
The secret to Nokia's success was to go after developing countries, a place where other companies decided to avoid. Companies are hesitant to go after developing country markets because they believe those people do not have money. However, it is not that these people do not have money, they just do not have a lot of it. The money they do have, they are wanting to buy products that fit into and improve their lifestyles.


Nokia have used this knowledge to their benefit. They designed the Nokia 105 specifically with people living in remote, underdeveloped areas in mind. The Nokia 105 comes with a flashlight, an FM radio, and a battery that can last 35 days without a charge. The phone also can withstand high abuse from dust and splashes and allows for multiple users to use one phone. This phone sells for a retail price of $20.

Nokia 105
In just two years, over 80 million of them have been sold and they sell at a rate of 100 per minute.

This all goes to show both the importance of taking advantage of underserved markets and understanding your markets needs. Nokia has been able to find a niche for mobile-phones in developing countries and be successful in them by understanding the lifestyle and behaviors of the consumers of the people in these countries.


Not only has Nokia been able to make a profit but they have also been able to change the lives of the people in these countries. It has been argued that mobile phones have made a bigger impact on life in Tanzania than all of the non-profits. According to a Time article entitled "Cell phones could help millions in developing countries to read", 62% of respondents in developing countries said they are reading more as a result of mobile reading. 


I hope that in the future more companies consider the potential of developing countries for markets of profits. Understanding of these consumers and smart product design for these markets have the potential to drive profits as well as change lives. 

What do you think: What are some products do you think would be successful in developing countries? 







The Stress of Too Much Cereal


When my mom returned to the States after living in Tanzania for five years, Americans kept commenting that she must be so happy to be back stateside where she could get all of the products she wanted. However, my mom was surprised with the realization that despite the fact she now have most of the products she desired, she preferred to shop in Tanzania where she had LESS options.

A typical Tanzanian store or "duka"
In the book, The Paradox of Choice, the author Barry Schwartz explores the impact choice has on our overall well-being. He discovered that, despite popular belief, eliminating choices reduces our stress, anxiety, and busyness of our lives. Check out his TedTalk below:



Looking back at the example of my mom in Tanzania, she would go to the store there would only be a choice of two or three cereals. However, now that she is back in the USA, she is faced with an entire aisle of cereal choices. Instead of giving her a feeling of freedom to have any cereal she wants, she now has to decide if she wants a sugar-free cereal or one with sugar or the family-size or the regular size.

Cereal aisle in the USA
My mom is not the only one overwhelmed by the amount of choices we have. My housemates are always quick to notice the wide-variety of food options we have in this country from chips to dog food to shampoo. 
Just a few options for dog food..
What perplexes me is the trade-off we have with our happiness to have more options. I hear people complaining about long shopping times or having to spend so much time going through options but very little action taken to simplify our lives. 

Too. Many. Choices.
Seeing that it does not seem like the number of choices we face will be slowing down anytime soon, I will be following Schwartz's advice to just reduce my choices as an individual. To reduce my stress when it comes to shopping, especially grocery shopping, I plan to limit my grocery stores to just Safeway as much as possible and to stick to the same brands rather than constantly comparing brands. And if all else fails, I will just have to move back to Tanzania where most of my choices will already be made for me!

What Do You Think: Are you overwhelmed with the amount of choices we face? How do you eliminate the stress of making so many decisions? 


Thursday, November 19, 2015

Potty Talk


This summer while I was interning in Japan, I fell in love.............. with their toilets. In my opinion, Japan should receive a standing ovation for their effort in redesigning the toilet and making it more pleasant for people.

Advertisement for Japanese toilet
Restrooms in Japan have floor-to-ceiling bathroom stalls that when open, prompt the toilet seat to open and light elevator music to start. Once seated, you are welcomed by a heated toilet seat and light water sounds begin to play. The Japanese toilet also usually includes bidet features (complete with butt dryer) and a spray that sanitizes the seat once you flush. The sinks are fully integrated with automatic water faucets, soap dispensers, and hand dryers placed directly in the sink.  You come out of the restroom feeling clean and refreshed (as well as in awe of Japanese brilliance).

To learn more about these great innovations, check out this YouTube video:


As Americans, we have grown accustom to are sub-standard toilets and public restrooms. Our basic toilets typically only offer basic flushing and our restrooms lack ambiance and comfort. In a Freakonomics Radio podcast episode entitled "Time to Take Back the Toilet", the topic of our restrooms was discussed. From the cracks between the stalls to the lack of background music to the unsystematic layout, the podcast concluded that American restroom are behind times and require some serious design thinking.

Stereotypical American Restroom

The podcast left me wondering why restrooms and toilets have stayed the same while everything around us is continually improving and getting more technologically advanced?

This made me realize the potential of design thinking to change mundane yet important aspects of our lives. Creative thinking and innovation apply to something as basic as the toilet can revolutionize our everyday living.



That said, we do not always have to reinvent the wheel each time. As discussed throughout this whole blog, we have the opportunity to learn from the different ways people do things around the world. Changing up our location for a bit has the potential to shift our perspectives on things and could inspire new ideas for products or solutions within our home countries. Take for example, Ikea and how it was able to spread Swedish furniture design around the world.

Using inspiration from other countries help improve our creative and design

I can only hope that as more and more people experience the wonders of Japanese toilets, the USA will realize what they are missing out on and we will be seeing a bit more innovation in our outdated restrooms.

Also, coincidentally....


What Do You Think: What are some other areas in our everyday lives that could use some innovation and design thinking?


White is the New Tan


This semester I have been working as an intern market researcher for ExporTech, an export assistance program. I have had the opportunity to work with five different companies from different industry and help them find the best places for their product. Over the last month or so, I have researched trends, consumers, and consumers all around the world in order to best advise target markets for these exports.

The ExporTech Process

Recently I was meeting with one of my companies who makes beauty products. I suggested they look at South Korea, as Koreans love cosmetics and we have a free trade agreement with them. Immediately, the coach for this company shot down my idea because she said that South Koreans do not have any disposable income. Having lived in Korea for four years, I knew differently and did my best to explain how Korea is very metropolitan and thriving.

Myeongdong (One of my favorite places to shop)

I also went on to explain the obsession Koreans have with cosmetic products. I used an example of their love of having white skin and how I had to be careful not to walk too close to beauty shops or else they might rub skin-whitening lotion on me and I would lose part of my tan. At this my clients eyes lit up.

A few Korean cosmetics stores
"Our sunscreen whitens skin!", she exclaimed. "We have trouble selling our sunscreen in the US because no one here wants white skin", she further explained.

This whole situation was a great example of consumer behavior. Even though in the USA, we value tan skin, in other parts of the world, white skin is more desirable. By understanding these differences in consumer behavior and the desires of consumers around the world, we can sell products to other parts of the world that might not sell as well in the USA.

On the left is a Westerner trying to get tan while the right shows an Asian protecting themselves from the sun

This all goes to say that there is an increasing need to better understand consumer behavior around the world. If I had not previously lived in South Korea, I would not have been able to dispel the export coach's ignorant assumption that South Korean do not have any money and a huge opportunity would have been missed.

A graph of South Koreas growing disposable income
I also noticed that I was able to give much better insights to countries I had lived or visited versus the countries I had simply researched. This illustrates the importance of first-hand experience and the amount of learning that can be gained when we go overseas. 


What Do You Think: Can you think of a product that would sell great in one country but not another?






Friday, November 13, 2015

Eating Fido for Supper?


After reading the article, Are Rabbits Pets or Meat?, for a class discussion, I have been thinking about my own experiences with the fine line between meat and pets.

South Korea has a negative reputation for eating dogs. One of the main comments / questions I receive when people find out I've lived in South Korea is "don't they eat dogs in South Korea?!".

I will start off by saying that eating dog in South Korea is not as common as Americans think. It is not like people commonly ask each other if they feel like going out for dog. Personally, I have never tried dog meat even though my father has tried it once with his Korean co-workers.

Koreans have a long history of eating dog which dates back to as early as 4th century AD. However, even that early date, they have different words for a pet dog, "견; 犬", and dog meat, "구; 狗,". 

Hwangu dog breed
Currently, Koreans consume about 2.5 millions dogs each year. The primary breed used for meat consumption are the Nureongi or the Hwangu, which differ from breeds that are raised as pets. Dog meat is thought to ensure good health and vitality.Dog meat is typically consumed during the summer and is either roasted or put into stews. 700 bowls of dog stew are served each day in South Korea.

Dog stew 
Despite the long history of dog meat, young Koreans are protesting the use of dogs for meat. With Seoul being a metropolitan city and more people owning dogs as pets, many Koreans are protesting dog meat restaurants and farms. Western animal activists are also getting involved -- some even flying out dogs from these dog meat farms to California for adoption.

Protests against dog meat
This is causing dog restaurants to slowly close their doors. At one time Seoul had 1,500 dog meat restaurants but now that number is around 700. The generations are in a battle -- The older generation wanting to preserve this traditional and beloved Korean cuisine while the younger generation stands for animal rights.

Dog meat

Similar to the rabbit meat, the line between pet and meat for dogs in Korea is tight. Especially in Bozeman, where dogs rule the town, it is hard to picture a world where dogs are not necessarily man's best friend.


This is a tough one for me as one who loves my dog (who is from Korea) but also respects cultural traditions.

My Korean dog


Therefore, I ask you:

What Do You Think: Should Koreans be able to kill dogs for their traditional cuisine or should dogs be only considered pets and not eaten?