Friday, February 27, 2009
Tuesday, February 24, 2009
Why People give to charity?
OBSERVATION
Why People Give To Charity?
WHAT'S HAPPENING
A new academic study has interesting ramifications for the world of philanthropy. Behavioral economists Dan Ariely, Anat Bracha and Stephan Meier found that one of the main reasons people give to charity is "image motivation" (Economist.com 1.15.09). That is, they wish to be seen by others as charitable people.
While this may seem obvious, the scholars were able to prove it by showing that gifts given anonymously tended to be smaller, while gifts that were publicized in a big way were larger. But gifts that were acknowledged with some sort of payment or kickback were less attractive to donors.
One survey has found that nearly 90% of American households give to charity, and they do so for many different reasons, not least of which is tax breaks. But this new study shows that when the main reward for giving is positive personal publicity, the bucks roll out.
WHAT THIS MEANS TO BUSINESS
Donations to charitable organizations are definitely down during the Great Recession, but like discretionary spending in general, they haven't gone away entirely. Non-profits and other charities can benefit from knowing what really motivates the giving impulse among consumers. For many, it's about advertising their values to the world, and projecting an image, without seeming to profit from their charitable giving.
That has huge ramifications for business. Consumers care about how they are perceived by their peers; they make purchasing decisions (and donations) that reinforce the image they wish to project.
Boomers: We're not going to take it. The 3 worst Industries for customer complaints
OBSERVATION
We're not gonna take it: The three worst industries for customer complaints
WHAT'S HAPPENING
The Better Business Bureau is best known as a sympathetic ear that fields complaints from consumers. The Bureau then compiles complaints and publishes them. They also issue an annual report that ranks industries by the number of complaints received.
Top of the list in 2008: Consumers called in 36,710 complaints about cellphone companies. Close behind was new car dealerships, which received 27,555 complaints. Rounding out the worst three was the banking industry, which marked a 15% increase in complaints to more than 21,000.
The BBB also tracks whether consumers get satisfaction after complaining. Cell companies resolve complaints 91% of the time, while banks score a 96% resolution rate. Car dealerships have a discouraging 20% failure rate.
WHAT THIS MEANS TO BUSINESS
It's no secret the some industries have a terrible customer service record, especially high-tech goods or services that are perceived as non-discretionary, or brands that have a monopoly. That's an explanation, not an excuse.
The age of the empowered consumer is on us, and each dollar is scrutinized. Consumers in the new economy will gladly hang up on companies that don't bend over backwards to resolve complaints.
Majority Rules among Latinos: They prefer media in English
OBSERVATION
Majority rules: More Latinos prefer their media in English
WHAT'S HAPPENING
Spanish spoken, but English (media) preferred. While 52% of Latinos living in the U.S. may prefer to speak en español, the majority are more comfortable digesting media — television, radio and the Internet — in English, according to a recent Ipsos Omnibus study (MarketingVox.com 2.6.09).
More than half of U.S. Latinos (52%) prefer to watch television and peruse the Web (55%) in English. 49% enjoy English-language tunes when listening to the radio.
Whether in English or Spanish, 63% of U.S. Latinos accessed the Internet at least once a month, with activities including following news, downloading music, uploading photographs and researching products before purchasing them (MarketingVox.com 2.4.09).
WHAT THIS MEANS TO BUSINESS
Spanish may top U.S. Latino language preferences, but nowadays more Latinos are working their media muscles in English. This may break the longstanding belief that brands can only reach the Latino public through Spanish-language media.
Millennials Feel The Burn A Minute at Time with Twittercize
OBSERVATION
Feel the burn a minute at a time with Twittercize
WHAT'S HAPPENING
Denver-based freelance writer Ron Doyle is going to make you sweat — for sixty seconds tops — provided you follow his bite-sized exercise plan via microblogging service Twitter (FlashNews.com 1.9.09).
Launched in early 2009, Doyle's program, dubbed "Twittercize," features short and sweet workplace-friendly muscle moving maneuvers with cheeky names like "Moons Over Your Hammies" delivered hourly via Twitter from 6 a.m. to 7 p.m. EST.
So far Doyle has quickly amassed over 600 followers on Twittercize's account, all presumably looking to better their fitness one tweet at a time.
WHAT THIS MEANS TO BUSINESS
The hardest part of any fitness routine is sticking with it. Twittercize's low-impact auto-reminder plan makes for the ultimate e-nag to keep would-be exercisers on track.
The convergence of exercise planning with social networking will continue progressing as consumers see the obvious benefits of consolidating their fitness and friend agendas in the same location.
IN DICEY TIMES, SHIFT HAPPENS
"Some call it optimism, others (principally psychologists) call it denial … but one way or another, while we've still got the sun, good food, cheap wine and each other, there is still hope!"
Whether you dub it optimism or couldn't-be-me denial, consumers around the globe are in the midst of a values shift. Over the last half of 2008 and first quarter of '09, uncertainty has reigned, and the beat drums on. External economic forces — bringing daily bad news — combined with personal doubts and fears have caused a reprioritizing of values, moving reality, security and thrift to top spots in the consumer mindset while demoting aspiration, luxury and convenience. And of course with a shift in values comes increased momentum for certain Iconoculture macrotrends.
Although our macrotrends were originally defined by major cultural shifts in the U.S., the Global View team has assessed their worldwide applicability and found that nine are particularly relevant right now, presenting the most opportunity for marketers of products and services in all countries. Numero uno on the list might come as no surprise: The macrotrend with the most momentum in the global village is the safe haven of Friends and FamilySM; a shift to "we" over "me, me, me."
Stumble It!
