Social Science as Applied to Commerce

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Social Science as Applied
to Commerce

Ask(?)Away is a candid conversation between two people published on a
blog. This transcript includes comments from the readers and space for your
notes. Our fourth guest in this format at Conversation Agent is Mario Vellandi
of Melodies in Marketing.
Valeria Maltoni: I used to interact with my TV, except for nobody knew about it
because all it meant was me giving my opinion to a screen with no way to send the
comment. Maybe some of you are smiling here, have you done the same? Have you
responded to a talking head on TV during an interview muttering your two cents?
They couldn’t hear you, could they? That is changing. One need only think about the
many ways we can now provide feedback in real time -– online and off line. How is
our new focus on customization and personalization shaping the retail industry, for
example?
Credits: Logo design courtesy of Ryan Mesheau via Mark Goren. PDF design and light edits by Valeria Maltoni.


Recently, I asked Mario Vellandi who blogs
at Melodies in Marketing a simple question
independent contractors.
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-- what are you passionate about? The Valeria Maltoni: A while back we met with a
conversation that ensued between us was group of analysts of cultural behavior -- the
inspiring. We talked about personalization, Center for Cultural Studies and Analysis. We had
buying behavior, and choices -- and the role the most fascinating conversation about the
marketing plays in helping provide them. “Seven Shoulds or Seven Things all Americans
Believe in” and I recall checking out their age
Mario Vellandi: Well, I am a very curious chart that delineates behavior when in group.
person about many of life’s pleasures the They do a lot of work for the entertainment
humanities has to offer, but it is social science industry. They study behavior to help those
applied to commerce where I am most companies design great experiences.
fascinated. What I mean by that is, how do
people naturally behave in particular contexts In your work with consumer good companies,
and how are they inﬂuenced? Ultimately, we’re how much emphasis do they put into research
humans not consumers. We don’t like to just and behavioral-based analysis? How are
feed the seemingly insatiable self. I think most the results utilized for product and service
of us also like to interact, play, enjoy, share, development?
and importantly: relax and be content.
Mario Vellandi: Well, you kind of stumped
Where does this leave me? Marketing and me because that was an interesting website and
Experience Design is probably the answer. I had to think about how to respond.

For what industry? Mostly consumer I’ve worked with a few consumer goods
product goods, although I do like to keep companies, but they were relatively small
an open eye for interesting small projects (<$60 million). The categories were food,
involving nonproﬁts or other consultants and beauty care, and home decor. Behavioral

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research at these firms was quite limited to
hypotheses and personal preferences among
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may not be that important. Instead, giving
the retail buyer (aka Category Manager) a
employees. However, we did have excellent product they’ll love is far more important.
designers who knew their materials well That option is oftentimes not available
and how to concept new products quickly. though. It takes excellent sourcing abilities,
Management of course wanted to make flexible manufacturing options, and an internal
products that actual shoppers would buy. company culture that is devoted to serving the
So we would all go competitive shopping customers’ wants. That is one very difficult
and analyze what we saw on the shelves at cookie with a long bake-time.
various retail establishments, upscale and
downscale, and took note of what products But I don’t want to underestimate the
seemed to have a higher velocity based on the importance of testing. A product may look
comparative number of units on shelf, among good, but may perform poorly with extended
many other factors. use. I liked one company’s innovative candles,
but noticed when I tried out a square-shaped
Secondly, and perhaps most importantly, we candle at home; the burn diameter was large
made it a priority to give the retail buyer the enough to start leak wax out of the sides, thus
option to customize the product to their liking making a mess. I told a couple people about
(naturally limiting the amount of flexibility it, but they said they do test all their products.
to their relative purchasing power). For the I didn’t buy that excuse because the wick size
largest retailers, it wouldn’t be uncommon for on the final product looked exactly the same as
us to turn around a new concept with pricing, the concept candle.
photo, and a sample shipped within 24-48
hours. ▼

Depending on the product category, CK highlighted the importance of looking
sometimes actual consumer behavioral analysis to human behavior/ influences/instinct in

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marketing. What I find additionally interesting is how
participants may be more candid and open
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Observation is important, yet if a product if the tools are designed to easily fit into
does not deliver on its promise, if it looks participants’ lifestyles and schedules. But
good, but performs poorly, you need to ultimately, I think they’re just tools and aren’t a
know that as well. So what about combining panacea for everything. Research projects still
observation with testing? In other words, must be well defined and related to a particular
letting users tell you about their experience. strategy, planned and executed. Data has to
be collected, analyzed, and converted into
► (continued) actionable intelligence. We need apt humans
for all that right-brain thinking.
Valeria Maltoni: Did you do any online
testing? For example, I met the founder of Product/Service design (content, packaging,
KDA Research and learned that they do a lot price) is just one piece of the larger behavioral
of qualitative research using new media. Do analysis pie though. There’s environmental
you see technologies that can make it cheaper studies for online and offline purchasing
to put in the hands of consumers not real environments. After recently reading Why
but virtual products as helpful for behavioral we Buy by Paco Underhill, I got an immense
analysis? appreciation for how merchandising and store
design affect shoppers’ behavior.
Mario Vellandi: I think software tools can
be extremely helpful in managing the data [from the comment section Mario added]
(collection, sharing, disseminating) and At my previous employers, we had some key
the project (planning, task assignments, individuals who performed research into
milestones) with multiple parties: end-users, fads and trends in the marketplace, then
sales channel providers, and research team organized this info into lifestyle profiles.
members. This environmental scanning was a constant

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process. But this was just one element of a
larger organization-wide product ideation
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Anthropologie does that in their stores. I wrote
about it not long ago. What other stores do
process that included our shopping trips. that well and why?

Fads and trends have life cycles of their own Mario Vellandi: Although I’m not a lady, I’ve
that when understood, will qualify the degree heard marvelous things about the service at
of opportunity for each retail channel. [Btw, Nordstrom dept. store. I think the common
CK has a great white paper about fads/trends on thread between this chain, Anthropologie
her website.] Training your salespeople in & Urban Outfitters, and other successful
this info improves their communication with establishments is that they put their focus
buyers and relationships they build. on the staff first, not the customer. After
all, employees represent the company to the
Allow me to stress that very last sentence. customer every day. If they feel good about
Relationships matter. If you want to be their employer and the way they’re treated, it
remembered next season for at least a meeting will reflect in their performance and service to
or presentation, you have to build customer the customer. In saying this, I almost sense a
intimacy into your organization’s culture and flashback to Made to Stick. The companies are
the mindset of your salespeople. This requires taking care of their troops and giving them
looking out for the buyer’s interests in regards the commander’s intent, but not the explicit
to product fit, assortment, price points, tactics. There are general company guidelines
margin, and # of units on shelf. and of course performance metrics to be
met as a matter of maintaining service levels.
Valeria Maltoni: As much as we’d like people But the trust in execution is placed in the
to tell us, I think there is also the consideration employees.
that we often say one thing and do another.
Observing in the context of the purchase Did you know that Walgreens has fewer
is a great way to do a reality check. I think stores than CVS (nation’s largest drugstore),

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but beats them in sales? Although there are
differing reasons for their overall success,
feels awesome.
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as outlined in Good to Great, I’ll explain one. Let’s hear it from you – what are your
Walgreens caught on quickly that many favorite stores? Why?
shoppers came in wanting beverages and
snacks (which give good margin), so they ▼
increased their exposure to these categories
Carolyn Ann: My favorite store is the Borders
and transformed the store into a mix of a
in Wilmington, Delaware. Lots of choice,
convenience, general, and drugstore. In the
good coffee served near the magazines and
mind of shoppers, they were no longer just
the bathrooms! (Barnes & Noble put the
another drugstore that sells health, beauty,
bathrooms elsewhere, usually forcing you walk
personal care and pharmaceuticals along
through the store. An usually trivial point, but
with stationary, photo services and a couple
it can be important!)
other product categories. And that unique
positioning was powerful magic for Walgreens My least favorite is also a Borders: the
because now shoppers wouldn’t necessarily one in central Philadelphia. It’s got a great
think first of 7-11 or the supermarket for selection, but you have to go up 3 floors to
certain categories, they’d remember Walgreens. get to it, music is the first thing you see (it’s
a bookstore!), and the books aren’t arranged
A last retailer I’ll mention for a unique feature
very well; it’s not laid out as logically as it could
is Best Buy. Their staff may be courteous,
be. Plus, the aisles are a little crowded. And the
the prices are nothing special, but the amount
cafe: what a disaster! Instead of it being in a
of space between aisles and departments is
reasonable place, you have to go down a floor
excitingly refreshing. You can feel free to
- not so bad, except I’ve yet to locate where
roam around and look, then approach with
the baskets are, so I have an armful of books
curiosity. Even if there are many shoppers in
all the time - and the bathrooms are back up a
the store, you don’t really notice them. It just

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floor. I don’t know where the magazines are.
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After browsing the books, it’s nice to be able
to go to the Starbucks kiosk to sip some fresh-
I do buy a lot of books, and the layout of the brewed java. The chain also offers a rewards
store has to be conducive to that. Barnes & program with discounts on books bought both
Noble on Union Sq in Manhattan has some of online as well as through the stores.
the same issues as the Borders in Phillie, but
it’s nowhere nearly as awkward to “use”. The experience is always a good one, and I
even drop by just to “chill” a little to take a
Nordstrom’s are good! Even I’ve bought shoes break from a hectic day.
there. :-)
Layout and design, courteous service, quality
Karen Hegmann: I too am a believer as to product and an environment designed for
the implications of social science on the world tranquility all combine to create a positive
of commerce. The implications go far beyond experience for the customer.
brick and mortar businesses and touch the
online world as well. A well-designed website Trisha Miller: I love the model of
that addresses our needs will provide a good empowering employees in order to create a
experience and will entice viewers to come better customer experience.
back and take a second look.
I don’t get out to the offline stores much,
In Canada, my favourite store would have to but do a lot of online shopping. Head and
be the Chapters/Indigo chain of bookstores. shoulders above the rest is Amazon, whom
The stores are well laid out, and any deals are I shop frequently. Not only do they sell
promoted as you walk in the door. Staff is gazillions of items at reasonable prices, they
courteous and friendly, and if you can’t find are clear when they don’t have items in stock,
the book you need, they will help you find provide honest user reviews, and offer other
alternatives. items I might like that I may not have thought

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about before seeing their offer (yes I often buy
the additional item(s) on impulse).
amount of people coming through (great
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for quick breaks and people-watching). The
square footage isn’t small nor as daunting as a
They’ve worked hard to make the buying shopping mall. Lastly the hours are excellent.
process easy, and to develop a relationship
with every purchaser with features like Wish ► In addition to the materials mentioned
Lists and Occasion Reminders. in our conversation, Mario recommends the
following blogs and books on retail and
This approach may not be feasible for a lot shopping experience:
of ofﬂine stores, but every online retailer can
learn a trick or two from Amazon. Flooring the Consumer by C.B. Whittemore

Retail Design Diva
Valeria Maltoni: I ﬁnd it fascinating that
so far we’re talking about bookstores. Are The Curious Shopper by Sara Cantor
bookstores the new libraries? It would seem
that way. Retailwire.com as the premier source for
consumer and retail studies, in addition to
news on competitive maneuvering by retailers
So much can be communicated with a wise and regulatory trends & actions.
use of design. It is easier to be nice when
you don’t feel crowded by close hallways and Shopportunity!: How to Be a Retail
spaces, for example. Revolutionary - by Kate Newlin

Shopping: Why We Love It and How Retailers
Mario Vellandi: I get a kick out of the Can Create the Ultimate Customer Experience
references to bookstores as well. Interestingly - by Pamela N. Danziger
enough, Borders and B&N have provided
many Americans a new kind of experience Winning at New Products: Accelerating the
that combines shopping, browsing, and just Process from Idea to Launch - by Robert G.
hanging out. The environment gets a good Cooper

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Social Science as Applied to Commerce

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