During my undergraduate study at University of Southampton the lecturer in a module showed us a video of how Tesco operates and market themselves in Korea. On Friday my lecturer in Customer Insight also showed that very same video. After watching the movie for the second time, I really started to ponder exactly why Tesco does not adopt the same marketing practices in UK.
In South Korea, Tesco has re-named themselves to Tesco Homeplus. However, it was not merely the name that they changed. They also completely transformed the ways in which they reach out to the consumers. Tesco created a virtual subway store to adjust to the Korean market. The cultural notions of Korea is completely unique and allows this innovation to work. Koreans are very busy people and have very long working hours. For them grocery shopping is rather a bother than an enjoyable experience. Owing to this, Tesco made the decision of letting the store come to the people. While Koreans are travelling back home from work they can shop in the subway while waiting for the train. The reason why this type of shopping experience is successful is because the virtual shop really creates the feeling of being inside a shop. There are pictures on the walls made to look like the shelves with groceries inside a real supermarket. Hence, the shopping experience is maintained. Travellers can place the order with their smartphone, which is very convenient and effortlessly. When the shoppers arrive home their groceries is on the way to be delivered at their home.
One might think that such an incredible innovative idea would work wonders in busy areas in UK as for example London. Then why does not Tesco create virtual shop in the London Underground? Londoners might be busy people as well, they work less working hours than Koreans. Arguably, the cultural elements of Korea are huge determinators of the decision to implement the virtual store. I would say that Londoners still enjoy the experience of going shopping in store compared to doing it virtually. Of course with the advent of such a shopping option, the virtual shop would probably receive a lot of popularity. However, in the long term they would miss walking around in the traditional stores and enjoying the experience. Some of my friends living in London has frequently told me that they like shopping in stores. They do not see it as a stressful part of the day, but rather enjoy the moment. Perhaps its due to their shorter working hours, but could also be because of some more underlying cultural notions.
Tesco made a clever move by approaching the Korean market in this way. They recognised the consumers needs and adapted an approach that suited the lifestyle. However, I doubt the virtual store could be as successful in UK. If it was a high probability that it would be profitable Tesco probably would have implemented already.
I was queuing for the self-checkout machine at McDonald's, which was far more popular than the traditional counter. After customers picked-up their meals, they walked off without giving the employees any eye contact or response to their greetings. This got me thinking about consumer culture, where there seems to be an increasing trend of consumer isolation, especially regarding online shopping. This post intends to consider the consequences of the online shopping trend and how marketers are handing the problem of social isolation.
I have often visited shops to escape loneliness. This is because shops provide an arena for social interaction, where a lot of the shopping experience is related to socialisation. Internet as a shopping medium has become increasingly prevalent (Kim, 2002). In online shopping, the social element is taken out of the shopping experience to a great extent. This could have adverse consequences as research has proven that internet usage has effects on social isolation (Eastin, 2002), where online shopping is related to increased depression (Stepanikova et al., 2010).
Online shopping can be seen as a positive development. It gives freedom and convenience by allowing consumers to shop whenever and wherever they like. Online shops offer consumers easy access to a wider range of products from a global market. Although there are concerns related to the privacy of online shopping, consumers might feel more anonymous and discreet in the purchase process. Online shops offer cheaper products and support in efficient price comparison.
Still, isolation regarding online activity is undeniable. Can we justify this isolation on the premises of giving consumers more convenience, better variety and lower prices of products? Perhaps we do not have to. Social interaction and a sense of community are increasingly fostered by shops as they present visitors with forums, chat rooms and comment sections. These solutions accommodate the need for socialisation in consumption experiences and are related to flow, an enjoyable experience where we are completely intrigued with browsing (Novak & Hoffman, 2009). I find online shops with such sections more pleasurable to visit as I do not feel completely disconnected from others. For instance, many online shops have comment sections where customers can provide feedback and recommendations to other consumers, which create conversations and interaction. Chatrooms providing interaction between consumers and the business also generates a sense of social interactivity, but the replies are often generated by computers. However, this superficial interaction without physical contact might not be sufficient to satisfy social needs.
(Screenshots: Ericdress.com)
Online shopping will continue to increase; especially as businesses has developed ways of bringing the social element into online consumption. Still, I think it's unlikely that physical stores will disappear as it creates an atmosphere, which online shopping cannot replicate. Traditional stores provide room for physical contact and socialisation to a far greater extent. Hopefully, physical stores will remain popular, as too much online consumption might contribute to the alienation and isolation of consumers. Do you agree? Please comment your views below.
References:
Eastin, M.S. (2002) Diffusion of E-commerce: An Analysis of the Adoption of Four E-commerce Activities. Telematics and Informations, 19 (3). Available from: http://www.sciencedirect.com/science/article/pii/S0736585301000053 [Accessed 12 November 2014].
Kim, Y. (2002) Consumer Value: An Application to Mall and Internet Shopping. International Journal of Retail & Distribution Management, 30 (12). Available from: http://www.emeraldinsight.com/doi/abs/10.1108/09590550210453075 [Accessed 12 November 2014].
Novak, T.P. & Hoffman, D.L. (2009) Flow Online: Lessons Learned and Future Prospects. Journal of Interactive Marketing, 23 (1). Available from: http://www.sciencedirect.com/science/article/pii/S1094996808000042 [Accessed 11 November 2014].
Stepanikova, I., Nie, N.H. & He, X. (2010) Time on the Internet at Home, Loneliness, and Life Satisfaction: Evidence from Panel Time-Diary Data. Computers in Human Behaviour, 26 (3). Available from: http://www.sciencedirect.com/science/article/pii/S0747563209001733. [Accessed 10 November 2014].
Picture Credit:
http://www.doesntgrowontrees.co.uk/online-versus-in-store-shopping/
(http://9gag.com/gag/aMbEq36)
Came across this picture while I was scrolling 9gag one morning. 9gag titled the post " Best. Marketing. Ever."
Yet, while I was thinking about the picture I had just seen, I recalled how my lecturer talked about something called ambient marketing in lecture earlier this week. He explained that ambient marketing refers to marketing which is put in unusual places to create humour and surprise. Although I have to admire the marketers cleverness, I question myself whether such a marketing technique is acceptable or if there should be standard that restrict marketers in this field. Is it acceptable to trick people like this
The concept of ambient is defined as something which exists in our environment. Earlier ambient marketing was basically to advertise outside as opposed to inside buildings. For instance billboards were acknowledged as typical ambient marketing. However, the meaning of ambient has completely transformed during the latest years (Thorson & Duffy, 2012). Today ambient marketing is advertising which is surprising and unexpected. To create such ambient adverts a lot of creativity is required.
Why is such ambient marketing so powerful? Well, ambient marketing will entice the consumers, give them something to talk about. The marketers does not merely rely on the number of people who actually see their ad, because ambient ads will drive the consumer to help in the marketing process. They are likely to tell their friends about it, thus create discussion and further interest. Moreover, if the advertisement was truly unexpected and clever it could perhaps lead consumers to even take photos of it and upload on social media.
In my opinion, ambient marketing is a effective marketing tool. Still, I would argue that if ambient marketing is over-used or appear too often in our environment it would loose its power. The power of ambient marketing is that it is not everywhere. If it was, people would expect to see something surprising every time they went outside of their own home, thus ambient marketing messages would not be unexpected anymore, but rather expected. In that case, to entice the customers would be a greater challenge than it is now, as the message would have to be VERY clever to differentiate itself and give the consumer something that overrides all the other adverts.
References
Thorson, E. & Duffy, M. (2012) Advertising Age: The principles of advertising and marketing communication at work. Mason: South-Western Cengage Learning.
