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DIGITAL ENGAGEMENT Michael R. Solomon, Ph.D. Professor of Consumer Behaviour Manchester Business School Professor of Marketing and Director, Center for Consumer Research Haub School of Business, Saint Joseph’s University, Philadelphia U.S.A. msolom01@sju.edu  November 2009
ABOUT THE SPEAKER Michael R. Solomon, Ph.D. is Professor of Marketing and Director of the Center for Consumer Research in the Haub School of Business at Saint Joseph’s University in Philadelphia.  He also is Professor of Consumer Behaviour at the Manchester School of Business, The University of Manchester, U.K.  Dr. Solomon has published numerous articles on consumer behavior, lifestyles, services marketing, and fashion psychology, and he is the author of Marketing textbooks that are used in business schools around the world. He is the author of Conquering Consumerspace:  Marketing Strategies for a Branded World(American Management Association) and The Truth about What Customers Want  (FT Press). Prof. Solomon has worked with numerous corporate clients on issues related to consumer behavior, branding, services marketing, retailing and advertising.  He appears on television shows such as Good Morning America and The Today Show to comment on consumer behavior issues.  He  has delivered keynote addresses at many trade organizations and corporate meetings in the U.S., Europe, Latin America and Asia. msolom01@sju.edu   610.660.3411
The Holy Grail: Lure the Reluctant Consumer
Multitasking:  Combining Shopping, Entertainment, Work
ENGAGEMENT = ROI 75% of executives say higher levels of customer engagement would result in higher profits 49% think inadequate engagement is to blame for up to 25% of lost sales. The Economist, March 2009
Brand Equity Model Engagement BRAND RESONANCE CONSUMER FEELINGS CONSUMER JUDGMENTS BRAND PERFORMANCE BRAND IMAGERY BRAND SALIENCE Adapted from Kevin Lane Keller, Strategic Brand Management, Irwin McGraw-Hill, 2003
Loyalty Attachment Community Flow State
13
THE NEW CONSUMER MINDSET
    Marketer    Consumer
The consumer as“couch potato”
WELCOME TO CONSUMERSPACE
[object Object],companies sell to us.   ,[object Object],   they sell with us.
In consumerspace, people want to be part of the marketing process…
Cultural Co-Creation Co-created meanings fold back into the culture and become part of the social discourse.   Jones soda, for example, enlists its consumers’ input on packages and flavors   22
Link to Cultural Myths
CONSUMPTION RITUALS BBDO:  “Fortress brands” embedded in rituals are difficult to replace.  About 90% of consumers worldwide use the same brand each time they perform a ritual!
Evolutions in Branding Theory and Research: Three Steps Forward FROM: Brands as assets created and controlled by the firm Brands exist in the minds of consumers “What brands mean”  TO: Brands as co-created entities Brands live in cultures How brands come to mean; brand development mechanisms and processes Fournier, Susan G., Michael R. Solomon, and Basil G. Englis, “Brand Resonance,” in Schmitt, B.H. And D.L. Rogers (eds) (2008), Handbook on Brand and Experience Management, Cheltenham, UK and Northampton, MA, USA: Edward Elgar.  
THE CGC BOOM
Consumer-Generated Media (CGM) The Infamous Mentos - Diet Coke Experiments
Doritos CGC
Accenture survey:  Media and entertainment executives see the ability and eagerness of individuals to create their own content as one of the biggest threats to their business.  57% identified the rapid growth of user-generated content as one of the top three challenges they face today.
Risk Vs. Control But:  68% of the respondents said they believe that within three years their businesses will be making money on user-generated content!
The Bottom Line: You don’t own your brand anyway. GET OVER IT
CGM ≠ CGC! Consumer-generated MEDIA Custom pricing Viral distribution New product development Product personalization Customer insights Advertising  New media Consumer-generated CONTENT
Consumers Become Marketers Directors: Britain’s Got Talent TiVo Ford Probe commercial – viewers pick the ending Player-cams follow individual athletes during football games Apple: Viewers post their own commercials Retailers/ Distributors eBay Amway Kazaa, Grokster, etc.
DOMAINS OF CGC
Consumer-Enabled Distribution (aka Viral Video)
www.subservientchicken.com
Consumer-Generated Pricing
NPD and Customer Insights
41
Prediction markets
hsx.com
44
45
46
47
48
49
50
51
52
Virtual Worlds
Virtual Worlds
©2007Michael Solomon 55
SOCIAL IDENTITY IN CYBERSPACE  Natalie
Physical/Digital Identity Management
Before
Some residents use real identities…
Others not so much…
Selecting an appropriate avatar for a web site may be just as important as selecting the right model for an advertising campaign…
Through the Looking Glass?
Offline to Online
TastyDiamondz tells me how she is shy in real life, but VMTV helps her to overcome this shyness.
The Disabled
Online to Offline
Proteus Effects
Cosplay
Sales Training
See behaviors from 3rd person perspective
Integration!
Welcome to AUGMENTED REALITY

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Michael Solomon presents Digital engagement @ Canvas8

  • 1. DIGITAL ENGAGEMENT Michael R. Solomon, Ph.D. Professor of Consumer Behaviour Manchester Business School Professor of Marketing and Director, Center for Consumer Research Haub School of Business, Saint Joseph’s University, Philadelphia U.S.A. msolom01@sju.edu November 2009
  • 2. ABOUT THE SPEAKER Michael R. Solomon, Ph.D. is Professor of Marketing and Director of the Center for Consumer Research in the Haub School of Business at Saint Joseph’s University in Philadelphia. He also is Professor of Consumer Behaviour at the Manchester School of Business, The University of Manchester, U.K. Dr. Solomon has published numerous articles on consumer behavior, lifestyles, services marketing, and fashion psychology, and he is the author of Marketing textbooks that are used in business schools around the world. He is the author of Conquering Consumerspace: Marketing Strategies for a Branded World(American Management Association) and The Truth about What Customers Want (FT Press). Prof. Solomon has worked with numerous corporate clients on issues related to consumer behavior, branding, services marketing, retailing and advertising. He appears on television shows such as Good Morning America and The Today Show to comment on consumer behavior issues. He has delivered keynote addresses at many trade organizations and corporate meetings in the U.S., Europe, Latin America and Asia. msolom01@sju.edu 610.660.3411
  • 3. The Holy Grail: Lure the Reluctant Consumer
  • 4. Multitasking: Combining Shopping, Entertainment, Work
  • 5. ENGAGEMENT = ROI 75% of executives say higher levels of customer engagement would result in higher profits 49% think inadequate engagement is to blame for up to 25% of lost sales. The Economist, March 2009
  • 6. Brand Equity Model Engagement BRAND RESONANCE CONSUMER FEELINGS CONSUMER JUDGMENTS BRAND PERFORMANCE BRAND IMAGERY BRAND SALIENCE Adapted from Kevin Lane Keller, Strategic Brand Management, Irwin McGraw-Hill, 2003
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 13. 13
  • 14. THE NEW CONSUMER MINDSET
  • 15. Marketer Consumer
  • 17.
  • 19.
  • 20. In consumerspace, people want to be part of the marketing process…
  • 21.
  • 22. Cultural Co-Creation Co-created meanings fold back into the culture and become part of the social discourse. Jones soda, for example, enlists its consumers’ input on packages and flavors 22
  • 24. CONSUMPTION RITUALS BBDO: “Fortress brands” embedded in rituals are difficult to replace. About 90% of consumers worldwide use the same brand each time they perform a ritual!
  • 25. Evolutions in Branding Theory and Research: Three Steps Forward FROM: Brands as assets created and controlled by the firm Brands exist in the minds of consumers “What brands mean” TO: Brands as co-created entities Brands live in cultures How brands come to mean; brand development mechanisms and processes Fournier, Susan G., Michael R. Solomon, and Basil G. Englis, “Brand Resonance,” in Schmitt, B.H. And D.L. Rogers (eds) (2008), Handbook on Brand and Experience Management, Cheltenham, UK and Northampton, MA, USA: Edward Elgar.  
  • 27. Consumer-Generated Media (CGM) The Infamous Mentos - Diet Coke Experiments
  • 29.
  • 30. Accenture survey: Media and entertainment executives see the ability and eagerness of individuals to create their own content as one of the biggest threats to their business. 57% identified the rapid growth of user-generated content as one of the top three challenges they face today.
  • 31. Risk Vs. Control But: 68% of the respondents said they believe that within three years their businesses will be making money on user-generated content!
  • 32. The Bottom Line: You don’t own your brand anyway. GET OVER IT
  • 33. CGM ≠ CGC! Consumer-generated MEDIA Custom pricing Viral distribution New product development Product personalization Customer insights Advertising New media Consumer-generated CONTENT
  • 34. Consumers Become Marketers Directors: Britain’s Got Talent TiVo Ford Probe commercial – viewers pick the ending Player-cams follow individual athletes during football games Apple: Viewers post their own commercials Retailers/ Distributors eBay Amway Kazaa, Grokster, etc.
  • 36.
  • 40. NPD and Customer Insights
  • 41. 41
  • 44. 44
  • 45. 45
  • 46. 46
  • 47. 47
  • 48. 48
  • 49. 49
  • 50. 50
  • 51. 51
  • 52. 52
  • 56. SOCIAL IDENTITY IN CYBERSPACE Natalie
  • 59. Some residents use real identities…
  • 60. Others not so much…
  • 61. Selecting an appropriate avatar for a web site may be just as important as selecting the right model for an advertising campaign…
  • 64.
  • 65. TastyDiamondz tells me how she is shy in real life, but VMTV helps her to overcome this shyness.
  • 66.
  • 71.
  • 72.
  • 73.
  • 74.
  • 76. See behaviors from 3rd person perspective
  • 79.
  • 80.
  • 81. Promotes unity between your true and virtual identities. You can upload real footage onto a virtual TV in your virtual apartment, and share your real videos with your virtual friends.