Best of Insight+ by Institute on Asian Consumer Insight

HOSTED BY

BEST OF

nsight

Our knowledge, your gateway to Asian Consumer Insight

Health, Wellness & Nutrition

Shopping & Consumer Lifestyle

The Future of Digital

The Future of Travel & Tourism

Foreword

Welcome to the Best of Insight+ The Best of Insight+ is a new publication from the Institute on Asian Consumer Insight (ACI) that showcases articles with unique insights on Asian consumers, designed for businesses supplying, or looking to break into Asian markets. ACI is a unique, world-class institute dedicated to helping international brands respond to the needs of Asian consumers by bridging the gap between academia and business, providing the deep understanding required to succeed across diverse Asian markets. Insight+ is a web-based knowledge platform that publishes research articles, opinion pieces, case studies and white papers, contributed by our extensive network of academic and industry ACI Fellows. It is part of ACIâ&#x20AC;&#x2122;s Possible

Future Worlds initiative which explores how Asians will live, play, shop and move around over the next 20 years, and the specific role that technology will play in this evolution. In addition to deep insights into the hopes, expectations and aspirations of Asian consumers, Insight+ articles focus on key areas of industry interest including health, wellness and nutrition; shopping and consumer lifestyle; urbanization and sustainability; travel and tourism; and the future of the digital world. I hope you enjoy the Best of Insight+ and do please visit our Insight+ webpage for more freely available articles on Asian consumers. (http://www.aci-institute.com)

Professor Gemma Calvert Editor

The Institute on Asian Consumer Insight (ACI) is a national-level research institute hosted by Nanyang Technological University (NTU). Started as an initiative of the Singapore Economic Development Board in 2011, ACI serves as a bridge between academia and industry, and its mission is to help companies grow their business in Asia through profound market and consumer insights gathered through state-ofthe-art research methodologies. ACI conducts extensive research and help companies to develop customer-focused strategies based on insights about Asian consumers. Catered to each company and individualâ&#x20AC;&#x2122;s needs, ACI recognizes the importance of understanding Asian consumers and the Asian market. ACI strives to provide relevant and impactful information to aid businesses understand Asian consumers and to create value in the areas of innovation, branding, new-markets development and new media initiatives that will impact your business results. ACI partners with significant industry players from the business community to conduct joint projects and forms academic partnerships for combined research.

CONTENT FEATURE

All eyes on Asia’s halal beauty market: What brands need to know Halal beauty products empower Muslim women to feel they can be beautiful in a way that does not violate their religious beliefs Read More >> Page 12

Brands piggy-back on fun runs by Prof Gemma Calvert

All eyes on Asia’s halal beauty market: What brands need to know

Asia’s obsession with all things beautiful

Is happiness you seek for the same as mine? Marketing & happiness across different cultures

Islamic tourism: the next big thing?

Digital banking applications

by Asst Prof Elison Lim

by Ms Shilpa Madan

by Asst Prof Charlene Chen

by Assoc Prof Joan Henderson by Mr James Breeze

Missed call marketing in India by Dr Malobi Mukherjee

Opportunities in multisensory marketing by Prof Gemma Calvert & Dr Abhishek Pathak

Mass-customised goods do have a future in Asia

36 42

by Ms Yeh Mingmin & Prof Gemma Calvert

Customer experience matters when it comes to building a lasting brand

by Prof Amitava Chattopadhyay

INSTITUTE ON ASIAN CONSUMER INSIGHT Grow Your Business with Asian Consumers

ACI is a unique, world-class institute dedicated to helping international brands respond to the needs of Asian consumers. We bridge the gap between academia and business, providing the deep understanding required to break into diverse Asian markets.

>> www.aci-institute.com

THINK REGIONALLY. STRATEGISE LOCALLY. SUCCEED GLOBALLY. MASTER OF SCIENCE (MARKETING & CONSUMER INSIGHT) Gain an in-depth understanding of the diversity of Asian consumers psyche to customise innovative business strategies for local markets APPLY NOW >> www.nanyangmscmarketing.com

ACI EXECUTIVE EDUCATION ACI Executive Education: Insights to Innovation DATE: 17-18 Nov 2016 TIME: 9.00am - 5.00p.m. Programme Faculty: Mr Mohit Das

UPCOMING SEMINARS/ WORKSHOPS “Optimal Design of Content Samples for Digital Products and Services” DATE: 12 October 2016, Wednesday TIME: 2:30p.m. – 4:00p.m. VENUE: ESR 4, Block S3.1, B1-06, NTU Programme Faculty: Prof P. K. Kannan

Second-Hand Experience and Divergent Endorsement Effects: Which Products Should Be Credibly Endorsed? DATE: 17 October 2016, Monday TIME: 2:30p.m. – 4:00p.m. VENUE: ACI Seminar Room 2 Blk S4, B5, NTU Programme Faculty: Prof Noah Lim

Health, Wellness and Nutrition

Brands piggy-back on fun runs by Gemma Calvert About the Author Prof Gemma Calvert is the Director for Research & Development at the Institute for Asian Consumer Insight (ACI) and Professor of Marketing at the Nanyang Business School, NTU. A pioneer of neuromarketing, she helps companies to break into Asian emerging markets through deeper understanding of Asian consumers using brain and psychology based research methods.

This article first appeared on South China Morning Post, 9 Aug 2016

sia is in the midst of a running boom. According to Run Society, Asiaâ&#x20AC;&#x2122;s leading online running magazine, there were just 53 official running events in Singapore in 2012.

This year, there will be 112 â&#x20AC;&#x201C; enough for every Saturday and Sunday for the whole year. The running calendar has doubled in size in just four years.

For Malaysia, there will be 153, Thailand, 69 and Hong Kong, 38. The definition of what it means to be a runner has changed. Alternative running events, such as branded fun runs and extreme obstacle courses are a big part of the rise in events and interest. These include themed runs, such the Hello Kitty Run in Singapore and the Doraemon Run in Hong Kong; as well as party-style runs like The Color Run where participants end the night covered head-to-toe in brightly coloured powder; or military-inspired obstacle courses such as the Tough Mudder. These events are new, exciting and inclusive in comparison with traditionally popular sports like golf, bowling or swimming. Young people need to be stimulated on multiple levels and they crave innovative, group-based experiences that can be shared on social networks like Facebook and Instagram.

A global trend Community fun runs began appearing in the 1970s as an antidote to the seriousness of professional races. In 1987, Singapore instigated the National Family Fun Run, where $35,000 worth of prizes were on offer. Party races and assault courses are a more recent concept, with the first Tough Mudder event taking place in 2010, quickly followed by the first Colour Run in 2011, both in the US.

Branding & sponsorship The changing face of running is a perfect opportunity for brands to provide consumers with brand sponsored experiences. Whereas traditional races attract sponsorship deals from banks, insurance companies and other corporate sponsors, these alternative races represent a chance for brands to integrate more closely with the event, and build a stronger relationship with a wider demographic. Most runs are non-competitive and fun-based, so they attract a more diverse contemporary audience compared to traditional running events â&#x20AC;&#x201C; and brands can reach specific target audiences depending on the theme of the race. For brands such as Disney, the attraction of staging these events is clear. Wearing famous Disney costumes such as Mickey Mouse and Goofy is synonymous with fun runs, so for Disney it was more a matter of embracing a natural trend and bringing it under their control. Disney doesnâ&#x20AC;&#x2122;t really profit as a brand if someone runs the New York marathon as Winne-the-Pooh, but when runners attend an official Disney run at a Disney World theme park there are numerous benefits: entrance fees, accommodation packages, large attendance numbers at the theme parks, and a positive association between charity fundraising, exercise for children and community spirit.

Brands piggy-back on fun runs

Disney also provides entrants with a virtual goodie bag – a selection of coupons, vouchers and free samples from Disney and affiliated companies. These include offers to sign up for Disney magazine subscriptions, along with health and fitness related products such as supplements and health food. Organisations that are unable to sponsor a whole event or other brands with tie-in promotions can use these goodie bags to target specific audiences for the various Disney races. For the 2014 Disneyland half marathon, New Balance included a ‘virtual queue’ that allowed race entrants to reserve their place in line to purchase their highly sought after Disney themed running shoes at the event.

Boosting tourism Many fun runs are managed by global organisations who tour throughout the world. In 2015, The Colour Run staged 225 events in over 35 countries, including Hong Kong, China, Singapore, Germany and Australia. Disney holds its events around the world at its theme parks in the USA, France, Hong Kong and Japan. “Runcations” – packages that combine a vacation with a run – represent a growing tourism segment. Queensland’s Gold Coast Airport Marathon, now in its 38th year, attracts more than 3,000 international participants contributing

to the event’s expected contribution of over AUS$20m to the local economy. Sponsors included Asics, Citizen and Garmin. As part of the airport’s continuing sponsorship of the event it has secured arrangements for direct flights to Queensland with Scoot and Air Asia from Malaysia and Singapore. When global events such as Tough Mudder choose to hold their first South East Asian event in Singapore, it represents a great opportunity to bring runners to Singapore from across the region and beyond.

What’s next for the running trend? The Music Run, sponsored by music streaming service Spotify shows how brands can move beyond simple sponsorship and leverage digital technology to integrate with the race experience. The Music Run features speakers pumping out Spotify tunes every 40m along the route, and the runners themselves get to choose the music. Entrants can vote for their favourite songs before the race from a pre-selected playlist representing five different music genres. On race day the final playlists are played in five separate race zones,

“The changing face of running is

a perfect opportunity for brands to provide consumers with brand sponsored experiences.”

so entrants can choose their favourite genre to run to. Runners can increase the chances of their favourite track being chosen by playing, sharing and liking the track within the Spotify app. In future we could see further integration such as entrants being given a free one month Spotify account before the race so that they could upload their favourite running playlists, allowing the system could aggregate the most popular tracks. Mobile phone accelerometers also calculate which tracks inspire competitors to run faster. Spotify could also allow entrants to stream the final run playlist for free after the event. This integration of tech and sport looks set to continue. There are already successful running apps that combine the themes of online multiplayer games with real-world running. “Zombies, Run!” is an app that gives runners missions

based on a zombie apocalypse storyline and encourages them to run with the threat of chasing zombies. We could see future running events that “gamify” the race day, further integrating the mobile experience. Runners could track and share their live progress, live stream video to social networks and share images. Such integration not only provides entertainment for participants, but it also increases brand exposure on social networks during and after the race. Running has evolved in a way that no other traditional sport has, breaking away from competitive sport and embracing fun, technology and youth culture. Asia is now at the heart of this revolution and brands who want to gain ground on their competitors should grab this opportunity to give consumers truly memorable brand-sponsored experiences.

Shopping and Consumer Lifestyle

All eyes on Asia’s halal beauty market: What brands need to know

by Elison Lim About the Author Asst Prof Elison Lim is a Fellow with the Institute on Asian Consumer Insight and Assistant Professor of Marketing at the Nanyang Business School, NTU. Her research interests lie in the area of consumer behavior with specific emphasis on Asian consumer lifestyle, beauty and branding.

This article first appeared on Warc.com: Warc Exclusive, May 2016

he global Muslim population is expected to reach 2.6 billion, or 30% of the total world population, by 2050. By 2019, the annual global spending by Muslim consumers will

reach an astronomical US$73 billion. Such growth – both in population and spending power – is making companies all over the world think more seriously about reaching the Muslim market.

Much of the action surrounding the growing Muslim market will take place in Asia, given that South Asia and Asia Pacific is home to 62.1% of all Muslims in the world. Four out of the ten countries in the world with the highest Muslim populations, namely Pakistan, Indonesia, India, and Bangladesh, are in this region. In fact, it is estimated that by 2030, South Asia and Asia Pacific will be home to some 1.3 billion Muslim consumers. For brands, the burgeoning halal product market offers huge growth opportunities across a variety of categories. Much attention has focused on the potential of the growing halal beauty industry. Besides being backed up by a growing Muslim population, and a greater willingness to spend on beauty consumption, interest in the Muslim beauty industry is further fuelled by changing attitudes among female Muslim consumers. These consumers, especially those in the younger cohort, are taking a greater interest in beauty and have less reservations to let it show. The Miss World Muslimah Pageant, a yearly international beauty contest held in Indonesia for Muslim women since its inauguration in 2011, is testament to changing attitudes among Muslim women. This one-of-a-kind beauty contest celebrates young Muslim women with strong religious values and encourages the pursuit of holistic beauty rather than physical beauty

alone. Instead of the bikini-clad women commonly seen in secular beauty contests, modestly dressed ladies wearing hijabs (or headscarves) taking part in the Miss World Muslimah Pageant compete in terms of how well they can recite the Koran, understand the Islamic teachings, and perform humanitarian works. Another sign that change is happening in the way Muslim women consumers approach beauty is that the number of Muslim beauty bloggers as well as the number of women following these bloggers, are on the rise. What motivates Muslim women to undertake the onerous task of checking and ascertaining the ingredients in beauty products? For many Muslim women, this is possibly because they perceive both adherence to Islamic laws and pursuit of beauty as important goals. These consumers may actually face a decisional conflict as they often find themselves in situations where they have to choose between honouring their religious values or acting upon their desire to use beauty products to enhance their appearance. Psychologists call this an approachapproach conflict where a person is confronted with having to decide between two appealing goals. When consumers face decisional conflict that they cannot resolve, anxiety and stress may set in. Because decisional conflict may bring negative emotional states that people want to avoid, consumers are often willing to invest time and monetary resources to look for solutions that

enable them to have the best-of-bothworlds. Even when Muslim women do not hold strict views towards the use of non-halal beauty products, their usage still poses significant inconveniences as they have to be removed before their daily prayer sessions (which for practising Muslims, takes place five times in a day). Whether it is the women taking part in the Miss World Muslimah Pageant or the Muslim beauty bloggers that we are talking about, they suggest that change is happening in the Muslim beauty consumption domain. These forerunners show an eager crowd that it is possible to keep their faith while expressing their individuality in permissible ways of pursuing beauty.

Beauty products: What is considered “halal”? Websites, forums and blogs where Muslim consumers actively discuss

whether beauty brands and products contain permissible (“halal”) or nonpermissible (“haram”) ingredients are common. Clearly, this is an area of keen interest and high-involvement for the Muslim consumer. Yet, the average consumer may find it a rather challenging process. Going through the full list of ingredients in a beauty product is an effortful process, and trying to ascertain whether the ingredients used are permissible also requires a certain level of knowledge. This is further complicated by the fact that ingredients often go by industry codes (e.g. carmine, a red dye, uses the code C.I. 75470, or E120) which consumers may not recognize. For beauty products to be considered “halal” (an Arabic term that means “permissible” or “lawful”), they must not contain alcohol and be free of substances derived from “unclean” or “forbidden” animals such as pigs,

dogs, insects and reptiles. Most beauty products by mainstream brands contain animal-derived substances (e.g., gelatine) or alcohol, thus making such products unsuitable for Muslim consumers. Cruelty to animals (e.g. testing the product on animals) is also not permitted under Islamic laws.

“Halal beauty products

empower Muslim women to feel they can be beautiful in a way that does not violate their religious beliefs”

In addition, the equipment used to produce the products or items, as well as the premises on which the preparation work is carried out, must also be certified and kept clean. However, experts say that there is actually more to take into account when assessing if a beauty product is considered halal – including how the company behind the product operates, given that halal denotes an overall way of life. While it is mandatory for practising Muslims to consume only food and beverages that are halal, the use of halal beauty products is less strictly enforced. This could be because consumer awareness and knowledge in this area is still growing and the standards for halal beauty products are still not well-established.

Whether motivated by decisional conflict or inconvenience, there is a strong latent demand for halal certified or halal-friendly beauty products. Halal beauty products empower Muslim women to feel they can be beautiful in a way that does not violate their religious beliefs – essentially giving them a conflict-free consumption experience – thus enhancing their sense of authenticity and self. They also offer the benefit of convenience of not having to remove one’s make-up when performing religious prayers.

Should companies seek halal-certification? Will simply being halal-friendly do? Halal-certified beauty brands have sprung up only in recent years. Prior to this, female Muslim consumers’ options were limited to a few niche brands that did not offer much variety. Many of these new halal-certified brands reflect efforts by female entrepreneurs who either saw the potential of this gap or were themselves frustrated at the lack of options and therefore decided to create their own products. Examples of successful brands that appear to be enjoying healthy growth in this space include: Ibal Halal Care (India), Amara Cosmetics (US), Wardah (Indonesia), IBA Cosmetics (India) and OnePure Beauty (a Dubai-based brand). From a consumer perspective, halal certification gives peace of mind to Muslim consumers in that they can use

such products without concerns about violating religious laws. But before companies jump onto the bandwagon for halal certification, it is worthwhile noting that some non-halal brands have actually done quite well in reaching Muslim consumers. Brands that are not halal-certified but do not contain prohibited ingredients may nevertheless be acceptable. In this space, products that are vegan, free of alcohol, sulphates, and parabens, do not involve animal cruelty, and comes from a company with honest business practices, may fit the bill. Brands that have beauty products that are considered halal-friendly include: Lush, Simple, Nivea (Pure & Natural range) and Inglot (O2M Breathable nail polish). However, a companyâ&#x20AC;&#x2122;s decision to pursue halal-certification may also be affected by the legal regulations of the markets they want to enter. For instance, the Indonesian government passed the Halal Product Certification Bill in 2014, requiring that all products sold in Indonesia will have to be halalcertified by 2019. This law applies not only to a productâ&#x20AC;&#x2122;s ingredients, but also

to the manufacturing, packaging, and delivery processes. Legal regulations such as this will no doubt influence halal-certification decisions, given that the Indonesian market is deemed to be attractive to many global companies. Certification or no certification, what is clear is that brands should seriously consider regulating themselves in terms of their choice of ingredients if they are keen to get into the game of reaching Muslim consumers.

Reaching Out Consumers

Muslim

Companies that are not prepared to head towards complete halalcertification may consider product and brand strategies that nevertheless allow them to reach Muslim consumers. They may, for instance, introduce special product lines that target consumers looking for halal products. PurEthic Cosmetics, which is based in Belgium, has an H-line (Halal Line) of hair and body care products which are halalcertified and made using natural ingredients. Aside to having halal-

All eyes on Asia’s halal beauty market: What brands need to know friendly product lines, companies may also consider creating new brands that focus specifically on the needs and wants of the halal market (e.g., Citra by Unilever in Indonesia). Companies can also connect with Muslim consumers in other, more creative ways, such as using more relevant brand names. For instance, the brand names “Jamal Paris Cosmetique” (France) and “Sahfee Halal Care” (The Netherlands) contain words that have important meanings to Muslim consumers (e.g., “Jamal” means beauty in Arabic, “Sahfee” means pure in Arabic). Advertising and promotional strategies too can be tailored in such a way as to demonstrate an appreciation for the needs of the halal market. For instance, an ad by Sunsilk typically features women washing or styling their hair. In Malaysia, however, Sunsilk demonstrated cultural sensitivity by refraining from showing women’s hair in the ads. Instead, it ran a campaign in 2012 which anchored on “hijab styling” (or the different styles of wearing headscarves) as a replacement for “hair-styling” – thus showing that it understands women’s need for expressing their individuality while conforming to their culture and religion. Amazingly, the campaign connected so well with Muslim women that sales of the shampoo rocketed even though no hair was shown in the ad.

The campaign was heralded as one of the key factors in helping Sunsilk recover from declining sales in 2012 into a position of positive growth in 2013.

Conclusion When one considers the halal market in totality, taking into consideration the growing female beauty market along with the various other categories that are currently under-served (e.g., male Muslim consumers, halal fragrances, Muslim fashion), the potential for manufacturers to capitalise on these opportunities is considerable. Of course there are many challenging decisions that brands have to make in terms of how and when to move into this space. However, given that the halal beauty market is at an early growth stage where demand is starting to heat up and the market is still rather fragmented, companies that enter it sooner rather than later will inevitably enjoy the benefits of first mover status. Those keen to tap into this growing and fast-changing Muslim market, and who want to play in the halal space, must demonstrate a very clear commitment to understanding and honouring the unique needs and wants of Muslim consumers, or risk being booted out of this highly attractive market.

Shopping and Consumer Lifestyle

Asia’s obsession with all things beautiful by Shilpa Madan About the Author Ms Shilpa Madan is a Doctoral Candidate at the Nanyang Business School, Singapore, and an Associate at the Institute on Asian Consumer Insight. Her research explores myriad facets of beauty and attractiveness. Shilpa has worked in marketing and sales with Unilever, in Singapore and India, across home and personal care.

This article first appeared in Mint on Sunday, 17 July 2016

eing the first Asian to walk down the ramp as a Victoria Secret Angel, Liu Wen certainly knows a thing or two about beauty. In a recent interview with the New York Magazine, she said the Chinese have a rather “set” definition of what is considered beautiful. With their focus on exacting standards such as double eyelids, large eyes, v-line jaw and fair skin, this statement definitely rings a bell. In a clear testament to this preoccupation with a specific notion of beauty, the opening ceremony director of the much-acclaimed 2008 Beijing Olympics said it was in the “national interest” to use a super cute, pretty nineyear old girl to lip sync to the original voice of a less attractive child who had a better voice but with crooked baby teeth and chubby face.

While the event drew flak from all over the world, it is just one of the countless examples that underscore Asia’s unhealthy obsession with beauty. There is no denying the politically incorrect truth that being beautiful opens doors in today’s world, positively influencing quality of life in numerous tangible and intangible ways. Added to which, we are hardwired to appreciate beauty. In a series of studies carried out by psychologist Judith Langlois and colleagues at University of Texas, infants as young as a few days old were found to prefer looking at attractive faces, and their preference matched that of adults. No wonder then that the prospect of looking more beautiful is endlessly appealing to people. Whether it’s American girls spending on make-up and tanning instead of college tuition, British women running marathons in full make-up, Indian women yearning for that elusive “fair” complexion or Chinese parents gifting their children plastic surgery upon graduation, the obsession with beauty is all consuming, all over the world. However, evidence suggests that this obsession with beauty is even more deep-rooted in Asian cultures. Japanese and Korean skin-care routines are painstakingly elaborate, with 10 or more products used in succession. The Philippines has supposedly over 40,000 beauty pageants, and one

beauty queen for each local district. And figures from the International Society of Aesthetic Plastic Surgeons show that Asia has the highest concentration of plastic surgeons. According to TrendMonitor, one in five Korean women has undergone cosmetic surgery, compared to about one in 20 in the US. In a move that reflects the strategic importance of Asia, Procter & Gamble recently moved its headquarters for skin care, cosmetics and personal care to Singapore. The high-margin, immensely profitable business of beauty and personal care is projected to touch $530 billion by 2019, according to Euromonitor, and Asia will account for a significant one-third of this number. Characterized by cut-throat competition and constant innovation, it is one of the few recession-proof product categories. Popularly known as the “Lipstick Effect”, research shows that even while general consumer spending declines in an economic downturn, women’s spending on beauty products increases. This relentless pursuit of beauty is unsurprising given that research over the last several decades highlights the “beautiful-is-good” stereotype. Beautiful people score over their not-so-attractive counterparts in almost every aspect through their life course. In a research programme dedicated to understanding this phenomenon (referred to as “Physical Attractiveness Stereotyping”), Professor Karen Dion

Asia’s obsession with all things beautiful

at the University of Toronto found that beautiful people are perceived to be more intelligent, more decisive, informed, and logical, and more persuasive. The benefits of looks are not just limited to social currency; her studies also revealed that beautiful people are even expected to achieve greater mental happiness and career success. However, the benefits of beauty don’t just end with social perception. In a comprehensive economic analysis, Daniel Hamermesh and colleagues at University of London found that beauty begets tangible rewards in the labour market, with more attractive people more likely to be hired, be considered more talented, command higher salaries, elicit greater cooperation and be rewarded more often. In separate field studies conducted in Hong Kong and India, hiring managers were not only more likely to shortlist attractive applicants, they were also perceived to be more qualified. In an interesting experimental study in France by psychologist Nicolas Gueguen, waitresses were asked to wear different coloured wigs (red, blond, dark and brown) on different days. Amazingly, waitresses received significantly greater tips from men when they wore blonde wigs.

Hiring attractive employees seems to bode well for organizations too. An analysis of Dutch advertising firms by economist Gerard Pfann and colleagues found that those with better-looking executives had higher revenues. In a recent related series of studies conducted in Hungary, Adam Putz and colleagues show that even after being cheated, people are more forgiving towards attractive cheaters and award them less punishment. It’s not surprising then that the indisputable halo of beauty even extends to close others—with the partners of attractive women being evaluated more favourably than their less-attractive counterparts. It is fascinating that this attractiveness halo effect is pervasive across the world, but the traits that are esteemed and valued differ across cultures. Research by psychologists Ladd Wheeler and Youngmee Kim found that people from collectivistic Eastern cultures believe that attractive people have a higher concern for others, and are more empathetic and generous. On the other hand, people in individualistic Western cultures believe that attractive people are more assertive and dominant. Yet, recent research shows that there

“Asian women are definitely

not losing their beauty sleep over this lack of research—

as the magical allure of hope keeps them opening their

wallets

and

filling

their vanity cases with new

and improved lotions and potions every season.”

are important exceptions and boundary conditions to the beautiful-is-good stereotype. In a study conducted in the US, economics professor Bradley Ruffle and his colleague sent out over 5,000 resumes with pictures to potential employers. They found that employer callbacks to attractive men were significantly higher but the same was not true for women. Interestingly, women with no picture had a considerably higher callback rate than either attractive or plain-looking women. Among a handful of studies highlighting the dark side of beauty, recent research by Peter Belmi and Margaret Neale at Stanford University found that physically attractive people were more likely to support social inequality. In a nutshell, beautiful people ascribed themselves to a higher social class.

While this has fascinating implications for both diversity and inclusion in the workplace, and marketing and targeting to an attractive populace, it also raises a pertinent point about a future where hierarchies will be defined based on looks and not competence. Current pop culture trends in Asia are a testament to the harsh reality that the one who looks good wins. Be it in reality shows or movies, being beautiful is the ticket to success—so much so that parents are gifting plastic surgery to children when they graduate in China and Korea so they don’t lose out in the cut-throat race to the top of the corporate ladder. As a society, our positive bias towards beauty is not just pervasive, but deeply ingrained in our psyche. While popular culture examples are replete with the (positive) after-effects of

Asia’s obsession with all things beautiful

“As a society, our positive bias towards beauty is not just pervasive, but deeply ingrained in our psyche. While popular

cultural examples are replete with the (positive) after-effects

of beauty, little research investigates the downstream consequences of looking beautiful for the protagonist.”

beauty, little research investigates the downstream consequences of looking beautiful for the protagonist. In other words, do physically attractive people “feel” more intelligent, socially competent, and persuasive? Is this a fleeting feeling or is it chronic? Can this be achieved by using the multitude of skin-care and cosmetic products that marketers hope the populace will succumb to? To quote Bobbi Brown, founder of the eponymous make-up brand, “I believe all women are pretty without make-up—but with the right make-up can be pretty powerful.” Recent research indeed shows that feeling physically attractive confers feelings of power. But is this a good thing? While the researchers did not explore this effect further, power (in other contexts) has been shown to lead to increased risk-taking, higher competitiveness and a decreased

willingness to consider advice. So while increased risk-taking may encourage women to aim high in their work and personal life, it may also translate into more reckless decisions. Further research is needed to understand the extent of power, that feeling beautiful bestows on women across the world. That said, Asian women are definitely not losing their beauty sleep over this lack of research—as the magical allure of hope keeps them opening their wallets and filling their vanity cases with new and improved lotions and potions every season. Being a marketer’s dream (due to the potential) and nightmare (thanks to competition) at the same time, one thing is certain, Asia will continue to be the hotbed of innovation and intense activity in the beauty space for several decades to come.

Health, Wellness and Nutrition

Is happiness you seek for the same as mine? Marketing & happiness across different cultures by Charlene Chen About the Author Asst Prof Charlene Chen is a Fellow with the Institute on Asian Consumer Insight and Assistant Professor of Marketing and International Business at Nanyang Business School, NTU. Her research interests lie in how consumers regulate their internal psychological states through consumption behaviour. This article first appeared in ACI Insight+ on June 2016

re Singaporeans happy? The United Nations think so, ranking Singapore 24th out of 158 nations in its World Happiness Report â&#x20AC;&#x201C; the happiest nation in Asia. According to the UN, we are getting happier still, moving up from 36th in 2012, 30th in 2013, and 24th in 2014. But other surveys in recent years have painted a different picture, with Singaporeans rated as the least likely to experience positive or

negative emotions out of more than 150 nationalities in Gallupâ&#x20AC;&#x2122;s 2011 survey. Can happiness really be measured in this way? The UN survey considers such factors as GDP per capita, life expectancy and freedom to make life choices, but it does not question whether these factors are true contributors to happiness across different cultures. By the UNâ&#x20AC;&#x2122;s measurement, Singaporeans should be happy, but in reality we may

Is happiness you seek for the same as mine? A marketing & happiness across different cultures be less happy than countries ranked lower in the World Happiness Survey. Happiness is a cornerstone of advertising and Coca-Cola – the world’s fourth largest advertiser by spend – positions itself as “a spreader of happiness all over the world”. As part of this campaign it recently launched #CokeDrones in Singapore, where remote controlled drones dropped off cans of Coke with personalised messages of gratitude to more than 2,500 workers at various high-rise construction sites. The desired message is simple: “buy this and you’ll be happy”. But what is happiness? And is it the same thing for people from different cultures?

Eastern vs. western happiness Recent research entitled “How Happiness Affects Choice” (Mogilner, Aaker, and Kamvar 2012) suggests that happiness means very different things to different cultures, and that advertising should therefore be tailored to individual cultures to take advantage of this. Researchers from Stanford University and the Chinese University of Hong Kong found that Americans of European extraction tend to value high-arousal situations that spark excitement, whereas Asians tend to value low-arousal situations that promote calmness (Tsai, Knutson, and Fung 2006).

What is perceived as ‘happy’ could differ wildly: a crazy night of partying versus a relaxing dinner with friends. The sources that contribute to happiness and attitudes towards it also vary across cultures. Cultural psychologists from Kyoto University, Stanford University and the University of Michigan found that in Western countries like North America, happiness is likely to be a result of personal success and is closely related with social disengagement – acting on the basis of one’s own attitudes or judgements (e.g. Kitayama, Markus, and Kurokawa 2000; Uchida, Norasakkunkit, and Kitayama 2004). Negative experiences and feelings are seen as obstacles to happiness. However, in East Asia happiness is contingent on social harmony and is closely related to experiences of social engagement – where people act together as a unified group. Positive and negative emotions are viewed as complementary rather than contradictory. For Singaporeans it seems that health plays an important role in personal happiness. A report from IPSOS notes that the top sources of happiness in Singapore are own health, spouse health and the health of family and friends. Those who are less happy reported that aside from personal health and spouse health, better finances could make them feel happier. This could

mean that different brands may benefit from targeting different groups of customers based on how happy they are: healthcare products targeting happy people and financial products targeting less happy people. This form of sentiment targeting can be achieved by segmenting customers based on their social media posts.

Regional case study: McDonald’s These theories can be seen in the marketing campaigns of ubiquitous global brands such as McDonald’s. It’s television commercials in the West tend to emphasise individual pleasure and satisfaction. For example, an ad for the North American market showed a family eating McDonald’s at home together, but instead of concentrating on the unity of the family, the main theme of the ad was to show how much fun the young boy was having dancing around and playing with his food. The parents seem to disapprove, but the child is oblivious. In contrast, an ad that ran in Singapore showed a busy working mum arriving home late from work at the same time as a McDonald’s delivery man arrives. She realises that her own mother placed the order for her knowing she would be late. She then opens the door and hugs her daughter. Providing food is an act of love and it unites the family.

Age and happiness Personal definitions of happiness can also change with age. According to “The

Shifting Meaning of Happiness” study by Mogilner and colleagues, younger people are more likely to associate happiness with excitement, but as they get older, they become more likely to associate happiness with peacefulness. This is because younger people tend to have an expansive time horizon and are therefore more future-orientated, so they seek new, exciting experiences. Older people have a more limited time horizon, so they focus on satisfying relationships and being comfortable in the present.

Effective regionalisation The allure of brands and products hinges on how much they resonate with consumers’ definitions of happiness. Taking into account how different regions – and even individual consumer segments conceive happiness could lead to more effective marketing. It is not enough to account for differing demographics and needs, it is important to go right back to the way people define happiness to create truly successful regionalised campaigns. These findings can also be used beyond advertising and applied to employee well-being. Just as a one size fits all approach can cause problems in international marketing campaigns, it can also cause problems when businesses expect regional workforces to want the same incentives and benefits as in other locations. After all, what means happiness to one person may not mean the same to another.

The Future of Travel and Tourism

Islamic tourism: the next big thing? by Joan Henderson About the Author Assoc Prof Joan Henderson is a Fellow with the Institute on Asian Consumer Insight and Associate Professor ofÂ Division Marketing and International Business at Nanyang Business School, NTU. This article first appeared on Straits Times, May 14 2016

emand for leisure travel by Muslims is mounting in parallel with the expanding Muslim population worldwide. The phrase Islamic tourism is frequently used to describe travel by Muslims for whom compliance with religious observances when away from home is an important consideration.

billion in 2050, about 30 per cent of the world total. Over 60 per cent reside in the Asia-Pacific region, 20 per cent in the Middle East and North Africa (where they make up 93 per cent of the resident population), 3 per cent in Europe and 1 per cent in North America.

â&#x20AC;&#x153;The increased affluence of Muslim travellers and their desire to visit long-haul destinations have led many

countriesâ&#x20AC;&#x2122; national tourism organisations to make changes to accommodate their needs, such as offering guides and apps that show halal dining options and the location of places of worship. â&#x20AC;?

Among other labels are halal tourism and Muslim-friendly tourism. Muslim travellers have several unique features. Their distinctiveness creates challenges for suppliers of services as well as destination marketers in ensuring proper provision while balancing the needs of Muslim and non-Muslim customers. At the same time, there is diversity within the overall market, based on factors such as age and nationality alongside religiosity. Commercial interest in Muslim consumers as a whole reflects the size, growth and increasing affluence of the population. According to Pew Research, there were an estimated 1.6 billion Muslims globally in 2010 and this figure is predicted to reach 2.8

The World Travel and Tourism Council calculates that Muslim travellers generated US$140 billion (S$192 billion) for the global tourism and hospitality industry in 2013 and it is forecast that the market will be worth US$238 billion by 2019. Muslim leisure tourists tend to be relatively young and increasingly affluent and vacation choices indicate a preference among many for places with majority Muslim populations, but also a willingness to venture further afield. One of the most significant elements of Islamic tourism is halal food, access to which is a concern for Muslim travellers. However, specific consumer protection legislation is not always present outside the Islamic world and there is evidence of improper attribution, which is hard to detect.

Islamic tourism : the next big thing? The situation has arisen partly from the absence of agreed standards and the reluctance of many governments to get involved in contentious religious affairs. Several countries do have accreditation schemes run by Islamic associations, and Halal Focus (a specialist business consultancy that has a dedicated focus on the global halal market) reports there are over 400 certification agencies, both official and unofficial, operating worldwide. Some suppliers engage in self-certification, which adds to the confusion. The accommodation sector is a provider of food and other services essential to the tourist experience. Greater attention is now being given to the notion of halal hotels, characterised by prayer facilities, halal food, a ban on alcohol and gender segregation for certain amenities. The term “syariah-compliant” is sometimes applied and is accurate for properties in conservative Muslim countries such as Saudi Arabia, which are already bound by syariah law, whereas Dubai in the United Arab Emirates is less restrictive. Hotels in popular tourist regions of predominantly Muslim countries, such as those of North Africa and parts of Indonesia and Malaysia, which rely heavily on non-Muslim foreign guests, are also more relaxed. It is probably unrealistic because of reasons of

finance and practicality for most hotels outside the Islamic world to seek full syariah compliance, but recent surveys show that Middle Eastern and Asian Muslims are keen to visit new long-haul destinations. Muslims travelling for purposes of business must also be taken into account. Hoteliers should therefore be familiar with Muslim needs and address concerns about food and prayers as far as possible. This can be achieved by ensuring that menus are suitable, copies of the Quran are placed in hotel rooms and information about places of worship is readily available. The rest of the tourism industry is also responding to rising demand from Muslims as reported by growth strategy, research and advisory firm DinarStandard. The number of specialist travel agents and tour operators, some based in Western countries, is expanding and mainstream companies, such as Kuoni are exploring opportunities. Appropriate facilities are being introduced at airports, railway stations and attraction sites and more airlines are serving halal menus. A dedicated halal kitchen was opened at London’s Heathrow in 2014 as part of a larger new facility serving international airlines at one of the world’s busiest airports.

The importance of Islamic tourism is appreciated by many national tourism organisations around the world. Promotional websites such as those of Japan, Korea and Hong Kong offer guides to halal dining and the Tourism Authority of Thailand launched a special app last year. Malaysia is positioning itself as a global hub for the production of halal goods and services, incorporating tourism, with an official Islamic Tourism Centre responsible for market development. However, the Malaysian and other authorities must also advertise and cater to non-Muslim tourists and there are possibilities of friction between the expectations and desired experiences of the two groups which have to be managed.

and halal certification programmes. MasterCard and CrescentRatingâ&#x20AC;&#x2122;s 2016 Global Muslim Travel Index ranked it the most Muslim-friendly destination for tourists outside of Islamic countries. Islamic tourism, of which halal food is a critical component, is a striking phenomenon yielding valuable opportunities for the tourism industry worldwide and not least in Singapore. To realise these opportunities, tourism businesses must understand the requirements of Muslim tourists and take the necessary measures to satisfy them without inconveniencing nonMuslim customers. It is also necessary to communicate effectively with Muslim markets.

Singapore has a competitive advantage over some rivals due to its Muslim community, supporting infrastructure of religious-related facilities and services,

The Future of Digital

Digital banking applications by James Breeze About the Author Mr James Breeze is a Customer and User Experience Strategist, Eye tracking expert, Usability Consultant and Photographer. He formed and runs Objective Asia and Objective Eye Tracking. James is also an ACI Fellow, a professional speaker and writes his own blog UsableWorld. This article first appeared in ACI Insight+ on April 2016

n Asia, there is a large and growing proportion of consumers getting on board the digital banking applications train. Most of the major banks are developing web and mobile applicationions so that their consumers can gain easy access to their banking accounts, transactions and other financial information. Consumer adoption of such apps is rising in Asia thanks to the rapidly improving technological infrastructure. To date, 33% of Singapore’s entire population engages in mobile banking, 29% in Hong Kong and 9% in India. There is also a growing emphasis on localizing apps that can accommodate individual cultural preferences and norms to keep consumers happy, yet still retain universal functions and interactions that can be used across international consumer segments. In either case, the design of the online or mobile banking app interaction and interface has to take into account what consumers are intuitively able to do. The easier it is to use the app, combined with how useful it is to the consumer, the greater will be their liking and satisfaction levels. Indeed, there have been numerous cases where people have mishandled their monetary transactions because they did not understand how to use certain features on a banking app properly. Others have even switched banks because the user experience of the app essentially failed and caused major frustration.

Figure 1: Wireframe of the online banking app’s dashboard with the expanded sticky footer bar when a user enters information to search for stocks.

And it is not just the design of the interface that matters, the design of the overall service experience during app use is also highly relevant – from persuading consumers to adopt such technologies in the first place, to ensuring their subsequent pleasure levels from financial transactions done well. All of these factors are fundamental in building good relationships between consumers and banks. To better understand the most important facets of the mobile banking experience from the customer’s perspective, a series of in-depth interviews and eye tracking tests were conducted by the team at Objective Experience Singapore (OESG). These studies revealed interesting similarities and differences in terms of expectations and experiences between consumers in different countries to the same online or mobile banking app. Below are some aspects

elicited from these studies to be mindful of when designing the interaction of banking apps for Asian countries.

Trust People rely on visual cues to determine how risky it is to use the app. If your consumers look at your banking app and find it visually lacking, there is a much higher tendency for them to feel that your app is neither safe nor trustworthy. This is especially the case with apps designed to manage financial transactions where an even higher level of trust has to be earned. However, cross-cultural nuances amongst consumers from different Asian countries also have to be taken into consideration. Take, for example, this case study in which the same online banking app for stock trading was tested

amongst consumers in Singapore and Hong Kong. In this case, the sticky footer bar that permits customers to search for any individual stock was a feature that was positively accepted by consumers in Singapore but not in Hong Kong. Singaporeans it turns out appear to have much more of an early adopter mindset. They try out newer technologies more quickly and have a higher risk threshold when it comes to privacy and security issues. In contrast, consumers in Hong Kong are considerably more securitydetailed. For them, the sticky footer bar felt more like a click-out advertisement banner than a helpful search aid and the majority of consumers simply ignored the feature, perceiving it as not sufficiently trustworthy enough to be used.

“Consumers’ service expectations were also found to differ from country to country across Asia. This has implications for the adoption rate and on-boarding/sign-up process.” Service

Language

Consumers’ service expectations were also found to differ from country to country across Asia. This has implications for the adoption rate and on-boarding/sign-up process.

There are more than 2,000 spoken languages and dialects in Asia alone, with only some languages possessing a written form. However, with English fast becoming the primary language for communicating between countries, it is unsurprising that most banking apps are written in English. This may be acceptable in most Western countries, but in Asia other dominant languages have to be taken into account (e.g. Chinese). In addition, many banking apps are developed initially in English before being translated and adapted into the mother tongues of different countries. Such adaptations are, however, accompanied by a number of design issues.

In India, people expect a very highlevel and personal approach to service. For example, it is entirely normal for customer service banking agents to bring banking documents and services directly into their customers’ home, especially for people living in rural areas. One particular mobile banking app was tested by OESG to see if banking customers in India were willing to travel to the bank’s branch to complete the sign-up verification process if they were given a monetary incentive. What we found was that customers in India were of the strong opinion that for them to utilize online or mobile banking, they would still wish to have knowledgeable bank representatives come to their homes to verify the app, sign them up and teach them how to use it. The personal relationships they had built with the bank would also ensure their continued usage.

If consumers are more comfortable reading and conducting their financial transactions in their dominant language, then banks should consider developing their apps in the country’s dominant language instead. As not all written languages are in alphabetical form, fonts become very important to comprehension of the app. This was apparent in one of OESG’s

English: I go to school every day Chinese:

我每天去学校 Figure 2. An English sentence contains more characters and is longer than the Chinese sentence with the same meaning.

studies of a mobile banking app for Hong Kong consumers, the majority of whom speak and write in Chinese. Written Chinese is logographic with little space in between the characters. The optimal font sizes, line spacing, kerning (spacing between individual letters) and tracking (spacing between blocks of text) parameters therefore have to be taken into consideration so that consumers are able to read Chinese smoothly without too much strain on their eyes (for more information and recommendation of the ideal Chinese font, please refer to Fig. 2 Chan & Lee 2005 and Huang, Rau & Liu 2009).

Experience People prefer instantaneous actions and results when they are more experienced

Figure 3. Tooltips popups whenever the user encounters the feature for the first time. The option to not show the tips again can also be provided for the user to select.

with what they are using. This was found to be similar across countries. Experience can be defined in two ways here. Firstly, people complete their intended tasks faster when they are familiar with other similar interactions on the more popular apps they have been previously using for the same purpose. The other type of experience that affects consumers’ usage of digital banking apps is their banking experience itself. Those with little knowledge or experience with financial products and services tend to spend more time searching for information to aid their decision-making before completing the task itself. Experienced consumers, on the other hand, prefer to start their intended task immediately after logging in instead of being taken through an onscreen tutorial first. In the case of a new

digital application, a contextual tutorial is therefore likely to be more flexible, allowing consumers with differing levels of experience to decide when they want to learn how to use the app for themselves (see example in Figure 3).

Conclusion This paper has described just some of the aspects that designers need to take into consideration when designing digital banking applications for Asian consumers. Using these four factors of trust, service, language and experience as guidelines throughout the design and development process will help in the overall achievement of

an optimal digital banking application and related user experience. In the Americas and Australia, banks have already taken it upon themselves to build consumer research labs to cater to the needs of their own consumers for their digital products and services. It is now timely for banks operating in Asia to focus upon their diverse consumersâ&#x20AC;&#x2122; needs and behaviours in order to develop valuable, useful and userfriendly financial applications that will be sustainable and successful in the long run.

Shopping and Consumer Lifestyle

Missed call marketing in India by Dr Malobi Mukherjee

About the Author Dr Malobi Mukherjee is an ACI Research Fellow and Fellow with the Oxford Institute of Retail Management (OXIRM) at SaĂŻd Business School. Her research interests focus around international retail development in emerging markets and she adopts the scenario planning methodology in researching the future of retail development in emerging markets.

This article first appeared in ACI Insight+ on January 5, 2016.

espite the sluggish demand for products and services in urban markets, rural markets are growing faster than ever in some of the largest emerging economies. While rising wages create a growing middle class in countries such as China, Mexico, and South Africa, rural residents also demonstrate optimism about future wage increase (Kapur et al, 2014). In China, demand in the

countryside for consumer goods has already begun to outstrip demand in the cities and according to Nielsen (2015) reports, in India, consumption in rural areas is growing at 1.5 times the rate in urban areas (Kapur et al, 2014). From 2009 to 2012, spending by Indiaâ&#x20AC;&#x2122;s 800+ million rural residents reached $69 billion, some 25% more than their urban counterparts spent over the

“Missed calls have evolved into the modern equivalent of Morse code. The practice dates back over a decade, when exorbitant calling rates forced customers to find a smarter way to communicate. ” same period. This was reflected in the increased demand for discretionary goods and lifestyle products, including mobile phones, television sets and twowheelers (Chakravarty, 2015). Over 2012-2017, this rural segment of the Indian economy was expected to grow at a pace of 8-10% per annum and is anticipated to add new consumption of US$ 90 billon-100 billion during that period. The opportunity that exists in the rural Indian market provides immense scope for organizations to grow their business. Companies from FMCG, healthcare, banking, finance, auto and telecom have expanded their operations to rural areas where companies like Coca Cola, Pepsico, LG, Samsung and Unilever have penetrated the rural market with a vengeance. These Indian and Transnational conglomerates are targeting the Indian rural market by using innovative techniques to reach rural consumers and scale operations profitably. These companies have worked very closely with the rural diasporas and have spent a number of years understanding the rural consumers’ attitudes and

behaviours. But they are meeting with mixed results. An undeveloped transportation infrastructure, unreliable telecommunications and electricity services, inadequate distribution networks and widely dispersed consumers make it costly to establish a profitable presence at scale (Kapur et al, 2015). A major challenge for companies is how to reach out to rural consumers in places where mass media is almost nonexistent. Innovative companies have capitalised on the fact that despite the vast number of media dark areas, there are 200 million rural mobile subscribers in India, more than the total number of subscribers in Brazil and 14 million Direct to Home (DTH) connections in rural areas, out of a total of 20 million. India had 833.02 million active mobile phone users as of December 2014, according to regulatory data (Chakravarty, 2015). According to Schumpeter (2013), around 90% of mobile phone connections in India were prepaid and, despite the relative inexpensiveness of calls, it was not uncommon for people to ask each other to, “Give me a missed call”. This is a proxy for a pre-decided short

Missed call marketing in India

“Brands

prominently

displayed

phone number in their ads, urging people to dial it. The call, once made,

disconnected automatically after one ring and the caller was sent a text or a

voice message informing him of offers and discounts.”

message such as “thinking of you” or “call me back”. Missed calls have evolved into the modern equivalent of Morse code. The practice dates back over a decade, when exorbitant calling rates forced customers to find a smarter way to communicate. Today, even with some of the lowest call rates in the world, the practice of leaving missed calls persists and continues to be used by children to inform anxious parents (or spouses to inform anxious partners) that they have reached somewhere; to summon their drivers; to order food, receive cricket scores and bank balances and just about any other information or content conceivable. It is in this context that the start-up company Zipdial, a Bangalore based outfit, spotted an opportunity to monetise the Indian mobile subscriber’s tendency towards

thrift. Capitalising on the popularity of ‘missed calls’ in India, Zipdial offered a new way for advertisers to reach their customers and the concept of “missed call marketing” was born. Brands prominently displayed a phone number in their ads, urging people to dial it. The call, once made, disconnected automatically after one ring and the caller was sent a text or a voice message informing him of offers and discounts. According to Pathak (2013), the first time the service went viral was when it tapped into India’s biggest obsession: cricket. During the 2011 cricket world cup, Zipdial relayed cricket scores and updates through text messages in exchange for missed calls. On the day that India played Pakistan, Zipdial clocked 4 million calls. It then gathered data on their callers by requesting details of their gender, age,

city etc. According to the CEO of Zipdial, they were not selling missed calls but instead eliciting consumer engagement through a simple interface. Clients were paying Zipdial, not for missed calls, but for the analysis of data collected from these campaigns. By distinguishing a repeat customer from a first time caller, companies using the data could help deliver appropriate marketing messages to both consumer segments. Another innovative use of missed call marketing was demonstrated by Unilever’s Indian arm, Hindustan Unilever Ltd (HUL). HUL’s Kan Khajura Tesan (KKT), which loosely means earworm station, was an initiative devised to reach consumers in remote places where there are virtually no sources of entertainment. With this campaign, HUL wanted to increase brand awareness and push sales of its most popular detergent brand, Wheel. To participate in this campaign, a consumer was required to leave a missed call on the toll-free number. The idea of the KKT evolved from the insight that, despite living in media dark areas, the rural consumer had almost constant access to one device — a mobile phone. HULs market research revealed that the rate of penetration of mobile phones was 80% in rural areas, while TV was around 40%. In these locations, there

was thus a void for entertainment in comparison to the rest of the country. HUL decided to exploit this opportunity and fill the market gap through mobile phones. However, the frugality of the audiences, and particularly in the case of rural consumers, steered HUL to the key consumer insight of ‘leaving a missed call’ which subsequently became the cornerstone of the media strategy for this campaign. Since this audience recharged their pre-paid cards with the minimum talk-time balance, the mobile phone became the most effective medium by which to reach them (Pathak, 2015). HUL’s media strategy agency, PHD, later evolved a marketing strategy whereby the brand’s missed call marketing campaign was linked to the wider brand strategy of helping consumers to save costs. The idea being that Wheel actually gave you more washes at a lower cost. Once the consumers left a missed call, the system would then recognise the telecom circle, identifying the geographical location and associated prominent dialect of the incoming call and an automated voicemail returned to the consumer’s phone with the content delivered in the appropriate language. The consumer could then listen to the content (e.g. in this case, an entertaining joke or saying) in his/her language. Specifically, every

time consumers left a missed call, they would get an amusing call back message from their favourite movie star, courtesy of the Wheel brand. The call ended with a brand salutation and the audience was told to call again if they wanted to listen to more jokes (Live Mint, 2015). By leveraging on frugal consumer behaviour, coupled with Bollywood stardom and humorous call back messages, Wheel was able to connect and engage with a very large number of consumers. Over the duration of the campaign, 30 pieces of unique content personalised in the dialects of the locations involved were created

and distributed via mobile phones. The campaign resulted in the raised association between the brand and its targeted attributes, significant positive mind measure movement and increased product sales. Three million consumers engaged 28 million times and a 95% increase in the perceived association of Wheel with its desired attributes was achieved. Over 78% callers listened to over 80% of voice content in terms of duration. The average consumer engaged with the brand approximately 9 times and sales nearly doubled from 40% to almost 76% (Live Mint, 2015). The initiative enabled HUL to create a communication channel in rural India

Missed call marketing in India

perfectly suited for the promotion of its other brands. Over the past year, the company has used this route to effect stronger brand-benefit relationships for some of their other brands through a range of similar activities. For example, for their Lux brand, positioned as the soap of Bollywood stars, HUL invited entries from listeners to engage with leading movie stars. They received 24 million calls, of which 14 million were unique, received 10 million entries and delivered 21 million ad impressions for the Lux brand. In July 2015, HUL opened up this popular mobile radio channel to external advertisers i.e. brands from outside the HUL portfolio. For instance, food brands

that were not deemed as competitors of any Unilever products could theoretically advertise on this platform (Irani, 2015). Indiaâ&#x20AC;&#x2122;s story continues to be fraught with contradictions â&#x20AC;&#x201C; on the one hand there exists 80% penetration of mobile phones in rural areas, on the other hand, 300 million people continue to live in conditions of extreme poverty. The examples discussed in this case highlight how companies have applied remarkable innovation to push sales of products or capture market research data by taking advantage of this high penetration of mobile technology across rural communities.

Shopping and Consumer Lifestyle

Opportunities in multisensory marketing by Gemma Calvert & Abishek Pathak About the Author Prof Gemma Calvert is the Director for Research & Development at ACI and Professor of Marketing at the Nanyang Business School, NTU. A Prof Gemma Calvert pioneer of neuromarketing, she helps companies to break into Asian emerging markets through deeper understanding of Asian consumers using brain and psychology based research methods. Dr Abhishek Pathak is a Research Fellow with ACI. His research interestsâ&#x20AC;&#x2122; lie in multi-sensory integration, studying subconscious minds of consumers using neuro-scientific tools, applied linguistics in marketing and sound symbolism. Dr Abhishek Pathak

This article was frst published in Admap magazine April 2015 ÂŠWarc www.warc.com/

nderstanding the science behind how the senses interact with one another enables marketers to effect positive sensory fusions that improve brand attention and attraction to consumers. Ask consumers to define ‘what is advertising’ and you will inevitably be bombarded with a series of synonyms related to vision: ‘what I see’, ‘TV commercials’, ‘pictures and stories I read on the internet or my mobile’, ‘those billboards that try and grab your attention in the streets and malls’. This is perhaps not surprising given the marketing industry’s past love affair with the sense of sight. In today’s digital environment, it is conservatively estimated that the average adult is exposed to no fewer than 200 visual advertising messages a day; that’s just over 70,000 a year. Yet most of these optical communiqués will fail to break through the fiercely competitive visual environment and elicit anything more than a cursory few milliseconds of processing by consumers’ brains – insufficient for effective encoding. In short, most visual marketing messages are destined to crash and burn in the buzzing confusion that now characterises our visual world. So why have we found ourselves in this situation and what can be done about it? Humans are inherently a visually dependent species. Over a third of the human cortex – the brain surface – is dedicated to processing visual

information and we tend to rely on our sense of vision to a far greater extent than any other sensory modality. Perhaps that’s why we have focused our attention on visual experiences as the most effective way of communicating with consumers at the expense of our other senses. In recent years, scientists have begun to understand the way in which the senses interact with one another in the brain to influence our perception of everything, from the food on our plates to the environments in which we live and work. What we now know is that the senses of sound, smell, taste and touch have a far greater influence on our perception than we are conscious of – and yet each provides a unique, currently uncluttered, sensory channel by which to communicate core brand values and product benefits. Multisensory marketing refers to marketing activity that seeks to engage with consumers across multiple sensory channels in order to influence their perception, judgment and behaviour. By creating novel sensory triggers that typically connect with consumers at a subconscious level, marketers can cut through the morass of explicit (typically visual) advertising messages to provoke more effective positive brand associations in the minds of their consumers. Furthermore, these sensory triggers may result in consumers’ self-generation of desirable brand attributes, both sensory and abstract, rather than those provided explicitly by the advertiser. The rising interest in multisensory marketing

Opportunities in multisensory marketing has serious implications for marketers and advertisers alike. Create the right multisensory mix and you can deliver superior experiences for consumers that far outperform any single sensory broadcast alone – providing huge competitive advantage. Changing the visual sheen on towelling can make it ‘feel’ dramatically softer; make packaging ‘loud’ and crisps will ‘taste’ much crunchier and, hence, fresher. Boxes that encase luxury items are expected to close with an indulgent ‘tock’ and not a ‘clack’ or ‘cling’ – thus increasing our perception of the value and quality of the product enclosed. Film producers, too, have long been aware that a film’s soundtrack can make or break a hopeful Hollywood blockbuster. And there’s the rub – effect the wrong cross-sensory combination and the results can be disastrous. So how can you exploit these vital multisensory channels without jeopardising a brand’s relationship with its consumers?

detection and discrimination of the event itself. The phenomenon is called ‘superadditivity’ and refers to the fact that the resulting multisensory experience is greater than the sum of the individual sensory parts. It largely explains why audiovisual communications are often more easily encoded, recalled and understood than solely visual or soundbased messages – providing, that is, the information is also perceived as ‘congruent’.

Recently, scientists have uncovered the rules behind multisensory integration, including how to effect positive sensory fusions to gain a competitive edge, but also how to avoid multisensory clashes. It turns out that when two or more sensory events occur at the same time and place, the brain typically categorises them as a single integrated experience. This is highly advantageous in terms of attracting attention because the fusion of different sensory cues increases the

Importantly, these same multisensory principles apply across other sensory combinations and have an equally potent impact on preference and liking – as many companies have discovered to their dismay. Imbuing an otherwise popular product with a subjectively incongruent aroma, colour or pack design can decrease consumers’ liking for the product to a rating score well below that obtained for any of the individual sensory components alone.

If you have ever watched a foreign movie in which English is dubbed over the soundtrack, you may have noticed that the incongruent lip and mouth movements of the actors make it much more difficult to understand what’s being said, even though the soundtrack is in fact perfectly clear. Here, the ‘incongruent’ auditory and visual speech cues clash with one another, resulting in an uncomfortable or irritating experience for the viewer.

In the case of a pasta sauce launched by a well-known global FMCG company several years ago, focus group and quantitative data obtained on the product, packaging and pack design each returned a remarkably high score, providing the justification required to proceed to launch. Much to their disbelief, the product failed to meet

often without our conscious awareness. Asking people whether they think a fragrance, colour, shape, surface feel or any other sensory cue is going to ‘go well’ with any other, is therefore often a fruitless exercise because it requires conscious introspection of an involuntary, subconscious brain process.

“Importantly, these same multisensory principles apply

across other sensory combinations and have an equally potent impact on preference and liking – as many companies have discovered to their dismay. ”

anything like the return on investment expected and was pulled from the shelves. A subsequent investigation of what went wrong revealed that, despite the positive support attained for each component individually at pre-testing, when respondents were subsequently required to rate the finished product post launch, scores plummeted. Examples such as this mitigate against a siloed approach to the design, production and pre-testing of new products given that we now know that a product, service or marketing campaign is not simply the sum of its individual sensory parts. So how can marketers determine which combination of sensory features is likely to be perceived as congruent or not? The difficulty lies in the fact that multisensory integration occurs automatically, and

“Create the right multisensory mix and you can deliver superior experiences for consumers that far outperform any single sensory broadcast alone” Over recent years, there has been growing interest in the exploitation of multisensory rating paradigms and implicit cross-modal reaction time tests that tap into System 1 brain responses (see Thinking, Fast and Slow by Daniel Kahneman). By exposing respondents to different sensory combinations and monitoring the speed with which they respond, it is possible to measure how well different sensory inputs combine and impact on detectability, discriminability and liking – without the need for conscious feedback. Charles Spence at the University of Oxford has been using multisensory integration tests

Opportunities in multisensory marketing

to measure cross-modal interactions that impact consumers, including the often impenetrable cross-cultural influences on food and flavour preference. For example, among Chinese consumers, the perceived flavour of noodles is heavily influenced by their colour, as well as the texture of the receptacle in which they are served.

The beginnings of sensory marketing can be traced back to the late 1970s, when marketers began to realise that it was possible to engage consumers using sensory triggers other than visual ones to enhance brand promotion. Petrol station owners began wafting the smell of coffee to customers at the pumps to entice them into the outlet to purchase

â&#x20AC;&#x153;Create the right multisensory mix and you can deliver

superior experiences for consumers that far outperform any single sensory broadcast alone.â&#x20AC;?

Importantly, these multisensory optimisation studies are relatively straightforward to conduct. Some audiovisual interactions can be easily studied online (e.g. how sound interacts with the perceived colour, shape and design of a packet to make it more appealing; or how the musical soundtrack over a TVC can modulate its appeal). Others require respondents to be tested in a central location (e.g. those involving tastes, smells and tactile experiences). Whether online or offline, these multisensory tests are relatively fast to conduct and have proven very cost-effective, particularly in view of the punitive consequences of launching an incongruent multisensory experience onto the market.

baked goods, and at Christmas, store owners found they could increase sales by infusing the air with pine. By the early 1980s, brands were becoming aware that they could also exploit the sense of smell to invoke positive brand associations among their consumers. In addition to introducing well-chosen scents into their flagship stores (e.g. Nike reported an 80% increase in intention to purchase thanks to their new in-store branded fragrance), companies slowly began exploring with other sensory triggers. Slow music was found to increase spending in supermarkets, while playing either French or German music above the wine aisles influenced the sale of French or German wines respectively, even though shoppers reported being

completely unaware of any music being played overhead. By the early 1990s, brands were developing patented signature tunes designed to enhance the emotional appeal of the brand and evoke more immediate brand recognition when TV sets were on but viewers were in the kitchen brewing tea during ad breaks. Signature tunes also provided the flexibility that advertisers required to create many different campaigns for the same brand in the visual domain, while retaining the familiar and easily recognisable brand tune. A good case in point was the adoption by British Airways of the Flower Duet from Delibesâ&#x20AC;&#x2122; opera LakmĂŠ as its theme tune in the early 1990s and which was subsequently played across a number of different campaigns. Mobile phone and software companies too were beginning to cash in on the value of sound space. Who can forget the iconic Microsoft start-up tune or the sound of a Nokia phone being switched on?

to connect with their consumers at a deep, emotional level, and cognisant of the opportunities afforded by multisensory communications. One of the pioneers of the immersive experience must surely be Apple, which has designed its concept stores in such a way as to ensure its customers can see, listen, feel and experience all the sensory facets of its products. Furthermore, Apple products have maximised the value of sensuality and style across multiple sensory touchpoints, creating a brand that offers consumers a slice of the state-of-the-art lifestyle. Starbucks is another company that aims to satisfy consumers, not only in the realm of taste, but across all the other senses. The company has invested heavily in the creation of an in-store environment where the background music, ambient aromas, and tactile touchpoints (the mugs, plates, seats) are all uniquely aligned, providing consumers with a refreshing and comfortable environment in which to enjoy their coffee.

Today, multisensory marketing is gaining traction across multiple sectors and categories. Brands are aware of the need

In pubs, clubs and bars across the world, brands are exploiting new multisensory technologies that allow aromas to be

Opportunities in multisensory marketing

infused into the air to modulate mood, and sophisticated soundscapes to be crafted in order to enhance the experience of their foods and beverages. Heston Blumenthal of The Fat Duck is one of the most creative advocates of this new multisensory mindset. His famous Sound of the Sea dish had diners wearing iPods that played waves sounds while they consumed succulent seafood, to enhance the overall flavour experience. Diageo is another major investor in sensory marketing, launching apps and multisensory spaces for Guinness, Johnnie Walker and the Singleton. In a recent study aimed at measuring the efficacy of their new sensorial approach, the drinks giant found that the enjoyment of whisky could be increased by up to 20% by effecting the right multisensory environment. Other companies are taking the multisensory experience directly to the consumer, in outside spaces, including commuter sites. One high-profile example is McCain’s ‘smellvertising’ campaign at bus stops in the UK to promote its Ready Baked Jackets baked potatoes. Huge posters inside the bus shelters were installed with 3D fibreglass jacket potatoes, which, on the press of a button, heated up and emitted the aroma of an oven-cooked potato to delight and entice travel-weary consumers.

A sense of the future As the demand for ever more sophisticated sensory delivery devices grows, we are likely to witness an increase in the involvement of 3D printing in the generation of branded tactile experiences, the augmentation of digital and packaging-based fragrance emission systems and the modification of mobile devices to deliver sensory experiences on the fly. Another area to watch closely is the games industry which is fast advancing fully immersive multisensory virtuality – a capability which is already starting to spill out into the marketing sector. Marriott Hotels is one such company currently exploiting this new multisensory virtuality. Using new-gen virtual reality headsets developed by Oculus Rift, guests are able to explore holiday destinations within a virtual environment. As guests navigate through an immaculate rendition of the visual landscape, installed heaters simulate the warmth of the sun on the face, while computerised water atomisers mimic the sensation of sea spray on the skin. In such an enhanced virtual sensory environment, emotions are heightened and senses teased in a bid to boost sales of holiday packages. Multisensory marketing also looks set to be the next frontier for the mobile phone industry. Aside from location-based targeting, which is only

really feasible via a mobile platform, the industry is now exploring ways to create immersive user experiences in real time. One advantage the industry has is that smartphone users are already conditioned to respond to sounds and vibrations emitted from their handsets. By manipulating the duration and frequency of the tactile cues that co-occur with cleverly crafted sound signals, brand owners can create multisensory triggers that cue consumption behaviours for specific brands at relevant times and when consumers are at appropriate locations. An example is a snack brand that sends the enticing sound of a potato crisp being crunched with a vibration mimicking the shaking movement associated with Salt â&#x20AC;&#x2122;nâ&#x20AC;&#x2122; Shake crisps to a brand user at a known snack time. Or digital ads for theme parks that exploit biases in our visual systems to recreate the illusion of riding on a new rollercoaster, while simultaneously enhancing the experience through sound and haptic cues delivered via the mobile device. As the technology behind

sensory delivery systems continues to advance, brand owners and planners will need to understand the nature of the consumer experience at each brand touchpoint in order to create new modes of enhancing that brand experience using multisensory strategies. Another facet to consider is how to deliver the optimal cross-modal combination with sufficient subtlety and appropriateness so as to avoid sensory saturation and interruption. Testing and pre-testing will be essential, particularly on currently underexploited platforms â&#x20AC;&#x201C; but the good news is that strategies for multisensory optimisation are to hand. Whichever route brand owners choose to exploit, be it in-store, in-home or on a mobile device, the lesson is clear. In future, if brand owners wish to engage consumers at a much deeper emotional level, build loyalty and differentiate themselves from the competition, they will need to embrace the multisensory opportunities now afforded to them.

Shopping and Consumer Lifestyle

Mass-customised goods do have a future in Asia by Yeh Mingmin & Gemma Calvert

Ms Yeh Mingmin

Prof Gemma Calvert

About the Author Ms Yeh Mingmin was a Research Associate at ACI and is currently Senior Associate, Regional Customer Experience at Lazada Group. Prof Gemma Calvert is the Director for Research & Development at ACI and Professor of Marketing at the Nanyang Business School, NTU. A pioneer of neuromarketing, she helps companies to break into Asian emerging markets through deeper understanding of Asian consumers using brain and psychology based research methods. This article was frst published in Business Times, Oct 2 2015

ut companies should be mindful of the region’s unique cultural influences that need to be catered for in designing futureproofed personalised options. MASS customisation as an industry has burgeoned in Western markets since the 1950s and is now estimated to be worth over US$150 billion per annum. Advancements in technology and the widespread use of the Internet are fuelling the growing consumer demand for personalised products, particularly across the West. As consumers continue to expect high levels of personalisation and the ability to express individual preferences, many companies are incorporating elements of mass customisation into the design of their products and services. But is the demand for such flexible production as popular in the emerging markets across Asia? According to previous research published in the International Journal of Mass Customisation in 2011, it was unclear whether mass customisation could be implemented as effectively in non-Western societies where different value systems exist. In collectivist cultures that stress conformity to group norms, the need for individual expression through personalisation of branded products may be less desirable. But that has not deterred some Singapore brands from exploiting

the benefits of mass customisation. Singapore’s longestestablished local bank, OCBC, attracts customers with its iconic Frank Account cards which allow individuals to personalise the image displayed on the card. On its website, the bank invites customers to “let your personality shine with 120 unique card designs”. A recent study by the Singaporebased Institute on Asian Consumer Insight (ACI) suggests that consumer acceptance of mass- customised products across different Asian markets can be more accurately predicted by their levels of uncertainty avoidance. (Uncertainty avoidance describes the degree to which an individual or population is intolerant of unpredictability in everyday life.) Specifically, high uncertainty avoiding cultures take longer to configure personalised products, have lower conversion rates to purchase customised products and are more reluctant to share their creations with other consumers via social media. Earlier this year, one of our ACI fellows, professor Ken Ito, and his colleagues examined 700,000 prospective car buyers in Singapore, China, Japan and Taiwan and employed cross-national differences in uncertainty avoidance to predict consumers’ customisation behaviour. In the context of mass customisation, it is the discomfort of making product choices without knowing the final products. Thus, high

Mass-customised goods do have a future in Asia uncertainty avoidance markets such as Japan and Taiwan were found to be less accepting of mass-customised options, preferring instead prepackaged variants.

fewer options for personalisation may be more effective, whereas incentives may be required to boost product awareness through sharing on social media.

On the other hand, Singapore and China, which score low on the measure of uncertainty avoidance,

Across Asia, globalisation and economic growth have begun to chip away at the traditional values of

â&#x20AC;&#x153;Across Asia, globalisation and economic growth have

begun to chip away at the traditional values of collectivism.

Individualism, as well as independence, is increasing in many Asian countries, representing a modern hybridisation of Eastern and Western attitudes.â&#x20AC;? were considerably more accepting (and in fact demonstrably demanding) of customisable mass products. More specifically, the results showed that consumers in Japan and Taiwan were not only less likely to buy customised goods, but those that did took twice as long to share their personalised option on relevant social media platforms. Does this mean there is no future for mass customisation in Asia? Absolutely not. The data from this large-scale field study suggest that in high uncertainty avoidance markets, companies need to be more creative about the way in which they engage with their customers. In such markets,

collectivism. Individualism, as well as independence, is increasing in many Asian countries, representing a modern hybridisation of Eastern and Western attitudes. Even in high uncertainty avoidance countries, customers are still open to the concept of customised products, just perhaps to a lesser extent than is expected by those in countries that are more open to uncertainty. In other words, despite a more group-oriented societal structure, modern Asians still crave some small degree of uniqueness. This mindset is well encapsulated in Japanese writer Haruki Murakamiâ&#x20AC;&#x2122;s

concept of “small happiness” – embracing pleasures associated with the little positive gestures of life. This idea has become very vogue in Taiwan, where buzz terms starting with “little” or “micro” feature in every conversation. Manufacturers of masscustomised products could do worse than piggyback onto this conceptual framework in which less is more. In contrast, Asian markets that have lower uncertainty avoidance scores have rather different expectations. In economies such as Singapore, Malaysia, China, India, Indonesia, Philippines and Hong Kong, consumers are more likely to be risk takers who are comfortable with ambiguity and willing to try out new products, create their own variants and share these creations with families and friends on media platforms. In these markets, manufacturers of mass-customised products need to adopt a rather different strategy – making sure they provide their customers with appropriate social media outlets in which they are able to express their opinions and satisfy their need to share. With so many different products in the marketplace, successful companies have to work hard to create relevant campaigns and interactive platforms to keep consumers engaged and involved in the personalisation process. A great case in point is Pandora

– a brand that truly represents mass customisation in the medium-end jewellery sector. Producing the famous Pandora charm bracelet, the company encourages its consumers to share their personal stories, creations and combinations on social media. What is insightful is the way in which this is tailored for different markets, even within Asia. In Taiwan, Pandora uses Facebook to announce new products, post images of events and answer customers’ questions. In Singapore, there are many more posts that involve sharing customers’ experiences and connecting with them via engaging stories. The platform is considerably more interactive and customers share their posts three times more than countries that have high risk-aversion scores. Pandora, it seems, is aware of these cross-cultural differences within Asia, and tailors its communications appropriately. Mass-customised products clearly have a future in Asia. However, companies aiming to maximise their return on investment will need to be mindful of the unique cultural influences within Asia that need to be catered for in designing futureproofed personalised options. As the research conducted by the ACI has shown, optimal levels of customisation can be anticipated by understanding a country’s inherent level of uncertainty avoidance – a new measure in the predictability of consumer acceptance.

Shopping and Consumer Lifestyle

Customer experience matters when it comes to building a lasting brand by Prof Amitava Chattopadhyay About the Author Prof Amitava Chattopadhyay is The GlaxoSmithKline Chaired Professor of Corporate Innovation â&#x20AC;&#x201D;â&#x20AC;&#x2030; Professor of Marketing at INSEAD, an ACI Fellow and Senior Fellow with the Ernst & Young Institute for Emerging Market Studies. This article was frst published in South China Morning Post, April 4 2015

sian service brands lag the US when it comes to giving customers the best shopping experience. Experience matters. We live in an experience age and brands can no longer build strong positions by providing clear functional benefits. In research I undertook with a former colleague, Professor Peter Darke at York University, and then student and now professor at Queens University, Laurence Ashworth, we showed that exposing consumers to irrelevant experiential cues, e.g., asking consumers to listen to music genres they liked versus disliked on a given portable CD player influenced their choice of portable CD players. Consumers chose CD players that were objectively inferior on functional benefits like battery life and weight, two important characteristics of portable CD players,

when they listened to disliked music genres on them, even though the music experience was irrelevant to choice. Consumers would, after all, never listen to a disliked genre of music on the CD player once they took it home! Notwithstanding such research or the general discussion of how we live in an experience economy and how this matters so much â&#x20AC;&#x201C; particularly in the service business in Asia â&#x20AC;&#x201C; service businesses do not seem to have understood the importance of experience in building brands. Consider three recent experiences of mine at two leading Singapore retailers and a bank. In the first case, I visited Takashimaya, an up-market Orchard Street retailer in Singapore, to buy a pair of dress shoes. Having looked at the various shoe brands and models on display, I selected three pairs and approached a salesperson

asking them to get me those shoes in my size for me to try them on. To my surprise the salesperson told me that I was asking the wrong person, since he was representing a brand that I had not chosen. It turned out that I had to find the right salesperson for each shoe brand I had picked up and ask him/her to help get the right size to try. I walked out, dress shoe unbought! Or consider a visit to Tangs, another up-market retailer on Orchard Street in Singapore, last month. I was looking for a masticating juicer. The experience was the same. Each brand had its own salespeople and one could not get service to look across brands, the normal way consumers make a choice,

without having to spend inordinate amounts of time and energy locating the right salespeople. Moreover, given their vested interest in their own brand, they all give a distorted and self-serving picture of the brand they are selling. Worse still, for a somewhat technical product like a masticating juicer, I found the salespeople in Singapore rather inept. Armed with my internet searches of the product category and product reviews, I seemed to know more than the salespeople did! Once again I left without buying. In the third instance it was at DBS, a large local Singaporean bank. I wished to deposit a cheque made out in my name into my own account at DBS. I provided

Customer experience matters when it comes to building a lasting brand

my bank account number along with my bank card to the teller. She asked me for my identity card. Why, oh why, would that be necessary? Perhaps if I was withdrawing money it would make sense, but to deposit money using an account payee cheque in my name, what relevance does my identity have? What could she have learned from my driver’s license that would make the transaction more secure or legitimate? In point of fact it was not necessary because when I threatened I would shut my account she accepted the cheque and deposited it. Contrast with this my fabulous experience when I shopped in the US recently, for the pair of shoes that I failed to buy at Takashimaya. I was at Nordstrom. The sales person sat me down and took my foot measurement – both length and width. She then went and retrieved the right sizes for all the different brands and models. She pointed out how for some of the brands I had chosen, the tendency was to have shoe widths that were not suitable for me and she had me try on another brand that had a similar style to the ones I had chosen, that she felt would fit more comfortably.

I left having bought two pairs instead of the one pair I had gone in to buy. And here I am singing praises of Nordstrom and wishing that they open a store in Singapore! And, lest you think this is a unique experience, just visit any number of stores in the US ranging from Nordstrom, through Macy’s, Home Depot, or REI, all of whom I happened to visit while in the US in February – the experience is similar and excellent. So, Asian service brands beware – I say Asian because my experience with banking and retailing in India or Thailand or China, in the recent past, have been no different. It is but a matter of time that retailers with a better service culture, a superior understanding of how customers make decisions, knowledge of how customers wish to be treated, and an understanding of the importance of customer experience in building a service brand show up on Asian shores. When that happens, as it eventually must, if local Asian retailers haven’t understood the importance of customer service and delivering against it, then they might go the same way as the dodo bird.

As a bridge between academia and commerce, Institute on Asian Consumer Insight (ACI ) holds a unique position of knowledge in Asia. Our body of research on Asian consumers, our extensive network of thought-leaders, and our experience in helping international brands make headway in Asia are unparalleled. Insight+ is a new platform where we can begin to share that knowledge with you and your business. Here you’ll find important news, interviews with renowned experts, and webinars to help you keep you updated with latest market trends, research topics, and market insights. Contributors include ACI Fellows, partners, and experts from around the world covering a wide range of sectors and disciplines.

http://www.aci-institute.com/insight-plus/

Connect with ACI: CONTACT ACI ACI Building, Block S4, Level B4 50 Nanyang Avenue Institute on639798 A sian Consumer Insight Singapore Email: aci-institute@ntu.edu.sg Telephone: +65 6790 4966 Website: www.aci-institute.com @Connect_Aci

Address: ACI Building, Block S4, Level B4 50 Nanyang Avenue Singapore 639798 Email: aci-institute@ntu.edu.sg Telephone: +65 6790 4966 Website: www.aci-institute.com

BEST OF

nsight

For more information, visit www.aci-institute.com