Understanding fads
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21-Oct-2014 -
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Transcript of Understanding fads
UNDERSTANDING FADS
AN EXPLORATION OF SOCIAL INTERACTIONS TO UNDERSTAND HOW AND WHY FADS ARE
CREATED.
PRESENTATION STRUCTURE
IntroductionUnderstanding a fad
Mind VirusesHow Fads Spread
Researcher’s HypothesisHow to create a fad
How to avoid early death
Testing the hypothesisPrimary Research
Experimental Research
Conclusion
Crocs, Tazos, Twitter, ZoZos, Facebook memes, Livestrong
bands
Fads are all around us
What is the difference between a trend and a fad? Elvis’s
pink Cadillac was touted to be a fad, but eventually
turned out to be an iconic symbol
Can you deliberately create a fad?
Do ZooZoos actually inspire people to buy Vodafone
Prepaid cards?
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
INTRODUCTION
Deliberate Creation of Fads is on the Rise
• A meme called ‘25 things about me’ on Facebook saw a phenomenal rise in
the usage of Facebook notes; which was a previously under-used feature of
• The popularity of the meme has resulted in 60 percent more Facebook
profiles being created in the month of January 2009 when the meme hit,
than in the previous month of December 2008 (www.complete.com)
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
INTRODUCTION
What is a fad?
• The simplest definition of a fad would be that of a
short lived phenomenon, product, service, or activity
that becomes very popular but is not long-lived due to
it’s inherent lack of value
• Fads come quickly into public view, are adopted with
great zeal, peak early & decline fast
• Fads depend on promotion by early adopters and
purchasers of fads display variety-seeking buying
behavior
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
What is a fad?
Identifying fads-
• A trend that consists purely of hype
• Becomes very popular very fast
• Provides no actual product/service value to the
consumer
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
Herd Behavior
Social psychologists advance several underlying reasons
for conformity (or “herd behavior”), many of which are
applicable to those who partake in fads
One such force is normative influence, which is operative
when people wish to avoid being “left out” (Abrahamson
and Rosenkopf, 1997)
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
Herd Behavior
As per the theory, people react to the “bandwagon”
effects (Nohria and Berkley, 1994) simply because they
desire to avoid being a laggard
Another force for conformity, social pressure, differs from
normative influence in that the motivation to consider
fads is not the desire to be amongst the “in-group” but
instead the desire to avoid sanctions associated with
deviance. (Abrahamson, 1996)
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
FADS-BIRTH & INFECTION
MIND VIRUSES
UNDERSTANDING A FAD
Mind viruses
• Some concepts, techniques and ideas prosper in the
marketplace, not because of their economic reproductive
capacity, but instead because of their interpersonal
reproductive capacity
• “Consumption is affected by the behavior of those
around you, and the brain is bombarded by ‘designer
mind viruses’ (memes) trying to infect them” Marsden
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
FADS-BIRTH & INFECTION
MIND VIRUSES
Mind viruses
• Advertising memes will be able to infect consumers if
they find a way to gain brain space
• More likely to occur if there is no “immunity” to the
particular meme trying to infect consumers
• Fads are can be linked to viruses - they spread simply
because they are infectious and not because there is any
inherent goodness in them
• The goal of marketing needs to be ‘one of infection not
influence’
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
FADS-BIRTH & INFECTION
MIND VIRUSES
How Fads are created
The Law of Few:
• The Tipping Point-
There are a few exceptional people who discover trends and through
their social connections, charisma, personality and enthusiasm
spread the message
• ‘6 Degrees of Separation Rule’ which signifies that people are linked
to everyone else in a few steps
• ‘The Few’ consists of 3 types of special people-
– Connectors who know a lot of people
– Mavens who have a great bank of knowledge
– Salesman who can persuade any one
• A brand needs to be able to determine who these three personalities
are and how to reach out to them
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
How Fads are created
More successful fads have add-ons that allow some level of
individuality while partaking in a fad
• Crocs come in a variety of colors and designs
Jibbitz by crocs allowed customized add ons that could be attached
to the holes in the crocs
• Livestrong had a wide variety of colors representing different social
causes, so that people could choose a cause that was close to them
• You can be part of the herd and yet be individualistic
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
How Fads are created
Mass and easy availability
• A fad has to constantly remind potential customers of its existence
• Products become fads only if they have a strong distribution channel-
in order to flood all stores; and strong PR in order to ensure that
people see celebrities or any other appropriate influencers using the
products
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
How Fads are created
No substitutes
• A fad needs to be unique and cannot have any substitutes or else the
novelty factor is lost
• Both Crocs and the Livestrong bands started their demise after
cheaper substitutes flooded the market
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
The life cycle of a fad can have 2 possible conclusions –
1. It becomes popular too fast and fizzles out with equal rapidity.
These are classic fads that follow the fad life cycle as already
discussed
2. Or a brand becomes wildly popular then continues at a steady
pace. Brands like this are known as iconic
The use of appropriate strategy can ensure that a fad gets extended
into a trend or an icon
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
Dampening Demand
• The worst thing a company can do while setting a trend is to over-
produce. If the market gets flooded with one product, it can lose its
appeal
• The fad will earn some amazing short-term sales, in the long term
such market flooding will undermine a brand’s specialness and
exclusiveness
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
Dampening Demand
• Crocs expanded rapidly and flooded the market. Livestrong could be
seen everywhere. These products were being worn by anybody and
everybody
• Instead of patiently fanning the flames and reaping the benefits of
long term success, these brands added fuel to the fire by trying to
become instant hits
• Overnight everybody was wearing them and then nobody wanted to
be wearing them
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
Resist Line Extension.
• Fad items aren’t purchased for the product value derived from them;
they satisfy a deep rooted social need for consumers
• Line extension dilutes the uniqueness of the product and destroys
fad value
• Crocs didn’t just flood the market with a variety of its classic Crocs in
a rainbow of colors; it added many other styles- Flip-flops, sandals
and an assortment of other types of Crocs
• Livestrong - Bands of different colors for different causes caused the
original message of the brand and what it stood for to be lost
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
Control Distribution
• Crocs went from being available in just a few retail outlets to being
available in every imaginable retail outlet
• That fuelled sales but also hurt the brand’s power with the
distribution. Retailers no longer saw it special being able to stock
Crocs
• Livestrong’s ubiquitous availability dampened distributer enthusiasm
in the product and the social message was lost in the consumerism
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Avoiding Death
Focus on Core Consumers
• Many products that turn into fads do not position their product for
any particular segment; they try to market the product to anyone
and everyone
• The brand cannot build a loyal customer phase, and hence boredom
or substitutes can easily cause a decline in the product’s market
• A brand that tries to appeal to everyone ends up appealing to
nobody
• Crocs, Livestrong - Loyalists saw these products on everyone and
immediately moved to some other product since these brands didn’t
make them stand out and look different anymore
INTRODUCTION
CONCLUSION
TESTING THE HYPOTHESIS
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
Primary Research
• 30 respondents were interviewed on the basis of a preliminary
screening to ensure that they had actively participated in fads before
• The findings from the primary interview corroborate the hypothesis
formed by the researcher
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Primary Research
Key Findings-
• None of the respondents could recall seeing advertisements of any of
the fad products that they had purchased. Zoo Zoos were an
exception
• Respondents were successfully able to name key influencers and
celebrities who purchased the same products
• Majority agreed that they would not take part in the fad in any way if
too many of their peers were already participating in it
• Respondents claimed that they would stop participating in the fad if
people they considered ‘uncool’ started participating in it
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Experimental Research
• In order to test the hypothesis, an experimental research was
conducted wherein the learnings from my research were applied in
order to create an online fad
• The hypothesis was to be considered valid if a minimum number of
5000 respondents participated in it
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
The Fad
A meme like activity was designed on Facebook where participants
were supposed to upload silly photographs of themselves while they
were sticking their tongue out
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Creating the Fad
The fad followed these basic key principals-
• It was easy to participate in
• It provided no tangible value to the participant
• It was entertaining
• Scope for individuality within a heard
A facebook group was created for this purpose and 18 photos of
friends and family were tagged and uploaded
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Spreading the epidemic!
• 25 Connectors with high networking skills were identified and
approached to spread the fad. All connectors uploaded photos of
themselves and updated their status messages urging people to
upload their photos
• Post about the group were regularly posted on other popular groups
to increase traffic to the site
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Results
• Within hours of starting the epidemic, there were 300 members in
the official Facebook group
• Reports of people uploading photos with their tongues sticking out
started appearing more and more frequently in Facebook news
streams within 10 hours
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Results
• Within 2 weeks of its creation, the fad had crossed 3,000 members
and the following article appeared on a popular technology websiteINTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
Results
• By the end of the experiment, there were a total of 7,525 members
in the group, and 4874 pictures had been uploaded, hence proving
the experiment to be a success
INTRODUCTION
CONCLUSION
UNDERSTANDING A FAD
MIND VIRUSES
FADS-BIRTH & INFECTION
TESTING THE HYPOTHESIS
CONCLUSION
• The research objective was successfully met as the
researcher gained a clear understanding of what fads are,
how they are differentiated from trends, their creation and
how they spread
• Additionally the researcher formulated a list of mistakes
brands should not commit in order to avoid an early death
• The successful conclusion of the experiment proved that
the hypothesis formed was accurate and applicable to the
industry
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