Sunday, January 15, 2012

Branding: What's in the Black Box?

Editorial
Posted by Lily Lin


In behavioral psychology, “black box” refers to the human mind.  While we may not be able to read the human mind like an open book, we can examine the input stimulus and the output, expressed in observable behavior to infer the inner thoughts of an individual.

So, what has this to do with branding?
A well developed brand creates the impression that a brand associated with a product or service has certain characteristics that make it unique. This makes it possible for customers to relate to the brand at the personal level.  A brand is therefore one of the most valuable elements in a company’s offer.
On the other hand, we know that most people seek emotional validation, either consciously or subconsciously. Emotional validation is the acknowledgement of one’s thoughts, actions and even existence that are meaningful and significant to one’s colleagues, friends and family or even to one’s society and the rest of the world. The desire to be validated occurs at many levels.
How customers seek validation depends on their social standing, income level, profession, education, and age, purpose and occasion of the purchase, etc. Some customers seek validation by projecting themselves to their friends as shrewd shoppers, who know where the best deals are.  Others may project, for example, an influential image. Still, some would like to show that they possess a refined taste or financial prowess. These types of self-image projections are often reflected in the kind of products, services and brands they purchase, even though not all customers are aware of their underlying motives. Customers will choose products and brands that will represent their self-image or more often, their “ideal” self-image. When a famous tennis player endorses a particular brand of tennis racket, customers buy it not because they think they are a famous tennis player but because they would like to be a tennis star in an ideal world.  By buying the same tennis racket their favorite tennis player uses, they hope to get a little taste of what it is like to be a famous tennis player.
The implication for hotel management is that those hotels with a well-developed brand image are more likely to attract those customers, who share the core value of the brand.  When hotel guests are able to validate themselves by projecting their self-image or ideal self-image to their social circles via a brand, they are more likely to stay with the brand and rank high on guest satisfaction.  Conversely, if the self-image of the guest is inconsistent with the brand image, it will motivate the guest to seek other brands.
So, how does one know one's guests' self-image?  One of the possibilities is to check out the customer reviews. Those customers who see themselves as competent shoppers will, inevitably, comment on the price they paid either positively or negatively. Those who want to project a good parent image will always comment on the hotel's facilities for children. On the other hand, wealthy guests who are status-conscious would seldom comment on price, even if they paid an exorbitant amount, because it would project a wrong image.
One may argue that there are other reasons - as to why certain guests would comment on certain things. Of course, there are.  Hotel guests are complicated human beings with many life dimensions.  To understand them, it is necessary that we dissect each dimension to examine the parts.  At the same time, in term of emotional validation, we look for patterns --- not individual responses.  If 40% of the customer reviews show that guests are concerned with the price they paid, it could be that there is a large number of hotel guests who see themselves as smart shoppers. To attract this type of guests, discounting and special offers may be necessary.  On the other hand, guests who use price to project their financial success are not motivated by discounts. Instead, they would be motivated more by special attention to details, the personal touch from the hotel senior management, and extra effort by the staff.

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