Blog Post 5: Amazon Dash Button: A Prime example of the benefits and costs of innovation

        Innovation is exactly what business is about. There is nothing more exciting and rewarding for a company than to design and create a truly unique product however, at what price is innovation worth harming our only home, the planet Earth? With the advent of Amazon's new Dash Button I find myself considering the downside to innovation no matter how ingenious it may be.

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        Amazon is well known as an innovative company responsible for changing the very way we shop. From offering countless products online that can arrive at doorsteps in as little time as one day, to experimenting with new shipping methods using drone technology, the company is not one to shy away from ingenuity. It comes as no surprise then that Amazon has released yet another revolutionary product, it's new, Dash Button. The Dash Button allows customers to restock their favorite brands with literally just the click of a button. With buttons for brands ranging from Olay,  Tide, Cottonelle, Huggies, to pet food and even, Izzie Beverages, Amazon is entering customers' kitchens, bathrooms, and laundry rooms allowing for the most convenient and simple access to everyday goods. The idea behind the new buttons is simplifying the online shopping process "So you'll never miss a beat" (as Amazon claims).

     

https://www.youtube.com/watch?v=EHMXXOB6qPA

The marketer in me finds the Dash Button to be an incredible invention. As I have learned in my marketing class, any way a company can remove a customer from the actual spending process is extremely helpful in creating sales. When a person doesn't have to count out their money and watch it leave their hands, they are far more apt to spend their hard earned dollars. Credit cards, Debit Cards, and now Apple Pay may attest to this fact. I believe the Dash Button will be even more effective in removing the customer from the spending and purchasing process in that all they have to do is click a button and then approve the purchase on their cell phone. There is no physical act of handing over cash, or taking out a credit card/ entering credit card information online; there is simply the click of a button, then the rewarding arrival of household products on the customer's very own doorstep.

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    The Dash Button has the added benefit of its potential to boost Amazon Prime memberships. The types of products that the buttons offer are daily household goods that people won't want to go long without. In an effort to expedite arrival of products after  pushing their Dash Buttons, consumers will be likely to purchase Prime membership so that they may receive free two-day shipping on their purchases. Currently, the button is being sold exclusively to Prime members, which means those who want Dash Buttons but don't have Prime currently will be purchasing membership soon.

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     Possibly the strongest benefit Dash Buttons have going is convenience. Dash Buttons are making it possible to not have to go out to stores and buy products, as well as to not have to sit down in front of a computer and order products. This is extremely alluring to consumers. Any product that can cut down on the use of time and effort on the consumer's end is likely to be a success in our fast-paced and hectic lives.

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          Unfortunately, as ingenious as I believe the Dash Button to be from a marketing standpoint, I cringe when I think of the product from an environmental standpoint. If one were to go out and purchase the products offered through Amazon's Dash Button at a brick and mortar store, they would be harming the environment from the emissions of the vehicle they took to get to the store, as well as disposal of the packaging of the product after purchase. The Dash Button decreases consumer effort but increases waste. Not only does the shipping require the emission of fuel from vehicles/ the use of gasoline, but also, additional packaging in the form of cardboard boxes. With the Dash Button not only will consumers dispose of the product's packaging (creating waste) but also, the box it was shipped in (which hopefully they will recycle). In my opinion that makes the convenience of the Dash Button simply not worth the cost. As an environmentally conscious individual I just don't think clicking a button to receive goods is incredible enough to reconcile the unnecessary/additional waste it creates. I am interested to see how successful the button is, and learn whether convenience or earth consciousness wins out.

Blog Post 4: Groupthink, I bet you're guilty of it!

          Going against the grain is an incredibly difficult task. When the majority of those around you feel one way about something it's hard to speak up and admit you feel differently.  In the business world this concept is called groupthink. Groupthink's suppressive power can play a major role in the failure and waste of funds on new ventures or products that "flop." I have been guilty of going along with groupthink many a time. I think it's safe to say most people have. That's why I'd like to more closely examine the phenomenon in order to avoid such instances in the future.

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           In my opinion one of the greatest examples of the perils of groupthink may be witnessed in nature. One need not look further than lemmings (a type of small rodent) to observe the dangers of following a crowd. Lemmings travel in large groups and will follow each other off the edge of cliffs if it means staying together. I think such is the case with many businesses around the world. The ideas accepted by the majority of coworkers tend to be the ideas individual employees will claim to agree with, even if they actually believe them to be mistakes.  It's simply natural for individuals to fear voicing their unpopular opinion to a large group. The possibility of  criticism and judgment is enough to silence a most staunchly opposed individual. The problem with this passive omission of thoughts and ideas is when they are the very ideas that would prevent disastrous business decisions.

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         Although groupthink may seem like an unsurmountable issue for businesses there are steps that may be taken to lessen its harmful effects. It seems to me as though the best way to combat the issue is to create an organizational culture that is open and conducive to the sharing of employees's individual ideas and opinions. When employees feel as though their opinions are valued they are far more likely to face the fear of challenging proposed ideas that they feel may not be best for the company.  To create such an organizational culture, I believe the management department of the business should welcome open discussions in as relaxed a manner/environment as possible.  With a welcoming and nonjudgmental environment and culture groupthink should be diminished considerably.

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        As for the individual suffering from the suppressive forces of groupthink, there are ways to lessen the effects as well. It seems to me the best way to tackle the fear of judgement is to gain confidence in oneself. To gain confidence one may strike a power pose for a minute before entering a meeting (see TED talk clip below for tips and explanation). Another great confidence booster may be to run one's ideas past trusted friends and family members to fully formulate thoughts before running them by coworkers.  No matter the technique, with confidence comes the ability to speak up and challenge the majority's idea/plan.

https://www.youtube.com/watch?v=ErWEmCS_qM4

         After reading about groupthink in my marketing class, I have decided to make more of a conscious effort not to keep myself from sharing my thoughts out of fear of judgement.  I think that everyone's thoughts are valuable and should be shared. I see myself sharing more each day with my friends, classmates, and professors; I find it relieving to not keep my opinions hidden for fear of judgement. In some cases, as is the goal of speaking up and eliminating groupthink, my contributions to planning have prevented potential pitfalls.  

       Though the phenomenon of groupthink, and its negative repercussions pose a challenge for businesses everywhere, companies need not fear. Through the creation of an open organizational culture, as well as work on the individual employee's part to gain confidence, groupthink may be virtually eliminated. With groupthink gone, companies may reap the rewards of a sharing and challenging of ideas that help avoid disastrous final decisions. It only takes one to speak up and make a beneficial change. 

Blog Post 3: Cognitive Dissonance: the reason I dread shopping!

As the cashier swipes my debit card a pang of guilt washes over me. I am engulfed by fear, my anxiety levels increasing as I sign my name on the receipt. Did I really just spend that much money on those clothes? They're nice, but are they that nice? There are so many other things I could have spent that money on; I've got that Paris summer semester to save for!

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Cognitive Dissonance, in marketing terminology, is most simply defined as the post-purchase anxiety consumers may experience after purchasing a product or service. For me, the definition is much simpler: cognitive dissonance = the reason I dread shopping! I find it amazing how easy it is to pick up a product, get excited to own it, then experience buyer's remorse upon painstakingly handing over hard earned money for the product. Unfortunately, cognitive dissonance doesn't just affect me, it is a part of the human psyche that affects innumerable consumers around the globe. What I find even more fascinating than the regret many experience post-purchase is the process consumers go through to justify purchases so they can move on from undesired feelings of remorse/cognitive dissonance.

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It has been found that many consumers, after experiencing cognitive dissonance, often try to "...applaud themselves for making the right choice...[they] may seek information to confirm [their] choice by asking friends questions like, 'Don't you like my new ______?' or by reading ads the [product/brand] you chose..." (Hartley, Kerin, Rudelius, 116).  I have certainly done this. I have countless memories of seeking the approval of my reference group (close family/friends who help influence your purchasing decisions)  post-purchase. Whether it be sending my sister Snap Chats of the new shoes I bought, or seeking out other owners of the new Samsung Galaxy phone I purchased to hear how happy they are with the product, I'm as guilty as any of seeking external validation for shopping splurges. I think that cognitive dissonance says a lot about the human species. As independent as some people may seem (or want to be), there is always that innate need/dependence on the opinions of others, even for the simplest things in life such as shopping.  

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How can marketers combat cognitive dissonance? In my opinion, the best way to tackle the challenge of dispelling cognitive dissonance, or preventing it all together, lies in effective marketing strategies. I believe that ads that feature many people using and enjoying products/services may fulfill that subconscious/inner need of consumers to know that others approve of the product or service. I think that having positive word of mouth (buzz) marketing is also highly effective in suppressing cognitive dissonance among buyers. One last, and at least in my experience, highly effective tactic is to first target opinion leaders such as celebrities and well known CEOs, and have them use/ speak positively of a product or service in order to gain a great reputation and little uncertainty in the minds of consumers. 

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Cognitive dissonance will always prove to be a hurdle for marketers and consumers alike, however, with effective promotion via reference groups, and the approval/ positive reinforcement of friends and family, both producers and consumers may reduce post-purchase anxiety and feelings of regret.

Citations:
Kerin, Roger, Steven Hartley, and William Rudelius. Marketing. 12th ed. New York: McGraw-Hill, 2015. Print.