tv Made in Germany Deutsche Welle June 24, 2021 8:30am-9:01am CEST
the oh, what matters to us in that's why we listen to their stories reporter every weekend on d. w. o . me use for some it's a necessary evil, but for others it's a beloved pastime. shopping. whether or not you enjoy a stroll down the aisles or a scroll down their online equivalence. it's unavoidable to be human is to shop consumption. why do we buy a question that a lot of us can probably relate to?
and ask thing today on made data we use business magazine. now real world stores, the ones made of bricks and mortar, have had a particularly tough time during the pandemic. often they've had to limit the number of customers they allow in, if they've been allowed to open at all. on the other hand, it's been a boom time for shopping online, and there's another trend that's quietly been gathering steam, social commerce nowadays, it's not unusual for the entire retail experience to happen on social media, social media, social media like a mole that has everything in think of a huge potential and take to europe alone. i think there is something like a 100000000 use as many of them are very young. businesses are really interested in having a presence to their site. i once upon a time, social media was a platform to chat with friends and post photos these days. it's
a wash with influences plucking products, instagram even features its own shop. the way products are promoted is tailored to individual apps. a bit like subliminal window shopping, and when it comes to social commerce, one demographic is especially interesting to businesses. it's been, i'm lannie, i'm 17 from hamburg, and i'm a school people like only is on instagram and has their own youtube channel. she's been a social media devoted for 2 years and even took her shopping. there are 2 of these days. young people get their fashion tips on social media, especially on instagram, media and on. those are so you can say, look, such and such a thing is in right now, maybe i'll get it. like all for generation z refers to today's 11 to 26 year old internet savvy. they're the 1st generation to have grown up with
smartphones. they're known for their environmental activism and consumerism. the faces muslim side, i've got the sense that it's so evelyn, on the one hand everyone wants to do loads for the environment, which is definitely great because that's the way we need to go home. then the height on her name on touch with, but on the other you wind up supporting companies that damage the environment. so these contradictions rather present, i present the for the instagram generation shopping, made easy fashion and fashion accessories are their top purchases. beauty products are hugely popular to followed by fitness related. good. so 100 companies target individual. the answer lies in algorithms codes. they can recognize users interests and decide which products to show them. they only last instagram purchase was made 2 weeks ago. just it's called the sunset lamp, then when you connect to tap it cause it's a beautiful glow that reminds you of
a sunset. the sunset lamps promotional video was shown to lay only 20 times. the size of it looks so dreamy and made me think of vacations before those companies know exactly what they're doing and they know repetition raises that profile. it probably lodges in my subconscious. it's always bad because when i see the ads i straight to, i think i've seen that before. and so positively and on the top of pull it, even the trend is only set to continue in the next few years. social commer sales are expected to expand 7 fold. e commerce giant shop. if i developed marketing strategies for smaller companies with minimal advertising budgets, it focus is on platforms like instagram and tick tock. social media is social media is so important for brands because it can make them even more successful in this.
and it's like a virtual high korea is going to meet friends with find inspiration and enjoy shopping in this. can i where does consumer protection come into it? all is because it is all of the we have our own teams which are constantly on the lookout for what i call questionable behaviors and why. why should god cases where companies were selling f, f, p to mass, they didn't even have in stock of cropped up a lot last time. and again, we have case is where we found shelves, but isn't questionable to encourage kids to consume, we are moving into the job and we try to encourage parents and guardians to get to grips with the media and, and ties. because obviously anyone who can get that hands on a smartphone can also view all these offers. it's good to go shopping as much as it is, the videos and everything else. the crucial point, learning to deal with social media responsibly. the traditional pedestrian shopping
zone is nothing more than a distraction for really only and her best friend hannah. even hear the talk revolves around instagram's dazzling displays. have you seen those leather coats? the ones on instagram? they're all over the internet. the lovely 18 year old is savvy enough to know why social media shopping function so well. to be mentioned with me. thank you times where i things i didn't have to buy that. but in the moments i figured that's just what i need right now. which of course isn't true, it's all with time. no, you learn to say ok, that's a lovely picture, but i don't have to have it. instead, i'll wait for something i need and that the 2 friends they happens more and more often leave days. now shopping drives economies that can be no growth without private consumption and know every shopping a bigger part of the economy than the united states. the home of the concept of
shop till you drop in 2019 private consumers spending made up a massive 68 percent of the economic output of the us. americans are ravenous spending, sometimes balancing multiple credit cards or taking out loans to fund their shopping habits. in germany, consumer spending makes up a comparatively modest 52 percent of gdp in china is just 39 percent. but it's conversion from an agricultural society. it's a one centered around services and sales means that likely to change and change. it is exactly what many economies have undergone over the last couple of years. the current of ours panoramic has altered shutting behaviors all over the world, perhaps forever. his look at its impacts on germany. could see if my colleague, chris jump resellers. one thing they couldn't see don't in its tracks during the pandemic was hair growth with salons, closed sales of electric clippers skyrocketed in germany. sales on
e bay went up by more than 1500 percent in 2020. so how else has the corona virus influences germany's buying habits is the country went into locked down. he commerce increased by 24 percent in 2020 and the trend is continuing this year. 5 but for many businesses time, sorry, tough. while supermarkets were allowed to stay open, other stores were forced to close to limit the risk of infection. this meant to a dip and sales, brick and mortar sales and closing retail for example, shrunk, 23 percent. as offices shut their doors, many employees were forced to turn their homes into their workplaces, leading to an increase and tech related purchases. sales of webcams were up by a factor of 8 last year compared to before the pandemic ants. and
so many germans were spending more time at home. we decorating became more popular . sales of paint supplies, for example, increased more than 7 fold. many people also began avoiding public transport for fear of infection, opting for 2 wheels instead. and 2020 more bicycles and a bikes were sold than ever before. 61 percent more than in the previous year. still, all in all german spent much less money than usual in 2020. 1 big reason was canceled vacations. and even now, the desire to spend still appears quite muted. so what actually makes us buy what gives us that it resistible as to reach into our pockets and hand over our hardened cash. or that is the art of advertising. experts are able to plant ideas in our brains. convincing is that that product is something we simply
can't live without. it goes way beyond simple branding and catchy ad campaigns. it's enough to make you wonder how much choices are actually our own multi rove column and reports on the mind bending concept of neuro marketing. about a 100 years ago, companies in the western world ran into a problem. consumers had everything they needed. so the companies came up with a great idea, you know, divert, persuade people that they need more things, even things they didn't really know they needed that for the bandwidth. the and nowadays companies are studying your brain to get you to keep buying more stuff. this is called neuro marketing and euro marketing. there's like marketing on there are companies know us better
than we know the brand exist, nowhere else. but in the end of the consumer, we're going to tell you how companies are getting into your head. the 1950 clever marketer shook the world with an astonishing experiment. he flush the messages, drink coca cola, and each popcorn under cinema screen to briefly for the audience to even notice. he claimed this that people rushing to the counters and drove to buy coke and popcorn . this story sounds too good to be true then. that's because it is. thankfully, we are not that easy to brainwash. turned out it was all the she made that up. there's no such thing as a brain by a button. this is prince human marketing professional. he engineer a scientist met johnson, wrote a book on how companies tailor their marketing to our brains. so the good thing is
we are not mindless shopping on these. but we do make a lot of our decisions subconsciously. and that's where your marketing comes in. companies are trying to better understand how the brain works, to figure out what we really want. traditional marketing studies web like this. someone will ask me, do you want an apple or do you one chocolate? and i say i, of course one of the apple. do i really want the apple? we feel as if we're in control, we feel that the author of our decision, that we're very rationally the study, as we are extremely irrational in that work. generally speaking pretty, where the full range of factors was ultimately inform and sometimes actually decide for different behaviors and passively. and so we don't always know what we want. we don't know if we actually want the apple or if we prefer the chocolate. but our brain doesn't live and that's why you marketers have adopted
a range of technologies in the marketing studies to see what's happening under the hood. inside consumer sprains functional magnetic resonance imaging and electrons. fairly grams measure activity in the brain. i tracking shows where we direct tension and heart rate and skin conductance. so what we find exciting for better or worse people are complex from the brain is newly complex. human kamikaze is a scholar whose research revolves around how we make decisions. what nursing does is it gives us access to some of the emotional elements or these elements that might not be fully conscious. and tells us a little bit more about some of the things that might also be contributing to people the experience choices. take kiddos, for example, when his parent company free to lay off consumers. how that goes about the brands. many said, well, it's a bit of
a kid snack when they looked at our brains and turns out people got a new kick out of getting their fingers messy with the orange dust that covered it . it is fun. there was something subversive about that or in does, on your fingers, there was something a little unusual about it. and people kind of enjoyed it. even though it was that respectable. the, you know, other people are trying to do their laundry, free to lay took these findings and built an entire ad campaign around just feeling of subversive pleasure. those are the whites and try. it became a huge success. me more and more businesses are investing in this type of research, most of which is happening in secret through neuro science. but also with the help of psychology and behavioral economics, they get a pretty good idea of what makes us take. and they use this knowledge to get us to
buy more of that stuff. i'm going to give you full examples of this that you've probably seen in your everyday life. one day where you down brain operates in 2 different thinking most. that's what's called system one, which is fast, unconscious and automatic. and then the system to which is deliberate and conscious . it takes a lot of effort to ask you, what is your name? system one will immediately have an answer to that question. but if you ask you what is 23 times 48, you're going to have to switch the system to require effort. why? imagine you're going grocery shopping. you have to find your way around the different aisles and make loads of decisions in a short amount of time. when you finally get to the checkout counter, you're tired. one way in which you can get somebody to be more system on oriented is actually through wearing them down. those to very resource intensive requires a lot of metabolic resources. we're tired when we're malnourished. we're much more
likely to go with them much more impulsive, one response, and that's fine, right at the end of your shopping trip retailers tempt you with loads and loads of sugary snacks. you might just pick up at the very last moment. and shopping malls exploit the same situation. they're confusing their overwhelming, they're quite frankly exhaust things. so you're more prone to spend money on something. you might not even need to. they tell you what the right price is. if you walk into a store and you see a bottle of wine from, i don't know, let's say $15.00 to brain doesn't really know if this is a loss or if this is not a loss immediately starting to look for some context. typically, people don't really have a sense of crisis, but they don't know how much wind should cost. what's the price of wind? this is moran surf computer neuroscientist and business professor. the people who create their, their kind of impression, the price range not by no spring commission,
but either by assembling the oddity and the store will happily give your brain the reality to live on, to placing a 2nd bottle next to it's costing $50.00. now your brain thing, $15.00, that's actually a pretty good deal. so it's very likely you're going to buy this puzzle. our brains are like ships. we're looking for places to anchor. right. and adding any sort of context, understanding of the value, having an anchor helps to keep you on the treadmill. another quick of our brain that brands are using us. that is constantly seeking pleasure. keyword here. seeking. once you're experiencing a thing that you wanted, you don't just get some back in that your leisure for a long time and it's not the type of emotion which is enduring over time. and that's a very, very good thing for brand. because pleasure. so fleeting brands keep spending us to
what's called the hit on a treadmill. the i phone thick, the iphone 6. this is i thought, i saw you guys on 12, by 8th. it's a brand new physical design and you're loving. and just like clockwork. 12 months later, a s comes up, whatever pleasure you got from achieving and purchasing the font is now immediately gone. and now you're looking to again jump on the dining treadmill and looked chase . the next pleasure. full. they hide little nudges in plain sight. so you remember the cinema story from the beginning, subliminal marketing messages like this, so things that we can pick up unconsciously, or actually niggle in most countries. a few companies lots of thought. well, why don't we just hide them in plain sight? check out this ad from kfc. see anything unusual? well, look again, as an actual dollar bill photo shopped into the burger,
which happens to cost $1.00. and check out this can. coca cola made it look like it's smiling to tie in with its brand image of happiness and literally every ad for watches the time is set to 10 past 10, because that makes it look like to watch it smiling at you. these types of subtle hints called primus. so i would say right now, because of it by the works that say that we still teach that's been in school in the business. as kind of a mechanism people should be aware of because it implements a fit for a but as much as that it does work. why not try it? if you're trying to kind of says something that you tend to watch, you know, you're not compelled by some difficult ports to go out and go over that you can't buy it. but if you're already feeling like buying a lot, maybe you've already favors the brand. you know that additional data point is going to push you maybe a little bit further. and this is not limited to visual triggers. an experiment showed that if a wind store plays french music, customers buy more french wine,
different plays german music, they buy more german. one lot of this stuff is having an archives for companies and it is in their best interest not to reveal it. but we would be silly to think that this isn't part of the experiential design that companies are creating to better engagement consumers. so where does this leave us? are we ultimately just puppets, without a will of own buying whatever corporations throw away? or do we have a choice among this behavior is there total control is also there and in between the wide gray area. and we can, will data between whether the choices that are very informed and very low or very impulsive, and not to know if you like something that's going to be the most important determinant of whether or not you choose to spend money, knowledge or your time on it or your resources in general on it and that speak
a lot to the power that we have as consumers, an individual who's no neuro marketing is a very powerful tool. it gives companies access to something that even we don't have access to most of the time, our subconscious. but just knowing that and knowing how the brain works can already help us make that decision. a little spooky though, isn't it. maybe we should just hand control of our service to the advertising executives and be done with it. i mind on the only thing though, the market is want access to. they also want to get their hands on our data by my thing as much information as possible about shopping habits. they can work out what we're likely to buy in the future. that's the principle behind the so called test supermarket, swear, and exchange for your data. you can have access to a range of products, some of which aren't even on the market yet. funny fetch our reports from vienna.
the shelves are full of various products. a lot of space for the customer. everything is clean and tidy. i feel like being in a very conventional supermarket, but a lot of items are not even available. yes, you know regular supermarkets. how about a smoothie for dogs? and that's not the only unusual product here you can find aside a drink with vinegar, flavor, or water with at a temp. but would these items succeed in a regular supermarket? that's what companies want to find out here before the launch, a new product manager of the story explains how it works. first, you have to register to become a so called test customer performance asleep. and these individuals sign up for a subscription, and then they can shop every month and to test and evaluate the products. they can buy a minimum of 55 years worth of products per month will not meet name and even to 2
months of video. one thing that's hard to overlook, there is a lot of cameras here more than a regular store. they are gathering data on how long you spend looking at a product and which package and you choose the customers to shop, you know, they are being watched. isn't the most of the thing, i don't think that's a problem as it's you know, beforehand or less involved and the good thing to christian pace, 12 euros and $0.90 a month to shop for items for 55 years. what made it into his basket today? regarding the big spread case, a crime sausages made it meat and veggies and something for the kids in the team. the some of these products already tried and it looks like sometimes it's just about testing new packaging and you can familiar branson different packages.
so what helps increase stamps, that's really exciting. part of our product is being developed. take the cheese, but there's one in a big packet that you might pick up the 1st and also one in a smaller package in guy from that. and then i can feedback is the currency here, the more feedback you give when checking out the more money you're given to spend. so am i basically buying these products with my data? i asked the founder, he's currently in cologne, germany, where he's opening another store with the constant in confusion space or there's no cash data. it's merely about identifying people as a target group who are immediately anonymized. we're coming and registering their behavior on dung. the data is not passed on. don't know what to tell her research marketplace surgeons advertising,
because that's all this laboratory supermarket is. but most of you have to ask whether these consumers are actually representative of the entire population of people who register here are of course, open to innovation for you know, what's your name back in the store. people are ready to check out their items, who knows which of the products they're buying here today will actually make it into a real supermarkets. but even if they do, they could soon get replaced. they change but do they really next time your taste change? ask yourself whether it's you that's made the change or in fact, the market as i'm starting to wonder if i've ever made a truly independent decision in my life. that's all from this addition of made the business magazine. thanks for joining us. and we'll see you next time.
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