Archive for Anthropology meets Economics
Understanding the whole consumer
Posted by: | Comments
Here are words to warm the hearts of the anthropologically minded.
The're from The Game-Changer: how you can drive revenue and profit growth with innovation, by Lafley and Charan.
P&G needed to look at consumer more broadly. It tended to narrow in on only one aspect of the consumer–for example, their mouth for oral-care products, their hair for shampoo, their loads of dirty clothes and their washing machines for laundry detergents.
P&G had essentially extracted the consumer out of her own life (and, at times, a particular body part as well!) and myopically focused on what was most important to the company–the product or the technology. P&G has since learned to understand and appreciate her and her life–how busy she is; her job responsibilities; the role she plays for her children, husband, and other family members; and her personal and family aspirations and dreams.
[It} has enabled the identifications of innovation opportunity that truly provide meaningful solutions to her household and personal-care needs and wants that otherwise wouldn't have been discovered through more-traditional, more-narrow, and often more-superficial methods. (p. 36)
Aftermath
Posted by: | Comments
The corporation contains two different creatures. It is two different creatures. I got to meet both of them this week.
I was talking to a guy who does marketing research for a big brand. He said, dismissively, "
"We no longer collect any numbers. Things change too fast. We don’t know what to measure. We do ethnographies and stuff…to find out what’s going on out there."
Last night I was talking to a graduate of the Sloan business school at MIT. He doesn’t think about something unless he’s got the numbers.
It’s weird. It’s seems to me that the corporation is becoming more quantitative and more qualitative. Senior managers are getting more and better training in metrics. And they are (for some purposes) now in possession of more and better data suitable for "crunching." On the other hand, the role of concept people, the quantitative creatures, grows ever more important. Corporate wayfinding and innovation are otherwise unthinkable.
The continental drift continues. The qualitative and the quantitative are two solitudes, they are Snow’s two cultures. And it remains fashionable to take sides. The numbers people sneer at the hopeless imprecision of a world without numbers. The concept people believe that anyone who waits for the world to manifest its intentions in numbers will have waited too late.
The world loves to organize itself on this distinction. The bschools are sold on numbers. I watched management at the Harvard Business School vote for still more math. You could almost hear the collected faculty exulting. "That’ll show em!" And I thought to myself: "you have just made this place even more monolithic. And HBS is supposed to be the manager’s school!"
And of course on the concept side, there are people who are hostile to numbers and to the deeply grounded thinking that numbers make possible. This group likes to flit from "creativity" to "innovation" to "getting in touch with their feelings." Can it be surprising that managers think, "Good lord, you want me to trust the fate of the corporation to Peter Pan, to a person who thinks it’s attractive to be all creative and crazy and out of touch with the world."
Finally, of course, this is an empty tribalism. Really, in their heart’s of hearts, everyone knows you use numbers when you can, and concepts when you must. Numbers when possible, concepts when necessary. Which is another way of saying, more qualitative, more quantitative, all the time.
Concept to the rescue. Is there a way to think about the qualitative and the quantitative so that they are not mutually exclusive categories?
Is this a center-periphery relationship? Deep inside the corporation and high up in senior management, the corporation thinks in numbers. On the edges, out "there" where it makes contact with dynamic taste and preference, it thinks in words, imagines, metaphors. We could evoke a Medieval concept of physiology and say that the corporation (the body) is qualitative in its the organs of apprehension, and quantitative at the seat of comprehension.
Oh, but I’m quite sure someone can do better than this. And someone’s going to have to. As the corporation is obliged to become more qualitative and more quantiative, we need to come to our senses. I mean, comes to our wits. No, our senses. Yes, our…
Why there will always be an anthropology
Posted by: | Comments
In the Wall Street Journal today, the book review opens this way.
Consider Linda, a 31-year-old woman, single and bright. As a student, she was deeply concerned with discrimination and social justice and also participated in antinuclear protests. Which is more probable? (a) Linda is today a bank teller; (b) Linda is a bank teller and active in the feminist movement.
[Psychologists Daniel Kahneman and Amos Tversky determined] that most respondents picked "b," even though this was the narrower choice and hence the less likely one.
Shaywitz, the reviewer, says that Kahneman and colleagues have
reshap[ed] the study of economics by challenging the assumption that a person, when faced with a choice, can be counted on to make a rational decision.
I would argue that "b" is the rational decision. It shows us the respondent working with what he knows. We have given him a little information and he is working this information into an intelligent choice.
Except of course the economist will not accept a choice as intelligent unless it meets his narrow definition of the rational. For the economist, the rational choice is the broader choice. "A" is more likely because less constrained. From a better’s point of view, this is the right choice. But it is not, I submit, the more rational one. Because it forces the respondent to forget what he knows, to forgo the opportunity we have given him to make an "informed" choice.
We could do the ethnography here. If we asked the the respondent how he thought this problem through, he would give us an account of his "rationality." He would demonstrate that he satisfies the definition of the term according to Princeton Wordnet. It would be easy enough to show that he occupied "the state of having good sense and sound judgment."
Economics continues to insist on its notion of rationality when we know that this rationality is always embedded in a social context and a cultural one. Rationality is only sometimes about calculating odds. It’s also about working with a set of parameters and bodies of knowledge. Rationality is almost always profoundly social and culture event.
In the experiment reported in the WSJ, Kahneman was effectively asking the respondent to "forget what he knew" to make the rational choice. Funny how often economics seems to ask us to do the same.
References
Shaywitz, David A. 2008. Free to choose but often wrong. Wall Street Journal. June 24, 2008.
Great rooms all over the place
Posted by: | Comments
There was report yesterday in The Telegraph reporting the "death of the dining room."
More than a half million dining rooms will be demolished in Britain next year, and Halifax Home Insurance believes the dining room may have disappeared completely by 2020.
In North America, we think of this as the rise of the" great room,"a topic we have treated in this blog a couple of times. A vast transformation took place in our domestic world, and it reflects I think changes in how people work, how they eat, and how they interact as families.
In particular, open kitchen is the material manifestation of feminism. Women complained that the dining room made them servants in their own home, obliged to leave their guests and ferry things to and from the kitchen, charging through heavy doors, turning their backs on the festivities and otherwise obliged to absent themselves from the occasion.
The open kitchen also suits new models of parenting. Americans are inclined to raise their kids in a way that privileges emotional and physical freedom over ceremonial perfection. From this point of view, the dining room was always a problem. It insisted that kids be formal, still, observant, when their natural condition, especially in an over stimulating America, was more active and spontaneous. The great invention of the new kitchen is the island at its center. Kids treat this as a planet around which they orbit during meal time. Less confined, they are more agreeable. More agreeable kids make for more agreeable parents.
For both these public and private purposes, the open kitchen was an important step for the North American home. I have once or twice looked for the figures and couldn’t ever find them. But they must be astronomical. The money that North Americans spent and will spend to open their homes must many hundreds of millions.
But to see this development at work in the UK is much more remarkable, I think. After all, the hold of Victorian propriety, the notion of the dining room as an important ritual location of family life, the belief in formality as a necessary coin in the social economy, one would guess that these are still more active in the UK…or at least not so steeply in decline as they are in the US.
Research I did last spring suggested that the open kitchen is not just an enthusiasm of the British, but may now be seen in Germany, Belgium, France (a little less), and Poland. This suggests either that there are non cultural forces at work here, or that there is a pan-Western cultural trend under way. Certainly, this would be consistent with the shift we see in the world of photograph where the portrait has given way to the more spontaneous action shot.
The new orthodoxy discourages us from making even very tiny generalizations. This means that observations about pan-Western culture should be laughably out of bounds. But I am always surprised how little interest my respondents have in the new strictures of academic discourse. It doesn’t matter how much I scold them, how often I give them the gospel according to Derrida, Foucault, and Baudrillard, they just go right ahead and remodel their kitchens.
References
Borland, Sophie. 2008. Open-plan living leads to death of dining room. The Telegraph. January 29, 2008. here.
Kron, Joan. 1983. Home-Psych: The social psychology of home and decoration. New York: Clarkson N. Potter, Inc.
Further reading:
Ames, Kenneth L. 1985. Why Things Matter. The Material Culture of American Homes. Unit 1 ed. Philadelphia: produced for The Henry Francis du Pont Winterthur Museum.
Ames, Kenneth. 1992. Death in the Dining Room and Other Tales of Victorian Culture. Philadelphia: Temple University Press.
Carlisle, Susan G. 1982. French Homes and French Character. Landscape 26, no. 3: 13-23.
Cowan, Ruth Schwartz. 1992. Coal stoves and clean sinks: Housework between 1890 and 1930. American home life, 1880-1930: A social history of spaces and services. editors Jessica H. Foy, and Thomas J. Schlereth, 211-24. Knoxville: University of Tennessee Press.
Denby, David. 1996. Buried Alive: Our children and the avalanche of crud. The New Yorker LXXII, no. 19: 48-58.
Doucet, Michael J., and John C. Weaver. 1985. Material Culture and the North American House: The Era of the Common Man, 1870-1920. The Journal of American History 72: 580-587.
Dugan, I. Jeanne. 1997. Someone’s in the kitchen with Martha. Business Week July 28, 1997: 58-59.
Foy, Jessica H., and Thomas J. Schlereth, editors. 1992. American home life, 1880-1930: A social history of spaces and services. Knoxville: University of Tennessee Press.
Gowans, Alan. 1986. The comfortable house: North American suburban architecture, 1890-1930. Cambridge, Mass: MIT Press.
Laumann, Edward. O., and James. S. House. 1970. Living Room Styles and Social Attributes: The Patterning of Material Artifacts in a Modern Urban Community. Sociology and Social Research 54, no. 3: 321-42.
Monkhouse, Christopher. 1982. The Spinning Wheel as Artifact, Symbol, and Source of Design. Victorian Furniture: Essays from a Victorian Society Symposium. editor Kenneth L. Ames, 155-72. Nineteenth
Plante, Ellen M. 1995. The American kitchen, 1700 to the present : from hearth to highrise. New York, NY: Facts on File.
Pratt, Gerry. 1981. The House as an Expression of Social Worlds. Housing and Identity: Cross-Cultural Perspectives. editor James S. Duncan, 135-80. London: Croom Helm.
Rapoport, A. 1969. House Form and Culture. Englewood Cliffs, New Jersey: Prentice Hall.
Thompson, Eleanor McD., editor. 1998. The American home: material culture, domestic space, and family life. Winterthur, DE: Henry Francis du Pont Winterthur Museum.
Vickery, Amanda. 1993. Women and the World of Goods: A Lancashire Consumer and Her Possessions, 1751-81. Consumption and The World of Goods. editors John Brewer, and Roy Porter, 274-301. London: Routledge.
The Huffington problem: saving innovations from their early adopters
Posted by: | Comments
Saturday, I bought an iPhone. What does that make me? A really late
adopter. The last to know. Very late to the party. Malcolm Gladwell
has a term for people like me but he’s too polite to use it.
I am stunned at how intelligent the iPhone is, and I retired my Sony Ericcson W810 with no regrets. In fact, the SE was so bad at the things the iPhone does well, I am thinking of giving it a ritual burial in the back yard, a technological exorcism, as it were. I want to make absolutely sure it has no residual hold on me. (Digital residue being the worst possible thing.)
The SE did one thing well. It took miraculously good photos. There were times when I wanted to crawl into the world so pictured and just stay there. Apparently, this isn’t possible. (Product feature idea?) But the SE was bad at capturing numbers, delivering email, managing calendars, delivering music, and otherwise making itself useful.
The SE was an exercise in claustrophobia and bean counting. The iPhone makes it really easy to capture data. Now I get the point of a touch screen alphabet. It allows for a bigger screen, a better speaker and an astoundingly better interface. There is something visible, accessible, conceptual about this phone that 10 years of cell phone use had not prepared me for. It’s miraculously good.
The question is "what took me so long?" My wife has owned an iPhone for months and she loves it. Friends rave about it. But I would not budge. The problem, I think, is that for me Apple products have an air of specialness about them. I don’t resent this air. I just feel that it doesn’t belong to me. I prefer to think of myself as a "plain style" kind of guy. (This may be a way of saying "I’m special" because, "behold, I am not special." It wouldn’t be the first time a social vocabulary has coded "x" as "not x." Protestants, they’re just plain sneaky.)
This suggests a massive marketing problem for Apple. What makes the iPhone thrilling for its present constituency proves off putting for the rest of a muchlarger market. This is not a technological chasm, to use Moore’s language. It is a cultural chasm.
So Apple is working on repositioning itself, right? No. The present campaign, the one that shows Microsoft and Apple as two men on a sound stage, this actually exacerbates the problem. The execution is fine. The ads plays perfectly. The Apple guy is unassuming, unprovocative, likeable, more or less Canadian,in point of fact. His opposite, the Microsoft guy, is an obnoxious, self centered blowhard. And a lot like me. Well, no, it’s not that I identify with the Microsoft guy. It’s that I can’t imagine being mistaken for the Apple guy. That’s just not me.
I had a go at this issue some time ago, while contemplating the problem that Prius has in this regard. There is a slightly holier than thou quality to the Huffington crowd and this has the effect of discouraging the very adoption they wish to inspire. So we might argue here, as I did there, that Apple has been taken hostage by its adopters. We are, in other words, wrong to think that there is a natural momentum to adoption as things pass down the diffusion stream. In point of face, there is a chasm here that must be finessed.
The question is whether there might be a Diderot effect to this purchase. Will the symbolic meanings of the iPhone creep into my sense of self, and gradually set in train a sense of transformation. Watch this space.
References
McCracken, Grant. 2007. The Prius Problem. This Blog Sits At the Intersection of Anthropology and Economics. here .














