{"id":33105,"date":"2013-01-05T16:11:12","date_gmt":"2013-01-05T16:11:12","guid":{"rendered":"http:\/\/alienbabeltech.com\/main\/?p=33105"},"modified":"2013-01-05T16:13:05","modified_gmt":"2013-01-05T16:13:05","slug":"the-economy-online-world-and-mobile-devices-changed-it-all","status":"publish","type":"post","link":"http:\/\/alienbabeltech.com\/main\/the-economy-online-world-and-mobile-devices-changed-it-all\/","title":{"rendered":"The Economy, Online World and Mobile Devices Changed it All"},"content":{"rendered":"<p style=\"text-align: center;\" align=\"left\"><script type=\"text\/javascript\">\/\/ <![CDATA[\n                                                                   google_ad_client = \"pub-7021221536180758\"; \/* 468x60, created 11\/11\/09 *\/ google_ad_slot = \"1949837292\"; google_ad_width = 468; google_ad_height = 60;\n\/\/ ]]><\/script><script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\/\/ <![CDATA[\n\n\/\/ ]]><\/script><br \/>\n<strong>The New Consumer<\/strong><\/p>\n<div id=\"attachment_33107\" style=\"width: 434px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-33107\" class=\"size-full wp-image-33107\" title=\"Untitled-1\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-1.jpg?resize=424%2C251\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-1.jpg?resize=424%2C251 424w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-1-300x177.jpg 300w\" sizes=\"auto, (max-width: 424px) 100vw, 424px\" data-recalc-dims=\"1\" \/><p id=\"caption-attachment-33107\" class=\"wp-caption-text\">Image Source - \u201cTwelve Monkeys,\u201d Universal Pictures<\/p><\/div>\n<p style=\"text-align: left;\">\u00a0<em>\u201c<\/em><em>Then, they took everything about me and put it into a computer where they created this model of my mind. Yes! Using that model they managed to generate every thought I could possibly have in the next, say, 10 years.\u201d<\/em> <strong>\u2013 Jeffrey Goines, <em>\u201cTwelve Monkeys<\/em>,\u201d Universal Pictures, 1995<\/strong><\/p>\n<p>Depending on where you live on the planet things are good and getting better or bad and getting worse. Let me check my Facebook and Twitter accounts and get back to you on that.<\/p>\n<p>If you want, you can check with the government and the bank but then\u2026<\/p>\n<p>It has been more than four years since the global economy took a downturn.<\/p>\n<p>In the industrialized countries, that\u2019s long enough to let people train themselves into a new way of considering and buying things.<\/p>\n<p>While the BRIC (Brazil, Russia, India, China) economies are growing rapidly, there\u2019s a new middle-class economy in emerging nations.<\/p>\n<p>The two billion plus emerging nation consumers will spend about $7T and it is estimated that this will rise to $20T annually over the next decade.<\/p>\n<p><strong>New Middle Class<\/strong><\/p>\n<p>If you live in the industrial countries we wouldn\u2019t suggest you pack your bags and move where the action is because you have to keep in mind that their middle class is different from that in developed countries and even the BRIC nations.<\/p>\n<p align=\"center\"><strong>The Emerging Middle Class in Developing Countries<\/strong><\/p>\n<div id=\"attachment_33108\" style=\"width: 559px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-33108\" class=\"size-full wp-image-33108\" title=\"Untitled-2\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-2.jpg?resize=549%2C216\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-2.jpg?resize=549%2C216 549w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-2-300x118.jpg 300w\" sizes=\"auto, (max-width: 549px) 100vw, 549px\" data-recalc-dims=\"1\" \/><p id=\"caption-attachment-33108\" class=\"wp-caption-text\">Source \u2013 Economist Intelligence Unit, Euromonitor, World Bank, Mckinsey Analysis<\/p><\/div>\n<blockquote><p>Developing countries are Argentina, Brazil, Chile, China, Colombia, Egypt, India, Indonesia, Iran, Malaysia, Mexico, Nigeria, Pakistan, Peru, the Philippines, Poland, Romania, Russia, South Africa, Thailand. Turkey, Ukraine, Venezuela, Vietnam.<\/p>\n<p><strong>New Middle-Class \u2013 <\/strong><em>While you might not consider them to be middle-class by your country\u2019s standards, there is a new middle income population in the developing countries and they aspire to the most luxurious but focus on a combination of practical and status<\/em>. <strong>Source \u2013 McKinsey<\/strong><\/p><\/blockquote>\n<p>For example, in China and India about 40 percent of their income is spent on food and transportation, compared to 25 percent in the Americas.<\/p>\n<p>It\u2019s better but still\u2026<\/p>\n<p>While these people are finding a new level of spending freedom, they also share many of the \u201clearned\u201d traits that developed country consumers have learned over the past five years.<\/p>\n<p>Economists and analysts like to categorize the changed habits as a \u201cnew frugality;\u201d and with the global advent of mobile devices and online search\/research tools available to nearly everyone, the learned habit will probably persist.<br \/>\nAs Jeffrey said, <em>\u201cThere&#8217;s no right, there&#8217;s no wrong, there&#8217;s only popular opinion.\u201d<\/em><\/p>\n<p>And, it is reshaping consumption patterns globally.<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-33109\" title=\"Untitled-3\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-3.jpg?resize=549%2C363\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-3.jpg?resize=549%2C363 549w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-3-300x198.jpg 300w\" sizes=\"auto, (max-width: 549px) 100vw, 549px\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>New Strategy \u2013 <\/strong><em>Strategies that companies use to influence\/persuade consumers in industrial countries can\u2019t be replicated in developing markets and do not achieve results. A solid\u00a0 understanding of the issues, wants and needs is essential&#8211;not just in the country, but also in specific regions within each country.<\/em> <strong>Source \u2013 Booz &amp; Company<\/strong><\/p><\/blockquote>\n<p>With online couponing and showrooming, there has emerged an odd value consciousness that enables people to make justifiable trade-offs in price, brand and convenience sprinkled with periodic (and justified) indulgences.<\/p>\n<blockquote><p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-33110\" title=\"Untitled-4\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-4.jpg?resize=565%2C225\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-4.jpg?resize=565%2C225 628w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-4-300x119.jpg 300w\" sizes=\"auto, (max-width: 565px) 100vw, 565px\" data-recalc-dims=\"1\" \/>New Habits \u2013 <\/strong><em>Even in countries where the economy is robust or simply showing signs of improvement, consumers have \u201clearned\u201d to search for and find the best value, including price, for the products they purchase. And with social media, they share that information more readily.<\/em> <strong>Source \u2013 Forrester<\/strong><\/p><\/blockquote>\n<p>The prolonged downturn and slow return to \u201cnormal\u201d has had an impact on what we buy, how we buy and how we justify what we buy.<\/p>\n<p>To get things moving Jeffrey hollered out, <em>\u201cColonics for everyone!\u201d<\/em><\/p>\n<p><strong>Brain Ways<\/strong><\/p>\n<p>Ran Kivetz, marketing professor at Columbia Business School, explained the new normal by noting that there\u2019s no separation in the brain between spending and saving so it\u2019s easy for people to do all the right things and still move effortlessly between the two zones.<\/p>\n<p>That\u2019s how folks can sneak into the discount store for generic toothpaste, shampoo, etc. and then march into the Apple store for a new iPad or, better yet, a MacBook Pro with retina display.<\/p>\n<p>They buy the MBP with its anemic SSD (solid-state drive) knowing that as soon as their momentary guilt wanes, they can go to macsales.com and pick up a huge SSD that\u2019s far cheaper than the one from the factory.<\/p>\n<p>It\u2019s the line our wife uses all the time, \u201csee how much I saved you!\u201d<\/p>\n<p>Of course, this is a difficult hurdle for the mass merchants and brands because it is difficult to convince you of the psychological value of commodity and household goods.<\/p>\n<p>At this point, Jeffrey would comment, <em>\u201cYour information train is jammed, man!\u201d<\/em><\/p>\n<p>This is also why today\u2019s consumers are spending more time online and connected to others with their mobile devices.<\/p>\n<blockquote><p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-33111\" title=\"Untitled-5\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-5.jpg?resize=320%2C214\" alt=\"\" srcset=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-5.jpg?resize=320%2C214 320w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-5-300x200.jpg 300w\" sizes=\"auto, (max-width: 320px) 100vw, 320px\" data-recalc-dims=\"1\" \/>Variety of Devices \u2013 <\/strong><em>Every mobile device has a slightly different keyboard to enable people to communicate with each other; but whether individuals prefer their notebook, ultrabook, tablet or smartphone, they continue to pass news, information, offers, special deals and good\/bad brands among one other. <\/em><strong>Source \u2013 The New York Times<\/strong><\/p><\/blockquote>\n<p>People have found new status in private-label products.<\/p>\n<p>They have a whole new level of shopping freedom that lets them research online and buy in the store \u2013 bravely asking for and expecting price matching.<\/p>\n<p>There\u2019s a new trend of intense price competition and raised consumer expectations across all sales channels that will be hard to reverse.<\/p>\n<p align=\"center\"><strong>Six Frugal Consumer Segments<\/strong><\/p>\n<blockquote><p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-33112\" title=\"Untitled-6\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-6.jpg?resize=472%2C307\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-6.jpg?resize=472%2C307 472w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-6-300x195.jpg 300w\" sizes=\"auto, (max-width: 472px) 100vw, 472px\" data-recalc-dims=\"1\" \/>Global Frugality \u2013 <\/strong><em>Whether people live in high growth, flat or slow growth countries, the past five years have taught them to be cautious about what they purchase. In addition, the ability to quickly find and exchange information about companies, brands, products and prices puts added pressure on manufacturers and retailers.<\/em> <strong>Source \u2013 Booz &amp; Company<\/strong><\/p><\/blockquote>\n<p><strong>Buying Approaches<\/strong><\/p>\n<p>The new consumers \u2013 even the new developing country middle-class \u2013 have traits in common:<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Shoppers 2.0:<\/strong> this technologically advanced group tends to buy online across all categories and use coupons but have little brand loyalty.<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Deal Hunters:<\/strong> highly price- sensitive, they have low brand loyalty. They do their research online but \u201cnegotiate\u201d to get the best in-store deal.<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Online Window-Shoppers:<\/strong> this group carries out a high level of online research but is less likely to purchase online. They exhibit modest price sensitivity and brand loyalty.<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Channel Surfers:<\/strong> hunt for their brands and are likely to switch retailers for a favorable price; they tend to trade convenience for the brand deal.<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Loyalists:<\/strong> least likely to change brands or retailers for price alone; they often research and buy online but stick with their preferred brands<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <strong>Laggards:<\/strong> least interested in changing behavior, they do little online research, make purchases with low coupon usage.<\/p>\n<p>Consumers not only expect real value &#8212; the best combination of price, brand and convenience \u2013 they now have the tools, means and willingness to share that information with others (even if you don\u2019t want to listen).<\/p>\n<p align=\"center\"><strong>What Consumers Trust<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-33113\" title=\"Untitled-7\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-7.jpg?resize=528%2C301\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-7.jpg?resize=528%2C301 528w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-7-300x171.jpg 300w\" sizes=\"auto, (max-width: 528px) 100vw, 528px\" data-recalc-dims=\"1\" \/><\/strong><\/p>\n<blockquote><p><strong>Building Trust \u2013 <\/strong><em>The day when manufacturers could control the conversation disappeared the moment virtually everyone was able to get online. Now, consumers expect complete, honest information and answers because it is too easy to check with others on the web and validate the information. But it isn\u2019t the volume of people attracted to the social media site, it\u2019s more important for consumers to understand who is giving\/exchanging the information and his\/her credibility. <\/em><strong>Source \u2013 Forrester<\/strong><\/p><\/blockquote>\n<p>This has produced a mad rush by manufacturers, brands, retailers to social media.<\/p>\n<p>Of course, once everyone got there, they found that:<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Most decisions are shaped by word-of-mouth<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Success is built on trust, transparency, real two-way conversations (you know, listening, talking)<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The volume of followers does less to inspire trust than open dialogue<\/p>\n<p style=\"padding-left: 30px;\">&#8211;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Popularity doesn\u2019t equal influence<\/p>\n<p>Today\u2019s emboldened, frugal consumer wants to make the right choices, so they can feel good about themselves and their purchases.<\/p>\n<p>The key to a product\u2019s or services success is helping consumers make the environmentally friendly choices that are earth friendly, save the consumer money or provide a well-founded long- term investment.<\/p>\n<p>It also means treating people&#8211;employees, suppliers, customers, local communities well; and admitting mistakes, accepting responsibility when things go wrong<\/p>\n<p>Brands today aren\u2019t just peripheral to our lives; they\u2019re part of our culture, community (local, national, international).<\/p>\n<p>If brand managers understand and embrace this, today\u2019s new consumer will return the favor.<\/p>\n<div id=\"attachment_33114\" style=\"width: 318px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-8.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-33114\" class=\"size-full wp-image-33114\" title=\"Untitled-8\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-8.jpg?resize=308%2C170\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-8.jpg?resize=308%2C170 308w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2013\/01\/Untitled-8-300x165.jpg 300w\" sizes=\"auto, (max-width: 308px) 100vw, 308px\" data-recalc-dims=\"1\" \/><\/a><p id=\"caption-attachment-33114\" class=\"wp-caption-text\">Image Source - \u201cTwelve Monkeys,\u201d Universal Pictures<\/p><\/div>\n<p>If they don\u2019t, they\u2019ll understand what Jeffrey Goines meant when he said<em>, \u201cLook, hey &#8211; all of these nuts could just make phone calls, they could spread insanity, oozing through telephone cables, oozing into the ears of all these poor sane people, infecting<\/em> <em>them. Wackos everywhere, plague of madness.\u201d<\/em><\/p>\n<p align=\"center\"># # #<\/p>\n<p align=\"center\">\n<h1 style=\"padding-left: 30px;\">G.A. \u201cAndy\u201d Marken<\/h1>\n<p style=\"padding-left: 30px;\"><strong>President<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong>Marken Communications, Inc.<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong><a href=\"mailto:Andy@markencom.com\">Andy@markencom.com<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n<blockquote style=\"padding-left: 30px;\"><p>Please join us in our <a href=\"http:\/\/alienbabeltech.com\/abt\/index.php\" target=\"_blank\">Forums<\/a><\/p>\n<p>Become a Fan on <a href=\"http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142', 'Facebook']);\" target=\"_blank\">Facebook<\/a><\/p>\n<p>Follow us on <a href=\"http:\/\/twitter.com\/alienbabeltech\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/twitter.com\/alienbabeltech', 'Twitter']);\" target=\"_blank\">Twitter<\/a><\/p>\n<p>For the latest updates from ABT, please <a href=\"http:\/\/alienbabeltech.com\/main\/?feed=rss2\" target=\"_blank\">join our RSS News Feed<\/a><\/p>\n<p>Join our Distributed Computing teams<\/p>\n<ul>\n<li>Folding@Home &#8211; Team AlienBabelTech &#8211; 164304<\/li>\n<li>SETI@Home &#8211; Team AlienBabelTech &#8211; 138705<\/li>\n<li><a href=\"http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1', 'World Community Grid &#8211; Team AlienBabelTech']);\" target=\"_blank\">World Community Grid &#8211; Team AlienBabelTech<\/a><\/li>\n<\/ul>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The New Consumer \u00a0\u201cThen, they took everything about me and put it into a computer where they created this model of my mind. Yes! Using that model they managed to generate every thought I&#46;&#46;&#46;<\/p>\n","protected":false},"author":396,"featured_media":33114,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2533],"tags":[6001,5999,5998,6000,4393],"class_list":["post-33105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abt-news","tag-consumer-trust","tag-developing-nations","tag-emerging-middle-class","tag-globall-frugality","tag-mobile-devices"],"_links":{"self":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/33105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/users\/396"}],"replies":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/comments?post=33105"}],"version-history":[{"count":0,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/33105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media\/33114"}],"wp:attachment":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media?parent=33105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/categories?post=33105"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/tags?post=33105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}