Paper Topic

I want to write about Wal-Mart. Are they an example of how to listen to customers, or are they merely pulling the wool over our eyes? I think it is commendable how much they keep the customer in mind. They take low profit margins so they can pass the savings onto their customers. Every penny is squeezed from their suppliers, and they're not keeping the savings. We are. I also think that their green initiatives/ sustainability movement was partly customer driven, partly business move. It's interesting that they are one of the only companies doing well right now, but I can't say I'm surprised either. It's only logical that an economy like this would force consumers to be more price conscious and essentially downgrade to Wal-Mart. More people are spending less and saving more. Many commercials, including Wal-Mart's, have emphasized this shift. While I am proud of Wal-Mart for harnessing their wide reach and massive size in order to promote sustainability, I'm also a little skeptical. Now, I'm not necessarily skeptical about their commitment to sustainability- I don't believe their latest initiatives are simply a ploy. I believe that Wal-Mart is making an honest effort to make our world better, cleaner, greener. And, if Wal-Mart can do this without raising prices and simultaneously increasing their bottom line, all the more reason to go green. Most companies take losses when they convert to a sustainable strategy, which make the move look less attractive. But Wal-Mart is proving that you can help the world and make money. What I am skeptical about are the other issues they have failed to address, mainly employee treatment. Are they paying employees less, offering fewer benefits, not allowing unions, and inhibiting female job growth because consumers are not demanding that employees receive equal pay, more benefits, unions, and equal opportunities? Is Wal-Mart listening to only feasible, mutually beneficial costumer insights, such as sustainability? At the same time, I understand that you can't make everyone happy. Solving these issues will not make Wal-Mart the most liked company. They will always have enemies. I just want to know when, if ever, does Wal-Mart stop listening to what their customers want? What segment does Wal-Mart seek to make happy? Maybe they don't care about the group of people that are interested in human rights. Maybe they think that low price trumps everything, and their customers are unwilling to bear the cost to resolve these issues. In a nutshell, I'd like to learn how much or how often Wal-Mart listens to their customers.

In a previous blog, I mentioned that I am pro Wal-Mart. When I'm not grocery shopping for the experience, I want to get the most for my money. The fact that Wal-Mart is attempting to be more sustainable reinforces my decision to shop there. I'm rather proud of Wal-Mart for shouldering the responsibility of bettering our environment. They're not perfect, but they have set an example for other giant companies to follow: going green is profitable. I have also studied Wal-Mart in four other classes, so it's a recurring theme in my college career. I think a lot of people, whether they admit it or not, are intrigued by Wal-Mart. In my history class last semester, my teacher argued that Wal Mart has replaced GM as the template for American companies. I hope that theory holds true for their sustainability initiatives as well. Furthermore, corporate social responsibility is a topic that has recently captured my attention, mostly because it optimistically believes that a soulless corporate company can have a soul. I'd like to believe companies can remain profitable while creating a greener future.

As I see it right now, I believe that Wal-Mart has been an effective listener of consumer insights. Customers are the reason Wal-Mart finagles every penny from suppliers and can price their goods below anyone else. I'm also interested in Wal-Mart's communication efforts. They are very transparent about saving money and less communicative about their sustainability practices. I have a feeling the latter is driven by the economic downturn and the fact that their most loyal customers will not choose Wal-Mart on the basis that it is more sustainable. In the article Economic Blues Leave No Room for Green, which I found in Advertising Age, author Jack Neff reinforces my hunch. According to him, "when Wal-Mart launched a new campaign targeting opinion leaders around the political conventions last month, the message was about how the company is stimulating the economy by saving people money, with none of the sustainability themes that have been common in such ads in years past." Neff's article focuses on the messages that Wal-Mart chooses to display to their consumer and the rest of the public. Another article I found in Women's Wear Weekly analysed Wal-Mart's segmentation strategy. This was also interesting because it accurately points out that the segment the millennium generation cares most deeply about environmental concerns. Therefore, if Wal-Mart wants to develop relationships with these customers, they must effectively communicate their sustainability initiatives. Additionally, Wal-Mart cannot continue to ignore their growing human rights/ labor problems. They will eventually have to acquire new costs in order to resolve these issues and appease their younger, future customers. On the other hand, Wal-Mart must also retain their current, more price conscious consumers. Here lies the conundrum, who does Wal-Mart listen to?

My Grocery Shopping Experiences

As I was rooting around e reserves to find a blog topic, I came across the Whole Foods/ Central Market articles. Since Whole Foods and Central Market are not low-cost grocery stores, I expected the authors to claim that both stores yield the same customer experience. Once I read the first sentence I knew I had guessed wrong. First, I noticed the difference in the authors’ tones. Normally when I'm reading for a class, I'm not concerned with tone; I'm more interested in the content within the article. But these authors used tone to illustrate the points of differentiation between Whole Foods and Central Market. In the Whole Foods article, the author begins with a story of a free-range chicken to demonstrate how extreme Whole Foods can be. On the other hand, “Fast Company” gets straight to the point. The author admits that Central Market is overwhelming and then praises them for being a “super supermarket”. The titles also indicate a difference in experience. “Food Porn” once again calls attention to Whole Foods’ extreme stance on food. “Super Market” is merely a pun that pays tribute to Central Market.

Everyone can tell the difference between shopping in a low-price grocery store and a high-quality grocery store. When I am at HEB or Wal-Mart, I just want out. At those stores, grocery shopping is the least enjoyable experience in the world. I want to get the most groceries for my money and leave as soon as possible. Nothing puts me in a worse mood than grocery shopping on a budget.

It’s the nuances between the grocery stores in each category that often go unnoticed. When you’re comparing HEB and Wal-Mart there are other experience factors to consider besides price. Since Wal-Mart is more spread out and has twice as many lanes as HEB, it’s generally less crowded. At HEB, you can barely push your cart down an aisle without running into two or three people. Even if I’m at fault and run head on into another cart, I blame it on them. HEB is an angry place. Situations like this just aggravate the already frustrating grocery shopping experience. That is why I would rather shop at Wal-Mart than HEB when I choose a low-cost grocery store. To me, the benefits of shopping at HEB (higher quality produce) do not match the additional cost ($5 or $10 extra dollars). By shopping at Wal-Mart, I sacrifice quality produce, for no produce. I can get out of Wal-Mart faster and spend less than $35 for a week's worth of groceries. I might not get the nutrition I need, but that's what vitamins are for. I value my time more than my health. Furthermore, I expect Wal-Mart to match my hate for grocery shopping. Wal-Mart is not a happy place and I never expect to enjoy grocery shopping there. At HEB, there’s still an expectation for an enjoyable trip since you’re paying more.

When it comes to high quality grocery stores, the nuances are a little more difficult to pick out. In fact, there are many people who don’t even notice a difference between Whole Foods and Central Market. Personally, I’ve always thought that shopping at Central Market is more enjoyable than shopping at Whole Foods. When I go to Central Market, I don’t want to leave immediately. I want to go up and down every aisle multiple times. When someone bumps into me, I apologize- even when it’s clearly his or her fault. At Central Market, I like to buy new items and try new things. Sometimes, I even decide to purchase ingredients to make a meal, which is unheard of. Ultimately, I feel comfortable at Central Market and more willing to spend money. At Whole Foods, I’m intimidated. Unlike Central Market, Whole Foods does not sell anything normal, like Cheerios. Everything at Whole Foods is organic. If I don’t have a list, I feel lost when I shop at Whole Foods, especially since most of their products are foreign to me. Finally, and most importantly, I often feel disappointed when I shop at Whole Foods. I feel like many of their items sacrifice taste for an organic certification. Take peanut butter and jelly for example. They are roughly the same price at both grocery stores, but the quality of Central Market brand PB&J far exceeds that of Whole Foods. If I’m going to spend money, I’m going to spend it at Central Market.

The Paradox of Choice

I really enjoyed listening to Barry's podcast and I agree with his paradox of choice. There are definitely advantages to having options. Everyone wants something different. Companies/ brands can't expect their consumers to only like one thing. No one wants to be forced to buy something just because it's the only thing available. People want to stand out, and having choices allows you to do just that. At the same time, however, we are now forced to pick one thing out of hundreds or thousands of options. A quite daunting task, to say the least. The goal of marketing is to satisfy your customer, but I don't even remember the last time I was satisfied after choosing one item out of millions. My most rewarding decisions are at places where I only have three or four choices. Making decisions is empowering, when you make the right one.

As consumers, we have the responsibility to make informed decisions. So, theoretically, buying stuff should make you smarter if the intent is to educate yourself before or during a purchase. This is not the case for me. I can honestly say that being faced with millions of choices makes me dumber. Let me explain. When I look at a grocery isle or a menu and try to pick something out, I don't think rationally or logically. I stare blankly and go with my gut instinct. I can't give you a reason as to why I picked what I picked. Granted, I stress over what I pick out, so it may seem as if I'm using my brain and analyzing my future purchases. Like Barry mentioned, I get paralysis, but I also stop thinking. My mind goes completely numb and refuses to function. You may think this isn't a big deal, but when you're faced with decision upon decision day after day, these brain lapses add up. The more I choose an item without logic, the more I feel like this action is a good strategy and can be warranted for other non-purchasing decision. Not choosing an item for a purpose or logical reason begins to make sense to me. It's easy. I begin believing that it's a good idea not to think about the why and just act.

Here's an example of what I mean, just in case I don't make sense (because I rarely do). My father asked me to read about a new war memorial and give him my opinion. The war memorial in question was recently dedicated to a group of men who were forced to participate in World War II. Instead of fighting, these men essentially became cowards. They deserted their country during a German invasion. My father was outraged that the men were allowed to receive a war memorial in their honor. I disagreed. When I was asked why, I couldn't answer. I felt like these men should still be remembered, but I didn't know why! I just felt like they should. That was not a good enough reason for my father. He had been listening to my poorly constructed arguments for a while, and realized that I felt too much and thought too little. After I finished reading Atlas Shrugged over the break, Aynn Rand confirmed his realization. Now, I'm not blaming the glut of consumer choices for my lack of reasoning skills. I'm merely stating that having choices made me rationalize the "gut instinct" answer.

Almost every time I go shopping or dine out, I have an anxiety attack deciding what I want to buy or eat. Example: grocery shopping last night. My sister and I stared at the wall of granola bars for about three minutes before we decided upon the same Special K bars we always get. Even after we chose Special K bars, we were faced with another decision. What flavor? We picked the single pack of blueberry instead of the vanilla, chocolate, blueberry tri pack. This morning, I'm craving a vanilla Special K bar. Example: shopping at Urban Outfitters last week. I walked into a store full of opportunities. Half an hour later, I walked out with nothing because I was too stressed out to try anything on. Two hours later, I regretted not buying those jeans. Example: eating lunch at Blue Dahlia today. I could have breakfast or lunch. I want pancakes. They don't offer pancakes. Now I'm back at square one. I settle on a shrimp sandwich. As the waitress walks away, I wish I had ordered the Belgian waffles instead. Example: any beer garden I walk into. I don't know what to get, at all, ever. I order what my friend orders. I hate it because it's not as good as my other friend's drink. I regret almost every choice I make. As a consumer, I want to be happy with my purchase, not wondering what the Belgian waffles tasted like or jealous of a different flavored beer.

I only feel truly happy about my decisions when I go to a place with very little choice. Example: Five Guys Burgers and Fries. They have about four things on their menu. I feel bloated when I leave, but boy, am I satisfied.

I understand that companies are not bombarding consumers with choices to make them feel unhappy. I do not think they have ill intentions. This is merely another paradox of choice. Companies want to enable their customers by providing thousands of choices, but consumers inevitably end up dissapointed.