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Extreme Decisions: Warby Parker
Transcript of Extreme Decisions: Warby Parker
“We looked at this huge industry that had no innovation, where there were no brands that evoked passion or that people were really proud to be associated with,” Gilboa says.
Founded in 2010 by four close friends: Neil Blumenthal, Andrew Hunt, David Gilboa, and Jeffrey Raider at the Warton School of Busines
They believed that prescription eyewear simply should not cost a fortune i.e $300+
But since the industry is dominated by a few large companies, who are able to control and dictate prices since consumers have no other options.....
"Warby Parker (2010) is a brand of designer eyewear, designed to let people express their personality, while doing good in the world. We've made the pricing simple--$there's one price $95. And for every pair we sell, we distribute to someone in need."
“And we just thought there was a huge opportunity to disrupt an industry and create an iconic brand, a for-profit business that did good in the world and could inspire other companies.”
WHAT DO YOU THINK OF PEOPLE WEARING GLASSES?
2. Asymmetric Dominance
"REACH OUT & READ"
Constantly growing and developing business
WP has done alot of good for a lot of people.
In 2015, we propose expanding the "Do Good" campaign and WP partnerships...
Using WP philanthropic "Do Good" model to reinvent how people perceive the eyeglass industry and as a result shop for and purchase eyewear..
To Celebrate 5 Years of Warby Parker.....
3. CHOICE OVERLOAD
"Jumpstart" is the only national supplemental program that leverages the power of community and adult child relationships to build key language and literacy skills children need to take on the world.
Since 1993, Jumpstart has trained 28,000 college students and community volunteers to transform the lives of 50,000 preschool children nationwide.
FIVE OPTIMAL METHOD'S
for influencing individuals consumer behavior...
1. Changing stereotypes and diversifying styles of glasses to meet the desires of a larger customer audience.
2. Fallacy of supply and demand: making people think of it as exclusive: #onlyWarbyParker & making purchases more exclusive by adding memberships.
3. Relativity: Price frames you want to sell in the middle & Promotion with added glasses case for same price as one.
4. Avoiding Choice Overload Online & In Store
Un-athletic (cannot run around with glasses on)
Not everyone wants to look like this
In order for WP to continue to Impact individual consumer decision making behavior that is: strategic, systematic and innovative...
INSPIRING A GENERATION TO TAKE A ROAD LESS TRAVELED AND TO SEE THE WORLD THROUGH A DIFFERENT LENS
And just like that,
Warby Parker was Born!
The Story of WP
1. Cut out the' middle man'- they don't have to partner with licensing companies that control the market and keep the prices high.
2. E-Commerce Model-web based sales approach enables them to bypass optical shops and they high prices they demand.
3. A Do Good Company: "Buy a pair, give a pair"
A widely held but fixed and oversimplified image or idea of a particular type of person or thing.
Why? By understanding the stereotypes associated with the product, we can launch a campaign to combat/ rework the negative association.
Positive associations will increase consumption
Goal: broaden the customer market of those who wear glasses. Glasses are gradually becoming cooler, but we can do better! (Ariely, 2008)
Effects of eyeglasses on perception, recognition, and impression of faces. (
Leder, Helmut, Michael, & Gernot)
People who wear glasses are perceived as more intelligent, but less attractive.
The stereotype was confirmed but depended on the kind of glasses—rimless glasses yielded an increase in perceived trustworthiness, but not a decrease in attractiveness.
WHAT IS THE "FALLACY OF SUPPLY & DEMAND"?
Supply: how much the market can offer
Buyers can often be manipulated because they do not have a good understanding of their own preferences and the corresponding prices they are willing to pay
Demand: how much of a product is desired by buyers.
Buyers often make their decisions based on memory instead.( Ariely, 2008)
HOW CAN IT BE EXCLUSIVE TO
Fallacy of Supply & Demand
Exclusivity with incentives
: Eligible after second frame purchase
: Eligible after five or more frame purchases
VIP showroom access in 13 locations across the country
Convincing customers to select a product by pairing it with a similar, yet slightly inferior option and additional unrelated option
The similar options will outweigh the outlier.
The less appealing option in the similar group with be eliminated. (Ariely, 2008)
Decrease in motivation to make a choice
Decrease in preference strength and satisfaction with chosen option
Increase in negative emotions, including disappointment and regret. (Scheibehenne, 2011)
CHOICE OVERLOAD: IN STORES
CHOICE OVERLOAD: ONLINE
Goal: Improve literacy rate in the U.S
Method: Expanding Partnerships with Nonprofit literacy programs
We want to see people succeed
We can improve those odds with our glasses
Don't just look smart. Be smart.
Mission: Reach out and read prepares America's youngest children to succeed in school by partnering with doctors to prescribe books and encourage families to read together.
Serves 4.2 children annually
Initiatives for helping support children's eyesight and vision needs, but it could do better!
Thank for considering our
for influencing individuals consumer behavior
@ WARBY PARKER!
5. Cost of social norms: doing social good to make the company move from monetary transactions to social interactions
Our GOAL today...
Present the optimal methods for
influencing and impacting
individual consumer decision making behavior, so WP can
its strong presence in a competitive market.
Warby Parker has created an iconic eyeglass brand that is becoming a strong competitor in the eyeglass market, however......
Working with and against the stereotypes of glasses
Lets ask ourselves what makes one inclined to buy contacts over glasses
Make glasses cool/ attractive again
No more unrecognizable models, but relatable figures
Athletes with Warby Parker glasses studying plays/ tapes
Pretty Smart” celebrities’ shown wearing the Warby Parker
Increase the cool factor and associate glasses with someone people like.
“BE Smart” helps to channel some of the negative stereotypes of glasses users into positive ones by making being and looking smart cool.
WHAT ARE STEREOTYPES?
1. Cialdini, Robert B; Goldstein, Noah J (Apr 2002) The science and practice of persuasion. Cornell Hotel and Restaurant Administration Quarterly 43.2
2. Scheibehenne, Benjamin. "Can There Ever Be Too Many Options? A Meta‐Analytic Review of Choice Overload." Journal of Consumer Research 37.3 (2010): 409-25. JSTOR. Web. 16 Apr. 2014. <http://www.jstor.org/stable/10.1086/651235...>
3. “Our Story,” Warby Parker, http://www.warbyparker.com/our-story, accessed October, 2013
4. Bryant , Adam . "Neil Blumenthal of Warby Parker on a Culture of Communication." New York Times . New York Times , 24 Oct. 2013. Web. 25 Oct. 2013. <http://www.nytimes.com/2013/10/25/business/neil-blumenthal-of-warby-parker-on-a-culture-of-communication.html?_r=1&>.
5. Claire Cain Miller, “Defying Conventional Wisdom to Sell Glasses Online,” The New York Times, January 16, 2011 http://www.nytimes.com/2011/01/17/technology/17glasses.htmlm, accessed January 2012
6. Cialdini, Robert B; Goldstein, Noah J (Apr 2002) The science and practice of persuasion. Cornell Hotel and Restaurant Administration Quarterly 43.2
7. Erutku, Can (2006, May 8). Rebates as incentives to exclusivity. Canadian Journal of Economics/Revenue. Retrieved from: http://onlinelibrary.wiley.com.proxygw.wrlc.org/doi/10.1111/j.0008-4085.2006.00356.x/abstract
8. "Our People | Jumpstart." Our People | Jumpstart. N.p., n.d. Web. 16 Apr. 2014
9."About Reach Out and Read." About Us. N.p., n.d. Web. 16 Apr. 2014.
10."Mission and Model." Home. N.p., n.d. Web. 16 Apr. 2014
11. Radon, Anita. 2012. Luxury brand exclusivity strategies - an illustration of a cultural collaboration. Journal of Business Administration Research 1, (1): 106, http://search.proquest.com/docview/1436080514?accountid=11243 (accessed April 16, 2014).
12. Byung-Kwan, Lee, and Lee Wei-Na. 2004. The effect of information overload on consumer choice quality in an on-line environment. Psychology & Marketing 21, (3) (03): 159-183, http://search.proquest.com/docview/227757777?accountid=11243 (accessed April 16, 2014).
13. Turri, Anna M. 2011. The choice overload hypothesis: Exploring moderators and examining the effects of perceived choice options on the consumer choice-making process in a retail context. Ph.D. diss., University of Arkansas, http://search.proquest.com/docview/894765214?accountid=11243 (accessed April 16, 2014).
14. Ariely, Dan. Predictably irrational: the hidden forces that shape our decisions. New York, N.Y.: HarperCollins Publishers, 2008. Print.
15. Kahneman, Daniel. Thinking, fast and slow. New York: Farrar, Straus and Giroux, 2011. Print.
16. Berfield, S. (2011, Jul 04). Hip eyewear: Warby parker's new spectacles. Business Week, , 1. Retrieved from http://search.proquest.com/docview/875624394?accountid=11243
(Niel Blumenthal, Cofounder and CoCEO of WP)