Three: Brand Relevance and Appreciation
The author suggests that people "strive to stand apart while still being respected by their peers." This is apparent in consumer behavior: when a person uses a brand in any conspicuous manner, they are making an indirect statement to their fellow consumers - aligning themselves with some aspect of the brands they are seen to use.
The adage "you are what you eat" is the expectation - that is, people wish to be perceived according to the brands they consume in the sight of others. Particularly in a market of functionally commoditized products, the esteem of a brand is the only reason to choose one over another.
It's also commonplace to claim to shop by price, but this also makes a statement about the consumer - that he is intelligent and thrifty. However, people who claim to shop by price do not consistently purchase the cheapest product. If they did, generics would have fared better.
As an aside: the author suggests that low pricing could be self-defeating. It debases a brand and makes it seem cheap to the market: when Sony televisions sell a slightly different model at Walmart and half the price of other models sell at electronics stores, consumers don't see the distinction: they regard Sony as a "Walmart brand" and strip it of its distinction.
Cognitive Dissonance
People approach unfamiliar brands on superficial evidence: they hear what the brand has to say about itself and what others have to say about the brand, but because they have not owned or used the brand, they are unaware of the actual experience of ownership. When they actually purchase and begin using the brand, they find that their expectations are met or not met. When they are met, satisfaction occurs. When they are not met, they experience cognitive dissonance.
Cognitive dissonance (aka "buyers' remorse") is essentially a sense of disappointment when expectations are not met by experience. The most common reaction is denial: the insistence that a brand is what they expected it to be, even though the experience falls short.
This leads to a brief consideration of "ego depletion," which is the process of recognizing reality. The denial that a product is not what was promised is the result of a desire to have been right all along. It takes time for reality to sink in and for a person to recognize and admit to having made a mistake. Until their ego is depleted, they will defend their choice.
In the digital age, it has become the expectation that consumers will be able to communicate to a brand to address any dissatisfaction - but what often occurs is that the representative who answers the phone does nothing to address the disappointment, but to talk the customer into feeling better about the purchase - in effect, to reflate their egos.
Ultimately, brands will be held accountable for delivering on their promises and the truth will be known and publicized. In this sense many brands live on borrowed time, waiting for the ego depletion of their customers - until this happens, buyers will publicly praise the brand. But when it happens, they will feel betrayed and retaliate.
A stray thought: The author mentions the conflict between the desire to be distinctive yet accepted by others. In terms of consumption, this results in people wanting things that are identical in most ways, but a little better in others, than the things that others consume. Consider customization: a person buys the very same brand of cell phone but purchases a different case, or the very same care with a few minor after-market modifications to make it "their own."
Transition from Intrinsic to Extrinsic
The author suggests there has been a shift in consumer expectations. Whereas older generations purchased a product for its intrinsic values (the benefits derived from using it), younger generations show greater interest in the extrinsic values (the esteem derived from owning it).
While a company can do much to improve the physical properties that deliver the intrinsic values, they have no direct control over how the brand is perceived in the market: that is up to the fickle tastes of the most status-conscious segment of the public.
He trots out a few examples of the manner in which the Boomer generation has spoiled their Millennial brats: the man who moved houses so his daughter could have a swimming tool and the teenager who threw a tantrum because her parents bought her a luxury car that wasn't the color she wanted.
The younger generation of consumers is composed of "capricious wingers" who constantly complain and are never completely satisfied - which arises from unreasonably high expectations of what consumer brands will do for their social lives. They honestly believe that money will buy them happiness, and everything will work out for the best if they simply consume the right brands.
He refers to a researcher into psychology and consumer culture, who reports that the more a person organizes their lives around extrinsic goals, the more unhappy they are in general. They are not happy with the things they own, nor in their relationships with others, nor with their own self-image. As a result, they have more narcissistic dysfunctions, poorer relationships, and worse moods/attitudes.
This phenomenon occurs due to desire rather than possession: the wealthy in the first-world nations are unhappy with the things they have because they do not deliver the expected extrinsic benefits, and the poor in third-world nations are unhappy because they cannot afford the things they believe will deliver the same benefits.
So in either case, materialism is the problem, and more material is not the solution.
Neurology and Brand Loyalty
The author refers to a region of the brain known as the Brodmann-10 area, which shows signs of stimulation when a person considers objects in terms of their ability to enhance social standing. This area of the brain causes us to want brands for their extrinsic value.
He correlates this to the mania that exists over consumer products, such as when Apple releases a new version of its iPhone and customers mob their stores and pay ten or more times the value on auction sites when quantities fall short.
The Brodmann-10 area is also responsible for impatience - not only does activity in this area correspond to wanting things, but it corresponds to wanting them right away.
He correlates this to impatience for customer service: around a decade ago, businesses typically responded to complaints within ten days, but with mobile and social, it is now about ten minutes. There is no longer the "time shield" of the postal delivery system, and very little patience for organizational inefficiencies.
Supporting research: a study into the use of mobile devises showed that people check their mobile devices about every half hour, men slightly more frequently than women, and the old (65+) far more often than other age brackets. If they are expecting a response to a message they have sent, this drops to about every 10 minutes.
Humorous bit: a 2104 survey of Americans found that 44% of Americans said that they couldn't imagine their lives without their mobile devices, whereas only 20% said that they couldn't imaging their lives without sex. So the urge to be connected is even more powerful than one of the most primitive urges.