Social Norms Trump Market Norms

Do you know the difference between market norms and social norms? If you do, can you make the distinction in social marketing?

Something many of us grew up with was the "limited availability offer." In other word, the ad in the paper would promote, say a radio at the local electronics store, but would come with a disclaimer stating that there were only so many, and no rain checks would be given. Generally, we accepted that. If others got there first, they got the radio at the price, and that is just the way it was. This is a market norm; it is monetarily driven, fairly cold, logical to a fault, and basically understood.

A social norm is not driven by money. If I invite people over for a BBQ, and part way through realize I do not have enough burgers or hot dogs, I feel guilty and look for ways to remedy this. Even if some folks show up with relatives who just happened be in town, or folks show up who originally thought they were not going to make it, I have a sense of obligation to make sure everyone is fed, and fed well. So, I run out to the store and buy more of everything I needed. Money is not the issue; making my guests happy is.

As companies venture into social media, they must be very aware that the norms are different now, and getting them mixed up will result in long term harm. To get a sense of this in better words than I can write, (if you have not done so) read "Predictably Irrational" by David Ariely.

The first few chapters show this distinction well (read the whole book though).

A key take away is this:

Though it may not seem so at first, market norms are not nearly so punishing, nor their affect so enduring, as social norms.

If you have a product, and your competitor develops a better value equation, you may lose some customers. Improve your value equation, and you have a shot at getting them back. This is the nature of markets.

On the other hand, if you lose a customer because you made them angry, violating some social norm (even though you're a business), social norms trump market norms and they are gone... perhaps for good.

TGIF, while underestimating the power of social media, certainly appears to understand the blended environment social media presents for social and market norms. In their recent social campaign, promoted on tv, up to 500,000 fans of Woody get a free burger. Well, 500k was reached in short order, and they were still only 1/2 way through the month. TGIF and their agency worked quickly to approve an additional 500K free burgers to honor those who were trying to fan woody after the first mark was hit. There is social credit given for openly and quickly addressing this.

Though TGFI had been upfront about the conditions of the give away (market norms), they realized they were operating in social environment. Rather than saying "we did what we said we'd do, you're wrong to expect more," they pushed forward and honored the intent of the program. TGIF honored the social norm.

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