UNIVERSITY COUNCIL 2007 – 2008 AGENDA February 21, 2008 1. Approval of Minutes 2. Report of Chair 3. Mandate on Center for Consumer Research returned from HSB College Council with recommendation for approval University Council Minutes of Meeting January 17, 2008 In attendance: Professors Jeanne Brady, Audre Brokes, Jay Carter, Peter Clark, S.J., Piotr Habdas, Thani Jambulingam, Alfredo Mauri, John McCall, Michelle Rowe, George Sillup, W. Richard Sherman, Sam Smith, John Tudor, Dr. Cary Anderson, Ms. Marybeth Harrington, Ms. Sue McFadden, Ms. Hollyanne Pronko, Mr. Richard Chambers, Mr. Timothy Castanza, Dean Joseph DiAngelo, Dean William Madges, and Provost Brice Wachterhauser. Guests included Associate Provost, Paul DeVito and Professor Herschel. 1. The meeting convened at 11:34 a.m. A motion to approve the minutes of the previous meeting was made by Professor Sillup, seconded by Professor Mauri. The minutes were approved by a vote of 12 – 0 – 2. 2. The Chair reported that the new University Student Senate officers serving on University Council are: Holly Anne Pronko Timothy Castanza President Vice-president for Student Affairs Richard Chambers Vice-president for Academic Affairs 3. The next agenda item was the proposed mandate on Departmental Guidelines on Rank and Tenure. The Chair explained that in recent years the Board on Rank and Tenure has encouraged departments to more fully articulate how they evaluate candidates in their fields. The departmental discussions and evaluations of candidates drive the understanding of the broad standards in the Faculty Handbook. Professor McCall clarified that FPP is being asked to write a statement for the Faculty Handbook to specify the department’s responsibility for producing guidelines. FPP should also discuss how and when changes to departmental standards will be reviewed in the future – by the Dean and Board on Rank and Tenure every 5 years, for example? Professor Smith questioned how specific the guidelines should be. The Provost suggested they should be more specific than the Handbook in order to better explain how departments will apply the Faculty Handbook criteria to individual cases. It was noted that departments should begin this discussion now and not wait for the findings from the FPP. The vote to send the mandate to FPP with a return date of September 2008 was 16 – 0 – 0. 4. A motion to adjourn passed at 11:51 a.m. 2007/2008 - 06 PROPOSED MANDATE FOR UNIVERSITY COUNCIL TITLE: Center for Consumer Research OBJECTIVE: We propose to establish The SJU Center for Consumer Research, to be housed in the Haub School of Business. The Center will leverage the research expertise of the faculty, connections to industry, the Mission of the HSB, and the experience of the Director of the Center to establish a “think tank” on issues related to consumer lifestyles. We envision this Center as a place in which ground breaking research, seminars, and other projects will help forward-thinking organizations better understand the evolving needs and concerns of today’s consumers. We are fortunate to have received startup funding for the Center through a generous gift from Michael Hagan, CEO of NutriSystem, Inc. REASONS FOR PROPOSED MANDATE: An SJU Center for Consumer Research will be an organizational umbrella to encourage interdisciplinary research projects (e.g. the dynamics of food, pharmaceutical and apparel marketing that influence consumers’ obesity and body image, the accelerating fusion between food retailing and entertainment marketing, or the huge trend toward consumer empowerment in choices ranging from healthcare to the development of packaged goods and soft goods). RECOMMENDED FOR STUDY BY WHICH BODY? _____ Faculty Senate: Academic Policies and Procedures Committee _____ Faculty Senate: Faculty Policies and Procedures Committee _____ College Council: College of Arts and Sciences ___X_ College Council: Haub School of Business _____ Standing Committee on Student Affairs, Full-time Undergraduate _____ Standing Committee on Student Affairs, Part-time Undergraduate/Graduate _____ Administrative/Staff Council Signature: ____Joe DiAngelo, Dean, HSB____ Date:____9/25/07______________ Please forward to the Provost who serves as Chair of the University Council, along with complete documentation to substantiate the need for the proposed mandate. The SJU Center for Consumer Research A Proposal Prepared by: Michael R. Solomon Professor of Marketing Haub School of Business Saint Joseph’s University September 14, 2007 DRAFT 2 SJU Center for Consumer Research Description of the Proposed Center We propose to establish The SJU Center for Consumer Research, to be housed in the Haub School of Business. The Center will leverage the research expertise of the faculty, connections to industry, the Mission of the HSB, and the experience of the Director of the Center to establish a “think tank” on issues related to consumer lifestyles. We envision this Center as a place in which ground breaking research, seminars, and other projects will help forward-thinking organizations better understand the evolving needs and concerns of today’s consumers. We are fortunate to have received startup funding for the Center through a generous gift from Michael Hagan, CEO of NutriSystem, Inc. The Director and Assistant Director of the Center will be appointed by the Dean of the Haub School of Business. We’ll summarize the Center’s raison d’etre with this statement: People don’t buy things because of what they do; they buy things because of what they mean. Our choices of products and services, whether food, furniture, or fax machines, reflect a pattern of consumption that jointly defines a lifestyle. We can best understand the drivers of consumers’ individual decisions when we view these choices through the more macro lens of lifestyle; how they work in concert to create social identity and communicate that identity to others. As the popular saying goes, “You are what you eat (or drive or wear…).” A lifestyle perspective forces us to be holistic. It makes us recognize that while on the surface a food company is vastly different from an apparel company, which is different from a pharmaceutical company, which is different from an entertainment company which is different from a non-profit organization, at a deeper level these endeavors have more in common than is first apparent. Each is a thread consumers use to weave together a lifestyle that expresses their desired social identity. Although this gestalt perspective is most likely apparent to most laymen, ironically the large majority of business executives and policy makers tend to neglect it as they grapple with issues specific to their own industry. In reality, many of these concerns are common – at least in the abstract – to their counterparts in many diverse organizations. This gap between theory and practice creates interesting opportunities for synergy and discovery. It allows us to transcend the “silos” that academic business disciplines and their counterparts in the commercial world build. When we reach across disciplines and product categories, we can leverage the many pockets of expertise within the Haub School and SJU overall that relate to consumer behavior issues. Within HSB for example we will embrace both extant competencies in Food Marketing and Pharmaceutical Marketing as well as the Marketing Department’s emphasis on further developing its programs in sports and entertainment marketing, marketing communications, and international marketing (as well as my own work in fashion and consumer behavior). And, clearly there are numerous ways to involve Arts & Sciences faculty whose scholarship overlaps with lifestyle topics, ranging from social scientists (n.b., I am trained as an experimental social psychologist) to theologians and education researchers. The Center will support the Haub School’s Mission to master the “…principles and practices of business in a diverse, ethical, and globally aware context” as it develops research programs and outreach activities that celebrate today’s multicultural and global consumer. We hope to leverage our focus on emerging Web technologies to provide programming that transcends geographic boundaries and involves colleagues from other disciplines as well as other countries. For example, I was recently appointed as a Professor of Consumer Behaviour at Manchester Business School in the U.K. (now ranked #3 globally); this connection will foster research relationships between MBS and SJU. The Center for Consumer Research integrates the crucial pillars of SJU’s Mission: Ethics: The lifestyle rubric embraces SJU’s strong ethical commitment as well as the Haub School’s international focus (Note: Prof. Wood and I recently received an Arrupe Center Fellowship to study the ethical and consumer behavior consequences of false representations on blogs and product websites). People’s desires for a more satisfying lifestyle (as culturally defined) drives the expansion of transitional economies --and a host of ethical issues arise as developing countries import the ethos of consumer culture. In addition, individuals’ choices of products like food, activities like exercise, expressive purchases ranging from cosmetics to cars, and even charitable participation all reflect values, desires, and cultural priorities. At the end of the day, quality-of-life issues are consumer lifestyle issues as well. The Center will enhance the University’s Mission to instill “…transforming commitment to social justice.” One tangible focus of this ethical emphasis will be the promotion of socially responsible consumer choices that encourage environmental sustainability. The Center will promote research and social programs that encourage “green” lifestyle choices in several domains including food, apparel/textiles, and home design. To this end, several initiatives are already underway: I have been named as a Core Advisor to The Mass Roots Project. This new initiative is funded by the philanthropist Pierre Omydar (the founder of eBay). The initial goal of the Project is to devise a Universal Product Label that will enable consumers to clearly identify products that meet a set of criteria for environmental sustainability. According to the Mass Roots Project’s mission statement: Our overarching goal is to reverse negative trends in environmental and social health. We want to preserve biodiversity, reduce human-caused climate change, and, at the heart of it, enable people to reconnect to their communities and ecosystems. To do this, we want to address the issues at the systems level, by empowering consumers to drive social and environmental change through their daily choices. The results will be seen everywhere: improved human health, higher biodiversity, decreased impact from global warming, and a positive future for our children. I am collaborating on research with the House_n Consortium at MIT; an academic/industry network that promotes new approaches to design and the integration of useful technologies into the places where we live, work, and play. We are designing an online modular configurator that will allow laymen to design and furnish living spaces that maximize environmentally sustainable parameters and reduce the occupant’s carbon footprint. In one spinoff of this project, we are currently writing a proposal for a MacArthur Grant in partnership with the Sulake Corporation of Finland. This company created the Habbo Hotel; an online environment for teenagers that lets users design their own living space. It is currently the largest such community in the world, with roughly 78 million participants. Our goal is to integrate our work on sustainability feedback to educate users about the environnmental consequences of their living choices by giving them access to a “green score” based on the carbon footprint they generate. I am Principal Investigator on a three-year grant, “Strategic Sustainability and the Triple Bottom Line,” funded by The National Textile Center, U.S. Department of Commerce (total funding = ~ $320,000). We are collecting U.S. consumer data regarding attitudes toward and awareness of sustainability, as well as a parallel dataset from textile industry executives. Several case studies of “triple bottom line” firms (that maximize economic, social and environmental profit) are underway. We are also beginning discussions with The European Union about replicating this work in Europe. Teaching: Rigorous and relevant teaching is of course central to SJU’s mission. The Center will contribute to the University’s emphasis on cura personalis when it involves both undergraduate and graduate students in its programs. We have already included four outstanding undergraduates and two M.B.A. students in research related to the Center for course credit (six more undergraduates are currently enrolled for Fall 2007). Student Fellows will have the opportunity to participate in research programs the Center spawns and to interact with senior executives by attending programs we host. In addition we plan to involve students who are taking courses in event planning, food marketing, etc. in the implementation of our on-site academic and executive programs. We will also be developing teaching initiatives in conjunction with our leadership of the SJU Virtual Campus Initiative, described below. I am the author of several prominent textbooks, including a Consumer Behavior text that is the most widely used in the world. The book has also spawned regional editions in Canada, Europe, and Australia and has been translated into many languages. As part of a new opensource book project now under development that will include free hard copies (with additional online pedagogy available) to students around the world, we are currently in discussions to receive funding from The Hewlett Foundation. The project will investigate emerging teaching techniques (such as developing curricula in Second Life and other virtual environments) and how best to make these congruent with the cognitive styles of today’s students. This topic relates directly to the Center’s objectives as it focuses on the changing media environment and the blurring of boundaries among online gaming, social networking, and online education. Research: An SJU Center for Consumer Research will be an organizational umbrella to encourage interdisciplinary research projects (e.g. the dynamics of food, pharmaceutical and apparel marketing that influence consumers’ obesity and body image, the accelerating fusion between food retailing and entertainment marketing, or the huge trend toward consumer empowerment in choices ranging from healthcare to the development of packaged goods and soft goods). Several synergistic research initiatives are already underway: In addition to the Department of Commerce grant on sustainability mentioned above, I am the P.I. on two other multi-year grants: o “A Visual Approach to the Assessment of Apparel Brand Personality and its Relationship to Brand Equity,” National Textile Center, U.S. Department of Commerce, ~ $110,000 per year for three years o “Masculine Style(s): Shifting Identities and Textile/Apparel Industry Opportunities,” National Textile Center, U.S. Department of Commerce, ~$350,000 per year for three years Prof. Wood and I are also developing consumer research initiatives with several other SJU faculty, including Profs. John Stanton (Food Marketing), Nancy Childs (Food Marketing), and Thani Jambulingam (Pharmaceutical Marketing). Outreach: The Center will be an outreach vehicle that will host conferences and executive education programs. For example, in 1985 Prof. Solomon organized and chaired the first interdisciplinary conference on The Psychology of Fashion (at New York University) that attracted over 500 academics and practitioners from diverse fields including product design, advertising and merchandising. Similarly, An SJU Center for Consumer Research will be a vehicle to enable academics, students, and industry professionals to synergistically address the consumer-related issues and problems organizations face today. Our first conference (described below) will be held in May 2008. Current Activities We have already initiated two projects in anticipation of the Center’s inception (pending approval): 1. SJU Virtual Campus: Prof. Natalie Wood and I wrote a proposal to create a Saint Joseph’s campus in the virtual world called Second Life. To date we’ve received funding commitments from the Office of University Communications, HSB, the EMBA Program, The Office of Development and the SJU Teaching Institute. The rapid growth of the virtual world phenomenon heralds a major lifestyle change for millions of consumers as well as for many businesses -- and simultaneously creates many research opportunities. We hope to involve numerous SJU faculty, administrators, students and alumni in this initiative and also to use this digital platform to develop research projects and programs. 2. Virtual Identity Conference: Prof. Wood and I have been selected by the Society for Consumer Psychology (a division of the American Psychological Association) to co-chair the 2008 annual Advertising and Psychology Conference, to be held next May in Philadelphia. The selection of our proposal was competitive. The conference typically attracts about 100 leading scholars and we will also co-edit a book composed of selected papers from the meeting. This meeting will spotlight SJU and our Center Planned Activities The following are initial possibilities for roundtables, conferences and/or research projects the Center for Consumer Research might sponsor. Obviously other topics will emerge as we work with SJU faculty and external supporters. Changing body image and ideals of beauty in men and/or women: o Note: This dovetails with my current U.S. Department of Commerce funded work on masculinity. I have also published extensively on ideals of beauty for women and my Consumer Behavior text was the first to discuss such topics as body image and eating disorders. Metabolic Syndrome (aka Syndrome X or Metabolic X Syndrome) o Note: I am working with a startup company (Fitness Factors) as part of a panel of physicians, exercise physiologists and other health professionals to develop nutrition and exercise products and assess consumer feedback prior to launch. One focus is on combating Metabolic Syndrome; a cluster of conditions that occur together and increase risk for heart disease, stroke and diabetes. I recently completed a campaign for Bayer Healthcare that promoted aspirin usage to prevent heart attacks among people over age 40, where I served as national media spokesman. Consumer values research and emerging trends in consumer behavior (e.g. trends in weight loss and appearance modification). o Note: Obviously Michael Hagan’s NutriSystem connection makes this attractive. Lifestyle branding strategies and research techniques o Note: I have helped to develop online applications to examine brand equity issues for such companies as DuPont, Calvin Klein, and Pittsburgh Paint and Glass Self-service state-of-the-art technology in grocery and retailing o Note: This area dovetails with faculty interests in Food Marketing. M-Commerce (advertising on cellphones etc.) o Note: I am currently working on a pilot project with a major carrier in this area. Consumer acceptance of organic food, sustainable clothing, home furnishings; Consumer acceptance of genetically modified foods Avatars and Graphical Interfaces: The Next Consumer Frontier o Note: Cf. our current initiatives in this area as described above. The Consumer/Technology Interface: Home of the Future o Note: I am currently serving on the Advisory Panel of Living Tomorrow, Inc., a European organization that builds facilities to showcase emerging technologies and encourage innovation across industries. Integrating Sports, Food and Entertainment Marketing (advergaming, branded entertainment, product placement, etc.) Obesity and marketing to children o Note: I am currently working with Prof. Nancy Childs (Chair, Food Marketing) on research related to this topic. Consumer compliance with pharmaceutical/medical regimens o Note: I am currently working with Prof. Thani Jambulingam (Pharmaceutical Marketing) on a grant proposal related to this topic. Ethics in cyberspace o Note: Profs. Wood, Brent Smith (Marketing) and I were recently selected as Arrupe Fellows to conduct research in this area. Outreach Activities A large number of senior executives have committed to serving on a Thought Leaders Advisory Panel for the Center. They will be an invaluable resource for directing us as we prioritize programming priorities and solicit funds for research and programming. Confirmed members to date are listed here: Joe Barstys Manager, Retention Marketing Subaru of America Bill Bieberbach VP Corporate Development RonJon Surf Shops Danielle Blugrind Director, Consumer and Brand Insights Taco Bell Peter Bongers CEO Living Tomorrow, Inc. Camille Candella Marketing Director MAGIC (Menswear Apparel Guild in California) Joe Chernov VP, Communications Bzz Agent, Inc. Joseph D’Amore, M.D., VP Fitness Factors, Inc. Tim Dunphy Sr. Marketing Manager – Consumer Insights Black & Decker Chas Fritz, CEO Neomedia Technologies Paal Fure Managing Director Vizeum (Norway) Mike Gilman CEO Data Mining Technologies Marc Gobé CEO, President and Creative Director Desgrippes Gobé Group Dee Dee Gordon Co-President Look-Look, Inc. Michael Hagan (SJU alum), CEO NutriSystems Florian Haller, CEO Serviceplan Group (Germany) Harvey Hartman CEO The Hartman Group Dick Heilman Director, Strategic Marketing, Automotive OEM Glass PPG Industries Rick Hendee VP, Marketing Services Cotton, Inc. Alexander Julian, President Alexander Julian, Inc. Brian Kurtz Executive VP Marketing Boardroom Inc. Nina Lentini Editor Marketing Daily Anne Marie Luthro VP Sales & Marketing Envirosell, Inc. Steve McCallion Director Ziba Design, Inc. Chris McCarthy Executive Vice President and Chief Operating Officer Landis Strategy & Innovation, LLC Carolyn McKernan Marketing Research Manager REI Mary Lou Quinlan (SJU alum), CEO/Founder Just Ask a Woman Jeff Shelstad Co-Founder Flat World Knowledge, Inc. Dick Silverman Director of Special Projects Fairchild Fashion Group Jordan Stanley President Stanley Marketing Works, Inc. Art Stewart President/Senior Counsel Stewart Strategies Group, LLC Kay Unger, President Kay Unger New York John Wittenbraker Managing Director, Brand & Communications GfK Custom Research North America Lee Zeidman, President Zeidman=Corporate Communications Consultants Funding Resources and Timeline Michael Hagan, CEO of NutriSystem, Inc. generously provided $100,000 to fund our startup. Pending approval of our proposal, we intend to disseminate press releases announcing the formation of the Center in late September/early October 2007. Mr. Hagan has expressed great interest in some of the initiatives described above and we anticipate that he will be further involved in funding support for the Center as these develop. We plan to pursue additional funding from several sources en route to becoming selfsustaining via income from conferences and other outreach activities: Academic/Research funding: As previously noted I receive substantial funding from the U.S. Department of Commerce. My three current projects each have at least one more year of funding eligibility. I am currently working on grant proposals for a $250,000 MacArthur Foundation grant and for support from The Hewlett Foundation. Corporate funding: As of now I have 33 senior executives (several at the CEO level) on my Thought Leaders Advisory Panel. To engage them initially I did not ask for any financial support but once we begin our work I hope to approach several of them to fund research and/or co-sponsor relevant conferences. In addition, I plan to request a corporate contribute from each Panel member as a requirement to serve once I can establish the value to members of their participation. Infrastructure and Administrative Support We hope to occupy office space within the Marketing Department, pending a reconfiguration currently in the planning stages. Prof. Phillips (Department Chair) supports this allocation. We have hired a part-time Administrative Assistant. The Marketing Department has contributed a desk and PC for her. We hope to conduct advisory panel meetings and possibly some programming in the virtual environment of Second Life as we build out our SJU campus there. As necessary we will subcontract event-planning functions to other SJU units such as the Academy of Food Marketing. CENTER FOR CONSUMER RESEARCH, HAUB SCHOOL OF BUSINESS ESTIMATED 3-YEAR BUDGET YEAR 1 Revenues Gifts-Unrestricted YEAR 2 100000.00 YEAR 3 50000.00 Gifts-Restricted Grants 10000.00 50000.00 50000.00 SJU Virtual Campus Initiative 10000.00 10000.00 10000.00 Conference Revenue/Corporate Programs Corporate membership fees 10000.00 20000.00 25000.00 50000.00 Total Revenues 120000.00 95000.00 180000.00 Personnel Expenses Faculty Salaries 24000.00 24700.00 25500.00 Teaching Release Time 10800.00 10800.00 10800.00 Administrator Salaries Support Staff Salaries 30000.00 3600.00 3600.00 3600.00 38400.00 39100.00 69900.00 Student Personnel Total Personnel Expenses Fringe Benefits 1836.00 1889.55 10950.75 Non-Personnel Expenses Supplies 5000.00 10000.00 10000.00 Travel 5000.00 15000.00 20000.00 Advisory Panel 2000.00 3000.00 5000.00 Total Non-Personnel Expenses 13836.00 29889.55 45950.75 Sub-Total Expenses 52236.00 68989.55 115850.75 Indirect Expenses (From Finance) Capital Equipment Over $5,000 Construction/Renovation Information Technology Total Capital Equipment 0.00 5000.00 5000.00 5000.00 5000.00 Total Expenses 52236.00 73989.55 120850.75 Net Results 67764.00 21010.45 59149.25