Marketing 307 Contagious

What did Apple decide to do with respect to the logo on its PowerBook laptop?
Ken and Jobs flipped the Apple logo so that it looks up right to the rest of the world when the laptop was in use. The reason being observability. Jobs realized that seeing others do something makes people more likely to do it themselves. Key factor: Public Visibility. Something more observable makes it easier to imitate.
What does “social proof” involve?
People imitate others because others’ choices provide information. To help solve our uncertainty we look to what other people are doing and follow that. We assume that if other people are doing something, then it must be a good idea; they probably know something that we don’t.
What was observed concerning the New York City Halal Chicken and Gyros?
That the almost identical food cart across the street called Halal Guys had absolutely no line while Halal Chicken and Gyros had a line stretching all the way down the block. Even though they both deliver the same food, Halal Guys has never developed the same following because of social proof. People assume that the longer the line, the better the food must be
What appears to be the reason why so many donated kidneys are rejected by patients to whom they are offered?
Based on social proof. Considering that the transplant is offered to the people highest on the list, and lets say you’re number 90. Then 90 other people have turned down that kidney. So due to social proof, if it has been denied by many other people, you’re likely to assume that the kidney is low quality and reject it. People make their decisions based on what other people are deciding; even though the kidney just may have not been a match for the 90 previous people.
What did the study of MBA students and their life plans find?
Before students entered the MBA program they possessed a diverse set of career paths. But once they were a year into the MBA program, many students changed their career paths to investment banking or consulting, due to social influence. Students aren’t sure what career to choose so they look to others
What was the experience at the University of Arizona on campaigns to reduce binge drinking among students?
It was found that most students were against binge drinking. But the reason as to why so many students continue to binge drink is due to social proof. When you see your peers drinking and feeling happy about it, you assume you are the outlier and then have another drink. But students don’t realize that everyone else is having the same negative binge drinking thoughts because thoughts are private and students don’t share. It’s an ongoing cycle.
How does this idea apply to anti-drug advertising?
Making the anti-drug campaign actually increased the use of drugs because it increased the awareness of drug use among kids-made drug use more public. Before seeing the message, kids might have never thought about taking drugs. The campaign advertises the idea that the cool kids will generally be the ones to ask. So, if kids see that the cool kids are doing drugs, then they are more likely to think that it is normal and something that they should be doing.
How does the campaign involving growing mustaches work?
Observability; Making the private public. Men figured out how to support an abstract cause-Prostate Cancer- by attached something observable to it, a mustache. It became a public movement in November to not shave your beard for the whole month, so then when people ask what’s up with the facial hair, the person shares the social currency and generates new devotees to the cause.
What is the rationale given for the rapid growth of the Hotmail e-mail service?
Leveraged observability to help their product catch on. At the bottom of every email send from Hotmail accounts, there was a message that said “Get Your Private, Free E-mail from Hotmail” Every time a customer sent an email they also sent prospective customers a bit of social currency.
What is the unique design feature of Christian Louboutin shoes? What is the impact of this?
He designed a shoe that advertises itself. He designed shoes where the sole is a red polish. They’re distinctive and easy to see, which makes them easily recognizable.
What does Prospect Theory predict? What are some practical applications of this?
a. The way people actually make decisions violates standard economic assumptions about how they should make decisions. People don’t evaluate things in absolute terms; they evaluate them relative to a reference point
b. 50 cent coffee in New York compared to in India; BBQ scenario that we tend to buy the one where there is a better deal even if its more expensive than the one with the lesser deal; Old people always think everything is over priced because they compare them to how things were priced in the old days; infomercials
What was found in the catalog sales study?
Consumers find the idea of a discount so powerful that merely labeling it “on sale” will increase purchases. In one catalog the dresses were marked as being on sale where as in the other the dress wasn’t marked as anything, but they were the same price. Even though the prices were the same, using the word sale by the dress increased sales.
What are some methods used in infomercials to make the offer look more attractive? How do these work?
They set a high reference point, to make the price they’re offering appear as a steal. They also set a reference quantity where they will throw in two of the items for the same price making it appear as an even better deal.
What does “diminishing sensitivity” involve?
The same change in price has a smaller impact as you move away from the reference point, as in zero dollars or not winning anything.
Ex: When winning a lottery 1,020 & 1,010 isn’t really that much of a difference compare to 30 & 20. Or when buying a TV for 650, you’re not willing to drive 20 minutes to save ten dollars, but if you’re buying a clock for 30, you’re willing to drive 20 minutes to pay 20.
What does the author suggest about quantity limits on deals?
More people would buy products where there are limited quantities. The believe that its such a good deal that they would be more inclined to buy it.
What does the “Rule of 100” involve?
If a products price is less than a hundred dollars, then the Rule of 100 says percentage discounts will seem larger. If the products price is more than 100, then dollars off will seem larger.
Ex: 10% of a $2000 laptop, or 200 dollars off?
Why is it that information with a broader potential audience is not necessarily more likely to be shared?
Because no one person will come to mind when you come across related content, however narrower content will be shared more because a specific person/group will come to mind
What does the story of the Trojan Horse illustrate?
When the war came to a draw, and the Trojans thought the Greeks had left them a horse and fled the area. They began to celebrate and took the horse into their gates, consuming large amounts of alcohol. Once they were asleep the Greeks broke out of the horse and then opened the gates letting the rest of the Greeks in. And then they destroyed the town/area. By creating a story around the lesson ” never trust your enemies, even when they seem friendly” in a story, ensured that it would be passed along-even taken more to heart than if the lesson was just spoken. People think in terms of narratives, so when they are reading/listening to the story the information comes along.
What is the idea behind the notion of “stories as vessels?”
Stories act as vessels because they are carriers that help transmit information to others.
Why does the author suggest that “People are less likely to argue against stories than against advertising claims?
a. Stories provide PROOF BY ANALOGY- the mere fact that someone experienced the great customer service, makes you feel that there is a good chance that it will happen to you.
b. It’s hard to trust advertisements because their overall goal is to sell something. (1) SO it’s hard to disagree with a specific incident that happened to someone. (2) ALSO, when narratives are being told we’re so caught up in their story that we don’t have the cognitive resources to disagree. So we usually end up being persuaded.
What does the Lands’ End story suggest?
a. The guy moved to the east coast from the west coast and bought a stylish jacket that wasn’t really withstanding the cold like he expected. So then he decided to by a down jacket, which served its purpose. But then, he broke the zipper. So he decided to contact customer service, expecting them to tell him to buy another one, but they ended up sending him a new one fee of charge.
b. That there was a handful of useful information that came from such a simple, deceptive story (narrative). You thought it was going to turn out bad, but then it ended up being really successful and happy.
What does the author suggest about the Evolution film sponsored by Dove?
That is was widely shared because it publicized unrealistic beauty norms. It is a highly emotional issue. It got people talking about beauty norms, while also incorporating the brand in the story. Dove created a vessel that carried its brand along for the ride.
How did the story of Jared’s “Subway diet” have going for it, helping it spread?
a. Jared was really heavy and was choosing classes based on the desks that could fit him, and then his roommate told him that he needs to loose weight. So then he began to eat a foot-long for lunch and a 6inch for dinner. He ended up loosing 245 pounds.
b. It might be bad to have Jared as the spokesperson because he might gain the weight back.
c. Its remarkable (social currency):
d. Evokes surprise and amazement (Emotion): its astonishing how much weight he lost by just eating subway sandwiches.
e. Provides useful information about healthy fast food (Practical Value)
f. There is a lot of information in a little story about Jared, not even about Subway. However Subway gains publicity when people talk about Jared.
Why was the Golden Palace Olympic stunt not effective?
Because the stunt had nothing to do with the casino he was trying to promote. Instead, people were more inclined to talk about the remarkable story and certain things such as the impact it had on other athletes, but they left out the website for the casino on his chest because it was irrelevant.
What as found in the case of Evian’s “Roller Babies” video? Why?
a. It also failed because roller babies have nothing to do with Evian. So people would share the clip, but nobody would talk about the brand because it had no significance.
b. A better way to incorporate the water with the babies would maybe to have them drink the water. ¬
What is the reason suggested for the effectiveness of the Panda Cheese ads?
a. The panda knocks over their cart and then they have another stare down and then the slogan comes across that says “Never say no to Panda.” So then when the child asks his father about the panda cheese, then he agrees.
b. Valuable virality- the brand is an integral part of the story. In order for the story to make sense, you have to mention the panda. It increases the chance that people telling the story will talk about Panda the brand and remember what product the commercial is for.
What did the Allport and Postman study on rumors find?
a. The fact that is took place in a subway and the knife stuck with the story. While other details didn’t.
b. 70% of the story’s details were lost in the first 5-6 transmissions, but stories also became focused around more key details/main point. Certain details were left out while others constantly remained.
Why are a high proportion of nail salons owned by Vietnamese Americans?
Story: Actress, Tippi Hedren, wanted to help the women refugees so became their mentor. The women were fascinated by her nails, so Hedren brought her manicurist to teach them how to perform manicures. Then Hedren got the women free classes at the beauty school nearby. Then Hedren helped them get jobs around the surrounding cities. At first it was hard, but then they began to make money. Once friends saw the ladies success, the decided to get into the business and so forth.
What have been some similar experiences by other ethnic and immigrant groups?
a. Cambodian Americans own approx. 80% of the doughnut shops in LA.; Koreans own 65% of the dry cleaners in New York City; In the 1850’s, 60% of liquor stores in Boston were run by Irishmen.
e. When immigrants move to a new country, their options are limited due to language barriers, difficulty to transfer previous ceritifications or qualifiications, and they don’t have as many contacts here as back home. So they look to their friends and acquaintances for help.
f. Triggers: new immigrants looking for work
g. Practical Value: they’re helping their fellow acquaintances
h. Emotion: the stories are exciting
i. Stories: they tell the narrative of their journey
j. Social currency: it makes the story tellers look good
k. Public: all immigrants are looking for jobs
What is the STEPPS framework?
a. Social Currency: We share things that make us look good
b. Triggers: Top of mind, tip of tongue
c. Emotion: When we care, we share.
d. Public: Built to show, built to grow.
e. Practical Value: News you can use.
f. Stories: Information travels under the guise of idle chatter
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