David Greenwood, Author at Product Gems

💎 On the danger of relying on recall alone as a measure of ad effectiveness (unconscious familiarity breeds affection)

Research has shown that print adverts processed outside of conscious awareness shift attitudes just as much as those processed consciously. In one study, 80 subjects were exposed to adverts either deliberately (they were asked to look at them) or incidentally (they were asked to assess the layout of the magazine page opposite). Afterwards, the group were asked to rate 50 adverts and say whether they had seen them earlier. Just 11% of those who had seen them incidentally recalled the ads that had been shown, but their ratings of them as more memorable, appealing, eye-catching, and distinctive were just as positively biased over the adverts not shown as those who had been exposed to them deliberately. It appears that the unconscious mind recognizes what it has seen before and, because it is familiar, can process it more fluently, which creates the feeling of liking something more – unconscious familiarity breeds affection!

Excerpt from: Consumerology: The Truth about Consumers and the Psychology of Shopping by Philip Graves

💎 On the danger of industry navel gazing (look outside)

As I look at the advertising being produced at the moment, at least in Britain, it seems to me that much of it has been produced in total isolation from the real world. The prose style that’s used in press copy owes nothing to any other prose style except that used in other advertisements. The makers of advertisements seem increasingly obsessed by only one subject: advertisements. If this is so, then two consequences will follow. First, since the receivers of advertisements are only too conscious of the rest of the world – socially, politically, culturally, economically – then the advertisement will fail adequately to connect the advertised brand or service to that bigger, truer world. And second, imitation and lack of originality become more likely. Advertising is feeding, I think, far too much on advertising, and not nearly enough on the wider, far more interesting world outside.

Excerpt from: Behind the Scenes in Advertising, Mark III: More Bull More by Jeremy Bullmore

💎 On the importance of being interesting (not just being right)

She wants Mr. Interesting.

In the pub, who do you want to listen to?

The bloke who’s always right?

Or the bloke who’s always interesting?

Being right is overrated.

Because being right is seen as the truth.

But what is the truth?

The truth is whatever you believe it is.

And you only believe what you want to believe.

And you only want to believe what’s interesting.

Excerpt from: Creative Mischief by Dave Trott

💎 On the power of saying things simply (I’m hit)

“It’s over.” “It’s a boy.” “We’re going to win.” “He’s dead.” These are the words of big events. Because they are big you speak with utter and unconscious concentration as you communicate them. You unconsciously edit out the extraneous, the unneeded. (When soldiers take a bullet they don’t say, “I have been shot,” they say, “I’m hit.”)

Good hard simple words with good hard clear meanings are good things to use when you speak. They are like pickets in a fence, slim and unimpressive on their own but sturdy and effective when strung together.

Excerpt from: On Speaking Well by Peggy Noonan

💎 On the power of brand familiarity (friendship for the product)

Whether it is an impulse purchase like a candy bar or a package of cigarettes or an infrequent and highly deliberated purchase like a washing machine a refrigerator, a vacuum cleaner or a mattress, the biggest single thing that advertising can contribute is a friendly predisposition toward the brand—a whole complex of thoughts and emotions which give the purchaser peace of mind in the choice he makes.

We shun the unknown. We are naturally drawn to the familiar.

You might call this simply “friendship for the product”.

Your best friends are people whose qualities you like and admire and whom you enjoy being with— but they are usually people you see frequently.

The principle of frequency in advertising has long been recognized. Several great brands have been built around rigid adherence to this principle rather than through the content or power of any single advertisement.

Excerpt from: Leo: A Tribute to Leo Burnett, Through a Selection of the Inspiring Words that He Wrote or Spoke by Leo Burnett

💎 On the danger of prioritising the creative idea over the execution (the importance of craft)

The other big thing I learnt from John is the importance of craft. There is a universal fashion now to talk about the importance of creative ideas. If that means that good campaigns always have some kind of internal logic and coherence to them (even if that’s hard to put into words), I’ll maybe agree. But very often it sounds as if having the ‘idea’ is the only difficult, ‘creative’ bit, and the rest is mere ‘execution’. People respond to ads, however, not to abstract ideas: ads that exist in the full details of how they look, how they sound, the timing of the edit, the camera angles, the soundtrack, the lighting, every nuance of sets and propping and casting… and so on. If there’s such a thing as a ‘creative idea’ (which I doubt, though I don’t have room here to get too philosophical), we only know about it because of the execution that embodies it.

Excerpt from: Eat Your Greens by Wiemer Snijders

💎 On the risks of safe advertising (you’re invisible)

“An idea that hasn’t been done before might, on the surface, look really risky,” argues Bob Isherwood, worldwide creative director of Saatchi & Saatchi. “It’s an area where no one has been before. There is no precedent. But usually the biggest risk lies in ideas that are predictable, because ideas that are predictable don’t get noticed. You can’t sell anything to anyone unless they notice you. To get a boring ad noticed, you’ve got to run it lots and lots of times. If you’ve got a really original message, you only need to run it a few times. People retain the message longer and it costs the client less.”

“People think the low risk thing is not to run the high risk idea, observes Stow. “The biggest risk is to be safe, because if you’re safe you’re invisible and you waste your money.”

Excerpt from: Cutting Edge Advertising: How to Create the World’s Best Print for Brands in the 21st Century by Jim Aitchison

💎 On how innovative brands don’t start fully formed (bow ties at Starbucks)

For instance, when Howard Schultz launched what would become Starbucks, he modeled the stores after Italian coffee houses, a new concept for the United States. Schultz was definitely onto something, but the baristas wore bow ties (which they found very uncomfortable) while customers complained about the menus being written primarily in Italian as well as the nonstop opera music. What’s more, the stores had no chairs. The Starbucks experience that emerged from the many refinements and tweaks obviously looks and feels quite different from Schultz’s initial concept.

Excerpt from: Little Bets: How breakthrough ideas emerge from small discoveries by Peter Sims

💎 On how our emotions lead us to become less sensitive to differences in the magnitude of numbers (buyer beware)

Research scientists Christopher Hsee and Yuval Rottenstreich have asserted that people’s judgement and decision-making abilities can be impaired by an event such as the SARS outbreak, not because it induces negative feelings, but rather because it is an emotionally charged issue, regardless of the nature of the feelings it produces. Specifically, they argue that emotions lead people to become less sensitive to differences in the magnitude of numbers; they’re more likely to pay attention to the simple presence or absence of an event. In business terms, what this means is that people are more likely to pay attention to the simple presence or absence of an emotion-laden offer than to the specific numbers involved.

To test this idea, the researchers asked participants to spend a brief period of time thinking about some issues either emotionally or non-emotionally. Shortly afterwards, these research subjects were told to imagine that someone they knew was selling a set of Madonna CDs. Half of them were told that there were five CDs in the bundle, whereas the other half were told that there were ten. Participants were then asked to report the maximum amount they’d be willing to pay for the bundle.

The researchers found that those who had earlier practised thinking in an unemotional manner were willing to pay more for the set of ten CDs than for the set of five, which is quite rational. More interestingly, however, those who had earlier practised thinking in an emotional manner were less sensitive to the difference in the number of CDs, reporting that they would pay roughly the same for each set.

The results of this research suggest that emotional experience can have a detrimental impact on decision-making, perhaps allowing you to be persuaded by an offer when you shouldn’t be.

Excerpt from: Yes! 50 Secrets from the Science of Persuasion by Noah Goldstein, Steve Martin and Robert Cialdini

💎 On breaking comparisons with your competition to charge an eye-watering premium (launching Haagen-Dazs)

When we launched Haagen-Dazs in the UK in the early 90s we were in the middle of a recession. Not the best of times to be launching a luxury ice-cream brand. We positioned the brand as a sensual pleasure. We didn’t compare it to other ice creams, in fact we hardly mentioned the word ice cream. But at £3 a pot it was not only accessible, it was the most stylish pleasure you could purchase. The brand took off. Haagen-Dazs weren’t in the ice cream business, they were in the sensual pleasure business.

Sadly, over time, a succession of brand owners dragged it back to the ice cream sector. Now it’s just one of a number of ice creams fighting for attention in the supermarket freezer. Imagine where they could have taken that brand had they realized the potential of where we had positioned it – they didn’t realize we’d created a fashion brand.

Excerpt from: Hegarty on Advertising: Turning Intelligence into Magic by John Hegarty

💎 On hard to read fonts improving the care with which people read (Moses’s Arc)

If there is a dark side to fluency, might there be a bright side to its opposite, disfluency? Alter’s work suggests there might be. In one of his studies, he printed a simple, easy-to-read question: “How many animals of each kind did Moses take on the ark?” Many respondents said two. But when the question was printed in a harder-to-read font, respondents were 35 percent more likely to recognize that it was Noah, not Moses, who built the ark. The less legible font made people more careful readers.

Excerpt from: Hit Makers: The Science of Popularity in an Age of Distraction by Derek Thompson

💎 On how labels can determine how enjoyable our experiences are (cheese and body odour)

Recent research indicates that suggestion not only influences what we smell, but also how we react to smells. In 2005 researchers at Oxford University asked subjects to sniff two odors, one labeled cheddar cheese and the other body odor. Predictably, the subjects rated the body odor as significantly more unpleasant. However, the two smells were identical. Only the labels differed. Consider that the next time you’re enjoying some especially pungent cheese at a cocktail party.

Excerpt from: Elephants on Acid and other bizarre experiments by Alex Boese

💎 On how the sunk cost fallacy can lead to bad decisions (choosing fear of loss over enjoyment)

Hal Arkes and Catehrine Blumer created an experiment in 19S5 which demonstrated your tendency to go fuzzy when sunk costs come along. They asked subjects to assume they had spent S100 on a ticket for a ski trip in Michigan, but soon after found a better ski trip in Wisconsin for S50 and bought a ticket for this trip too. They then asked the people in the study to imagine they learned the two trips overlapped and the tickets couldn’t be refunded or resold. Which one do you think they chose, the $100 good vacation, or the $50 great one?

Over half of the people in the study went with the more expensive trip. It may not have promised to be as fun, but the loss seemed greater. That’s the fallacy at work, because the money is gone no matter what. You can’t get it back. The fallacy prevents you from realizing the best choice is to do whatever promises the better experience in the future, not which negates the feeling of loss in the past.

Excerpt from: You Are Not So Smart: Why Your Memory Is Mostly Fiction, Why You Have Too Many Friends On Facebook And 46 Other Ways You’re Deluding Yourself by David Mcraney

💎 On how the money illusion affects our concept of fairness (a lesson on Wall Street bonuses)

A company is making a small profit. It is located in a community experiencing a recession with substantial unemployment but no inflation. There are many workers anxious to work at the company.

The company decides to decrease wages and salaries 7% this year.

Sixty-two per cent judged the pay cut unfair.

In an another version of the question, the community was said to have ‘substantial unemployment and inflation of 12% . . . The company decided to increase salaries only 5% this year.’ Now 78 per cent said this was acceptable. But of course the workers’ lot is almost identical in both versions. Getting a 5 per cent ‘pay rise’ when prices rise 12 per cent translates into nearly a 7 per cent cut in buying power.

One conclusion is that inflation is the Scroogish employer’s best friend. A similar principle applies to bonuses. It was judged acceptable for a troubled company to skip an annual 10 per cent bonus it had been in the habit of paying, but not to cut pay by 10 per cent for a year. (Wall Street employers, at the mercy of a volatile market, have long made use of this.)

Excerpt from: Priceless: The Myth of Fair Value (and How to Take Advantage of It) by William Poundstone

💎 On how the safety of success encourages Hollywood sequels (Fast and Furious 928)

Take Hollywood, for instance: Among the ten highest-grossing movies of 1981, only two were sequels. In 1991, it was three. In 2001, it was five. And in 2011, eight of the top ten highest-grossing films were sequels. In fact, 2011 set a record for the greatest percentage of sequels among major studio releases. Then 2012 immediately broke that record; the next year would break it again. In December 2012, journalist Nick Allen looked ahead with palpable fatigue to the year to come:

Audiences will be given a sixth helping of X-Men plus Fast and Furious 6, Die Hard 5, Scary Movie 5 and Paranormal Activity 5. There will also be Iron Man 3, The Hangover 3, and second outings for The Muppets, The Smurfs, GI Joe and Bad Santa.

Excerpt from: Algorithms to Live By: The Computer Science of Human Decisions by Brian Christian and Tom Griffiths

💎 On how the company a brand keeps determines what consumers think of it (who are you compared to?)

When consumers who know a lot about cars were asked to evaluate a Honda ad, they rated it more favourably when it was surrounded by ads for prestigious brands like Armani and Rolex, than when it was in the context of less premium brands like Timex and Old Navy. When Simonson and Yoon compared how people evaluated the attractiveness of a series of products, including lawn mowers, food processors, and cars, they found that the strength of preference for a product was influenced by the context of choices presented at the time. For example, when a pen was selected from a set where it was significantly better than another, participants would pay more for it and think it wrote better than when the same pen was selected from a more balanced set of options. With the vast sums spent on advertising, a relatively small investment replicating Simonson and Yoon’s study for your own products and media options could lead to a dramatic difference in the way people feel about your brand.

Excerpt from: Consumerology: The Truth about Consumers and the Psychology of Shopping by Philip Graves

💎 On how statistics lack emotional impact when compared to images (numbers versus coffins)

For eighteen years, the American media was prohibited from showing photographs of fallen soldiers’ coffins. In February 2009, defence secretary Robert Gates lifted this ban and images flooded on to the Internet. Officially, family members have to give their approval before anything is published, but such a rule is unenforceable. Why was this ban created in the first place? To conceal the true costs of war. We can easily find out the number of casualties, but statistics leave us cold. People, on the other hand, especially dead people, spark an emotional reaction.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On how research nearly killed the great Audi slogan (confident brand heritage)

This was the case with our early work for Audi, and even by 1983 we were still struggling to establish the Audi’s German heritage in a way that was motivating and memorable. We’d written a number of commercials that were due to air but still needed a hook to tie them together.

I remember, on one of my trips to the Audi factory in Ingolstadt, seeing the line ‘Vorsprung durch Technik’ on a fading piece of publicity. When I asked about it our guide dismissed it, saying it was an old line they used in the early 70s.

But it stuck in my mind. When it came to binding our different commercials together I thought, why not use this line? And, importantly, let’s keep it in German. Mad as that sounds…

Excerpt from: Hegarty on Advertising: Turning Intelligence into Magic by John Hegarty

💎 On how priming lowers our threshold of attention (Baader-Meinhof phenomenon)

Have you ever learned a new word (or heard of an obscure sea mammal or an ethnic dance) and then encountered it several times in the space of a few days? You come across it in the news, you overhear it mentioned on the bus and on the radio, and the old issue of National Geographic you’re thumbing through falls open to an article on it. . .

This is priming (fortified with a few low-grade coincidences). When yon skim the newspaper, half-listen to TV, or drive on the motorway, you ignore most of what’s going on around you. Only a few things command attention. Paradoxically, it is unconscious processes that choose which stimuli to pass on to full consciousness. Prior exposure to something (priming) lowers the threshold of attention, so that that something is more likely to be noticed. The upshot is that you have probably encountered your ‘new’ word or car many times before. It’s just that now you’re noticing.

Excerpt from: Priceless: The Myth of Fair Value (and How to Take Advantage of It) by William Poundstone

💎 On how passing up short term wins can bring long term gain (frame the context)

Mark Twain tells the story of a young boy he met in the mid-West. Every time a stranger came into town the other boys delighted in showing the stranger just how stupid this boy was.

They’d hold out two coins, a dime (10 cents) and a nickel (5 cents) and tell the boy he could keep one.

He’d always pick the nickel because it was bigger.

Every time he did it all the other boys laughed.

Mark Twain took him aside and said, “Son, I have to tell you that the small coin is worth more than the bigger one.”

The boy said, “I know that mister. But how many times do you think they’d let me choose if I picked the more valuable one?”

In the original context, the boy is stupid.

Change the context, and he’s smart.

Excerpt from: Creative Mischief by Dave Trott

💎 On how our expectations of a product shape our experience of it (our beliefs are hard to break)

Consider green goods. Rebecca Strong and I conducted an experiment to quantify the impact of labelling washing-machine tablets as ‘ecologically friendly’.

We sent a group of consumers the same type of washing-machine tablet. They washed a load of clothes and reported back on the tablets performance. The twist was that half were told that they were testing a standard supermarket tablet, the other half a green variant.

Once again, there was an element of subterfuge. We didn’t ask consumers directly what they thought of green goods. Generally, they make positive noises. Instead, we monitored behaviour in test and control conditions.

The results were clear. Those who used the green variant rated the tablet as worse on all metrics.

Respondents scored the eco tablet 9% lower for both effectiveness and likeability, while the number who would recommend the product was 11% lower and the number who would buy it themselves, 18% lower than for the standard version.

Despite eco-friendly products often having a higher price, consumers who tested the green tablet were only prepared to pay £4.41 on average compared to £4.82 for the standard version. Consumers believe that products involve a trade-off: improved eco-friendliness entails corresponding loss in cleaning efficacy. This is a concern for any brand interested in a green variant. If brands in this category are going to successfully sell green variants, they’ll need to counteract these negative associations, or spend heavily to bolster their cleaning credentials.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On how our behaviour can change the physical make up of our brain (e.g. London cab drivers)

It’s not just repeated physical actions that can rewire our brains. Purely mental activity can also alter our neural circuitry, sometimes in far-reaching ways. In the late 1990s, a group of British researchers scanned the brains of sixteen London cab drivers who had between two and forty-two years of experience behind the wheel. When they compared the scans with those of a control group, they found that the taxi drivers’ posterior hippocampus, a part of the brain that plays a key role in storing spatial representation won much larger than normal.

Excerpt from: The Shallows: How the internet is changing the way we think, read and remember by Nicholas Carr

💎 On how much we’re prepared to pay for a product being partly determined by what we compare it to (beer versus wine)

I ran an experiment among my colleagues using King Cobra, a little known variant of Cobra lager. It’s a strong Indian beer, with an ABV of 7.5%, and it comes in a 750ml serving, the same size as a wine bottle.

A little subterfuge was required. I told my colleagues that we needed to run some tastings for a client. I organised two separate tastings of the beer alongside half a dozen other drinks. The participants rated the taste of the drinks on a scale from one to ten and said how much they’d be prepared to pay for each one in a supermarket.

The twist was that in each tasting Cobra was served alongside a different selection of drinks: in the first case bottled beers; in the second wines. The accompanying drinks had a significant effect on the amount people were prepared to pay for Cobra. When it was accompanied by bottled beers they offered £3.75, but when it was served with a selection of wines that rose, by 28%, to £4.80.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On how much we value a product partly depending on what we compare it to (choose your comparisons carefully)

Christopher Hsee, George Loewenstein, Sally Blount and Max H. Bazerman once ran an experiment in which they asked people browsing used textbooks how much they would pay for a music dictionary that had 10,000 words and was in perfect condition. Another group was asked how much they would pay for a music dictionary with 20,000 words but a torn front cover. Neither group knew about the other dictionary. On average, the students were willing to pay $24 for the 10,000-word dictionary and $20 for the cover-torn 20,000-word one. The cover – irrelevant to looking up words – made a big difference.

The researchers then cornered another group and presented them with both options simultaneously. Now the students could compare the two options side by side. That changed their perception of the products. In this easy-to-compare group, the students said they would pay $19 for the 10,000-word dictionary and $27 for the 20,000-word one with the torn cover. Suddenly, with the introduction of a more clearly comparable aspect – number of words – the larger dictionary became more valuable, despite the torn cover.

Excerpt from: Small Change: Money Mishaps and How to Avoid Them by Dan Ariely and Jeff Kreisler

💎 On how survey answers can be swayed (by how question is asked)

For example, a questionnaire on the number of headaches people experience in one week was given to two different groups of subjects. One group had to indicate whether the number was 1-5, 6-10, 11-15, and so on, while the other was presented with the numbers broken down into 1-3, 4-6, 7-9, etc. The first group reported many more headaches than the second. Moreover, almost everyone is influenced by the two end points of a scale, tending to pick a number that is near the middle.

Excerpt from: Irrationality: The enemy within by Stuart Sutherland

💎 On how contactless payments reduce price sensitivity (beware overspend)

What about new payment technologies?

Recently we have seen a flurry of new payment methods – the most widespread of which are contactless cards. Gabrielle Hobday and I investigated how contactless cards affected price sensitivity by posing three questions to people leaving coffee shops in Central London:

How much did you spend?

What means of payment did you use?

Please can we see your receipt?

The last question was crucial, as it let us compare recollection with reality.

The findings were striking. People paying with cash typically overestimated their spend by 9%, whereas those using contactless cards underestimated by 5%. A stretch of 14 percentage points. Credit card estimates were, in contrast, spot on.

The variation is important: on a typical supermarket shop of £25, the 14% difference between recollections of spend on a contactless card and cash amounts to £3.50. Contactless cards could be the difference between remembering a shopping trip as expensive or cheap. It is this memory that determines whether shoppers return. A positive recollection can either be achieved by steep discounting, which erodes profits, or by an innovative approach to payment.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On speculation about the future often being pointless (as it is little better than chance)

It’s fun to speculate about what those inventions might be, but history cautions against placing much faith in futurology. Fifty years ago, Herman Kahn and Anthony J. Wiener published The Year 2000: A Framework For Speculation. Their crystal-ball gazing got a lot right about information and communication technology. They predicted colour photocopying, multiple uses for lasers, ‘two-way pocket phones’ and automated real-time banking. That’s impressive. But Kahn and Wiener also predicted undersea colonies, silent helicopter-taxis and cities lit by artificial moons. Nothing looks more dated than yesterday’s technology shows and yesterday’s science fiction.

Excerpt from: Fifty Things that Made the Modern Economy by Tim Harford

💎 On how modern tech can weaken our memory (smartphone cameras)

But a 2013 study conducted by Linda Henkel of Fairfield University pointed in that direction. Henkel noticed that visitors to art museums are obsessed with taking cell-phone shots of artworks and often are less interested in looking at the art itself. So she performed an experiment at Fairfield University’s Bellarmine Museum of Art. Undergraduates took a guided tour in which they were directed to view specific artworks. Some were instructed to photograph the art, and others were simply told to take note of it. The next day both groups were quizzed on their knowledge of the artworks. The visitors who snapped pictures were less able to identify works and to recall visual details.

Excerpt from: Head in the Cloud by William Poundstone

💎 On how deference to authority can distort memories (status and height)

In the experiment conducted by Wilson on 5 classes of Australian students a man was introduced as a visitor from Cambridge University in England. However, his status at Cambridge was represented differently in each of the classes. To one class, he was presented as a student; to a second class, a demonstrator; to another, a lecturer; to yet another, a senior lecturer; to a fifth, a professor. After he left the room, each class was asked to estimate his height. It was found that with each increase in status, the same man grew in perceived height by an average of a half inch, so that as the “professor” he was seen as two and a half inches taller than as the “student.”

Excerpt from: Influence: The Psychology of Persuasion by Robert Cialdini

💎 On how developments in seemingly inconsequential areas trigger much more improved developments in another (the hummingbird effect)

I have called this phenomenon “the hummingbird effect”: the process by which an innovation in one field sets in motion transformations in seemingly unrelated fields. The taste for coffee helped create the modern institutions of journalism; a handful of elegantly decorated fabric shops helped trigger the industrial revolution. When human beings create and share experiences designed to delight or amaze, they often end up transforming society in more dramatic ways than people focused on more utilitarian concerns.

Excerpt from: Wonderland: How Play Made the Modern World by Steven Johnson