Bords de la Seine a Argenteuil (Monet)
Why? How much?
The intangible:
… is anything you can’t touch, see, taste, hear or smell
… only exists inside your head
… b...
• Services dominate the transaction value
• Services are always intangible
• You can only value a service based on expecta...
$24.5 billion
$15.9 billion
$11.9 billion
$7.7 billion
$6.5 billion
$5 billion
$3.1 billion
$1.3 trillion
Source: Forbes
$320 billion
Source: Nielsen Global AdView Pulse
• Intangible products make up a huge proportion of the global
economy
• They are essential to every company’s profitabilit...
•Type 1: Pure intangible – information only
$4 trillion
•Type 1: Pure intangible – information only
•Type 2: Intangible aspects of physical products
$5-7 trillion
•Type 1: Pure intangible – information only
•Type 2: Intangible aspects of physical products
•Type 3: Goods that are diffe...
$4 trillion
Jackson Pollock
•Type 1: Pure intangible – information only
•Type 2: Intangible aspects of physical products
•Type 3: Goods that are diffe...
$25 trillion
•Type 1: Pure intangible – information only
•Type 2: Intangible aspects of physical products
•Type 3: Goods that are diffe...
$20 trillion
16
59
Trillions of $
Tangible
Intangible
• Shared knowledge among the wearer’s
friends and acquaintances
• An investment byValentino in creating
that knowledge
• T...
Bords de la Seine a Argenteuil (Monet)
Expectation of resale value
Shared assumptions about
authenticity
Assumption of fairness…
…but what’s a reasonable price?
A story
Memories
Bragging rights
The world is complicated - how do customers
make sense of it?
Through stories.
Shared culture
Intangible value exists not in the
object, but in the common
assumptions of the world around it
Pairwise comparison
Anchoring
Limits on information processing
Priming and confirmation bias
1
2
3
4
The value of similar things
Other numbers we know
A limited subset of information
The language we use to think and talk
ab...
An object contains certain objective facts
We interpret those facts in the light of
knowledge
This becomes the subjective ...
• Limited editions
• Unique objects
• If something can’t be replaced
or obtained, there’s one less
“competitor” to hold do...
• We believe in novelty: a kind of
magic in the new
• Copies are one step behind
• The originator of a thing must
understa...
• We like to know the background
to things
• We believe in causality
• The story stimulates a richer
interaction with the ...
• We want to influence what others
think of us
• Objects trigger their interpretations
just like our own
• The object doesn’t only have
value to us – also to others
•We predict future experiences or
consequences
• Nike sneakers
• Partnership with KanyeWest
• Limited edition of 3000 pairs
• Retail price $275
• Subsequently auctioned ...
• Consulting firm
• Expertise/IP is shared widely across
the firm
• But some people are more highly
valued
• The person who wrote the book
• The person who consulted for Bill Gates
• The person who’s been onTV
• The person they’v...
• Got different people into different media
• Pro bono consulting for well-known charities/projects
• Identified different...
So why use tangible products to create intangible value?
• Credible signalling
• Salience
• Simplification
• Lack of self-...
The intangible
is ever more
important
• Everyone seeks
purpose, a narrative for
their life
• Their choices create
that purpose
• You can collaborate with
them t...
• People connect through
language and symbols
• You can be that
connection
• You unlock new relations
between people, grou...
• Already, 75% of the
economy is services
• Half of that is symbolic
services
• It is growing inexorably
• In the future, ...
Start building itTODAY.
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychol...
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Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychology can make us happy"

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Chinwag Psych London 2014
@Chinwag psychmatters.co

Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychology can make us happy"

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Chinwag Psych London 2014. Leigh Caldwell, The Irrational Agency. " Intangible value: how the limitations of human psychology can make us happy"

  1. 1. Bords de la Seine a Argenteuil (Monet)
  2. 2. Why? How much? The intangible: … is anything you can’t touch, see, taste, hear or smell … only exists inside your head … but still creates value
  3. 3. • Services dominate the transaction value • Services are always intangible • You can only value a service based on expectation • Expectation is shaped by intangible claims and knowledge
  4. 4. $24.5 billion $15.9 billion $11.9 billion $7.7 billion $6.5 billion $5 billion $3.1 billion
  5. 5. $1.3 trillion Source: Forbes
  6. 6. $320 billion Source: Nielsen Global AdView Pulse
  7. 7. • Intangible products make up a huge proportion of the global economy • They are essential to every company’s profitability • A price must be put on them
  8. 8. •Type 1: Pure intangible – information only
  9. 9. $4 trillion
  10. 10. •Type 1: Pure intangible – information only •Type 2: Intangible aspects of physical products
  11. 11. $5-7 trillion
  12. 12. •Type 1: Pure intangible – information only •Type 2: Intangible aspects of physical products •Type 3: Goods that are different but most of us can’t tell
  13. 13. $4 trillion
  14. 14. Jackson Pollock
  15. 15. •Type 1: Pure intangible – information only •Type 2: Intangible aspects of physical products •Type 3: Goods that are different but most of us can’t tell •Type 4:Tangible goods which meet a need that is intangible
  16. 16. $25 trillion
  17. 17. •Type 1: Pure intangible – information only •Type 2: Intangible aspects of physical products •Type 3: Goods that are different but most of us can’t tell •Type 4:Tangible goods which meet a need that is intangible •Type 5:Tangible goods and needs which arise from a deeper intangible need
  18. 18. $20 trillion
  19. 19. 16 59 Trillions of $ Tangible Intangible
  20. 20. • Shared knowledge among the wearer’s friends and acquaintances • An investment byValentino in creating that knowledge • The confidence of the wearer which arises from that knowledge
  21. 21. Bords de la Seine a Argenteuil (Monet)
  22. 22. Expectation of resale value Shared assumptions about authenticity
  23. 23. Assumption of fairness… …but what’s a reasonable price?
  24. 24. A story Memories Bragging rights
  25. 25. The world is complicated - how do customers make sense of it? Through stories.
  26. 26. Shared culture
  27. 27. Intangible value exists not in the object, but in the common assumptions of the world around it
  28. 28. Pairwise comparison Anchoring Limits on information processing Priming and confirmation bias 1 2 3 4
  29. 29. The value of similar things Other numbers we know A limited subset of information The language we use to think and talk about it 1 2 3 4
  30. 30. An object contains certain objective facts We interpret those facts in the light of knowledge This becomes the subjective nature of the object The object’s value now depends on our background knowledge
  31. 31. • Limited editions • Unique objects • If something can’t be replaced or obtained, there’s one less “competitor” to hold down its value
  32. 32. • We believe in novelty: a kind of magic in the new • Copies are one step behind • The originator of a thing must understand it better
  33. 33. • We like to know the background to things • We believe in causality • The story stimulates a richer interaction with the object
  34. 34. • We want to influence what others think of us • Objects trigger their interpretations just like our own
  35. 35. • The object doesn’t only have value to us – also to others •We predict future experiences or consequences
  36. 36. • Nike sneakers • Partnership with KanyeWest • Limited edition of 3000 pairs • Retail price $275 • Subsequently auctioned for $2750+ • Some pairs $90,000 Image: BornRich.com
  37. 37. • Consulting firm • Expertise/IP is shared widely across the firm • But some people are more highly valued
  38. 38. • The person who wrote the book • The person who consulted for Bill Gates • The person who’s been onTV • The person they’ve heard of • Symbols of expertise are more measurable than actual expertise
  39. 39. • Got different people into different media • Pro bono consulting for well-known charities/projects • Identified different conversations their clients might have… • …and chose different ways to participate in those conversations • Created profile for multiple staff members, not just senior ones
  40. 40. So why use tangible products to create intangible value? • Credible signalling • Salience • Simplification • Lack of self-control
  41. 41. The intangible is ever more important
  42. 42. • Everyone seeks purpose, a narrative for their life • Their choices create that purpose • You can collaborate with them to create it
  43. 43. • People connect through language and symbols • You can be that connection • You unlock new relations between people, groups and cultures
  44. 44. • Already, 75% of the economy is services • Half of that is symbolic services • It is growing inexorably • In the future, everything will be mediated through the intangible
  45. 45. Start building itTODAY.

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