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Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
Absolute value DBW14 Emanuel Rosen
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Absolute value DBW14 Emanuel Rosen

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A short talk about our book "Absolute Value: What Really Influence Customers in the Age of (Nearly) Perfect Information" given at DBW14 (January 15, 2014). For more about the book, go to …

A short talk about our book "Absolute Value: What Really Influence Customers in the Age of (Nearly) Perfect Information" given at DBW14 (January 15, 2014). For more about the book, go to www.AbsoluteValueBook.com (Itamar Simonson and Emanuel Rosen

Published in: Business, Self Improvement
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  • 1. What Really Influences Customers in the Age of (Nearly) Perfect Information @EmanuelRosen
  • 2. When marketing theories were developed, consumers made decisions very differently
  • 3. We’ll reexamine common beliefs about… ❶ Branding ❷ Loyalty ❸ “Irrationality” ❹ Communication ❺ Market Research
  • 4. What exactly has changed in the way consumers make decisions? A shift from relative to absolute
  • 5. I used a Toshiba that worked fine It’s the most expensive so it must be the best
  • 6. O
  • 7. A Customer’s Decision is influenced by a mix of three sources O P Prior preferences O Other people M M Marketers
  • 8. ❶ Branding Common belief: “A company’s brand is more important today than it has ever been.”
  • 9. “Higher Yelp penetration leads to an increase in revenue for independent restaurants, but a decrease in revenue for chain restaurants” Source: Michael Luca, “Reviews, Reputation, and Revenue: The Case of Yelp.com,” Harvard Business School Working Paper No. 12-016, September 2011.
  • 10. Implication: Brands Mean Less • Lower barriers to entry • Easier Diversification
  • 11. ❷ Loyalty Common belief: Nurturing customer loyalty is the best investment.
  • 12. What percentage of guests always stay at the same 8% hotel brand? ___ Source: Deloitte
  • 13. Past Experience and Loyalty are Less Important • Success is driven by your current product • Your competitors face the same problem • Measuring loyalty is less informative
  • 14. ❸ “Irrationality” Common belief: Customers are irrational. Choices greatly influenced by context and framing of an offer
  • 15. Consumers act more rationally • “Irrationality” tactics not as effective • As consumers, we’ll make better choices
  • 16. ❹ Communication Common belief: Positioning, brand awareness, persuasion are key
  • 17. When Consumers Rely on Reviews • Don’t try to persuade them that your product is the best. (They go to O for that) • Positioning worked when they relied on M • Don’t focus on brand awareness • Generate interest in specific products • Promote ongoing flow of O content
  • 18. ❺ Market Research Common belief: Ask lots of questions and you’ll know what consumers want
  • 19. A 2007 study conducted before the release of iPhone concluded that such convergent products are not desired by U.S. consumers
  • 20. The Problem? The study measured __ P but consumers were influenced by __ O
  • 21. From Predicting to Tracking • Less measurement of P, satisfaction, loyalty. • More systematic tracking of O. • Experiment. Adjust. Experiment.
  • 22. We reexamined five concepts: ❶ Branding ❷ Loyalty ❸ “Irrationality” ❹ Communication ❺ Market Research @EmanuelRosen http://www.absolutevaluebook.com/

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