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Maximillian Kaizen

Making Choices in the Age of Information Overload - NYTimes.com - 0 views

www.nytimes.com/...e-of-information-overload.html

productivity Economics money choices brand pricing

shared by Maximillian Kaizen on 21 May 12 - No Cached
  • Maximillian Kaizen on 21 May 12
     
    While online competition generally drives down commodity prices, consumers have proved willing to pay more for their favorite specialty products. And there are many of them. Back when brand signaling tended to travel through broad channels like TV ads or the sides of buses, companies narrowed their offerings. They tended toward a few bland, least-common-denominator goods, like watery beer and one kind of minty toothpaste. The Internet and advances in manufacturing now allow for a much wider range of products aimed at narrower consumer interests. I might pay more for a craft beer and a bar of deluxe chocolate, but I'll be happier than when I was saving money buying Bud Light and a waxy Hershey's bar.
Maximillian Kaizen

Making Choices in the Age of Information Overload - NYTimes.com - 0 views

www.nytimes.com/...e-of-information-overload.html

advertising history productivity Economics money brand choices

shared by Maximillian Kaizen on 21 May 12 - No Cached
  • How does anyone really know that they’ve picked the right baby formula, soda or car? They don’t, and manufacturers know that. That’s why our economy is filled with highly promoted branding campaigns that, however superficial or annoying, can be enormously helpful guides.
  • it’s less likely to squander its name by skirting the rules or engaging in shoddy manufacturing than a company with less to lose.
  • Economists have a name for these cues that companies employ to convey their hidden strength: signaling.
  • ...6 more annotations...
  • the mere act of paying for a pop-star endorser sends a subconscious signal that their product is so successful that, well, they can afford Nicki Minaj.
  • It also signals that the company is too heavily invested to turn out a shoddy product.
  • I had assumed that kind of signaling was destined to be a relic of the pre-Internet age — a time when people couldn’t pull up an objective review on their phones while perusing the soda aisle. According to some economists, however, signaling seems to be increasing throughout our economy. Why are we listening to signals when we can do the research ourselves?
  • The Internet is, among other things, a massive, chaotic marketplace. Too much information, it turns out, is a lot like no information. “If we researched every single purchase, we wouldn’t have time to make any purchases,”
  • Signaling can be a shorthand to identify whom you want to buy from. That’s why we may need it now more than ever.
  • “The lower price, it bothered me,” he said, indicating that he saw the discount as a signal that the company was willing to cut every cost imaginable. He ended up paying an extra $100 for some peace of mind
  • Maximillian Kaizen on 21 May 12
     
    I figure that it's less likely to squander its name by skirting the rules or engaging in shoddy manufacturing than a company with less to lose. This peace of mind costs me about $7 per day. Economists have a name for these cues that companies employ to convey their hidden strength: signaling.
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