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📚 Brandwashed: Tricks Companies Use to Manipulate Our Minds & Persuade Us to Buy | Martin Lindstrom — Transcript

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  1. 0:05Introduction
  2. 0:06a brand detox in the UK there's an
  3. 0:10anti-consumerist movement called enough
  4. 0:12its adherence believe that we as a
  5. 0:14society quite simply consume too much
  6. 0:16stuff and that our over consuming
  7. 0:18culture is partly responsible for many
  8. 0:20of the social ills that plague our
  9. 0:22planet from world poverty to
  10. 0:24environmental destruction to social
  11. 0:25alienation enough urges people to ask
  12. 0:28themselves how much is enough. How can
  13. 0:31we live more lightly and with less? And
  14. 0:33how can we be less dependent on buying
  15. 0:36things to feel good about ourselves?
  16. 0:38One, I couldn't agree more. I may be a
  17. 0:42professional marketer, but I'm a
  18. 0:44consumer. Two, as someone who's been on
  19. 0:46the front lines of the branding wars for
  20. 0:48over 20 years, I've spent countless
  21. 0:51hours behind closed doors with CEOs,
  22. 0:53advertising executives, and marketing
  23. 0:55maven at some of the biggest companies
  24. 0:58in the world. So, I've seen and at times
  25. 1:00been profoundly disturbed by the full
  26. 1:02range of psychological tricks and
  27. 1:04schemes companies and their shrewd
  28. 1:06marketers and advertisers have concocted
  29. 1:08to prey on our most deeply rooted fears,
  30. 1:10dreams, and desires, all in the service
  31. 1:12of persuading us to buy their brands and
  32. 1:15products. Yes, I've been a part of it.
  33. 1:18No, I'm not always proud of it. I've
  34. 1:21been part of some campaigns that I'm
  35. 1:23incredibly proud of. But I've also seen
  36. 1:26how far some marketing goes, which is
  37. 1:28why around the time I started writing
  38. 1:30this book, one in which I hope to pick
  39. 1:32up where Vance Packard's 1,957
  40. 1:35classic, The Hidden Persuaders, left off
  41. 1:38and expose the bestkept secrets of how
  42. 1:40today's companies and their marketers
  43. 1:42are manipulating us. I decided that as a
  44. 1:44consumer, I'd quite simply had enough.
  45. 1:47So last year, I decided I would go on a
  46. 1:49brand detox. a consumer fast of sorts.
  47. 1:52More specifically, I decided that I
  48. 1:54would not buy any new brands for one
  49. 1:56solid year. I would allow myself to
  50. 1:59continue to use the possessions I
  51. 2:00already owned, my clothes, my cell
  52. 2:02phone, and so on. But I wouldn't buy a
  53. 2:05single new brand. How do I define brand?
  54. 2:08Well, in my line of work, I look at life
  55. 2:10through a particular lens, one that sees
  56. 2:13virtually everything on Earth. From the
  57. 2:15cell phones and computers we use to the
  58. 2:17watches and clothes we wear to the
  59. 2:18movies we watch and books we read to the
  60. 2:20foods we eat to the celebrities and
  61. 2:22sports teams we worship as a brand a
  62. 2:25form of ID a statement to the world
  63. 2:28about who we are or who we wish to be.
  64. 2:31In short in today's marketing and
  65. 2:33advertising saturated world we cannot
  66. 2:35escape brands. Nevertheless, I was
  67. 2:38determined to try to prove that it was
  68. 2:40possible to resist all the temptations
  69. 2:42our consumer culture throws at us. Yes,
  70. 2:45I knew this would be a challenge,
  71. 2:47especially for a guy who is on the road
  72. 2:49over 300 nights a year. It would mean no
  73. 2:52more Pepsi, no more Fiji water, no more
  74. 2:56glasses of good French wine. That new
  75. 2:58album I was hearing such good things
  76. 3:00about. Forget about it. The brand of
  77. 3:03American chewing gum I'm partial to. No
  78. 3:06dice. How else did my lifestyle have to
  79. 3:10change? In the morning, since I couldn't
  80. 3:12eat any branded foods like Cheerios or
  81. 3:15English muffins, I started eating an
  82. 3:17apple for breakfast. To shave, I use a
  83. 3:19battery powered Gillette power razor
  84. 3:21known as the Fusion. Luckily, I already
  85. 3:23own that, but since I couldn't buy
  86. 3:25shaving cream, I had to start shaving in
  87. 3:27the shower. I traded my electric
  88. 3:29toothbrush and Colgate toothpaste for
  89. 3:31tiny travel ones the airlines offer for
  90. 3:33free and I started using the other
  91. 3:35freebies that airlines and hotels
  92. 3:37provided. Some habits I had to give up
  93. 3:40completely. Sometimes in countries where
  94. 3:43eating the local cuisine can be dodgy, I
  95. 3:45bring along packs of ramen noodles.
  96. 3:48Well, sorry, but no ramen. I just have
  97. 3:51to take my chances. As any traveler
  98. 3:53knows, the air gets dry on long plane
  99. 3:55flights and in hotel rooms. So, I
  100. 3:57typically use a face moisturizer by
  101. 3:59Clarence. Not anymore. I often pop a
  102. 4:02vitamin C if I feel a head cold in the
  103. 4:04wings. Now, I'd have to make do with a
  104. 4:07glass of orange juice, the generic kind.
  105. 4:10Sometimes before TV appearances, if my
  106. 4:12hair looks crazy, I'll use a hair gel
  107. 4:14called Dax. For a year, I'd have to run
  108. 4:17a comb through it and hope for the best.
  109. 4:20If I didn't live the kind of life that I
  110. 4:22do, I might have been able to survive
  111. 4:24without brands for an eternity. But
  112. 4:27given my insane travel schedule, I knew
  113. 4:29I had to allow myself some exceptions.
  114. 4:31So before I kicked off my detox, I first
  115. 4:34set a few ground rules. As I said, I
  116. 4:37could still use the things I already
  117. 4:38owned. I was also permitted to buy plane
  118. 4:41tickets, lodging, transportation, and
  119. 4:43non-branded food, of course, so I
  120. 4:45wouldn't starve. I just couldn't buy any
  121. 4:48new brands or ask for any. Thus, in
  122. 4:50mid-flight, when the drinks cart came
  123. 4:52rolling around, I couldn't ask for Pepsi
  124. 4:54or Diet Coke. Instead, I asked for some
  125. 4:57soda. I continued going to restaurants,
  126. 5:00but I made sure to order the house wine.
  127. 5:02And if a dish claimed it came with
  128. 5:04Protes or aderandac tomatoes, well, I
  129. 5:08just have to order something else. For
  130. 5:10the first few months, I did quite well,
  131. 5:12if I may say so myself. In some
  132. 5:15respects, not buying anything new came
  133. 5:17as a relief, but at the same time, it
  134. 5:20wasn't easy. Have you ever tried
  135. 5:22shopping at the grocery store and not
  136. 5:24buying a single brand? In airports, for
  137. 5:27example, while I'm killing time between
  138. 5:28flights, I like to wander through
  139. 5:30duty-free shops. I enjoy buying gifts
  140. 5:33for friends or stocking up on chocolate.
  141. 5:36Then I'd remember, "Martin, you're in
  142. 5:38brand rehab." And I'd turn around and
  143. 5:40leave. At the time of my detox, the
  144. 5:42world was struggling through the worst
  145. 5:44economic crisis since the Great
  146. 5:46Depression, one precipitated in part by
  147. 5:48outofcontrol consumer spending. So, like
  148. 5:51most people, I wasn't immune to the
  149. 5:53feeling that unless my purchases were
  150. 5:54essential and practical, I shouldn't buy
  151. 5:57anything. Yet, knowing that so many
  152. 5:59people felt this way, companies and
  153. 6:01advertisers were doing everything in
  154. 6:03their power to get us to open our
  155. 6:05wallets. From London to Singapore to
  156. 6:07Dubai to New York, fantastic sales and
  157. 6:10bargains and special offers were
  158. 6:11everywhere. It seemed every store window
  159. 6:14was a sea of signs for 50% off this or
  160. 6:16two for the price of one of that
  161. 6:18screaming my name. Each time I walked
  162. 6:20down the street, I seemed to be
  163. 6:22assaulted by posters and billboards for
  164. 6:24some sexy new fragrance or shiny new
  165. 6:26brand of wristwatch on sale. Of course,
  166. 6:28every time I turned on the TV, all that
  167. 6:31seemed to be on were commercials,
  168. 6:32spelled 20somes gathered poolside
  169. 6:34drinking a particular brand of beer.
  170. 6:36Rosy cheicked children gathered at the
  171. 6:38breakfast table on a sunny morning,
  172. 6:40happily scarfing down a bowl of a
  173. 6:42certain brand of cereal. Olympic gold
  174. 6:44medalists performing feats of impossible
  175. 6:46athleticism in a certain brand of sports
  176. 6:48gear and sneakers. Somehow, even the
  177. 6:51packages of mouthwash and fruit juice
  178. 6:53and potato chips and candy bars I'd
  179. 6:55never noticed before were calling to me
  180. 6:57from the aisles of the supermarket and
  181. 6:59drugstore and seemed oddly alluring. But
  182. 7:02I took the high ground. Under the terms
  183. 7:05of my detox, I wasn't even allowed to
  184. 7:07buy a book, a magazine, or a newspaper.
  185. 7:09Yes, I think of all of these as brands
  186. 7:11that tell the world who you are, or in
  187. 7:13some cases would like to be perceived as
  188. 7:15being. And let me tell you, those
  189. 7:1714-hour transatlantic flights got pretty
  190. 7:20boring with nothing to read. Then there
  191. 7:22were the frustrating times a friend
  192. 7:24would tell me about a fascinating
  193. 7:26article or novel that had just come out.
  194. 7:28Under normal circumstances, I would have
  195. 7:31hunted down the thing. Now, I couldn't.
  196. 7:34Instead, I'd stand blefully at the
  197. 7:36magazine kiosk or inside a bookstore,
  198. 7:38scanning the newspaper or magazine or
  199. 7:40book in question until a clerk shot me
  200. 7:42the universal look for get out if you're
  201. 7:44not going to buy something. Barter still
  202. 7:47was being around my friends. I couldn't
  203. 7:50buy a round of beers at a bar or a gift
  204. 7:52for someone's birthday. And I happened
  205. 7:54to love buying people presents. Instead,
  206. 7:57I made up one lame excuse after another.
  207. 8:00I feared my friend secretly thought I
  208. 8:02was being a tight wad, that my brand
  209. 8:04detox was just an excuse to be cheap.
  210. 8:06But I stuck with it anyway. I was
  211. 8:09determined to prove that with a little
  212. 8:11discipline and willpower, I could endure
  213. 8:13myself to all the persuasive
  214. 8:15marketeteering, advertising, and
  215. 8:17branding that surrounded me. Then 6
  216. 8:20months into it, it all came tumbling
  217. 8:22down. The fact that my brand fast lasted
  218. 8:25only six months. And the fact that a
  219. 8:27person who should have known better got
  220. 8:28punked by his own profession says a
  221. 8:30whole lot about just how shrewd
  222. 8:32companies are at engineering desire. So
  223. 8:35does what happened to me immediately
  224. 8:36after I toppled off the wagon. If I
  225. 8:39fell, my relapse took place in Cyprus.
  226. 8:43The night it happened, I was scheduled
  227. 8:45to give a keynote presentation. But when
  228. 8:48my plane touched down at the airport, I
  229. 8:50discovered the airline had misplaced my
  230. 8:52suitcase. It was gone, which meant I
  231. 8:55didn't have anything to wear for my
  232. 8:57speech. I had the pants I was wearing,
  233. 9:00but no shirt other than a sweaty,
  234. 9:02unfragrant black t-shirt that I had no
  235. 9:04time to wash. Here's something they
  236. 9:06don't teach you in Harvard Business
  237. 9:08School. Never give a keynote
  238. 9:10presentation naked from the waist up.
  239. 9:12This wasn't some driveby meet and greet
  240. 9:15appearance, either. It was an important
  241. 9:17presentation and they were paying me
  242. 9:19well and expecting a good crowd. I admit
  243. 9:22it, I freaked out. Half an hour after
  244. 9:25checking into my hotel, I found myself
  245. 9:27standing at the cash register of a local
  246. 9:29tourist trap holding a white t-shirt in
  247. 9:32my hands. It was the only color the
  248. 9:34store had. The letters on the front
  249. 9:36spelled out I Cyprus. I'd officially
  250. 9:40relapsed and all for a crappy t-shirt,
  251. 9:43too. Not only did I break my detox, but
  252. 9:45for the first time in recent memory, I
  253. 9:48broke my all-in-lack rule and gave my
  254. 9:50presentation wearing black pants and my
  255. 9:52ridiculous white t-shirt. Despite my
  256. 9:54questionable attire, the evening went
  257. 9:56well. But that wasn't the point. As they
  258. 9:59say in certain 12step programs, one
  259. 10:01drink is too much and a thousand is too
  260. 10:03few. In other words, now that I'd given
  261. 10:06myself permission to end my brand fast,
  262. 10:08the dam had burst. I went a little nuts.
  263. 10:1224 hours later, I was debarking in
  264. 10:15Milan, Italy, the fashion capital of the
  265. 10:17world. Let me tell you, this is not a
  266. 10:20place you want to be if you're trying to
  267. 10:22give up brands. Wouldn't you know it,
  268. 10:24but there happened to be a huge
  269. 10:26furniture sale in a store not far from
  270. 10:28my hotel. Fantastic handcrafted stuff,
  271. 10:31too. Sold to the little blonde guy in
  272. 10:34the eye Cyprus t-shirt. From then on, I
  273. 10:37was buying San Pellegrina water,
  274. 10:39Wrigley's gum, and Minibar M and Miz by
  275. 10:41the case load. Then there was the black
  276. 10:43hole high and winter jacket I bought in
  277. 10:45New York. And the list goes on. Over the
  278. 10:48next few weeks and months, I couldn't
  279. 10:50stop. You could have sold me Roadkills
  280. 10:52so long as it had a label and a logo on
  281. 10:55it. All because of one lost suitcase and
  282. 10:57one cheap replacement t-shirt. Yes, I
  283. 11:01make my living helping companies build
  284. 11:02and strengthen brands. And in the end,
  285. 11:05even I couldn't resist my own medicine.
  286. 11:08That's when I realized I had been
  287. 11:10brainwashed.
  288. 11:11The new generation of hidden persuaders.
  289. 11:14When I was first approached to write
  290. 11:16this book as a follow-up to my previous
  291. 11:18book, Uology, the world was still
  292. 11:20digging out from economic freef fall.
  293. 11:23Did anyone really want to read a book
  294. 11:25about brands and products? I wondered at
  295. 11:27a time when the vast majority of our
  296. 11:29wallets and handbags were either empty
  297. 11:31or zippered shut. Then it struck me,
  298. 11:34could there actually be a better time to
  299. 11:36write a book exposing how companies
  300. 11:37trick, seduce, and persuade us into
  301. 11:40buying more unnecessary stuff? In 1957,
  302. 11:43a journalist named Vance Packard wrote
  303. 11:45The Hidden Persuaders, a book that
  304. 11:47pulled back the curtain on all the
  305. 11:49psychological tricks and tactics
  306. 11:51companies and their marketers and
  307. 11:53advertisers were using to manipulate
  308. 11:55people's minds and persuade them to buy.
  309. 11:58It was shocking. It was groundbreaking.
  310. 12:01It was controversial and it's nothing
  311. 12:04compared to what's going on in the
  312. 12:06marketing and advertising worlds today.
  313. 12:09Nearly six decades later, businesses,
  314. 12:11marketers, advertisers, and retailers
  315. 12:13have gotten far craftier, savvier, and
  316. 12:15more sinister. Today, thanks to all the
  317. 12:18sophisticated new tools and technologies
  318. 12:20they have at their disposal, and all the
  319. 12:22new research in the fields of consumer
  320. 12:24behavior, cognitive psychology, and
  321. 12:26neuroscience, companies know more about
  322. 12:28what makes us tick than Vance Packard
  323. 12:30ever could have imagined. They scan our
  324. 12:33brains and uncover our deepest
  325. 12:34subconscious fears, dreams,
  326. 12:36vulnerabilities, and desires. They mine
  327. 12:38the digital footprints we leave behind
  328. 12:40each time we swipe a loyalty card at the
  329. 12:43drugstore, charge something with a
  330. 12:45credit card, or view a product online.
  331. 12:47And then they use that information to
  332. 12:49target us with offers tailored to our
  333. 12:51unique psychological profiles. They
  334. 12:53hijack information from our own
  335. 12:55computers, cell phones, and even
  336. 12:57Facebook profiles and run it through
  337. 12:59sophisticated algorithms to predict who
  338. 13:01we are and what we might buy. They know
  339. 13:03more than they ever have before about
  340. 13:05what inspires us, scares us, soothes us,
  341. 13:08seduces us. What alleviates our guilt,
  342. 13:11or makes us feel less alone, more
  343. 13:13connected to the scattered human tribe.
  344. 13:15What makes us feel more confident, more
  345. 13:17beloved, more secure, more nostalgic,
  346. 13:20more spiritually fulfilled. And they
  347. 13:22know far more about how to use all this
  348. 13:24information to obscure the truth,
  349. 13:26manipulate our minds, and persuade us to
  350. 13:28buy. In the pages ahead, we'll learn all
  351. 13:31about what they know, how they know it,
  352. 13:33and how they turn around and use that
  353. 13:35knowledge to seduce us and take our
  354. 13:37dollars. We'll pull back the curtain on
  355. 13:39how specific companies have crafted the
  356. 13:41most successful ad campaigns, viral
  357. 13:43marketing plans, and product launches in
  358. 13:46recent memory, including how Axe probed
  359. 13:48the sexual fantasies of thousands of
  360. 13:50male consumers in preparation for
  361. 13:51rolling out its infamous body spray
  362. 13:53campaign. how Calvin Klein rolled out
  363. 13:55its best-selling fragrance, Euphoria.
  364. 13:57How a marketing campaign for a popular
  365. 13:59brand of vodka transformed an entire
  366. 14:01country's drinking habits, and more.
  367. 14:04We'll look at the subtle yet powerful
  368. 14:06ways companies use peer pressure to
  369. 14:08persuade us. We'll see how they
  370. 14:10stealthily play on our fear, guilt,
  371. 14:12nostalgia, and celebrity worship, often
  372. 14:14in ways that hit us beneath our
  373. 14:16conscious awareness. We'll see examples
  374. 14:18of how some particularly devious
  375. 14:20companies have figured out how to
  376. 14:22physically and psychologically addict us
  377. 14:24to their products and how certain
  378. 14:25popular websites are actually rewiring
  379. 14:28our brains to hook us on the act of
  380. 14:30shopping and buying. We'll look at the
  381. 14:32new way sex is being used to sell to us,
  382. 14:34including the results of infere study
  383. 14:36that reveals something shocking about
  384. 14:38how heterosexual men really respond to
  385. 14:40sexually provocative images of
  386. 14:42attractive men in surprising findings
  387. 14:44about who marketers are really selling
  388. 14:46to when they brand the newest
  389. 14:4716-year-old teen heartthrob. We'll see
  390. 14:51all the underhanded ways companies are
  391. 14:52collecting information without our
  392. 14:54knowledge. Not just about our buying
  393. 14:56habits, but about everything about us.
  394. 14:58Our race and sexual orientation, our
  395. 15:00address, phone number and real-time
  396. 15:02location, our education level,
  397. 15:03approximate income and family size, our
  398. 15:06favorite movies and books, our friends
  399. 15:07favorite books and movies, and much
  400. 15:09more, then turning around and using this
  401. 15:11information to sell us even more stuff.
  402. 15:14We'll explore the techniques advertisers
  403. 15:16and marketers are using to reach and
  404. 15:18influence children at a younger and
  405. 15:19younger age and read about alarming
  406. 15:21research revealing that not only do
  407. 15:23these techniques work, but children's
  408. 15:25lifelong preferences for brands can be
  409. 15:27shaped and set and at a much younger age
  410. 15:29than ever imagined. I'll also be
  411. 15:32revealing the results of a revolutionary
  412. 15:34guerilla marketing experiment I carried
  413. 15:36out in service of this book. The
  414. 15:39inspiration for it was the 2009 David
  415. 15:41Dukovny and Demi Moore movie, The
  416. 15:43Joneses, about a picture perfect family
  417. 15:45that moves into a suburban neighborhood.
  418. 15:48As the movie unfolds, it turns out
  419. 15:50they're not a real family at all, but a
  420. 15:52group of cover marketers who are
  421. 15:54attempting to persuade their neighbors
  422. 15:56to adapt new products. Intrigued by this
  423. 15:58premise, I decided to stage my own
  424. 16:00reality television show, The Morgensson.
  425. 16:03I picked a family, armed them with a
  426. 16:05bunch of brands and products, and let
  427. 16:08them loose on their neighbors in an
  428. 16:09upscale Southern California gated
  429. 16:11community. The questions going in were,
  430. 16:14"How powerfully can word of mouth
  431. 16:16influence our buying habits? Can simply
  432. 16:18seeing another person drink a certain
  433. 16:20type of beer, apply a certain line of
  434. 16:22mascara, spray a certain brand of
  435. 16:24perfume, type on a certain make of
  436. 16:26computer, or use the latest
  437. 16:28environmentally conscious product
  438. 16:30persuade us to do the same?" You'll find
  439. 16:32out in the last chapter of this book.
  440. 16:35And should you pick up the enhanced
  441. 16:36ebook version of this book and have a
  442. 16:38video enabled reading device, you'll get
  443. 16:41to see the Morgenssons in action.
  444. 16:42Throughout the book, you'll encounter
  445. 16:44countless video clips of actual footage
  446. 16:46from the experiment. My goal is that by
  447. 16:49understanding just how today's newest
  448. 16:51hidden persuaders are conspiring to
  449. 16:53brandwash us, we as consumers can battle
  450. 16:55back. The purpose of this book is not to
  451. 16:58get you to stop buying. I've proved that
  452. 17:00is frankly impossible. The purpose is to
  453. 17:03educate and empower you to make smarter,
  454. 17:05sounder, more informed decisions about
  455. 17:07what we're buying and why. After all,
  456. 17:10enough is enough. Martin Lindström, New
  457. 17:13York. Chapter 1. Located in Paris, Sue,
  458. 17:17France, short for cosmetic executive
  459. 17:19women, is a group of 270 female beauty
  460. 17:22business professionals whose avowed
  461. 17:24mission is to show the world that beauty
  462. 17:26products not only are more than a
  463. 17:27trivial indulgence, but can actually be
  464. 17:30used to improve people's lives. To that
  465. 17:32end, in 1996, Sue set up its first ever
  466. 17:36center of beauty at one of Europe's most
  467. 17:38prestigious hospitals with the goal of
  468. 17:40providing emotional and psychological
  469. 17:42support to patients afflicted by trauma
  470. 17:44or disease. Many of the patients at the
  471. 17:46center suffer from dementia or from
  472. 17:48amnesia caused by brain traumas
  473. 17:50resulting from car, motorcycle, skiing,
  474. 17:53and other accidents. Some are comeosse.
  475. 17:56Many are alert but can no longer speak.
  476. 17:59Most can't remember any details of their
  477. 18:02accidents, how they ended up in the
  478. 18:03hospital, or in many cases even their
  479. 18:06names. Which is why the professionals at
  480. 18:08the center of beauty led by former
  481. 18:10psychotherapist Marie France Arbelt
  482. 18:13decided to enter their patients pasts
  483. 18:15through their noses. Teaming up with the
  484. 18:17international fragrance company
  485. 18:19International Flavors and Fragrances,
  486. 18:20Arcam Belt's team has bottled more than
  487. 18:23150 distinct aromomas including the
  488. 18:25forest, grass, rain, the ocean,
  489. 18:27chocolate, and many others and then run
  490. 18:29what they call alactive workshops in
  491. 18:31which they use these fragrances to help
  492. 18:33patients regain memories they've lost.
  493. 18:36Sue works closely with hospital medical
  494. 18:38teams and language therapists and also
  495. 18:40brings in family members and close
  496. 18:42friends to create a portrait of the life
  497. 18:44a patient was leading before his or her
  498. 18:46accident took place. Where did he grow
  499. 18:49up? In the country, in the city? What
  500. 18:53were the smells of his childhood? What
  501. 18:55were his youthful passions, his hobbies,
  502. 18:58his favorite foods and drinks? What
  503. 19:00smells might be most familiar? Then they
  504. 19:03designed fragrances to trigger those
  505. 19:05memories. Sue worked with one former
  506. 19:08cosmetics company executive who had
  507. 19:10suffered a serious stroke. When probed
  508. 19:13by doctors, he remembered almost nothing
  509. 19:15about his past. Yet once the Sue team
  510. 19:18placed the smell of strawberry under his
  511. 19:20nose, the patient began speaking
  512. 19:22haltingly about his youth. For another
  513. 19:24severely impaired patient who had no
  514. 19:26recollection of his motorcycle accident,
  515. 19:28the mere smell of street pavement was
  516. 19:30enough to unfreeze his brain. Just
  517. 19:33murmuring the words tar, motorcycle
  518. 19:35after sniffing the scent helped him take
  519. 19:37his first cognitive steps toward
  520. 19:39recovery. The team has also worked with
  521. 19:42geriatric and Alzheimer's patients who
  522. 19:44after being exposed to fragrances from
  523. 19:46their childhoods have shown radical
  524. 19:48improvements in recalling who they were
  525. 19:50and are. What this goes to show is that
  526. 19:53certain associations and memories from
  527. 19:55our childhoods are resilient enough to
  528. 19:57survive even the most debilitating of
  529. 19:59brain traumas. When I first heard about
  530. 20:02this amazing Sue program, it confirmed a
  531. 20:04suspicion I've had for a long time.
  532. 20:06Namely, that most of our adult tastes
  533. 20:08and preferences, whether for food,
  534. 20:10drink, clothes, shoes, cosmetics,
  535. 20:12shampoos, or anything else, are actually
  536. 20:14rooted in our early childhoods. After
  537. 20:16all, if a childhood love for the smell
  538. 20:18of strawberry can survive a serious
  539. 20:20stroke, the preference must be pretty
  540. 20:22deeply ingrained, right? Studies have
  541. 20:25indeed shown that a majority of our
  542. 20:27brand and product preferences, and in
  543. 20:29some cases, the values that they
  544. 20:31represent are pretty firmly embedded in
  545. 20:33us by the age of seven. But based on
  546. 20:35what I've seen in my line of work, I'd
  547. 20:37posit that thanks in no small part to
  548. 20:39the tricks and manipulations of probing
  549. 20:41marketers, stealth advertisers, and
  550. 20:43profit-driven companies that you'll be
  551. 20:45reading about throughout this book, our
  552. 20:47brand preferences are set in stone even
  553. 20:49before that by the age of four or five.
  554. 20:51In fact, based on some new research I've
  555. 20:54uncovered, I'd even go so far to suggest
  556. 20:56that some of the cleverest manufacturers
  557. 20:58in the world are at work trying to
  558. 21:00manipulate our taste preferences even
  559. 21:02earlier. Much earlier like before we're
  560. 21:05even born
  561. 21:07to buy when I was very young my parents
  562. 21:11loved the sound of Bosa Nova Stan gets
  563. 21:14Ostrude Gilberto the girl from Epana
  564. 21:17Cooado Sodeno Samba and all the others.
  565. 21:21There was one long dreary winter when
  566. 21:22they played Bosan Nova practically
  567. 21:24non-stop. So I suppose it's little
  568. 21:27wonder I grew up to be completely in
  569. 21:29love with its sound as I still am today.
  570. 21:32Only thing is my mother was 7 months
  571. 21:35pregnant with me that winter. Scientists
  572. 21:38have known for years that maternal
  573. 21:39speech is audible in uterero. In other
  574. 21:41words, a fetus can actually hear the
  575. 21:44mother's voice from inside the womb. But
  576. 21:46more recent research has found that a
  577. 21:48developing fetus can hear a far broader
  578. 21:50range of tones that come from outside
  579. 21:52the mother's body as well. It used to be
  580. 21:55assumed that the mother's internal
  581. 21:57bodily sounds, the beat of the heart,
  582. 21:59the swooshing of the amniotic fluid,
  583. 22:01drowned out all external noises like
  584. 22:03music. Chapter 2. The most recent
  585. 22:06outbreak of the H1N1 influenza virus,
  586. 22:09better known as swine flu, was first
  587. 22:11detected in Veraracruz, Mexico, in the
  588. 22:14spring of 2009. Both the World Health
  589. 22:16Organization and the US Centers for
  590. 22:19Disease Control turned the outbreak a
  591. 22:21pandemic. Millions of people all over
  592. 22:23the world panicked. And although swine
  593. 22:25flu never became the kind of global
  594. 22:27catastrophe the 1,918
  595. 22:29flu did, it has been blamed for roughly
  596. 22:3214,000 deaths. 6 years earlier in 2003,
  597. 22:36another potentially fatal flu, severe
  598. 22:38acute respiratory syndrome or SARS,
  599. 22:40caused a similar global panic. SARS
  600. 22:43originated in southern China, but spread
  601. 22:45to infect citizens in roughly 40
  602. 22:47countries. By the time the virus was
  603. 22:49contained in 2006, it was thought to be
  604. 22:52responsible for nearly 800 deaths, and
  605. 22:55people all over the world were going to
  606. 22:57heroic lengths to protect themselves and
  607. 22:59their children from exposure. For
  608. 23:01doctors, CDC workers, and other health
  609. 23:04officials, a well publicized global
  610. 23:05contagion spells a nightmare scenario.
  611. 23:07stockpiling and administering gallons of
  612. 23:09vaccines, diagnosing and treating
  613. 23:11thousands of patients, and spending
  614. 23:13countless hours and dollars trying to
  615. 23:14allay widespread panic. For a number of
  616. 23:17companies and marketers, however, it
  617. 23:19spells something entirely different, a
  618. 23:22golden opportunity. Can anyone say hand
  619. 23:25gel? Thanks in large part to these two
  620. 23:28global health scares, today we've
  621. 23:29welcomed antibacterial hand sanitizers
  622. 23:32into our lives as a cheap everyday,
  623. 23:34utterly essential staple, expected to
  624. 23:36exceed $42 million in profits a mere 5
  625. 23:40years from now. And that's just in the
  626. 23:41United States when containers of the
  627. 23:43soaps and hand gels can now be found at
  628. 23:45virtually every airport, hotel,
  629. 23:47restaurant, public restroom, newspaper
  630. 23:49kiosk, grocery store, and kitchen and
  631. 23:51bathroom sink across the globe. Millions
  632. 23:54of women, men, teenagers, and children
  633. 23:56won't leave home without a small bottle
  634. 23:58or spritz canister in their purse or
  635. 24:00pocket. Bath and Body Works, and
  636. 24:02Victoria's Secret have even devised hand
  637. 24:04sanitizers as fashion accessories.
  638. 24:07Recently, while I was on a layover in
  639. 24:09Chicago's O'Hare International Airport,
  640. 24:11a voice over the loudspeaker alerted me
  641. 24:13repeatedly to the presence of hallway
  642. 24:15soap dispensers. In short, our war on
  643. 24:18this unseen enemy, a terrorist cell of
  644. 24:20germs, so to speak, has become a global
  645. 24:22family affair. Turns out though, that
  646. 24:25neither swine flu nor SARS can be
  647. 24:27prevented by the use of antibacterial
  648. 24:29cleansing gels. Both viruses are spread
  649. 24:32via tiny droplets in the air that are
  650. 24:33sneezed or coughed by people who are
  651. 24:35already infected, or though this is far
  652. 24:37less common, by making contact with an
  653. 24:39infected surface than rubbing your eyes
  654. 24:41or your nose. Nevertheless, the idea of
  655. 24:44an unseen, potentially fatal contagion
  656. 24:46has driven us into nothing short of an
  657. 24:48antibacterial mania, one that has helped
  658. 24:50sales of Carell, the top selling hand
  659. 24:52sanitizer, to jump by 50%, too, and
  660. 24:54Clorox disinfecting wipes 23% since the
  661. 24:572009 panic three. But our near addiction
  662. 25:01to these overpriced germ killers isn't
  663. 25:04just a happy accident for the companies
  664. 25:06that make them. The advertisers and
  665. 25:08marketers at brands like Purell, Germex,
  666. 25:11Germout, and Lysol have worked extremely
  667. 25:13hard to make us believe that using their
  668. 25:15product is the only surefire way to
  669. 25:17stave off grave and deadly disease. How?
  670. 25:20Well, first, they capitalized on the
  671. 25:22global panic during the swine flu scare
  672. 25:25by releasing an onslaught of new
  673. 25:26products and redoubling their efforts to
  674. 25:28stress the importance of hygiene in
  675. 25:30staving off disease. We want to make
  676. 25:32sure that people understand that
  677. 25:34effective handwashing is the best way to
  678. 25:36keep yourself and your family healthy,"
  679. 25:38echoed a spokesperson for Dial, the soap
  680. 25:41manufacturer. Purell then posted on
  681. 25:43their website. According to the Centers
  682. 25:45for Disease Control and Prevention, CDC,
  683. 25:48one of the ways you can help protect
  684. 25:50yourself from swine flu is by practicing
  685. 25:52good hand hygiene. Specific CDC
  686. 25:55recommendations include keeping your
  687. 25:57hands clean by washing with soap and
  688. 25:59water or using an alcohol-based hand
  689. 26:01sanitizer when soap and water may not be
  690. 26:03available. Four, the disinfectant brand
  691. 26:06Lysol 2 updated its homepage with
  692. 26:09information on swine flu, asserting that
  693. 26:11although it is not yet clear how the
  694. 26:13virus spreads, following proper hygiene
  695. 26:15routines can help prevent the spread of
  696. 26:17illness. Five. Of course, what they are
  697. 26:20trying to insinuate is that their
  698. 26:21product is the key to good hygiene and
  699. 26:24in turn instrumental in staying healthy.
  700. 26:26Only they can't say that because well,
  701. 26:28it would be a lie. In fact, hand
  702. 26:30sanitizers have not been found by the
  703. 26:32CDC or anyone else to be effective in
  704. 26:34fighting airborne disease. It wasn't
  705. 26:37just makers of soap and hygiene products
  706. 26:39who saw serious marketing opportunities
  707. 26:41in the swine flu panic. Kleenex very
  708. 26:44swiftly rolled out a line of antiviral
  709. 26:46tissues which allegedly have a specially
  710. 26:48treated middle layer that helps stop
  711. 26:50cold and flu viruses and that kills
  712. 26:5299.9% of cold and flu viruses in the
  713. 26:55tissue within 15 minutes and are viridal
  714. 26:57against rhino viruses type 1 ampurine 2
  715. 27:00influenza and B and respiratory sinkial
  716. 27:02virus six major online retailers such as
  717. 27:06Amazon.com and restockit.com also got
  718. 27:09into the game taking the opportunity to
  719. 27:11manufacture and market swine Swine flu
  720. 27:13protection kits, swine flu safety DVDs,
  721. 27:16ionic air purifiers, ranging in price
  722. 27:18from $50 to $600, and $100 designer face
  723. 27:22masks. Seven. The spread of swine flu is
  724. 27:25of global concern, and we want to do our
  725. 27:27part to help contain it, said Jennifer
  726. 27:29Dimmita, VP of marketing at
  727. 27:31restockit.com.
  728. 27:32These products really work to help curb
  729. 27:35the spread of germs and disease, she
  730. 27:37added. Eight. What's in a swine flu
  731. 27:40protection kit, you ask? Why? hand
  732. 27:43sanitizer and bacterial wipes, among
  733. 27:45other useless items designed to give us
  734. 27:47the illusion of protection and safety.
  735. 27:49None of these kits, some of which came
  736. 27:52with surgical masks and a light blue
  737. 27:54garment that looks uncannily like a
  738. 27:56hospital gown, were endorsed or
  739. 27:58distributed by the World Health
  740. 27:59Organization or any other health
  741. 28:01organization. But it was no coincidence
  742. 28:04that they were designed and packaged to
  743. 28:06have a decidedly clinical medical feel.
  744. 28:09Even some of the food companies tossed
  745. 28:11their hat into the ring of paranoia a
  746. 28:14few months after those first swine flu
  747. 28:16cases began to appear in the headlines.
  748. 28:18Kelloggs in an attempt to tap into the
  749. 28:20growing misconception fed largely by the
  750. 28:23opportunity to profit off it of course
  751. 28:25that a healthy immune system was the key
  752. 28:27to staying swine flu free introduced a
  753. 28:29new variant of Rice Krispies and Cocoa
  754. 28:31Krispies loaded with antioxidants and
  755. 28:33nutrients that help the body's immune
  756. 28:35system. Too bad it was also loaded with
  757. 28:3840% sugar. Just a few months later, the
  758. 28:42company's health claims were so widely
  759. 28:43criticized for being bogus that it
  760. 28:45decided to pull the words help support
  761. 28:47your child's immunity from all boxes.
  762. 28:50The word immunity, it should be noted,
  763. 28:52appeared in giant bold-faced letters
  764. 28:54that could practically be seen from
  765. 28:56Jupiter. Nine. Kelloggs denied praying
  766. 29:00on swine flu fear, claiming that it had
  767. 29:02begun work on its revamped Rice Krispies
  768. 29:04a year before the H1N1 virus peaked.
  769. 29:07Still, one has to question the company's
  770. 29:10motives, given that in November 2009, it
  771. 29:12bowed to the negative publicity,
  772. 29:14announcing that given the public
  773. 29:16attention on H1N1, it would no longer
  774. 29:18sell the antioxidant-enriched cereal,
  775. 29:21though we will continue to respond to
  776. 29:22the desire for improved nutrition. 10.
  777. 29:26Companies are equally quick to prey on
  778. 29:28public panic over food contamination
  779. 29:30scarce. For example, in 2010, when over
  780. 29:33half a billion eggs were recalled due to
  781. 29:36reports of Salmonella, the marketers of
  782. 29:38brands like Egg Beers and Davidson
  783. 29:40sprang into action, adding sections to
  784. 29:42their websites boasting that their
  785. 29:44products were uncontaminated. Davidson's
  786. 29:46even bought the Google Adwords for the
  787. 29:48searches pasteurized eggs and safe eggs,
  788. 29:50so that panicked egg lovers looking
  789. 29:52online for information on the recall
  790. 29:54would most likely find themselves on the
  791. 29:56Davidson's website, where they were
  792. 29:58immediately assured, "Our pasteurized
  793. 30:00eggs eliminate the risk of food bornne
  794. 30:02illness and crosscontamination of your
  795. 30:04kitchen from shell eggs." 11.
  796. 30:07Fearongering is also a tactic favored by
  797. 30:09big box retailers like Walmart, Kohl's,
  798. 30:12and Target, which employ a company
  799. 30:14called Weather Trends International to
  800. 30:16help them adjust their inventory to
  801. 30:17capitalize on the anxiety generated by
  802. 30:20predictions of hurricanes, fires, ice
  803. 30:22storms, and other extreme weather
  804. 30:23events. 12. It's true that in the case
  805. 30:26of an actual disaster like Hurricane
  806. 30:28Katrina, this can be a genuine public
  807. 30:30service. As one journalist reported,
  808. 30:32unlike local, state, and the federal
  809. 30:34government, which didn't react until
  810. 30:36days after the hurricane hit, Walmart
  811. 30:38was at work around the clock before
  812. 30:40Katrina even hit to have the stores
  813. 30:42fully stocked with full pallet positions
  814. 30:44of water, flashlights, batteries, canned
  815. 30:46soup, and canned meat. 13. But it's also
  816. 30:49true that if there's even a remote
  817. 30:50possibility of extreme weather, these
  818. 30:52retailers are lightning quick to erect
  819. 30:54huge front of store displays of
  820. 30:56everything from bottled water to power
  821. 30:58generators to shovels to mosquito nets,
  822. 31:00pulling in a tidy profit in the process.
  823. 31:03Why thriller's thrill? Fear is an
  824. 31:06interesting, complex, and not altogether
  825. 31:09unpleasant emotion. Do you remember the
  826. 31:11delicious thrill you felt as a kid when
  827. 31:13you watched your first horror movie?
  828. 31:15Whether it was the Blair Witch Project
  829. 31:17or The Shining or The Exorcist, your
  830. 31:20pulse probably raced. Your heart likely
  831. 31:22beat wildly in your chest. And you may
  832. 31:24have found yourself involuntarily
  833. 31:26holding your breath as you waited for
  834. 31:28that axe wielding killer to jump out of
  835. 31:30the shadows. You were scared out of your
  836. 31:33mind, and you loved every minute of it.
  837. 31:35It's not just horror movies and scary
  838. 31:38urban legends that deliver this
  839. 31:40delicious thrill. Ever wonder why
  840. 31:42Stephen King has sold more than 500
  841. 31:44million copies of his books over the
  842. 31:46years? Or why on Publishers Weekly's
  843. 31:48list of best-selling books in 2009, a
  844. 31:51staggering 13 of the top 15 fell under
  845. 31:54the category of thriller? 14. As the
  846. 31:56popular media gossip blog, Gawker.com
  847. 31:59noted sarcastically, "American readers
  848. 32:01love being scared of everything from
  849. 32:03Freemasons to lawyers to murderers to
  850. 32:05aliens to lawyers to pirates to even our
  851. 32:07northern neighbor, Canada. And what do
  852. 32:09you think is behind the enormous
  853. 32:11popularity of scary TV shows like Bones
  854. 32:14or CSI or even the Discovery Channels
  855. 32:16Shark Week? I read once that a human
  856. 32:19being's chances of being eaten by a
  857. 32:20shark are smaller than his chances of
  858. 32:22being hit by a coconut falling from a
  859. 32:24palm tree. But if you look at how many
  860. 32:26movies and TV shows feature shark
  861. 32:28attacks, you'd think otherwise.
  862. 32:31Counterintuitive though it sounds,
  863. 32:33there's a real biological basis behind
  864. 32:35our attraction to fear. Fear raises our
  865. 32:37adrenaline, creating that primal
  866. 32:39instinctual fight or flight response.
  867. 32:42This in turn releases epinephrine, a
  868. 32:44hormone and neurotransmitter that
  869. 32:46produces, as many adrenaline junkies
  870. 32:48will attest, a deeply satisfying
  871. 32:50sensation. There's a substantial overlap
  872. 32:52between those brain areas involved in
  873. 32:54processing fear and pleasure, said Alan
  874. 32:56Kuf, a neuroscientist at the University
  875. 32:59of Toare in Finland. adds National
  876. 33:02Primate Research Center neuroscientist
  877. 33:04Carrie Ristry. The amygdala, our brains
  878. 33:06fear center, gets just as activated by
  879. 33:08fear as it would in the real world. But
  880. 33:10because your cortex knows you're not in
  881. 33:12danger, that spillover is rewarding and
  882. 33:14not frightening. 15. By uniting us
  883. 33:18against a common enemy, fear also brings
  884. 33:20humans together. It has a perverse yet
  885. 33:23delicious binding quality. It's for this
  886. 33:25reason that we love to spread fearful
  887. 33:27rumors, sometimes blowing them out of
  888. 33:30all proportion just to heighten the
  889. 33:31sense of danger. Nothing travels as
  890. 33:34quickly as a frightening rumor. Think of
  891. 33:36those ubiquitous urban legends about
  892. 33:38highway murder gangs and escaped
  893. 33:40convicts, says Michael Lewis, director
  894. 33:42of the Institute for the Study of Child
  895. 33:44Development at Robert Wood Johnson
  896. 33:46Medical School in New Brunswick, New
  897. 33:48Jersey. Fear has a certain contagious
  898. 33:50feature to it. So the fear in others can
  899. 33:52elicit fear in ourselves. It's
  900. 33:54conditioning like Pavlov and the
  901. 33:56salivating dog. 16. According to Harot
  902. 34:00Singh, the senior vice president and
  903. 34:02director of planning at the marketing
  904. 34:04communications firm Gray Canada, "Our
  905. 34:06brains are hardwired to fear potential
  906. 34:08threats." 17. Professor Joseph Leu of
  907. 34:11the Center for the Neuroscience of Fear
  908. 34:13and Anxiety at New York University
  909. 34:15concurs, explaining that we come into
  910. 34:17the world knowing how to be afraid
  911. 34:19because our brains have evolved to deal
  912. 34:21with nature. 18. What's more, as anyone
  913. 34:25can attest who's ever had the
  914. 34:27scared out of them by the sound of a
  915. 34:29branch scratching on a window pane on a
  916. 34:31windy night, fear is far more potent
  917. 34:33than our facility for reason, explains
  918. 34:35Newsweek. The amydala sprouts a
  919. 34:37profusion of connections to higher brain
  920. 34:39regions, neurons that carry one-way
  921. 34:41traffic from amydala to neoortex. Few
  922. 34:44connections run from the cortex to the
  923. 34:46amygdala. However, that allows the
  924. 34:48amygdala to override the products of the
  925. 34:50logical, thoughtful cortex, but not vice
  926. 34:53versa. 19 adds UCLA neurobiologist
  927. 34:56Michael Fanselo. Fear is far, far more
  928. 34:59powerful than reason. It evolved as a
  929. 35:01mechanism to protect us from
  930. 35:02life-threatening situations, and from an
  931. 35:04evolutionary standpoint, there's nothing
  932. 35:06more important than that. 20 says an
  933. 35:10article on political fear-mongering that
  934. 35:12appeared on the left-leaning political
  935. 35:13website Daily Cause. When a threat is
  936. 35:16perceived, the body goes into automatic
  937. 35:18mode, redirecting blood to certain parts
  938. 35:20of the body and away from the brain. The
  939. 35:23respiratory response also decreases the
  940. 35:26blood supply to the brain, literally
  941. 35:27making a person unable to think clearly.
  942. 35:30In other words, the loss of blood to a
  943. 35:33person's brain can make him or her
  944. 35:34stupid literally. 21. What's more, an
  945. 35:38academic study entitled the extended
  946. 35:40parallel process model explains that
  947. 35:42people who are exposed to fear appeals
  948. 35:44think carefully about the responses
  949. 35:46proposed in these messages than follow
  950. 35:48the advice of the persuasive message in
  951. 35:50an attempt to neutralize the danger. 22.
  952. 35:54Clearly, fear is a powerful persuader,
  953. 35:56and you'd better believe that marketers
  954. 35:58and advertisers know it and aren't
  955. 36:00afraid to exploit it to the fullest.
  956. 36:03Which is why the marketing world uses
  957. 36:04scare tactics to sell us everything from
  958. 36:07anti-depressants to condoms, dental
  959. 36:09floss to laundry detergent, burglar
  960. 36:11alarms to cell phones, bottled water to
  961. 36:13pizza dough, as well as countless other
  962. 36:15brands and products you'll read about in
  963. 36:17this chapter. I recall once seeing a
  964. 36:20vintage 1950s ad for lunchbox thermoses
  965. 36:23that bore the unforgettable tagline, "A
  966. 36:25fly in the milk may mean a baby in the
  967. 36:27grave." As you're about to read,
  968. 36:29advertisers have since gotten a lot more
  969. 36:31subtle and creative in the ways they use
  970. 36:33fear to persuade us. But really, I don't
  971. 36:36mean to scare you. Nothing to fear, but
  972. 36:39future selves. Perhaps you recall a
  973. 36:421,994
  974. 36:44TV advertisement for an Aquaresh
  975. 36:46toothbrush. In one hand, a woman is
  976. 36:49holding up a toothbrush. In the other, a
  977. 36:51Reich tomato. With this tomato, I'm
  978. 36:54going to make an important point about
  979. 36:56your toothbrush, she says. Pressing the
  980. 36:58bristles into the poor tomato, creating
  981. 37:00a gash that resembles a bleeding gum.
  982. 37:03Only Aquaresh Flex Brush has a unique
  983. 37:05pressure sensitive neck that bends and
  984. 37:07flexes if you press too hard, the woman
  985. 37:09continues. So, you can prevent damaging
  986. 37:12your gums while still giving your teeth
  987. 37:14a thorough cleaning. 23. On the face of
  988. 37:16it, Aquaresh was just using a simple
  989. 37:19prop to show how great its product was.
  990. 37:22But in fact, something a little bit more
  991. 37:23subtle and sneaky was going on. After
  992. 37:26all, a prop resembling a bleeding gum
  993. 37:28calls to mind only one thing, a trip to
  994. 37:31the dentist. What else could be more
  995. 37:33universally terrifying?
  996. 37:35So, besides dentists and germs, what
  997. 37:38other kinds of fears do companies play
  998. 37:40on in marketing their products? For one,
  999. 37:42the fear of failure. In a surprising
  1000. 37:452008 study, researchers at the
  1001. 37:47University of Bath, UK, found that the
  1002. 37:49fear of failure drives consumers far
  1003. 37:51more than the promise of success. The
  1004. 37:53latter oddly tends to paralyze us, while
  1005. 37:55the former spurs us on and prize open
  1006. 37:57our wallets. In fact, as the study
  1007. 38:00found, the most powerful persuader of
  1008. 38:02all was giving consumers a glimpse of
  1009. 38:04some future feared self. 24. We all have
  1010. 38:08some version of a future self we take
  1011. 38:10great pains to avoid. Do most of us go
  1012. 38:13to the gym because we want to be healthy
  1013. 38:16or because we're scared of getting
  1014. 38:17flabby or out of shape? Do we bathe,
  1015. 38:20shampoo, and brush and floss our teeth
  1016. 38:22out of reverence for the rules of
  1017. 38:23hygiene? Or are we imagining the feared
  1018. 38:25self we might resemble if we smelled
  1019. 38:27bad, our hair were scraggly and
  1020. 38:29unwashed, and our teeth were rotted and
  1021. 38:31yellow? I can't help but think back to a
  1022. 38:34classic L'Oreal ad in which an older man
  1023. 38:36is walking down the street. To our eyes,
  1024. 38:39he looks great, dapper, and
  1025. 38:40distinguished. The camera then cuts to a
  1026. 38:43beautiful younger woman passing him by
  1027. 38:45and through her eyes we see him as old,
  1028. 38:48decrepit and repulsive, his worst feared
  1029. 38:50self-realized.
  1030. 38:52Sometimes advertisers prey on our fears
  1031. 38:54of our worst selves by activating
  1032. 38:56insecurities that we didn't even know we
  1033. 38:58had, like about the appearance of our
  1034. 39:00armpits. This is exactly what Dove's
  1035. 39:03recent Go Sleeveless ad campaign was
  1036. 39:05doing by claiming that their new special
  1037. 39:06moisturizing formula will make our
  1038. 39:08underarms not only odor-free but
  1039. 39:10prettier. Dove was subconsciously
  1040. 39:12planting the fear that our armpits might
  1041. 39:14be not only smelly but also hideous. As
  1042. 39:17Slate aptly pointed out, Dove's
  1043. 39:19empowerment via shame marketing approach
  1044. 39:21for go sleeveless has its roots in
  1045. 39:23advertising techniques that gained
  1046. 39:24popularity in the 1920s. A pinpoint a
  1047. 39:27problem, perhaps one consumers didn't
  1048. 39:29even know they had, b exacerbate anxiety
  1049. 39:32around the problem. C, sell the cure.
  1050. 39:34Among the many feared cells that have
  1051. 39:36been historically planted by marketers,
  1052. 39:38the article cites such concerns as bad
  1053. 39:40breath, smelly underarms, and the many
  1054. 39:42troubles down there. 25. What else
  1055. 39:46frightens us nowadays? A lot. Most of us
  1056. 39:49are scared about the economy, of losing
  1057. 39:52our jobs, and of defaulting on our
  1058. 39:54mortgages. We're scared that our spouse
  1059. 39:56or partner might leave us. We're scared
  1060. 39:59of loneliness and having no friends.
  1061. 40:02We're afraid of sexual inadequacy, of
  1062. 40:05getting cancer, of getting old and
  1063. 40:07breaking a hip, of death. We're scared
  1064. 40:10of driving and we're scared of flying.
  1065. 40:13We're scared of terrorists and of global
  1066. 40:15warming. We're scared of the bright sun
  1067. 40:18and the dark night. We're afraid of
  1068. 40:20E.oli holy bacteria in our beef,
  1069. 40:22hormones in our milk, and mercury in our
  1070. 40:25fish. We're scared of viruses infecting
  1071. 40:27our computers and our water supplies.
  1072. 40:30We're scared of earthquakes quite
  1073. 40:32literally shifting the ground beneath
  1074. 40:34our feet, and of our children being
  1075. 40:36abducted by strangers in cars. We're
  1076. 40:38scared that we talk too much or too
  1077. 40:40little, that we dress badly, that our
  1078. 40:42nails are unclean and our hair weward,
  1079. 40:45or that no one will tell us about the
  1080. 40:46piece of kale in our teeth, or that
  1081. 40:48while we strive to be charming and
  1082. 40:50amusing, we're actually fatally unfunny
  1083. 40:52and everyone knows it but us. According
  1084. 40:55to Gavin Johnston, a behavioral
  1085. 40:57science-based branding consultant, many
  1086. 40:59brands prey on what anthropologists dub
  1087. 41:01panoramic fear, namely an overwhelming
  1088. 41:04sense that control has been lost,
  1089. 41:06prompting consumers to scramble to find
  1090. 41:08any kind of comfort they can. 26.
  1091. 41:12It's these seemingly infinite fears,
  1092. 41:14some planted in our minds by marketers
  1093. 41:16and advertisers, others merely amplified
  1094. 41:18by them, that drive us to buy triple
  1095. 41:20moisturizing creams and heats safe
  1096. 41:22leave-in conditioners, teeth whitening
  1097. 41:24strips and multivitamins, not to mention
  1098. 41:26gym memberships and organic food and
  1099. 41:28bottled water and humidifiers and
  1100. 41:30dehumidifiers and designer clothing and
  1101. 41:32Viagra and earthquake insurance and
  1102. 41:34water filtration systems and plastic
  1103. 41:36surgery and bike locks and burglar
  1104. 41:38alarms. If you're a lady, most men want
  1105. 41:42to kill you. Picture this. You're a
  1106. 41:44single 20-something female in a skimpy
  1107. 41:47t-shirt and sweats, ready to work out at
  1108. 41:49home to a yoga DVD when you hear
  1109. 41:51suspicious noises coming from outside.
  1110. 41:53Or you're a teenage girl home alone at
  1111. 41:56night, convinced you hear the sound of
  1112. 41:58keys jiggling in the downstairs lock. Or
  1113. 42:00you're a mother preparing dinner while
  1114. 42:02your kids play in the yard, and you fail
  1115. 42:04to notice the suspicious looking fellow
  1116. 42:06lurking near the garage. Or perhaps
  1117. 42:09you're a recent divorcee who's just been
  1118. 42:11flirting with a charming hunk at your
  1119. 42:13house party and are startled once the
  1120. 42:15house has emptied out to see this same
  1121. 42:17hunk punching in your back door. These
  1122. 42:19are all scenes from widely viewed
  1123. 42:21commercials for Brinks Home Security,
  1124. 42:23now known as Broadview Security. When
  1125. 42:26they aired in 2008, many media observers
  1126. 42:28and consumer advocates decrieded them as
  1127. 42:30sensationalistic, salacious, and sexist.
  1128. 42:34Not to mention transparently obvious in
  1129. 42:36their intent to terrify. Airing a few
  1130. 42:38months into the global recession for
  1131. 42:40many Americans, one of the scariest
  1132. 42:42times in recent memory, the ads worked
  1133. 42:44like a charm, especially among their
  1134. 42:46target audience, women. Thanks to this
  1135. 42:48unabashed fear-mongering, alarm sales
  1136. 42:50rose by an unprecedented 10% in a single
  1137. 42:53year, a year during which crime rates
  1138. 42:55actually decreased. 27.
  1139. 42:59Are you a single woman who lives alone
  1140. 43:01in a large fivep person house? Studies
  1141. 43:04show that if you're a lady, most men
  1142. 43:06want to kill you. Went the hilarious
  1143. 43:07parody of these ads that ran on Saturday
  1144. 43:10Night Live. 28. But what's not funny is
  1145. 43:13the fact that Broadview and Burglar
  1146. 43:14alarm companies are hardly alone in
  1147. 43:17identifying our most deeply held fears
  1148. 43:19and then playing them back to us in the
  1149. 43:21most nightmarish scenarios possible. In
  1150. 43:23one ad sponsored by the Insurance
  1151. 43:25Corporation of British Columbia, it was
  1152. 43:27build as a drunk driving ad, although
  1153. 43:29I'm willing to bet it sold more
  1154. 43:31insurance policies than it saved lives.
  1155. 43:33An adolescent boy is pictured flying
  1156. 43:34through a car windshield because he's
  1157. 43:36forgotten to secure his seat belt. In a
  1158. 43:39TV commercial for American Express
  1159. 43:41travelers checks, a vacationing couple
  1160. 43:43suddenly victimized by theft is shown
  1161. 43:45huddled, helpless, and broke before the
  1162. 43:47credit card company, like a white
  1163. 43:49knight, comes obligingly to the rescue.
  1164. 43:52Credential life insuranceances don't
  1165. 43:53wait until it's too late. Ad campaign
  1166. 43:55featured a pitiful looking family barely
  1167. 43:57managing to carry on because a deceased
  1168. 43:59patriarch had failed to sign up for life
  1169. 44:02insurance. And of course, there's GMS
  1170. 44:04OnStar, a subscription-based vehicle
  1171. 44:07security, safety, and communication
  1172. 44:09service whose manipulative but riveting
  1173. 44:11radio commercials are recordings of
  1174. 44:13actual distress calls from customers.
  1175. 44:15From a panicked woman reporting she's
  1176. 44:17just been involved in a collision to a
  1177. 44:19terrified child calling for help because
  1178. 44:21his mother is having trouble breathing.
  1179. 44:24I'm not proud of it, but I once helped
  1180. 44:26create an ad like this. It was a TV
  1181. 44:29commercial featuring a father and his
  1182. 44:31young daughter. The father was about to
  1183. 44:33leave on a business trip and the
  1184. 44:35daughter was dejected. The camera cut to
  1185. 44:38the father in a black limousine as it
  1186. 44:40pulled away from his visibly unhappy
  1187. 44:42daughter. Next, the screen showed dad on
  1188. 44:45an airplane. Then the daughter again
  1189. 44:47looking up longingly into the sky. Next,
  1190. 44:50we see dad striding into a meeting
  1191. 44:52overseas. His daughter back at home. At
  1192. 44:55last, the phone rings. The daughter
  1193. 44:57picks it up almost tearily. It's dad. He
  1194. 45:01told her he would call her, didn't he?
  1195. 45:03The commercial was for Aliens, a
  1196. 45:05well-known life insurance company. Yes,
  1197. 45:08we were using fear to remind fathers to
  1198. 45:10look out for the families they love.
  1199. 45:13Without saying so, the ad asked, "If
  1200. 45:15something were to happen to you, would
  1201. 45:17your family be financially protected?"
  1202. 45:19Later, we scanned people's brains as
  1203. 45:21they viewed it to see which shot was the
  1204. 45:23most affecting and persuasive. The
  1205. 45:26hands-down winner was the shot of the
  1206. 45:28little girl gazing up at the sky.
  1207. 45:30Yet, this was nothing compared to
  1208. 45:32another ad I saw once. I want more time,
  1209. 45:35which is available on YouTube, is dubbed
  1210. 45:37the saddest commercial ever. But I think
  1211. 45:39a more proper description is the most
  1212. 45:41emotionally manipulative commercial
  1213. 45:43ever. In it, a middle-aged man driving a
  1214. 45:46car along a highway speaks in voice over
  1215. 45:48about his teenage son. I want time to
  1216. 45:51understand him, we hear as we see
  1217. 45:53flashbacks of the father berating the
  1218. 45:55young man. I want to listen to his
  1219. 45:57songs. The father's voice over resumes
  1220. 45:59and tell him I'm sorry and I want time
  1221. 46:01to do what I've never done. Take better
  1222. 46:03care of him. Love him more. At which
  1223. 46:06point a highly realistic looking
  1224. 46:08commuter bus rams his car head on. He's
  1225. 46:11dead. Cue the words Thai life insurance.
  1226. 46:1529. The reason ads like these work so
  1227. 46:18well is because they hit us in two
  1228. 46:20powerful places. Fear and its close
  1229. 46:23cousin guilt. I consider guilt to be a
  1230. 46:26global virus. And no one is better at
  1231. 46:29spreading that virus than marketers and
  1232. 46:31advertisers. As an article that appeared
  1233. 46:33in the Journal of Consumer Research in
  1234. 46:352006 explained, "Fear mixed with a high
  1235. 46:38level of blame, regret, guilt, or even a
  1236. 46:41dare tends to translate emotion into
  1237. 46:43action." 30. This instinctively makes
  1238. 46:45sense after all. Isn't it the
  1239. 46:47combination of fear and guilt that makes
  1240. 46:49you reach for the nicotine gum instead
  1241. 46:51of the cigarettes or baked Cheetos over
  1242. 46:53the fried ones? I might add that the
  1243. 46:55packaging of these baked snacks is
  1244. 46:57designed with the feared self of today's
  1245. 46:59healthconscious woman in mind. Note the
  1246. 47:01matte on shiny bags they come in
  1247. 47:03compared to the slippery cleaning bags
  1248. 47:05enclosing regular Cheetos which
  1249. 47:07subconsciously remind us of oily greasy
  1250. 47:09skin. In short, fear and guilt are
  1251. 47:11marketers one-two punch. The mother of
  1252. 47:14all fear. You may have noticed that many
  1253. 47:17of the tactics we've been talking about
  1254. 47:19so far seem to be aimed at women. That's
  1255. 47:22because studies have shown that women
  1256. 47:24are more prone to fear and guilt than
  1257. 47:26men are. When psychologists in Spain
  1258. 47:29recently questioned 300 men and women
  1259. 47:31between the ages of 15 and 50 about the
  1260. 47:34kinds of daily situations that
  1261. 47:36engendered feelings of guilt, whether
  1262. 47:38failing to make the time to visit a sick
  1263. 47:40relative in the hospital, forgetting a
  1264. 47:42friend's birthday, or losing patience
  1265. 47:44with a friend. In each and every case,
  1266. 47:46women felt significantly higher levels
  1267. 47:48of guilt than their male counterparts
  1268. 47:50and were also more likely to feel angry
  1269. 47:52with themselves if they felt they had
  1270. 47:54hurt another person. 31.
  1271. 47:57No one is more vulnerable to fear and
  1272. 47:59guilt than mothers, particularly new
  1273. 48:01mothers. Now that you're responsible for
  1274. 48:04this fragile little person, the entire
  1275. 48:06world has suddenly become one giant
  1276. 48:08death trap. And you haven't seen
  1277. 48:10germaphobia until you've seen a new
  1278. 48:12mother. No matter where I am in the
  1279. 48:14world, when I ask new mothers what they
  1280. 48:16do when the baby finally arrives, 90%
  1281. 48:19tell me that they begin to clean as if
  1282. 48:21there's no tomorrow. They're absolutely
  1283. 48:23terrified of anything that could
  1284. 48:24possibly harm or even contaminate their
  1285. 48:26new arrivals. If Purell and other body
  1286. 48:29and home sanitizers don't yet play a
  1287. 48:31major part in their lives, they will
  1288. 48:33now. But those aren't the only products
  1289. 48:36out there marketed to paranoid mothers
  1290. 48:38and fathers. Not even clothes. Among the
  1291. 48:41many other health and safety related
  1292. 48:43items, there are ointments, humidifiers,
  1293. 48:45car seats that make Alcatraz look easy
  1294. 48:47to escape, baby gates, cabinet locks,
  1295. 48:50$300 digital color video baby monitors,
  1296. 48:52safety bath time thermometers, safety
  1297. 48:54bath time faucet covers, and more. This
  1298. 48:57stuff doesn't necessarily make the
  1299. 48:59little ones any safer either. For
  1300. 49:01example, across Japan, physicians are
  1301. 49:03finding that Japanese baby's immune
  1302. 49:05systems are actually breaking down as an
  1303. 49:07unfortunate consequence of their
  1304. 49:09parents' preoccupation with germs.
  1305. 49:11Still, marketers and advertisers are
  1306. 49:14very skilled at playing to new mothers
  1307. 49:15inherent fears, which I believe to be
  1308. 49:17evolutionarily wired that if they don't
  1309. 49:19buy all this stuff, they're not a good
  1310. 49:21enough mother. And in fact, these are
  1311. 49:24the first words that pop out of mother's
  1312. 49:26mouths when their infant gets an
  1313. 49:27infection or catches a cold. Even though
  1314. 49:29the chances of this happening at some
  1315. 49:31point in the first few years of the
  1316. 49:33child's life are nearly 100%.
  1317. 49:36Nonetheless, an insecure, hormonal,
  1318. 49:38frequently isolated new mother believes
  1319. 49:40it's her fault. She messed up. She
  1320. 49:43didn't protect her child. A false
  1321. 49:44impression she gleaned from one
  1322. 49:46televised image after another of plump
  1323. 49:48cheicked, airbrushed babies who look as
  1324. 49:50though they've never caught a cold, had
  1325. 49:52an ear infection, or had a scrape on
  1326. 49:54them. I don't know any new mother who
  1327. 49:57doesn't feel guilty about something.
  1328. 49:59Maybe she's worried she doesn't buy her
  1329. 50:01child enough educational toys or that
  1330. 50:04she's not preparing every meal from
  1331. 50:06scratch or that if she is, she isn't
  1332. 50:08using fresh or highquality enough
  1333. 50:10ingredients. Is she a good mother
  1334. 50:12compared to other mothers? There are so
  1335. 50:15many ways for her to feel she isn't
  1336. 50:17living up to society's standards.
  1337. 50:19Naturally, there are an endless array of
  1338. 50:21products out there. From leapfrog
  1339. 50:23computers for young children to organic
  1340. 50:25baby food to postnatal exercise videos
  1341. 50:27to LED light bulbs to Priuses to
  1342. 50:30alleviate all that guilt. In our time
  1343. 50:32starve society, how many mothers have
  1344. 50:34time to drive to the supermarket, buy
  1345. 50:36fresh ingredients, lug them home, and
  1346. 50:38spend hours peeling, chopping,
  1347. 50:40simmering, sautéing, baking, and
  1348. 50:42broiling them to perfection. Yet, most
  1349. 50:45moms and dads feel incredibly guilty
  1350. 50:47about bringing home a prepackaged meal
  1351. 50:49or worse yet, getting takeout. No matter
  1352. 50:51how convenient that frozen lasagna looks
  1353. 50:54if it comes in a cardboard box, most
  1354. 50:56mothers feel guilty about serving it, as
  1355. 50:58if doing so would be saying she doesn't
  1356. 51:00really care. That's why food marketers
  1357. 51:03came up with the ruse known as the
  1358. 51:04finishing touch. A few years ago,
  1359. 51:07supermarkets began selling pizza. Not
  1360. 51:10just in the frozen food section. Now a
  1361. 51:12busy mom can buy raw pizza dough, a bag
  1362. 51:14of mozzarella, and a jar of sauce. Bring
  1363. 51:16it home, roll out the crust herself, and
  1364. 51:18voila, feel as though she's cooked
  1365. 51:20homemade pizza. In the real world, they
  1366. 51:22may call it cooking. But behind the
  1367. 51:23scenes, marketers dub creating a meal of
  1368. 51:26any kind assembling. This was a
  1369. 51:28brilliant marketing ploy, not just on
  1370. 51:30the part of the supermarkets for
  1371. 51:32shelving these existing products
  1372. 51:33together, but also on the part of brands
  1373. 51:35like Pillsbury for rolling out a new
  1374. 51:37pizza dough not so different from its
  1375. 51:39regular crescent roll dough and Ragu for
  1376. 51:41expanding its offerings to include pizza
  1377. 51:43sauce not very different from its
  1378. 51:45regular tomato sauce. These canny
  1379. 51:48companies learned that they could make a
  1380. 51:49killing by selling us products that look
  1381. 51:51finished but in fact require a little
  1382. 51:53effort, the finishing touch on our part.
  1383. 51:56Thus, a guilt-ridden mother can now
  1384. 51:58provide a well-rounded, nutritious,
  1385. 52:00home-cooked meal for her family. In the
  1386. 52:02time it takes to mix in a packet of
  1387. 52:04spices, gone is the fear that she's
  1388. 52:06served her family a pre-made,
  1389. 52:08manufactured, subpar product, now you
  1390. 52:11understand what Hamburger Helper or
  1391. 52:13Duncan Hines Brownie mix, add an egg,
  1392. 52:16and half a cup of water are all about.
  1393. 52:18There's a pill for that. Your dad wants
  1394. 52:21you to have things he never had. Like
  1395. 52:24hair, reads the ad for Rogain.
  1396. 52:27Immediately, the male viewer thinks
  1397. 52:28about his hard-working, self-sacrificing
  1398. 52:30father before terror of losing more
  1399. 52:32inches of his own rapidly retreating
  1400. 52:34hairline sets in. Notice the sly
  1401. 52:37combination of guilt and fear at work
  1402. 52:39here. An ad for the much maligned pain
  1403. 52:42reliever vioed shows the famous figure
  1404. 52:44skater Dorothy Hamill perched on a bench
  1405. 52:46lacing up her skates with the voice over
  1406. 52:48along with all the great memories has
  1407. 52:50come something I thought I'd never
  1408. 52:51experience the pain of osteoarthritis.
  1409. 52:54Our reaction. Oh no. If an Olympic ice
  1410. 52:58skater can come down with arthritis, so
  1411. 53:00can I. But look, thanks to Vios, she's
  1412. 53:03skating again. Fear followed by hope and
  1413. 53:06renewal. The classic one-two punch. Do
  1414. 53:09you suffer from allergies? The woman
  1415. 53:12pictured in the ad for Fllona's allergy
  1416. 53:14spray sure does. In a series of photos,
  1417. 53:17we see her unhappily rubbing and wiping
  1418. 53:19her runny red nose and finally clutching
  1419. 53:21her nostrils in agony. She looks
  1420. 53:24miserable at the end of her rope. Then
  1421. 53:26we see her after two squirts of Fllona
  1422. 53:29spray. She's now outdoors laughing while
  1423. 53:31her hunky husband rakes the lawn. Her
  1424. 53:34teeth quite miraculously have suddenly
  1425. 53:36become blindingly white. A beautiful
  1426. 53:38blonde child stands nearby, beaming.
  1427. 53:41There's a wheelbarrow and a watering can
  1428. 53:43and probably more pollen and dander and
  1429. 53:46grass than anyone can imagine. And guess
  1430. 53:48what? It doesn't bother her one bit.
  1431. 53:51Fllon has transformed our sneezy,
  1432. 53:53hacking worse nightmare into a sexy,
  1433. 53:55feminine, outdoors loving, allergy-free
  1434. 53:57object of our envy and desire. Sure,
  1435. 54:01pharmaceutical ads play on our fear of
  1436. 54:03death and disease and aging to get us to
  1437. 54:05buy their products. But I believe that's
  1438. 54:07not the only fear tactic at work.
  1439. 54:10Pharmaceutical companies also play on
  1440. 54:12one of the most subtle yet powerful of
  1441. 54:14psychological tricks, our fear of social
  1442. 54:16isolation, of being outsiders. Countless
  1443. 54:19studies show that humans have a
  1444. 54:20universal need to belong, dating way
  1445. 54:22back to our early ancestors, for whom
  1446. 54:25survival depended on being a member of a
  1447. 54:27band or tribe. For most of us, the
  1448. 54:29thought of being left out or alone is
  1449. 54:31terrifying. How exactly do the drug
  1450. 54:34companies play and prey on this fear?
  1451. 54:37Believe it or not, they use a formula
  1452. 54:39that, according to a research study
  1453. 54:41carried out at Stanford University, is
  1454. 54:43more or less standard for this kind of
  1455. 54:45fear-based advertising. They begin with
  1456. 54:47solitary shots of our worst feared self,
  1457. 54:49a balding man, an overweight woman, or
  1458. 54:52an unhappy or distracted child whose
  1459. 54:54gaze is conspicuously averted. Once the
  1460. 54:56person in the ad has taken whatever it
  1461. 54:58is that is designed to improve their
  1462. 55:00appearance, steady their mood, or
  1463. 55:02alleviate their symptoms, not only do
  1464. 55:04they look brighter, happier, and sexier,
  1465. 55:06but they face straight ahead at the
  1466. 55:08camera. This accomplishes two things.
  1467. 55:11First, as any psychologist will tell
  1468. 55:13you, averted gazes are generally
  1469. 55:14associated with shame and social
  1470. 55:16isolation, while a straight ahead gaze
  1471. 55:18is a sign of confidence and
  1472. 55:20connectedness. So the straight ahead
  1473. 55:22gaze implies that taking the drug or
  1474. 55:24medication has magically made the person
  1475. 55:26in the advertisement not just healthier
  1476. 55:28but more popular, loved and accepted.
  1477. 55:31Second, it invites you, the viewer, into
  1478. 55:34the person's life. In the advertising
  1479. 55:36industry, this after picture is termed a
  1480. 55:38demand photo because the newly slimmed
  1481. 55:40down/reocused/cured
  1482. 55:42model demands a connection from the
  1483. 55:44viewer. Recognize me, the photograph
  1484. 55:47says. Meet my gaze. You know me. This
  1485. 55:50brand works. If you want to be as happy
  1486. 55:53as I am, use it. 32. Big pharma has
  1487. 55:58plenty of critics. And while I'll
  1488. 56:00concede that pharmaceutical executives
  1489. 56:02don't actually sit around in boardrooms
  1490. 56:04rubbing their hands together, concocting
  1491. 56:06new ways to terrorize the public, given
  1492. 56:08that the very nature of their products
  1493. 56:10is to cure or treat things that most
  1494. 56:12people find universally scary, like
  1495. 56:14serious disease, it's inevitable that
  1496. 56:16fear finds a way into their marketing
  1497. 56:18and advertising strategies.
  1498. 56:20Pharmaceutical companies don't just
  1499. 56:22remind us of all the horrible conditions
  1500. 56:24we might one day come down with like an
  1501. 56:26embarrassing skin disease, sexual
  1502. 56:28dysfunction, cancer, and so on. They
  1503. 56:30also spend millions of dollars a year
  1504. 56:32stirring up fear in our hearts over
  1505. 56:34conditions we never even knew to be
  1506. 56:36afraid of. Restless leg syndrome,
  1507. 56:39fibromyalgia,
  1508. 56:40premenstrual dysphoric disorder. Who
  1509. 56:43knew such things even existed? Well,
  1510. 56:46thanks to the psychologically
  1511. 56:47manipulative and off-air commercials, we
  1512. 56:49all do now. Do you suffer from shyness?
  1513. 56:53Apparently, shyness isn't just a
  1514. 56:55personality trait, but an actual
  1515. 56:57pathology and one that only Paxel can
  1516. 56:59cure. What about acid reflux disease,
  1517. 57:02formerly known as heartburn? Today,
  1518. 57:04there are over a dozen drugs from Nexium
  1519. 57:07to Prylok to Zantac, available to treat
  1520. 57:10it. Who knew that irritable bowels
  1521. 57:12weren't just the unfortunate
  1522. 57:13repercussions of a spicy Mexican dinner
  1523. 57:16and were actually a syndrome? PMDD, or
  1524. 57:19premenstrual dysphoric disorder, is a
  1525. 57:21relatively recent condition, though it
  1526. 57:23bears much in common with the monthly
  1527. 57:25hormonal changes fertile women have been
  1528. 57:27experiencing for centuries. LBL, which
  1529. 57:30stands for light bladder leakage, is an
  1530. 57:32even newer one pharmacologically
  1531. 57:34speaking. Anyone who's ever gone
  1532. 57:36swimming in a public pool has probably
  1533. 57:38encountered a young child who suffers
  1534. 57:40from this. These days, we're being
  1535. 57:42persuaded to ask our doctors for
  1536. 57:44medications to address what were once
  1537. 57:46considered nothing more than everyday
  1538. 57:48inconveniences.
  1539. 57:50A recent study by two York University
  1540. 57:52researchers found that big pharma spends
  1541. 57:54nearly twice as much on promotion and
  1542. 57:56advertising as it does on research and
  1543. 57:59development. No wonder Americans are the
  1544. 58:01most overmed people on Earth with
  1545. 58:03overall domestic sales of prescription
  1546. 58:05drugs totaling $235.4
  1547. 58:08billion. 33.
  1548. 58:11Germaphobia.
  1549. 58:13I'll bet that if you're in the habit of
  1550. 58:15buying the morning paper, you bypass the
  1551. 58:17one directly on top of the stack.
  1552. 58:19Instead, you lift up the top newspaper
  1553. 58:22and pull out the one directly underneath
  1554. 58:24it. Did you know that consciously or
  1555. 58:26not, 72% of people do the same? Why?
  1556. 58:30Because we imagine that the second one
  1557. 58:32from the top hasn't been manhandled by
  1558. 58:35countless germy fingertips and is
  1559. 58:37therefore somehow cleaner than the one
  1560. 58:39above it. Ironically though, after
  1561. 58:41scanning the headlines, many of that
  1562. 58:43same 72% of consumers replace that paper
  1563. 58:45right where they found it, under the top
  1564. 58:47one. So, they all end up thumbming
  1565. 58:49through the same finger smudged
  1566. 58:50newspaper over and over. It's the same
  1567. 58:53phenomenon that explains why when women
  1568. 58:55visit the ladies rooms of hotels,
  1569. 58:57stores, and restaurants, only 5% of them
  1570. 59:00will enter the first stall. Why? Because
  1571. 59:03they believe it's less clean than the
  1572. 59:05second or third one. Go figure. The
  1573. 59:08point is that the illusion of
  1574. 59:10cleanliness or freshness is a subtle but
  1575. 59:12powerful persuader, and marketers know
  1576. 59:14it. I believe this is tied into our
  1577. 59:16nearly universal fear of germs, which
  1578. 59:19ties into our innate fear of disease,
  1579. 59:21illness, and even death. Think of all
  1580. 59:23the lengths we go to in order to avoid
  1581. 59:25contaminants in our lives. We slather on
  1582. 59:28epic amounts of hand sanitizer. We pay
  1583. 59:31exorbitant prices for fruit and produce
  1584. 59:34grown without pesticides. We shell out
  1585. 59:36extra for household cleaning products
  1586. 59:38labeled non-toxic. So persuasive is this
  1587. 59:41messaging that the company Method, which
  1588. 59:43claims its products are a cleaner clean,
  1589. 59:45is now the seventh fastest growing
  1590. 59:47private company in the United States.
  1591. 59:5034. Does any of this actually make us
  1592. 59:52any healthier? No, not really. But it
  1593. 59:56does make us less afraid of getting
  1594. 59:58sick. Global contagions aside, our fear
  1595. 1:00:01of germs pervades a whole host of buying
  1596. 1:00:03decisions we make in our everyday lives.
  1597. 1:00:05From which newspaper we pull off the
  1598. 1:00:07stack to which groceries we buy. On a
  1599. 1:00:09recent NBC Today segment, when my team
  1600. 1:00:12and I scanned the brain of a female
  1601. 1:00:14volunteer named Kelly as she made her
  1602. 1:00:16way down the supermarket aisle so we
  1603. 1:00:18could analyze her thought patterns as
  1604. 1:00:19she made her selections, one of the most
  1605. 1:00:21interesting things we found was that
  1606. 1:00:23perceptions of cleanliness had a big
  1607. 1:00:25impact on her decisions without her even
  1608. 1:00:27realizing it. Over the length of the
  1609. 1:00:30segment, store executives, the film
  1610. 1:00:32crew, the producer, and even TV viewers
  1611. 1:00:34failed to notice one thing that our
  1612. 1:00:36brain scanners were able to pick up.
  1613. 1:00:38Every time Kelly picked a product off
  1614. 1:00:40the shelf, the scientists were able to
  1615. 1:00:42detect a slight pause or increase in
  1616. 1:00:44reaction time before she put the object
  1617. 1:00:47either in her basket or back on the
  1618. 1:00:49shelf. This in itself isn't all that
  1619. 1:00:51surprising. It takes most of us a second
  1620. 1:00:53or two to decide whether or not to buy
  1621. 1:00:56something. But what was really
  1622. 1:00:58interesting was that every time Kelly
  1623. 1:00:59held a product in her hand, the brain
  1624. 1:01:01scans revealed strong activity in her
  1625. 1:01:03brain's amydala region. the region
  1626. 1:01:05responsible for fear, dread, danger, and
  1627. 1:01:08discomfort. It also serves as a memory
  1628. 1:01:10storage unit. Literally every product
  1629. 1:01:12she touched during her shopping
  1630. 1:01:14excursion sparked a fear response in
  1631. 1:01:16Kelly's brain. What was going on here?
  1632. 1:01:20After watching the tapes again, we
  1633. 1:01:22noticed that generally if Kelly liked a
  1634. 1:01:24product enough to touch it, study it,
  1635. 1:01:25and ponder it, she'd buy it. But not the
  1636. 1:01:28one she picked up. Instead, just like
  1637. 1:01:30those newspaper buyers, she put that
  1638. 1:01:32tainted bottle of shampoo or can of
  1639. 1:01:34coffee or bag of tortilla chips back on
  1640. 1:01:36the shelf before selecting an identical
  1641. 1:01:38one, stashed one or two items behind it.
  1642. 1:01:41And on one occasion, when the product
  1643. 1:01:43Kelly wanted was the lone one remaining
  1644. 1:01:45on the shelf, the fear response in her
  1645. 1:01:47brain was so pronounced she ended up
  1646. 1:01:49choosing another brand altogether.
  1647. 1:01:51Though if you had asked her, she would
  1648. 1:01:53have had no idea why she had done so. It
  1649. 1:01:56makes sense that our fear of germs or
  1650. 1:01:58contamination would be particularly
  1651. 1:02:00pronounced when it comes to food
  1652. 1:02:02products. But how do we explain the fact
  1653. 1:02:04that Kelly's fear response was just as
  1654. 1:02:06strong for, say, paper towels as it was
  1655. 1:02:09for a carton of milk? I chalk it up to
  1656. 1:02:12clever marketing that plants seeds in
  1657. 1:02:13our brains. Subconsciously, of course,
  1658. 1:02:16that maybe a product is or isn't as
  1659. 1:02:18clean as we believe. To see what I mean,
  1660. 1:02:21picture, say, a marmalade display.
  1661. 1:02:23Marmalade, as most people know, is a
  1662. 1:02:25fruit preserve with a thick peely
  1663. 1:02:27texture and a syrupy taste. From the
  1664. 1:02:30beginning of time, marmalade, which
  1665. 1:02:32originated in Scotland, has been
  1666. 1:02:34marketed and sold in jars with tartan
  1667. 1:02:36plaid screw tops to cultivate that
  1668. 1:02:38exotic suggestion of it being imported,
  1669. 1:02:41even though most is manufactured in the
  1670. 1:02:43United States. Still, because most
  1671. 1:02:45Americans believe jars of this exotic
  1672. 1:02:47product have traveled thousands of miles
  1673. 1:02:49and who knows what conditions and been
  1674. 1:02:51manhandled by who knows how many grimy
  1675. 1:02:53emys, the average consumer before buying
  1676. 1:02:55a jar of marmalade will carefully
  1677. 1:02:56inspect it, hoping to confirm that what
  1678. 1:02:58he or she is buying is safe, fresh, and
  1679. 1:03:00uncontaminated.
  1680. 1:03:02Yet, there is no way on earth a
  1681. 1:03:04marmalade manufacturer can guarantee
  1682. 1:03:06freshness. Marmalade is simply not a
  1683. 1:03:09fresh product. It's not meant to be.
  1684. 1:03:12Those glass jars have been sitting on
  1685. 1:03:14this supermarket shelf for upwards of 8
  1686. 1:03:17months. But marketers don't want us to
  1687. 1:03:19know that. So what do they do? They try
  1688. 1:03:23to create the illusion of freshness by
  1689. 1:03:25attaching the top of the marmalade lid
  1690. 1:03:27to the glass jar with a narrow white
  1691. 1:03:29strip of adhesive paper. When the strip
  1692. 1:03:31is unbroken, it means that no one has
  1693. 1:03:34twisted the top of the can open and done
  1694. 1:03:36who knows what to it. It signals to
  1695. 1:03:39consumers, "Hey, don't worry. you've got
  1696. 1:03:41a fresh jar. Hotels, incidentally,
  1697. 1:03:44employ a similar tactic by placing a
  1698. 1:03:46paper seal on the seats of their toilets
  1699. 1:03:48and a paper lid on glasses you'll find
  1700. 1:03:50in the bathroom or near the minibar.
  1701. 1:03:52I've always been astonished by the fact
  1702. 1:03:54that a single flimsy sheet of paper is
  1703. 1:03:57enough to create the illusion that no
  1704. 1:03:58other person has ever used that toilet
  1705. 1:04:00or drank out of that glass. But somehow
  1706. 1:04:02it does. And in fact, one hotel employee
  1707. 1:04:05once admitted to me that the glasses are
  1708. 1:04:07not actually washed, merely dried with a
  1709. 1:04:09towel before being used again and again.
  1710. 1:04:12Yet that paper lid gives us the illusion
  1711. 1:04:14of cleanliness.
  1712. 1:04:16Marketers call this the fresh strip.
  1713. 1:04:19Along with its close relative, the
  1714. 1:04:20plastic seal, the Fresh Strip is today
  1715. 1:04:23standard in many food and product
  1716. 1:04:24categories, including, among others,
  1717. 1:04:26yogurt, peanut butter, coffee, ketchup,
  1718. 1:04:29iced tea, mustard, juice, vitamins, and
  1719. 1:04:31over-the-counter medicines. It conveys
  1720. 1:04:33the in many cases false impression that
  1721. 1:04:36what's inside this jar, bag, or
  1722. 1:04:38container is unsullied by germs,
  1723. 1:04:39untouched by another human being.
  1724. 1:04:42Moreover, many of these jars and
  1725. 1:04:44containers are deliberately engineered
  1726. 1:04:45so that when we unscrew that marmalade
  1727. 1:04:47at home, we'll hear that comforting
  1728. 1:04:49smack sound. Further reassurance that
  1729. 1:04:51what we've bought is fresh, clean, and
  1730. 1:04:53safe. Never mind that the smacking sound
  1731. 1:04:55was created and patented in a sound lab
  1732. 1:04:58to manipulate us into believing that the
  1733. 1:05:00marmalade was flown in from Edinburgh
  1734. 1:05:02just this morning. Don't be fooled. The
  1735. 1:05:05reality is that this jar of marmalade
  1736. 1:05:08has likely been sitting on this shelf
  1737. 1:05:09unbothered for months. Occasionally, a
  1738. 1:05:12clerk will come by and dust it. When a
  1739. 1:05:15banana is not just a banana to truly see
  1740. 1:05:19all the tricks marketers have for
  1741. 1:05:20creating the illusion of freshness,
  1742. 1:05:22there's no place better to go than Whole
  1743. 1:05:24Foods, the world's largest purveyor of
  1744. 1:05:26natural and organic edibles. What passes
  1745. 1:05:30through your mind when I say the word
  1746. 1:05:31fresh? free roaming cows and chickens,
  1747. 1:05:35handpicked fruit and flowers, homegrown
  1748. 1:05:38tomatoes still on the vine. As we enter
  1749. 1:05:41Whole Foods, symbols or what advertisers
  1750. 1:05:43call symbolics of freshness just like
  1751. 1:05:45these overwhelm us. No matter what whole
  1752. 1:05:48foods you visit in any city in America,
  1753. 1:05:50the first thing you see is flowers,
  1754. 1:05:52geraniums, daffodils, jonquils. Behind
  1755. 1:05:57the display of flowers cascades a stream
  1756. 1:05:59of clear water against a coppery
  1757. 1:06:00backdrop, another symbolic suggestive of
  1758. 1:06:03calm and serenity. Flowers, as everyone
  1759. 1:06:06knows, are among the freshest, most
  1760. 1:06:08perishable objects on earth. Which is
  1761. 1:06:10why fresh flowers are placed right up
  1762. 1:06:12front to prime us to think of freshness
  1763. 1:06:15the moment we enter the store. Consider
  1764. 1:06:17the opposite. What if we entered the
  1765. 1:06:19store and were greeted with stacks of
  1766. 1:06:21canned tuna and plastic flowers? Now
  1767. 1:06:24that we're primed, we proceed to carry
  1768. 1:06:26that association, albeit subconsciously,
  1769. 1:06:28with us as we shop. The prices for the
  1770. 1:06:31flowers, as for all the fresh fruits and
  1771. 1:06:33vegetables, are scrolled in chalk on
  1772. 1:06:35fragments of black slate, which is a
  1773. 1:06:37tradition of outdoor European
  1774. 1:06:39marketplaces. It's as if, or so we are
  1775. 1:06:42meant to believe, the farmer or grower
  1776. 1:06:44pulled up in front of Whole Foods just
  1777. 1:06:46this morning, unloaded his produce,
  1778. 1:06:48chalk, and primitive slate boards in
  1779. 1:06:49hand, then hopped back in his flatbed
  1780. 1:06:52truck, and motortored back upstate to
  1781. 1:06:53his country farm. The dashed off straw
  1782. 1:06:56also suggests the price changes daily or
  1783. 1:06:58even throughout the day, just as it
  1784. 1:07:00might at a roadside farm stand or local
  1785. 1:07:02market. But in fact, most of the produce
  1786. 1:07:05was shipped in by plane days ago. Its
  1787. 1:07:07price set and fixed at the Whole Foods
  1788. 1:07:09corporate headquarters. Not only does
  1789. 1:07:11the price not change daily, but what may
  1790. 1:07:13look like chalk on the board is actually
  1791. 1:07:15indelible. The signs have been mass-
  1792. 1:07:17prodduced in a factory. In industry
  1793. 1:07:20parliament, marketers use the term
  1794. 1:07:22farmgate to refer to this strategy of
  1795. 1:07:24planting a false image of a real
  1796. 1:07:26allnatural working farm in our minds and
  1797. 1:07:28factory gate to refer to the fact that
  1798. 1:07:30most everything we see before us is
  1799. 1:07:32actually manufactured by a large
  1800. 1:07:34corporation. These same farmgate tactics
  1801. 1:07:37are behind the coolers of chipped ice
  1802. 1:07:39planted everywhere you look. Ever notice
  1803. 1:07:41that there's ice everywhere in this
  1804. 1:07:43store? Why does hummus really need to be
  1805. 1:07:46kept ice cold? What about cucumber and
  1806. 1:07:49yogurt dip? No. And no. This ice is
  1807. 1:07:53another symbolic and unconscious
  1808. 1:07:55suggestion that what's before us is
  1809. 1:07:56bursting with freshness. To our
  1810. 1:07:59irrational, germfearing minds,
  1811. 1:08:00tortillas, hot dogs, pickles, and other
  1812. 1:08:03non-p perishables must be fresher and
  1813. 1:08:05thus safer to eat when they're sitting
  1814. 1:08:07on a bed of ice, especially when the
  1815. 1:08:08soda or juice persspires a little, a
  1816. 1:08:10phenomenon the industry dubs sweat. The
  1817. 1:08:12refrigerators in most juice and milk
  1818. 1:08:14aisles are deliberately kept at the
  1819. 1:08:16exact temperature needed for this
  1820. 1:08:18sweating to occur. Similarly, for years
  1821. 1:08:20now, supermarkets have been sprinkling
  1822. 1:08:22select vegetables with regular dew drops
  1823. 1:08:24of water, a trend that came out of
  1824. 1:08:26Denmark. Why? Like ice displays, those
  1825. 1:08:30sprinkler-like drops serve as a
  1826. 1:08:31symbolic, albeit a bogus one, of
  1827. 1:08:33freshness and purity. Ironically, that
  1828. 1:08:36same dewy mist makes the vegetables rot
  1829. 1:08:38more quickly than they would otherwise.
  1830. 1:08:41So much for perception versus reality.
  1831. 1:08:44When carrying out experiments on
  1832. 1:08:46consumer behavior across the world, I
  1833. 1:08:48often ask people a truly obnoxious
  1834. 1:08:50question. Would they mind emptying the
  1835. 1:08:52contents of their fridge and freezer
  1836. 1:08:53onto the kitchen table, then one by one
  1837. 1:08:56ranking and replacing the items
  1838. 1:08:58depending on how fresh they perceive the
  1839. 1:09:00products as being. You would be
  1840. 1:09:02surprised at how the extraordinarily
  1841. 1:09:04persuasive effects of advertising play
  1842. 1:09:06into people's perceptions of freshness.
  1843. 1:09:09The one product consistently at the top
  1844. 1:09:11of people's lists, Hines ketchup. That's
  1845. 1:09:15right. Consumers rank bottled ketchup as
  1846. 1:09:17being fresher than lettuce, tomatoes,
  1847. 1:09:19onions, and so on. Why, hides? I always
  1848. 1:09:22ask, noting that the expiration date on
  1849. 1:09:24the bottle isn't for another 6 months.
  1850. 1:09:27You're right, the majority reply after a
  1851. 1:09:30moment. I have no idea why I put that
  1852. 1:09:32there. So, what's behind this bizarre
  1853. 1:09:35impression that ketchup is fresh? It's
  1854. 1:09:38all in the way it's marketed. Hin subtly
  1855. 1:09:40plays up the tomatoess of ketchup with
  1856. 1:09:42its deep red color, the shade of a
  1857. 1:09:44picked right off the vine beef steak
  1858. 1:09:46tomato, even though it's actually made
  1859. 1:09:48from tomato concentrate. Moreover, Hines
  1860. 1:09:51does not in fact have to be refrigerated
  1861. 1:09:54once the seal is broken, as we are led
  1862. 1:09:56to believe. That's yet another illusion
  1863. 1:09:58meant to trick us into thinking the
  1864. 1:10:00product is fresh. My extensive work for
  1865. 1:10:03McDonald's shows that symbolics like
  1866. 1:10:05these can alter our perception of
  1867. 1:10:07everything from freshness to value or
  1868. 1:10:10even quality. I once helped McDonald's
  1869. 1:10:12incorporate symbolics of freshness in
  1870. 1:10:15its restaurants throughout Europe. We
  1871. 1:10:17painted green leaves on the insides of
  1872. 1:10:19the lamps and even went so far as to
  1873. 1:10:21display fresh tomatoes and vegetables
  1874. 1:10:24behind glass displays. In France,
  1875. 1:10:26McDonald's went so far as to transform
  1876. 1:10:28its fabled logo from yellow to a dark
  1877. 1:10:31leafy green. And trust me, it worked.
  1878. 1:10:34Another powerful symbolic of purity and
  1879. 1:10:37freshness. Fruit. In the juice world,
  1880. 1:10:40it's a general rule of thumb that the
  1881. 1:10:42more fruit a manufacturer displays on
  1882. 1:10:44the side of the juice carton, the
  1883. 1:10:46greater will be our perception of
  1884. 1:10:48freshness. Note the spill of kiwis,
  1885. 1:10:50oranges, mangoes, strawberries, and
  1886. 1:10:52raspberries that blanket most juice
  1887. 1:10:54cartons. Would it surprise you to find
  1888. 1:10:56out that many of these blends contain
  1889. 1:10:58only the tiniest trace amounts of the
  1890. 1:11:00more expensive exotic fruits like kiwi
  1891. 1:11:03and mango and are typically more water
  1892. 1:11:05and sugar than actual fruit juice? By
  1893. 1:11:07the way, even though you might think of
  1894. 1:11:09brands like Dole, Minuteade, Just Juice,
  1895. 1:11:11and Oddwala as natural brands. In fact,
  1896. 1:11:14they are owned by Coca-Cola while Pepsi
  1897. 1:11:16owns Tropicana. And guess who has a true
  1898. 1:11:18monopoly on the entire category of fruit
  1899. 1:11:21juices, not to mention milk, buttermilk,
  1900. 1:11:23and lemonade? a Swedish conglomerate
  1901. 1:11:26called Tetropac, the global manufacturer
  1902. 1:11:28of those rectangular plastic containers
  1903. 1:11:30in which our juices and milks are
  1904. 1:11:32packaged. This reminds me of the time a
  1905. 1:11:35couple of decades ago when I was asked
  1906. 1:11:37to develop a cheese ball snack, a round
  1907. 1:11:39version of Cheetos. On my preliminary
  1908. 1:11:41package design, I placed five cheese
  1909. 1:11:44balls in a minimalist Stonehengeike
  1910. 1:11:46pattern. The person who hired me had a
  1911. 1:11:48fit. Who would buy only five cheese
  1912. 1:11:50balls? He asked. We need to see tons of
  1913. 1:11:54cheese balls on that package. Over the
  1914. 1:11:56years, I've realized how right he was
  1915. 1:11:58and across all categories, too. I
  1916. 1:12:01redesigned the package to show seemingly
  1917. 1:12:03hundreds of those cheese balls. Why?
  1918. 1:12:06Because it seduces us into thinking we
  1919. 1:12:08are getting that much more in the
  1920. 1:12:10package. This may have nothing to do
  1921. 1:12:12with freshness. After all, even the
  1922. 1:12:14smartest marketers out there would be
  1923. 1:12:16hardressed to fool any consumer into
  1924. 1:12:18thinking that Cheetos are remotely
  1925. 1:12:19fresh. But it goes to show why despite
  1926. 1:12:21the minimal amount of actual fruit
  1927. 1:12:23inside most fruit juices, their
  1928. 1:12:25containers picture a veritable
  1929. 1:12:26cornucopia of kiwis, mangoes, and so on.
  1930. 1:12:30Speaking of fruit, you may think a
  1931. 1:12:32banana is just a banana, but it's not.
  1932. 1:12:35Dole and other banana growers have made
  1933. 1:12:37the creation of a banana into a mini
  1934. 1:12:39science in part to manipulate
  1935. 1:12:41perceptions of freshness. In fact,
  1936. 1:12:43they've issued a banana guide to green
  1937. 1:12:45grocerers illustrating the various color
  1938. 1:12:47stages a banana can attain during its
  1939. 1:12:50life cycle. Each color represents the
  1940. 1:12:52sales potential for the banana in
  1941. 1:12:54question. For example, sales records
  1942. 1:12:57show that bananas with panon color 13 to
  1943. 1:12:59858, otherwise known as vibrant yellow,
  1944. 1:13:02are less likely to sell than bananas
  1945. 1:13:03with panton color 12 to 752, also called
  1946. 1:13:06buttercup, which is one grade warmer
  1947. 1:13:08visually and seems to imply a riper,
  1948. 1:13:11fresher fruit. Companies like Dole have
  1949. 1:13:13analyzed the sales effects of all
  1950. 1:13:15varieties of color and as a result plant
  1951. 1:13:18their crops under conditions most ideal
  1952. 1:13:20to creating the right color. And as for
  1953. 1:13:22apples, believe it or not, my research
  1954. 1:13:25found that while it may look fresh, the
  1955. 1:13:27average apple you see in the supermarket
  1956. 1:13:29is actually 14 months old. Knowing that
  1957. 1:13:32even just the suggestion of fruit evokes
  1958. 1:13:34such powerful associations of health,
  1959. 1:13:36freshness, and cleanliness, brands
  1960. 1:13:38across all category lines have gone
  1961. 1:13:40fruity on us. Infusing everything from
  1962. 1:13:42shampoos to hair conditioners to baby
  1963. 1:13:44soaps to bottled waters to nicotine
  1964. 1:13:45chewing gum to lip balm to teas to
  1965. 1:13:47vitamins to cosmetics and even to
  1966. 1:13:49furniture polish with pineapple,
  1967. 1:13:50oranges, peaches, passion fruit, and
  1968. 1:13:53banana fragrances. Engineered in a
  1969. 1:13:54chemist's laboratory, of course. Mango
  1970. 1:13:57papaya conditioner. Anyone? Lemon lip
  1971. 1:14:00gloss, orange scented pine soul. Will
  1972. 1:14:03these products get your hair or your
  1973. 1:14:05floors any cleaner than the regular
  1974. 1:14:07versions? Of course not. But the scent
  1975. 1:14:10of fruit evoke strong associations of
  1976. 1:14:12cleanliness for germaphobic consumers,
  1977. 1:14:15and that's really all that matters.
  1978. 1:14:17We've reached a point where our shampoos
  1979. 1:14:19are so fruity, we almost want to guzzle
  1980. 1:14:21them down. Shampoo companies also
  1981. 1:14:24realize that the sheer volume of bubbles
  1982. 1:14:25a shampoo generates can evoke
  1983. 1:14:27associations of freshness and
  1984. 1:14:29cleanliness. Bubbles signal that the
  1985. 1:14:30shampoo is strong and invigorating, just
  1986. 1:14:33as the sting of an aftershave or the
  1987. 1:14:34bubbles hitting our throat when we down
  1988. 1:14:36sparkling water inform us that the
  1989. 1:14:38product is fresh and uncontaminated.
  1990. 1:14:41Some companies I know have even gone so
  1991. 1:14:43far as to create a chemical that
  1992. 1:14:44accelerates the appearance and quality
  1993. 1:14:46of bubbles to make unwitting bayers feel
  1994. 1:14:49as though their hair is getting cleaner
  1995. 1:14:50faster. I call this a perceived
  1996. 1:14:53justification symbol, a moment designed
  1997. 1:14:55to reassure us that we made the right
  1998. 1:14:57purchase and of course ensure that we'll
  1999. 1:14:59stay loyal to that product in the
  2000. 1:15:01future. Similarly, ever wonder why
  2001. 1:15:04Aquaresh toothpaste looks the way it
  2002. 1:15:06does? There's a good reason each squirt
  2003. 1:15:08is a rainbow of colors. The white is
  2004. 1:15:11meant to be a symbolic for whiter teeth,
  2005. 1:15:13the red is symbolic for protecting the
  2006. 1:15:15gums, and the blue is symbolic for fresh
  2007. 1:15:17breath. And it works. In one experiment,
  2008. 1:15:21I asked two groups of consumers to try
  2009. 1:15:23two different versions of the
  2010. 1:15:24toothpaste. One the regular version and
  2011. 1:15:27one that had been dyed just one color.
  2012. 1:15:29Sure enough, the group using the paste
  2013. 1:15:31with the three colors not only reported
  2014. 1:15:33that the toothpaste worked 73% better,
  2015. 1:15:36they even claimed they believed that
  2016. 1:15:38their teeth looked whiter. Back at Whole
  2017. 1:15:40Foods, as I round the corner, a
  2018. 1:15:42decidedly non-fruit smell hits me.
  2019. 1:15:45Seafood. There are whole fish eyes,
  2020. 1:15:48scales, and all laid out on yet another
  2021. 1:15:50cold bed of symbolic ice. Again,
  2022. 1:15:52suggesting that the fish in this store
  2023. 1:15:54were reeled in just this morning. But
  2024. 1:15:56the fish you actually buy sit behind a
  2025. 1:15:58glass counter in individual plastic
  2026. 1:16:00containers and have already been
  2027. 1:16:01beheaded, deboned, and paired down to a
  2028. 1:16:04more manageable size. You'll never
  2029. 1:16:05actually take home one of those four
  2030. 1:16:07whole fish lying balefully across their
  2031. 1:16:09ice coffin. In fact, these are probably
  2032. 1:16:12the only four intact fish in the entire
  2033. 1:16:14store, and they probably aren't even
  2034. 1:16:15fresh at all, as they've been lying out
  2035. 1:16:17there in the open all day, if not
  2036. 1:16:19longer. Yet again, our brains have been
  2037. 1:16:22tricked into believing that everything
  2038. 1:16:23in the store was fished, trucked in, and
  2039. 1:16:26handd delivered just this morning. I was
  2040. 1:16:29once called in to advise the owner of a
  2041. 1:16:31Dubai fish market who had attempted to
  2042. 1:16:33sell frozen fish. At first, very few
  2043. 1:16:36customers showed any interest. Then the
  2044. 1:16:39manager decided to place the store
  2045. 1:16:40supply of frozen fish at top coolers of
  2046. 1:16:43ice cubes. Suddenly and irrationally,
  2047. 1:16:45sales of the fish, the frozen fish,
  2048. 1:16:47remember, rose by 74%.
  2049. 1:16:50Why? It was perceived as fresher simply
  2050. 1:16:53because it was displayed on blocks of
  2051. 1:16:55ice. Interestingly, in France, consumers
  2052. 1:16:58actually believe frozen foods are
  2053. 1:17:00fresher than fresh fruits and
  2054. 1:17:01vegetables. I credit an ingenious frozen
  2055. 1:17:04food industry for stressing in its
  2056. 1:17:06marketing and advertising how long it
  2057. 1:17:09takes fresh produce to make its way from
  2058. 1:17:11the farm to the production facility to
  2059. 1:17:13the supermarket to a consumer's
  2060. 1:17:15refrigerator. Why? That fresh bunch of
  2061. 1:17:17spinach could easily be weeks old.
  2062. 1:17:20Whereas they inform consumers frozen
  2063. 1:17:22food is conserved and preserved on the
  2064. 1:17:24spot. A final fish story. A friend of
  2065. 1:17:28mine once worked on the small island of
  2066. 1:17:30Tenneref, largest of the Canary Islands
  2067. 1:17:32off the coast of Spain. He was a
  2068. 1:17:34fisherman and his very best customer was
  2069. 1:17:37a popular local restaurant known as
  2070. 1:17:39Losabrigos. But the restaurant owners
  2071. 1:17:42had specific instructions. Once my
  2072. 1:17:44friend and the other fishermen had
  2073. 1:17:46caught their day supply of seafood,
  2074. 1:17:47Losrigasa's management asked them to
  2075. 1:17:50deliver the fish to a small nearby port
  2076. 1:17:52where it was then transferred onto a
  2077. 1:17:54traditional looking fisherman's boat,
  2078. 1:17:55the kind no one, including my friend,
  2079. 1:17:57uses anymore. When customers would
  2080. 1:18:00arrive for lunch between noon and 300
  2081. 1:18:02p.m., the fisherman's boat would putter
  2082. 1:18:04into the harbor and everyone would look
  2083. 1:18:06on as a grizzled old Spanish fisherman
  2084. 1:18:08would step out and hand over the fish
  2085. 1:18:10ostensibly reeled in just moments
  2086. 1:18:12earlier to the waiting restaurant staff.
  2087. 1:18:15It was all completely staged, but people
  2088. 1:18:17fell for it and soon the restaurant had
  2089. 1:18:19to turn away a daily overflow of
  2090. 1:18:21customers. So whether it's germs or
  2091. 1:18:24disease or some feared version of a
  2092. 1:18:26future self, marketers are amazingly
  2093. 1:18:28adept at identifying a fear out of the
  2094. 1:18:30zeitgeist, activating it, amplifying it,
  2095. 1:18:33and preying on it in ways that hit us at
  2096. 1:18:35the deepest subconscious level. As you
  2097. 1:18:38read on, you'll learn that fear is far
  2098. 1:18:40from the only psychological tool
  2099. 1:18:41companies and marketers are
  2100. 1:18:43surreptitiously using to persuade us,
  2101. 1:18:46which may be the scariest thing of all.
  2102. 1:18:49Chapter 3. Your cell phones ringing. Is
  2103. 1:18:52it a colleague checking in? News of a
  2104. 1:18:55canceled meeting, a sick child, a death,
  2105. 1:18:58a birth, an emergency. Without this
  2106. 1:19:01lifeline in your hand, where would you
  2107. 1:19:03be? Lost, distracted, cut off, alone. I
  2108. 1:19:09know a man whose iPhone sits in a
  2109. 1:19:10bedside dock beside him at night. Most
  2110. 1:19:13nights, he wakes up involuntarily at
  2111. 1:19:151:00 a.m. to check his email. Then again
  2112. 1:19:18at 3. Then again at 5. In the morning,
  2113. 1:19:22his phone awakens him with a soft but
  2114. 1:19:24audible rendition of Louisie Armstrong
  2115. 1:19:26and Ella Fitzgerald's Can't We Be
  2116. 1:19:28Friends. By the time he's kissed his
  2117. 1:19:30wife Good Morning, or roused his kids,
  2118. 1:19:32he's already sent three text messages,
  2119. 1:19:34checked his three email accounts,
  2120. 1:19:35scanned the headlines of the New York
  2121. 1:19:37Times, and watched a highlight reel from
  2122. 1:19:39last night's Knicks game on ESPN.com.
  2123. 1:19:42As he gets ready for the day, his phone
  2124. 1:19:44goes with him everywhere to the
  2125. 1:19:46bathroom. while he takes his morning
  2126. 1:19:48shower outside when he takes the dog out
  2127. 1:19:51for a quick walk. While driving to work,
  2128. 1:19:54he recharges it in the passenger seat,
  2129. 1:19:56lest the battery run out before he makes
  2130. 1:19:58it to his office, where he has a backup.
  2131. 1:20:01As he drives, his GPS app tells him
  2132. 1:20:03which route has the least traffic. He
  2133. 1:20:06checks the day's weather on it, not to
  2134. 1:20:08mention the temperatures in Paris, New
  2135. 1:20:10York, and five other cities. At work, he
  2136. 1:20:13plugs it into his computer. In idle
  2137. 1:20:15moments, he plays Angry Birds, Tetris,
  2138. 1:20:18and Super Mario Kart on it. Sometimes he
  2139. 1:20:21squints to read a book on the Kindle
  2140. 1:20:23app. He uses his smartphone as a
  2141. 1:20:25stopwatch, a flashlight, a calculator, a
  2142. 1:20:27calendar, a camera, a stock checker, a
  2143. 1:20:29notetaker, and more. More than once,
  2144. 1:20:32he's misplaced it. At those times, he
  2145. 1:20:35felt as though his very identity had
  2146. 1:20:37been stripped from him. The feeling, he
  2147. 1:20:40tells me, was similar to that of a
  2148. 1:20:42smoker who knows there's got to be one
  2149. 1:20:43more cigarette around here somewhere, or
  2150. 1:20:45a junkie who knows there's one more fix
  2151. 1:20:48stashed in a drawer. If only he could
  2152. 1:20:50find it. And in this behavior, he is far
  2153. 1:20:52from alone. A recent study of 200
  2154. 1:20:55students at Stanford University revealed
  2155. 1:20:58that 34% rated themselves as addicted to
  2156. 1:21:01their phones, while 32% worried they
  2157. 1:21:03someday would be addicted. The way
  2158. 1:21:05things are trending, I suspect this
  2159. 1:21:08number is only going to grow. Think
  2160. 1:21:10about how many times you check your
  2161. 1:21:12phone throughout the course of the day.
  2162. 1:21:1425, 50, 200. Now, think about that sick,
  2163. 1:21:19uneasy feeling you get when you discover
  2164. 1:21:21that not a soul has called, texted,
  2165. 1:21:23emailed, or written on your Facebook
  2166. 1:21:25wall. At least not since you last
  2167. 1:21:27checked 5 minutes ago. Let me ask you
  2168. 1:21:29another question. Where do you keep your
  2169. 1:21:31cell phone when you go to sleep at
  2170. 1:21:33night? on your nightstand within arms
  2171. 1:21:36reach in bed with you tucked away
  2172. 1:21:38soundly inches from your snoring
  2173. 1:21:40spouse's pillow. You wouldn't be alone.
  2174. 1:21:42As a recent New York Times article put
  2175. 1:21:44it, after 6 to 8 hours of network
  2176. 1:21:47deprivation, also known as sleep, people
  2177. 1:21:49are increasingly waking up and lunging
  2178. 1:21:51for cell phones and laptops, sometimes
  2179. 1:21:53even before swinging their legs to the
  2180. 1:21:55floor and tending to more biologically
  2181. 1:21:57urgent activities. One. I was once
  2182. 1:22:00dining at an elegant restaurant in
  2183. 1:22:03Paris. Two tables away sat an American
  2184. 1:22:06couple. It was lunchtime. I glanced over
  2185. 1:22:09as the familiar digital choreography,
  2186. 1:22:11what I call the cell phone dance, got
  2187. 1:22:13underway. Lowering his head, the man
  2188. 1:22:16drew his hand to his pants pocket,
  2189. 1:22:18surreptitiously slid out his phone, and
  2190. 1:22:20cocked his eyes down at the small
  2191. 1:22:22glowing screen. A moment passed. Then
  2192. 1:22:25the man excused himself and went to the
  2193. 1:22:27bathroom. I followed him in simply
  2194. 1:22:30because I wanted to prove he was there
  2195. 1:22:32for no other reason than to check his
  2196. 1:22:34emails and texts. I was right. The
  2197. 1:22:37moment he returned to the table, the
  2198. 1:22:39woman who had undoubtedly taken his
  2199. 1:22:41absence as an opportunity to check her
  2200. 1:22:42own phone rose to use the bathroom
  2201. 1:22:44herself. I imagine the same routine took
  2202. 1:22:47place in the lady's room. A female
  2203. 1:22:49executive once told me about a time when
  2204. 1:22:51she was having lunch with her boss and
  2205. 1:22:53excused herself to use the bathroom
  2206. 1:22:55where she found herself trading text
  2207. 1:22:57messages with her seated boss. These
  2208. 1:23:00days, we're tapping away at our phones
  2209. 1:23:02and handhelds while eating breakfast
  2210. 1:23:03with our families during our kids soccer
  2211. 1:23:06games and apparently from the bathrooms
  2212. 1:23:08of fancy Parisian beastro. Tucking our
  2213. 1:23:10recharged cell phones into our purses or
  2214. 1:23:13pockets before leaving the house in the
  2215. 1:23:15morning has become a ritualized step of
  2216. 1:23:17arming ourselves against the day. A poll
  2217. 1:23:19conducted by USA Today asked Wi-Fi users
  2218. 1:23:22how long they could last before they
  2219. 1:23:24started getting antsy about checking
  2220. 1:23:25their email inbox, instant messages or
  2221. 1:23:28social networking sites. 47% replied 1
  2222. 1:23:32hour or less. I recently conducted an
  2223. 1:23:35experiment in conjunction with global
  2224. 1:23:37audio identity experts Elias Arts to
  2225. 1:23:40identify the 50 most powerful and
  2226. 1:23:42addictive sounds in the world. The third
  2227. 1:23:44place winner, the sound of a vibrating
  2228. 1:23:47phone. Be it an iPhone, a Blackberry, or
  2229. 1:23:50an Android, there's no question that the
  2230. 1:23:52vast majority of us are extremely
  2231. 1:23:54attached to our phones, but addicted?
  2232. 1:23:57Really? Isn't that a bit much? Two? Not
  2233. 1:24:01really. While it's true that most of us
  2234. 1:24:03wouldn't meet the American Psychological
  2235. 1:24:05Association's definition of an addict,
  2236. 1:24:07some psychologists have argued that
  2237. 1:24:09smartphones may tap into the same
  2238. 1:24:11associative learning pathways in the
  2239. 1:24:13brain that make other compulsive
  2240. 1:24:14behaviors like gambling so addictive.
  2241. 1:24:17Three, in other words, when we use our
  2242. 1:24:19phones, our brains create a powerfully
  2243. 1:24:21positive associative memory in effect
  2244. 1:24:23conditioning us to crave that activity
  2245. 1:24:25again. Just as with addiction to drugs
  2246. 1:24:28or cigarettes or food, the chemical
  2247. 1:24:30driver of this process is dopamine, that
  2248. 1:24:32feel-good neurotransmitter. Some
  2249. 1:24:34psychologists have asserted that when we
  2250. 1:24:36receive a new email or text, our brains
  2251. 1:24:39release a shot of dopamine, and thus we
  2252. 1:24:41learn to associate that pleasurable
  2253. 1:24:42feeling with the act of checking our
  2254. 1:24:44phones. So, like an alcoholic who craves
  2255. 1:24:47that euphoric feeling he gets from
  2256. 1:24:48drinking, we're left craving that rush
  2257. 1:24:51we get from seeing that text message pop
  2258. 1:24:53up. Still, the theory that behavior like
  2259. 1:24:56that of my iPhone obsessed friend is
  2260. 1:24:57driven by the same neurological
  2261. 1:24:59processes as drug or alcohol addiction
  2262. 1:25:01remains unproven and controversial. So I
  2263. 1:25:04decided to conduct infuri study to find
  2264. 1:25:07out whether smartphones, iPhones and
  2265. 1:25:09Blackberries are really truly addictive.
  2266. 1:25:12With the help of Mindsign, a
  2267. 1:25:13neuromarketing firm based in San Diego,
  2268. 1:25:16California, whose brain activating
  2269. 1:25:18methodology shows companies what
  2270. 1:25:20consumers are thinking when they're
  2271. 1:25:21using products and viewing ads. We
  2272. 1:25:23enlisted eight males and eight females
  2273. 1:25:25between the ages of 18 and 25. As the
  2274. 1:25:28study got underway, researchers screened
  2275. 1:25:30both audio and video of a ringing and a
  2276. 1:25:33vibrating iPhone. Researchers then
  2277. 1:25:35screened these audiovisisual images to
  2278. 1:25:37our volunteers three times in a row.
  2279. 1:25:40Were iPhones really truly addictive, no
  2280. 1:25:42less so than alcohol, cocaine, shopping,
  2281. 1:25:44or video games? Two weeks later, the
  2282. 1:25:47Mind Sign Research team rang me up with
  2283. 1:25:50the results. First, a straightforward
  2284. 1:25:52observation. The audio and the video of
  2285. 1:25:54the iPhone, both ringing and vibrating,
  2286. 1:25:56activated both the audio and visual
  2287. 1:25:58cortices of our study subjects. In other
  2288. 1:26:00words, their brains had visual, not just
  2289. 1:26:02auditory, associations with the sound of
  2290. 1:26:05the ringtone. What was more surprising
  2291. 1:26:07though was that there was also a flurry
  2292. 1:26:09of activation in the brain's insula,
  2293. 1:26:12which is connected to feelings of love
  2294. 1:26:13and compassion. In short, these
  2295. 1:26:16participants didn't demonstrate the
  2296. 1:26:18classic brain-based signs of addiction
  2297. 1:26:20to their iPhones. What the sights and
  2298. 1:26:22sounds of a ringing or vibrating cell
  2299. 1:26:24phone did reveal, however, was that our
  2300. 1:26:26study subjects loved their iPhones.
  2301. 1:26:28Their brains responded to the sound of
  2302. 1:26:30the phones the same way they would
  2303. 1:26:32respond to their boyfriend, girlfriend,
  2304. 1:26:34niece, nephew, or family pet. In short,
  2305. 1:26:37it may not be addiction in the medical
  2306. 1:26:39sense, but it is true love. When you
  2307. 1:26:42shop and can't stop. Brand and shopping
  2308. 1:26:45addictions may not be as
  2309. 1:26:46life-threatening as addictions like
  2310. 1:26:48alcoholism or drug dependency, but they
  2311. 1:26:50are very real and when taken to the
  2312. 1:26:52extreme can be very debilitating. Take
  2313. 1:26:55the case of Carolyn Longme, a
  2314. 1:26:56middle-aged shopaholic secretary from
  2315. 1:26:58the UK who stole roughly $225,000
  2316. 1:27:02over a 2-year period from the small
  2317. 1:27:04electronic store where she worked. Did
  2318. 1:27:07she use this money for a down payment on
  2319. 1:27:09a house or to send her kid to college?
  2320. 1:27:12Nope. She used it to fund her Louis
  2321. 1:27:13Vuitton, Prada, and Gucci habits when
  2322. 1:27:16she was caught. The brand name clothes,
  2323. 1:27:18handbags, and shoes bought with the
  2324. 1:27:19stolen money were enough to fill 27
  2325. 1:27:21garbage bags. Four. or the case of Amy
  2326. 1:27:24Gagner, whose shopping compulsion, says
  2327. 1:27:26CBS News caused her to empty out iris,
  2328. 1:27:28stock options, and 401ks, all to pay off
  2329. 1:27:31a $200,000 shopping debt, and who after
  2330. 1:27:34spending 30 days at a residential
  2331. 1:27:36addiction center, now lives for her own
  2332. 1:27:38safety without a credit card, a checking
  2333. 1:27:40account, or even a computer. Five. A
  2334. 1:27:43true addiction can be defined as a
  2335. 1:27:45persistent uncontrolled reliance on
  2336. 1:27:47either a behavior or a substance.
  2337. 1:27:49Whether it's alcohol, a particular food,
  2338. 1:27:51chocolate, prescription pills, smoking,
  2339. 1:27:53gambling, shopping, or even sex. Most
  2340. 1:27:56psychologists would agree that
  2341. 1:27:58addictions result from a combination of
  2342. 1:28:00genetic predisposition and environmental
  2343. 1:28:03factors. Though the relative influence
  2344. 1:28:05of each varies and isn't precisely known
  2345. 1:28:08today, most experts also agree that
  2346. 1:28:10regardless of its cause or what shape it
  2347. 1:28:11takes, addiction is biologically
  2348. 1:28:14speaking a brain disease. In other
  2349. 1:28:16words, it's caused by persistent changes
  2350. 1:28:18in brain structure and function six,
  2351. 1:28:20which goes a long way toward explaining
  2352. 1:28:22why many addicts are unable to give up
  2353. 1:28:24their particular poison by sheer
  2354. 1:28:26willpower alone. The annals of general
  2355. 1:28:29psychiatry defines shopping addiction or
  2356. 1:28:31compulsive or pathological buying or
  2357. 1:28:33onania as frequent preoccupation with
  2358. 1:28:35buying or impulses to buy that are
  2359. 1:28:37experienced as irresistible, intrusive
  2360. 1:28:39and or senseless and goes on to say that
  2361. 1:28:41in order to qualify as a true addiction,
  2362. 1:28:43the buying behavior causes marked
  2363. 1:28:45distress, interferes with social
  2364. 1:28:46functioning and often results in
  2365. 1:28:48financial problems. Seven. Based on this
  2366. 1:28:51widely accepted definition, a Stanford
  2367. 1:28:53University study estimates that roughly
  2368. 1:28:556% of the population or 17 million
  2369. 1:28:58Americans suffers from a shopping
  2370. 1:29:00addiction at a condition that according
  2371. 1:29:02to the authors of the study typically
  2372. 1:29:04coincides with other disorders ranging
  2373. 1:29:06from mood and anxiety to eating
  2374. 1:29:08disorders to substance abuse. Nine. A
  2375. 1:29:10more recent study published in the
  2376. 1:29:12Journal of Consumer Research put the
  2377. 1:29:14prevalence of shopping addiction at a
  2378. 1:29:16startlingly high 8.9%.
  2379. 1:29:1810. Shopping addictions tend to follow
  2380. 1:29:21the same general patterns as any other
  2381. 1:29:24addiction according to experts in the
  2382. 1:29:26field. First comes anticipation of
  2383. 1:29:28shopping or buying something followed by
  2384. 1:29:30the shopping or buying experience
  2385. 1:29:32itself. Often described as pleasurable,
  2386. 1:29:34ecstatic even, and as providing relief
  2387. 1:29:36from negative feelings. According to a
  2388. 1:29:38study carried out by researchers at the
  2389. 1:29:40University of Richmond and the
  2390. 1:29:42University of Illinois, Urbana Champagne
  2391. 1:29:44and published in the journal of consumer
  2392. 1:29:46research 11. But the relief is fleeting
  2393. 1:29:49and ultimately the high wears off and
  2394. 1:29:51the shopper crashes. Then like an
  2395. 1:29:53alcoholic after a binge, he or she is
  2396. 1:29:56overcome with guilt and remorse before
  2397. 1:29:58the cycle starts all over again. While
  2398. 1:30:00psychiatrists aren't in complete
  2399. 1:30:02agreement about whether shopping
  2400. 1:30:03addiction qualifies as a clinical
  2401. 1:30:05addiction, at the time of writing, the
  2402. 1:30:07American Psychiatric Association is
  2403. 1:30:09debating whether to include compulsive
  2404. 1:30:11shopping in the fifth edition of its
  2405. 1:30:13mental health bible, the Diagnostic and
  2406. 1:30:15Statistical Manual of Mental Disorders.
  2407. 1:30:17They do agree that compulsive shoppers
  2408. 1:30:19use shopping as a way of escaping
  2409. 1:30:21negative feelings such as depression,
  2410. 1:30:23anxiety, boredom, self-critical
  2411. 1:30:25thoughts, and anger. 12. And many are
  2412. 1:30:27prescribing an anti-depressant known
  2413. 1:30:29generically as Citila Prem and sold in
  2414. 1:30:31the United States as Selixa to curb
  2415. 1:30:34uncontrollable shopping urges. As we saw
  2416. 1:30:37in the last chapter, marketing and
  2417. 1:30:39advertising and treaties that play on
  2418. 1:30:41emotions like fear, insecurity, and the
  2419. 1:30:43universal need for acceptance are
  2420. 1:30:45incredibly persuasive. Well, it turns
  2421. 1:30:47out that if we're already predisposed to
  2422. 1:30:49compulsively shop or buy, their
  2423. 1:30:51seductive powers become that much more
  2424. 1:30:53magnified. One four-year long German
  2425. 1:30:56study has even found that a critical
  2426. 1:30:58factor in shopping addiction is the
  2427. 1:31:00boost of self-esteem shoppers get from
  2428. 1:31:02interacting with store clerks. We
  2429. 1:31:05discovered that shopping addicts get a
  2430. 1:31:07real kick out of the interaction they
  2431. 1:31:08have with store personnel. Their fragile
  2432. 1:31:11egos are given a tremendous boost by
  2433. 1:31:13salespeople who fawn over them and smile
  2434. 1:31:15and treat them like royalty, says Astred
  2435. 1:31:18Mueller, who wrote the study findings.
  2436. 1:31:20Their conscious minds know, of course,
  2437. 1:31:22that these people only want to make a
  2438. 1:31:24commission on a sale. But their
  2439. 1:31:26subconscious minds enjoy being treated
  2440. 1:31:28as a special somebody. 13. So, how does
  2441. 1:31:32shopping addiction or any addiction for
  2442. 1:31:34that matter start? Again, it all goes
  2443. 1:31:37back to dopamine, that feel-good
  2444. 1:31:39neurotransmitter. Our brain's lyic
  2445. 1:31:40system spurts out to give us a high or
  2446. 1:31:42rush so pleasurable that we can't help
  2447. 1:31:44but repeat the behavior as soon as the
  2448. 1:31:46dopamine drops back to normal levels.
  2449. 1:31:49The catch is the more we experience the
  2450. 1:31:51object or behavior of our addiction,
  2451. 1:31:53whether it's cigarettes, a drink, a
  2452. 1:31:55drug, or new manolonic pumps, the
  2453. 1:31:57greater a tolerance we build up, meaning
  2454. 1:31:59we need more and more of the substance
  2455. 1:32:01or the behavior to get back that
  2456. 1:32:03dopamine high. Dr. Peter Khivas, chair
  2457. 1:32:06of physiology and neuroscience at the
  2458. 1:32:08Medical University of South Carolina,
  2459. 1:32:10explains that over time, our persistent
  2460. 1:32:13pursuit of that rush of dopamine can
  2461. 1:32:14actually change our brain's DNA,
  2462. 1:32:16specifically the proteins that control a
  2463. 1:32:18neurotransmitter known as glutamate in a
  2464. 1:32:21way that triggers an uncontrollable urge
  2465. 1:32:23to secure the drug, the drink, or the
  2466. 1:32:25item of clothing. You will not let
  2467. 1:32:27things stand in your way. Kus says the
  2468. 1:32:30brain has been altered permanently. 14.
  2469. 1:32:34the thin line between obsession and
  2470. 1:32:36addiction. Brand addiction and its
  2471. 1:32:39slightly less severe cousin, brand
  2472. 1:32:40obsession, are subsets of shopping
  2473. 1:32:42addiction. And while they may not be
  2474. 1:32:44recognized as psychiatric disorders, I
  2475. 1:32:46found them to be alarmingly common. In
  2476. 1:32:49fact, I'm guessing that whether it's the
  2477. 1:32:51co-orker who has to have her Starbucks
  2478. 1:32:52in the morning before she can function,
  2479. 1:32:54not just any coffee, it has to be
  2480. 1:32:56Starbucks or the brother-in-law who
  2481. 1:32:58mopes around depressed for days because
  2482. 1:33:00the Yankees lost or the little cousin
  2483. 1:33:02who stands in line all night in minus 10
  2484. 1:33:04degree weather because she just has to
  2485. 1:33:06have tickets to the Miley Cyrus concert.
  2486. 1:33:08Sports teams and celebrities are brands
  2487. 1:33:10and highly addictive ones. Two, you two
  2488. 1:33:13know plenty of people who suffer from
  2489. 1:33:15it. There are so many brand obsessives
  2490. 1:33:17out there. There's even an online
  2491. 1:33:19community called My Brand Z where the
  2492. 1:33:21afflicted can swap stories about their
  2493. 1:33:22obsessions. Over the years, I've met
  2494. 1:33:25people addicted to all kinds of brands
  2495. 1:33:27and products. From a man who owned 10
  2496. 1:33:29Harley-Davidsons to a woman who drank 25
  2497. 1:33:32Diet Cokes a day. And while there's
  2498. 1:33:34certainly a difference between brand
  2499. 1:33:36fanaticism and true addiction, I found
  2500. 1:33:38that line to be rather thin. Still, do
  2501. 1:33:42companies and advertisers have a hand in
  2502. 1:33:44creating these addictions to their
  2503. 1:33:45products? Obviously, they can't
  2504. 1:33:48penetrate our brains and alter the DNA.
  2505. 1:33:51But while they may not be able to
  2506. 1:33:52directly manufacture addiction, based on
  2507. 1:33:55what I've seen in boardrooms and back
  2508. 1:33:57rooms over my two decades of work with
  2509. 1:33:59some of the most successful brands on
  2510. 1:34:01the planet, you better believe that they
  2511. 1:34:03do have a lot of clever tricks and tools
  2512. 1:34:05for nudging us in that direction and
  2513. 1:34:07spurring addictions along. Sometimes
  2514. 1:34:09they use subconscious emotional or
  2515. 1:34:11psychological cues like when cigarette
  2516. 1:34:13companies imbue their ads and packaging
  2517. 1:34:15with subtle imagery meant to induce
  2518. 1:34:17craving. Other times they actually make
  2519. 1:34:19their products physically addictive. The
  2520. 1:34:21way cigarette companies manufacture
  2521. 1:34:23tobacco products to be chemically
  2522. 1:34:25addictive and potato chip companies use
  2523. 1:34:27recipes that ensure we won't be able to
  2524. 1:34:29stop until we've eaten the whole bag.
  2525. 1:34:31and other times they persuade us to
  2526. 1:34:33engage in behaviors that actually rewire
  2527. 1:34:36our brains to become hooked on the act
  2528. 1:34:38of shopping and buying. To find out
  2529. 1:34:40exactly how these addictions form, I
  2530. 1:34:42spoke with a former senior executive at
  2531. 1:34:44Philip Morris seemed like the logical
  2532. 1:34:46place to start my research on addiction
  2533. 1:34:48about how mere consumer habits and
  2534. 1:34:50preferences can cross the line into
  2535. 1:34:52addictions and the role companies play
  2536. 1:34:54in pushing us over it. He told me that
  2537. 1:34:56his company has identified a model of
  2538. 1:34:58how we get hooked on brands. It happens
  2539. 1:35:01in two stages. The first is known as the
  2540. 1:35:04routine stage. This is when we simply
  2541. 1:35:07use certain brands or products as part
  2542. 1:35:09of our daily habits and rituals. When we
  2543. 1:35:11brush our teeth with Crest, use Dove
  2544. 1:35:13soap in the shower, drive our Toyota to
  2545. 1:35:16work, etc. These are all products we buy
  2546. 1:35:19regularly and replace or replenish
  2547. 1:35:21whenever they break or run out. They are
  2548. 1:35:24essential to our everyday functioning.
  2549. 1:35:26The second stage, known as the dream
  2550. 1:35:28stage, however, is when we buy things. A
  2551. 1:35:30new dress, a new pair of earphones, a
  2552. 1:35:32new bottle of perfume. Not because we
  2553. 1:35:34need them, but because we've allowed
  2554. 1:35:36emotional signals about them to
  2555. 1:35:37penetrate our brains. When do we slip
  2556. 1:35:40into the dream stage? According to this
  2557. 1:35:42executive who asked that he not be
  2558. 1:35:44named, it's usually when we've let our
  2559. 1:35:46guard down, when we're relaxed, during
  2560. 1:35:49the summer, over the weekend, on
  2561. 1:35:51vacation. Think about it. Beyond the
  2562. 1:35:54essentials, how many times do you open
  2563. 1:35:56your wallet during the work week?
  2564. 1:35:58Typically, not often because you're in
  2565. 1:36:00work mode, not shopping mode. But as the
  2566. 1:36:02weekend approaches, we shed our routines
  2567. 1:36:05like an unwanted skin and become
  2568. 1:36:07susceptible to the dream stage.
  2569. 1:36:09According to the former Philip Morris
  2570. 1:36:11executive, that's when a real attachment
  2571. 1:36:13to a brand tends to take root. Here's
  2572. 1:36:16how it happens. During a brief rest bit
  2573. 1:36:19from the routine stage or work mode, we
  2574. 1:36:21feel more relaxed, less inhibited, and
  2575. 1:36:23more open to trying new drinks, new
  2576. 1:36:25clothes, new cosmetics, new foods.
  2577. 1:36:27Pretty soon, we've subconsciously linked
  2578. 1:36:29the good memories or pleasant emotions
  2579. 1:36:31of the dream stage with the taste of
  2580. 1:36:33that new cocktail or the feel of that
  2581. 1:36:35new face cream against our skin or the
  2582. 1:36:37fragrance of that new lemon scented
  2583. 1:36:39candle. So once Monday rolls around
  2584. 1:36:42again or autumn gets underway, we try to
  2585. 1:36:44reactivate this feeling by integrating
  2586. 1:36:46those brands and products into our daily
  2587. 1:36:48routines. And once something is part of
  2588. 1:36:51our routine, it becomes almost
  2589. 1:36:53impossible to shake. In some a habit is
  2590. 1:36:56formed during the dream stage, then the
  2591. 1:36:58habit is reinforced and permanently
  2592. 1:37:00embedded during the routine stage. At
  2593. 1:37:02which time we are unconsciously longing
  2594. 1:37:04for the dream stage feelings we left
  2595. 1:37:06behind at the beach or at the spa or at
  2596. 1:37:08that outdoor concert. This in fact is
  2597. 1:37:11why most beverage brands are so
  2598. 1:37:12ubiquitously present at summertime music
  2599. 1:37:15festivals and concerts. Those companies
  2600. 1:37:17know this is one of the best windows to
  2601. 1:37:19hook new customers on their products.
  2602. 1:37:22Red Bull, for example, got its start by
  2603. 1:37:24distributing free case loads of the
  2604. 1:37:26stuff at cool hangouts like malls and
  2605. 1:37:28surfing shops where teenagers and
  2606. 1:37:29college kids tend to gather to escape
  2607. 1:37:31the mundane routines of their everyday
  2608. 1:37:33lives. By the way, it's no coincidence
  2609. 1:37:35that malls and certain kinds of stores
  2610. 1:37:37become the cool hangout location. That's
  2611. 1:37:39another happy accident engineered
  2612. 1:37:41largely by marketers who often hire
  2613. 1:37:43sexy, good-looking kids to stand
  2614. 1:37:45casually in front of the entrance.
  2615. 1:37:47Miraculously, the area is soon packed
  2616. 1:37:49with other kids. Mission accomplished.
  2617. 1:37:52The company knew that if it caught these
  2618. 1:37:54kids in their dream stage once Monday
  2619. 1:37:56rolled around and they went back to
  2620. 1:37:57their classes, chores, and homework,
  2621. 1:37:59they'd associate Red Bull with the
  2622. 1:38:01carefree feeling of hanging out at the
  2623. 1:38:02surf shop. And pretty soon they'd be
  2624. 1:38:04hooked. Though in the case of Red Bull,
  2625. 1:38:06there are other reasons as you'll soon
  2626. 1:38:08be reading. Of course, this doesn't work
  2627. 1:38:11every time. In order for a product to
  2628. 1:38:13truly take root, its makers have to
  2629. 1:38:15imbue it with some addictive, whether
  2630. 1:38:17physically or psychologically,
  2631. 1:38:19qualities. So, what exactly do companies
  2632. 1:38:22and advertisers do to engineer our
  2633. 1:38:24desire and make their brand or product
  2634. 1:38:26so impossible to resist? Let me give you
  2635. 1:38:29one example from the front lines. The
  2636. 1:38:32power of craving. A couple of years ago,
  2637. 1:38:36one of the largest beverage companies in
  2638. 1:38:38the world hired me to help solve a
  2639. 1:38:40problem. The sales of its top soft drink
  2640. 1:38:43had been declining over the past 3
  2641. 1:38:45years. And despite rolling out every
  2642. 1:38:47trick in its playbook, nothing,
  2643. 1:38:48including more TV ads and a viral
  2644. 1:38:51campaign, was working. It looked
  2645. 1:38:53hopeless until I realized something the
  2646. 1:38:55marketing executives had overlooked.
  2647. 1:38:57Though it seemed like a small detail,
  2648. 1:39:00psychologically speaking, it was
  2649. 1:39:01anything but. Now, I'm going to let you
  2650. 1:39:04in on the secret ingredient behind some
  2651. 1:39:06of the most successful food, beverage,
  2652. 1:39:08and cosmetics brands out there. The
  2653. 1:39:10element of craving. It's a word that the
  2654. 1:39:12industry finds hard to admit that it
  2655. 1:39:15strives for. Yet, most hit brands and
  2656. 1:39:17products would be nothing without it.
  2657. 1:39:20Face it, all of us experience cravings
  2658. 1:39:22at some point or another. Whether
  2659. 1:39:24they're for fast food after a long day
  2660. 1:39:26at work, a bar of chocolate on our way
  2661. 1:39:28home from the gym, or a cigarette with
  2662. 1:39:30our morning coffee. craving is why we're
  2663. 1:39:32drawn at 2 a.m. to the quiet glow of our
  2664. 1:39:34refrigerator. Why the munchy allure of
  2665. 1:39:36those Doritos or Cheetos refuses to fade
  2666. 1:39:39until we've polished off the whole bag.
  2667. 1:39:41And why we fight an internal battle each
  2668. 1:39:43time we walk by the candy aisle in the
  2669. 1:39:44drugstore or supermarket. But while
  2670. 1:39:47cravings may seem to come out of
  2671. 1:39:48nowhere, in reality, they are often
  2672. 1:39:50triggered by some physical and emotional
  2673. 1:39:52cues in our surroundings, whether we
  2674. 1:39:54realize it or not. The truth is, no
  2675. 1:39:57matter how much we believe we're in
  2676. 1:39:59control when it comes to craving, we are
  2677. 1:40:01often powerless in the face of these
  2678. 1:40:03triggers. Companies know this, which is
  2679. 1:40:05why they deliberately imbue their
  2680. 1:40:07packaging and advertising with
  2681. 1:40:08unconscious signals. Cues that lie just
  2682. 1:40:10beneath our conscious awareness right at
  2683. 1:40:12those very moments when cravings are
  2684. 1:40:14liable to strike. At Coca-Cola, for
  2685. 1:40:17example, marketing executives spend
  2686. 1:40:19hours discussing how many bubbles they
  2687. 1:40:21should feature in their print ads and on
  2688. 1:40:23instore refrigerators. Realizing how
  2689. 1:40:26much craving bubbles generate, they make
  2690. 1:40:28us think of that cool, refreshing
  2691. 1:40:30feeling of carbonation hitting our
  2692. 1:40:31pallets. Some executives I spoke with
  2693. 1:40:34told me they've actually come up with a
  2694. 1:40:36confidential model for how many bubbles
  2695. 1:40:38they need to trigger our cravings. These
  2696. 1:40:40kinds of craving inducing unconscious
  2697. 1:40:43symbols were precisely what the big
  2698. 1:40:45beverage company that hired me had been
  2699. 1:40:47overlooking. In this case, it was one
  2700. 1:40:50type of symbol in particular. Think
  2701. 1:40:52about the countless ads or signs you've
  2702. 1:40:54seen for Coca-Cola, Pepsi, or any other
  2703. 1:40:56soft drink displayed in front of kiosks,
  2704. 1:40:59restaurants, or street cafes. Ever
  2705. 1:41:02notice that the glass or can or bottle
  2706. 1:41:04in the photo has water drops, what
  2707. 1:41:06beverage executives dub sweat, trickling
  2708. 1:41:08down the side? Maybe you didn't notice
  2709. 1:41:11them consciously, but what those little
  2710. 1:41:13drops of sweat signal to us
  2711. 1:41:14subconsciously is that the beverage is
  2712. 1:41:16not just cold, but ice cold, which as
  2713. 1:41:19everyone knows, make soda a million
  2714. 1:41:21times more tasty and refreshing. Believe
  2715. 1:41:24it or not, these little sweat drops,
  2716. 1:41:26which beverage companies have been using
  2717. 1:41:27in their advertising for decades,
  2718. 1:41:29kickstart our brains craving impulses.
  2719. 1:41:32Yet, the company I was helping had
  2720. 1:41:34decided that those sweat drops, in
  2721. 1:41:36short, the seeds of craving looked
  2722. 1:41:38chaotic and over complicated. So, it had
  2723. 1:41:40left them out of its ads, and that's why
  2724. 1:41:42its beverage was tanking. This wasn't
  2725. 1:41:45just my theory. When we went back and
  2726. 1:41:47looked at the data, it became clear that
  2727. 1:41:49the decision to eliminate these
  2728. 1:41:50unconscious symbols had coincided with
  2729. 1:41:53the drinks decrease in sales. It was
  2730. 1:41:56clear to me that if it was to revive the
  2731. 1:41:58brand, the company would have to come up
  2732. 1:42:00with a new unconscious symbol, something
  2733. 1:42:02even more powerful, more seductive, more
  2734. 1:42:04cravew worthy than the sweat drops. The
  2735. 1:42:07only question was what? So, I began
  2736. 1:42:09touring the country, going so far as to
  2737. 1:42:11spend the night in the homes of soda
  2738. 1:42:13drinkers of all ages and races. I ate
  2739. 1:42:16with them. I talked with them. I partied
  2740. 1:42:19with them. And of course, I drank a lot
  2741. 1:42:22of sodas with them. Along the way,
  2742. 1:42:25something clicked, literally. A few
  2743. 1:42:27years ago, I conducted a study about the
  2744. 1:42:30powerful role that sound plays in our
  2745. 1:42:32subconscious minds. By scanning the
  2746. 1:42:34brains of 50 consumers from around the
  2747. 1:42:36world, I was able to isolate the 10 most
  2748. 1:42:39evocative and addictive sounds. The most
  2749. 1:42:42powerful sound was a baby laughing. But
  2750. 1:42:44interestingly, also rounding out the top
  2751. 1:42:4710 list were the sizzle of a broiling
  2752. 1:42:49steak and the crackle and fizz of a
  2753. 1:42:50beverage being poured into a glass
  2754. 1:42:52filled with ice cubes. Point is, sounds
  2755. 1:42:56are incredibly effective triggering
  2756. 1:42:57cravings. So, if I wanted to help that
  2757. 1:43:00soft drink company revive its brand, the
  2758. 1:43:03key would be to find out exactly what
  2759. 1:43:05sounds would trigger the most powerful
  2760. 1:43:07cravings for its product. So when I sat
  2761. 1:43:10down with all those soda drinkers around
  2762. 1:43:12the country, I played them a long list
  2763. 1:43:14of soft drink related sounds, the snap
  2764. 1:43:16and hiss of a cap being opened, the
  2765. 1:43:18click of a bottle cap careening off a
  2766. 1:43:20glass bottle, the gurgle and crackle of
  2767. 1:43:22soda being poured into an ice-filled
  2768. 1:43:24glass, that unmistakable slurp when a
  2769. 1:43:26straw sucks the last drop out of a
  2770. 1:43:28plastic cup, and so forth to see which
  2771. 1:43:30triggered the strongest craving for the
  2772. 1:43:32beverage. What I found was that not
  2773. 1:43:35everyone responded the same way to the
  2774. 1:43:37sound of a can opening or a beverage
  2775. 1:43:39being poured. These sounds didn't sound
  2776. 1:43:42the same to every consumer. Believe it
  2777. 1:43:44or not, people who drink a lot of soda
  2778. 1:43:47can actually hear the difference between
  2779. 1:43:49the click of one brand and the click of
  2780. 1:43:51another. From my research on how
  2781. 1:43:53cigarette companies trigger cravings,
  2782. 1:43:55something I wrote a lot about in
  2783. 1:43:56biology, I knew that depending on the
  2784. 1:43:58person, certain unconscious signals
  2785. 1:44:00trigger cravings for certain brands and
  2786. 1:44:02not others. I found in my earlier free
  2787. 1:44:05research that camel smokers experienced
  2788. 1:44:07more cravings when they saw
  2789. 1:44:09illustrations of camels and camel logos.
  2790. 1:44:11And Marlboro smokers experienced more
  2791. 1:44:13cravings when they saw illustrations of
  2792. 1:44:15the iconic Marlboro man. True fans of a
  2793. 1:44:18brand can discern a subtle, distinct
  2794. 1:44:20difference, which you and I most likely
  2795. 1:44:22can't hear when they snap open their
  2796. 1:44:24favorite soft drink. And whether or not
  2797. 1:44:26they're aware of it, that one-of-a-kind
  2798. 1:44:28sound subtly activates their brains
  2799. 1:44:30unconscious craving centers. Bizarrely
  2800. 1:44:33enough, if soft drink engineers tweaked
  2801. 1:44:35that familiar sound even slightly, the
  2802. 1:44:37drink afficionado would feel no craving
  2803. 1:44:39sensation whatsoever. The sound is that
  2804. 1:44:42subtle. So, if a company wants to
  2805. 1:44:44trigger a craving for its brand, it
  2806. 1:44:46needs to own a symbol that people
  2807. 1:44:48associate with its brand and no other.
  2808. 1:44:51Which is why I helped this brand create
  2809. 1:44:53a snap sound that was just slightly
  2810. 1:44:56subtly different from that of other soft
  2811. 1:44:58drink cans. First, we altered the can
  2812. 1:45:00design in a lab. Then once we had
  2813. 1:45:03achieved the sound we wanted, we
  2814. 1:45:05recorded it in sound studios, then
  2815. 1:45:07incorporated it into the soundtrack of
  2816. 1:45:09the soft drinks, TV commercials, radio
  2817. 1:45:11spots, and even online ads. The
  2818. 1:45:14manufacturer even played its new and
  2819. 1:45:16improved sound at major concerts or
  2820. 1:45:18sports events it was sponsoring. That
  2821. 1:45:21was 2 years ago, and to this day,
  2822. 1:45:23whenever the sound is played at
  2823. 1:45:25sponsored events, the manufacturer
  2824. 1:45:27witnesses an instantaneous uptick in
  2825. 1:45:29sales. Yet, when I ask people why they
  2826. 1:45:31suddenly choose that beverage over
  2827. 1:45:33another, their answer is invariably, "I
  2828. 1:45:35haven't the faintest idea. I just fell
  2829. 1:45:37for it." Bet you can't eat or drink just
  2830. 1:45:41one. Chocolate, cheese puffs, cookies.
  2831. 1:45:45It doesn't take a marketing genius to
  2832. 1:45:47know that fatty foods are some of the
  2833. 1:45:49most addictive products out there.
  2834. 1:45:51Perhaps second only to booze and
  2835. 1:45:53cigarettes. But what you probably didn't
  2836. 1:45:55know is that this is no happy accident
  2837. 1:45:58for the companies that sell these foods.
  2838. 1:46:00Quite the contrary, the reason these
  2839. 1:46:03products are so addictive is because the
  2840. 1:46:05companies that sell them deliberately
  2841. 1:46:06spike their recipes to include addictive
  2842. 1:46:08quantities of habit forming substances
  2843. 1:46:10like MSG, caffeine, corn syrup, and
  2844. 1:46:13sugar. And by the way, it's also no
  2845. 1:46:15coincidence that the cigarette company
  2846. 1:46:17formerly known as Philip Morris and
  2847. 1:46:19today known as the Ultria Group is
  2848. 1:46:21currently invading the processed foods
  2849. 1:46:23industry. According to a recent study
  2850. 1:46:25published in Nature Neuroscience,
  2851. 1:46:27high-fat, high calorie foods affect the
  2852. 1:46:29brain in a way that is nearly identical
  2853. 1:46:31to cocaine and heroin. When two
  2854. 1:46:34researchers from Florida's Scripps
  2855. 1:46:35Research Institute fed rats highfat
  2856. 1:46:37content foods, including cheesecake,
  2857. 1:46:39candy bars, and even bacon, every single
  2858. 1:46:42one of the foods activated a release of
  2859. 1:46:44dopamine, just as the drugs do. Scarier
  2860. 1:46:47still, over time, the rats needed bigger
  2861. 1:46:49and bigger quantities of junk food to
  2862. 1:46:51get that same amount of dopamine, just
  2863. 1:46:53as drug addicts need more and more of
  2864. 1:46:54their drug of choice to maintain the
  2865. 1:46:56same high. Researchers concluded that
  2866. 1:46:59when the rats ate enough of these foods,
  2867. 1:47:01and in big enough quantities, it leads
  2868. 1:47:03to compulsive eating habits that
  2869. 1:47:05resemble drug addiction. 15. The most
  2870. 1:47:07unsettling finding of all. When the
  2871. 1:47:10researchers compared the brains of the
  2872. 1:47:12junk food addicted rats to the brains of
  2873. 1:47:14rats hooked on heroin and cocaine, they
  2874. 1:47:16found that the addictive effects of the
  2875. 1:47:18junk food actually lasted seven times
  2876. 1:47:20longer. While it took only 2 days for
  2877. 1:47:23the depleted dopamine receptors and rats
  2878. 1:47:25addicted to cocaine or heroin to return
  2879. 1:47:27to baseline levels, it took 2 weeks for
  2880. 1:47:29the obese rats to return to their normal
  2881. 1:47:31dopamine levels. The study reported 16.
  2882. 1:47:35Clearly, fatty foods aren't just
  2883. 1:47:37psychologically addictive. They are
  2884. 1:47:39chemically addictive as well. But what
  2885. 1:47:41about the latest food villain of the
  2886. 1:47:4321st century? Salt. Everyone knows that
  2887. 1:47:46salt is bad for us. It causes high blood
  2888. 1:47:48pressure, which is linked to heart
  2889. 1:47:50disease, and so on. But were you aware
  2890. 1:47:52that thanks to the obscene amounts of
  2891. 1:47:54MSG or monosodium glutamate, a
  2892. 1:47:57well-known flavor enhancer widely used
  2893. 1:47:59in both Eastern and Western cuisines
  2894. 1:48:01that companies are dumping into our
  2895. 1:48:03foods, the human body is developing a
  2896. 1:48:05very real addiction to salt. Indeed, by
  2897. 1:48:07several accounts, the amount of MSG in
  2898. 1:48:10processed, packaged, and even some
  2899. 1:48:11restaurant prepared foods is doubling
  2900. 1:48:13every year. Not surprisingly, given that
  2901. 1:48:15it's not only much cheaper than any real
  2902. 1:48:17flavor enhancing ingredient like spices
  2903. 1:48:19or grains or even oil, it also keeps us
  2904. 1:48:22coming back for more. As a result, our
  2905. 1:48:24bodies are building up an unhealthy
  2906. 1:48:26tolerance. Just as with any other
  2907. 1:48:28addictive substance, studies reveal that
  2908. 1:48:31adding MSG to foods not only makes us
  2909. 1:48:33want to eat more of those foods in the
  2910. 1:48:35moment, but also increases our cravings
  2911. 1:48:37for salty foods later. One study
  2912. 1:48:40reported in the annals of the New York
  2913. 1:48:42Academy of Sciences found that young
  2914. 1:48:44adults are more likely to acquire a
  2915. 1:48:45taste for a new food if MSG is added.
  2916. 1:48:48Another study found that when elderly or
  2917. 1:48:50diabetic patients are given an item of
  2918. 1:48:52food prepared with extra MSG, they'll
  2919. 1:48:54not only eat more of it, but they'll
  2920. 1:48:56also eat less of a nonSG laden food
  2921. 1:48:58later, presumably because they've lost
  2922. 1:49:00their taste for it. 17. If all this talk
  2923. 1:49:04of salt is making you thirsty, now might
  2924. 1:49:07be a good time to look at what it is in
  2925. 1:49:09that can of Red Bull that makes you keep
  2926. 1:49:11coming back for more. Some actually
  2927. 1:49:13believe it to be cocaine, which German
  2928. 1:49:15authorities claim to have found traces
  2929. 1:49:17of in the popular energy drink, which
  2930. 1:49:19they subsequently banned in six states
  2931. 1:49:21across Germany. 18. But this hasn't been
  2932. 1:49:24proven in the United States. The real
  2933. 1:49:27culprit in Red Bull is actually another
  2934. 1:49:29white powdery substance, which may be
  2935. 1:49:31legal, but can be almost as addictive,
  2936. 1:49:33sugar. A single 6 can of Red Bull
  2937. 1:49:36contains 27 gram of sugar, approximately
  2938. 1:49:396 teaspoons, or the amount found in a
  2939. 1:49:41chocolate bar. Like most drugs, sugar
  2940. 1:49:44stimulates the release of our old
  2941. 1:49:46friend, the feel-good neurotransmitter
  2942. 1:49:48dopamine, among others. In one Princeton
  2943. 1:49:51University study, Professor Bart Hobble
  2944. 1:49:53deprived rats of food and drink for
  2945. 1:49:55hours each day before giving them a
  2946. 1:49:57heavy dose of sugary fluids. The
  2947. 1:49:59research team noted that after consuming
  2948. 1:50:01the sugar meal, the rats experienced a
  2949. 1:50:04torrent of dopamine. Not only that, but
  2950. 1:50:06their opioid receptors, the ones that
  2951. 1:50:09respond to the highly addictive drug
  2952. 1:50:11morphine, were also stimulated. A few
  2953. 1:50:13days later, not only did the rats crave
  2954. 1:50:15more and more of the sugar water, but
  2955. 1:50:17their brains actually created more
  2956. 1:50:19dopamine receptors. Then when the
  2957. 1:50:22researchers took away the sugar, the
  2958. 1:50:24rats exhibited withdrawal symptoms to
  2959. 1:50:26the point that their teeth were audibly
  2960. 1:50:28chattering. While Hobble confirmed that
  2961. 1:50:30it's too early to know how this finding
  2962. 1:50:32might apply to humans and admits that
  2963. 1:50:34sugar addiction is milder than drug
  2964. 1:50:36addiction, he concludes that sugar can
  2965. 1:50:38and does take on addiction-like
  2966. 1:50:40properties. 19. in certain models. Obel
  2967. 1:50:43says sugar binging causes long- lasting
  2968. 1:50:45effects in the brain and increases the
  2969. 1:50:47inclination to take other drugs of abuse
  2970. 1:50:49such as alcohol. 20. And what about
  2971. 1:50:53caffeine? Is it simply a habit or an
  2972. 1:50:56actual addiction? Scientists agree that
  2973. 1:50:58caffeine activates the pleasure centers
  2974. 1:51:00of the brain by slowing down the rate of
  2975. 1:51:02dopamine reabsorption, thus making us
  2976. 1:51:04feel peppy and good. Cocaine and heroin
  2977. 1:51:07do the same thing, but obviously to a
  2978. 1:51:09much greater degree. Caffeine also
  2979. 1:51:11provides a shot of adrenaline, so we
  2980. 1:51:13feel charged up while blocking reception
  2981. 1:51:15of adenosine, another neurotransmitter
  2982. 1:51:17believed to play a part in promoting
  2983. 1:51:19sleep, making us feel sharp and awake.
  2984. 1:51:21Now, once the adrenaline wears off,
  2985. 1:51:23what's next? Well, as any coffee drinker
  2986. 1:51:26knows, we feel tired in the dumps,
  2987. 1:51:28irritated and jumpy, and our heads hurt.
  2988. 1:51:31two, since caffeine restricts the blood
  2989. 1:51:33vessels in our brains and we need a
  2990. 1:51:35coffee to get our adrenaline levels back
  2991. 1:51:37to the levels to which our bodies have
  2992. 1:51:39grown accustomed. So those
  2993. 1:51:41unsubstantiated rumors about cocaine and
  2994. 1:51:43Red Bull aside, this would all seem to
  2995. 1:51:45be good evidence that its makers
  2996. 1:51:46deliberately designed the stuff to be
  2997. 1:51:48addictive. A glance at the Red Bull
  2998. 1:51:50label tells us that a single can of the
  2999. 1:51:52stuff contains 200 mg of sodium, 80 mg
  3000. 1:51:55of caffeine, nearly twice as much as a
  3001. 1:51:57can of Diet Coke, 27 g of sugar, about 5
  3002. 1:52:00tesps per can, and some synthetic
  3003. 1:52:02tarine, calcium panaththenate, aculfane
  3004. 1:52:04K, and aspartame. This could explain why
  3005. 1:52:07one New Zealand woman was so addicted to
  3006. 1:52:09Red Bull that she suffered classic
  3007. 1:52:11withdrawal symptoms ranging from
  3008. 1:52:13sweating to nausea to shaking to stomach
  3009. 1:52:15pain and cramping to anxiety attacks.
  3010. 1:52:18Almost makes you want to quit cold
  3011. 1:52:20turkey, doesn't it? A bombing influence.
  3012. 1:52:24Okay, sure. Anyone who's ever polished
  3013. 1:52:26off an entire bag of Doritos knows that
  3014. 1:52:28salty, fatty foods are hard to put down.
  3015. 1:52:31But if you think prepackaged junk foods
  3016. 1:52:33are the only products out there
  3017. 1:52:35deliberately infused with addictive
  3018. 1:52:37ingredients, I suggest you reach into
  3019. 1:52:39your pocket for your lip balm. Wait a
  3020. 1:52:42sec. I can hear you saying lip balm? You
  3021. 1:52:45mean that cute little tin or tube of
  3022. 1:52:47strawberry flavored goop rolling around
  3023. 1:52:49in my purse? If the idea that lip balm
  3024. 1:52:52could be addictive seems far-fetched,
  3025. 1:52:54stop and think for a minute about how
  3026. 1:52:56many times a day you apply the sticky
  3027. 1:52:58stuff. 5 10 25 Unless you live in the
  3028. 1:53:03Arctic, there's no way your lips are
  3029. 1:53:05getting so chapped that you need to
  3030. 1:53:06reapply every hour. People are so hooked
  3031. 1:53:09on lip balm, there's even a support
  3032. 1:53:11website for people who feel mild to
  3033. 1:53:13moderate withdrawal on having to stop.
  3034. 1:53:1621. True. Some experts argue that lip
  3035. 1:53:18balm's addictive quality isn't in the
  3036. 1:53:20substance itself, but in the soothing,
  3037. 1:53:22repetitive ritual of putting it on, but
  3038. 1:53:25others are convinced we do get an actual
  3039. 1:53:27buzz from applying lip balm, especially
  3040. 1:53:29those brands that contain menthol. 22.
  3041. 1:53:33Menthol, a non-essential ingredient
  3042. 1:53:35added to many a brand of lip gloss,
  3043. 1:53:37while not dangerous by itself, can be
  3044. 1:53:39habit forming when it shows up in
  3045. 1:53:41cigarettes. Some anti-tobacco groups
  3046. 1:53:43claimed that it makes them more
  3047. 1:53:45addictive, more dangerous, and more
  3048. 1:53:46likely to hook teenagers than unflavored
  3049. 1:53:49cigarettes. And in 2009, the FDA even
  3050. 1:53:52considered banning it from cigarettes.
  3051. 1:53:54But menthol isn't the only ingredient
  3052. 1:53:56some lip balm makers add to their
  3053. 1:53:58formulas to make their products more
  3054. 1:54:00addictive. Many include fragrances,
  3055. 1:54:03preservatives, lenoline and colorings
  3056. 1:54:05that can cause sensitivity and
  3057. 1:54:06irritation 23 as well as phenol carbolic
  3058. 1:54:09acid which can actually dry out our lips
  3059. 1:54:11by interfering with our skin cells
  3060. 1:54:13natural ability to produce their own
  3061. 1:54:15moisture. So with repeated use, guess
  3062. 1:54:18what happens? It takes our lips longer
  3063. 1:54:20to replenish their natural moisture,
  3064. 1:54:22which means our lips feel drier faster
  3065. 1:54:25and we need to use more lip balm to get
  3066. 1:54:27the same effect. In other words, the
  3067. 1:54:29more lip balm you use, the more you need
  3068. 1:54:31to use. Which to me sounds a whole lot
  3069. 1:54:34like an addict who's built up a
  3070. 1:54:36tolerance. In the case of the
  3071. 1:54:38bestselling lip balm, Carmix, it's even
  3072. 1:54:40more sinister than that. According to
  3073. 1:54:42Dr. W. Steven Prey, Burnernhard
  3074. 1:54:45professor at the College of Pharmacy at
  3075. 1:54:47Southwestern Oklahoma State University.
  3076. 1:54:50An international authority on
  3077. 1:54:51non-prescription products and devices,
  3078. 1:54:53Dr. Prey has spent decades on what he's
  3079. 1:54:56the first to admit has been a fruitless
  3080. 1:54:58attempt to get Carmix to own up to what
  3081. 1:55:00he maintains is the real reason it uses
  3082. 1:55:02certain ingredients. Back in the early
  3083. 1:55:051990s, one of Dr. Prey's students raised
  3084. 1:55:07her hand in class and asked him if lip
  3085. 1:55:10balm might be addictive. Upon examining
  3086. 1:55:12the products ingredients, Dr. Prey was
  3087. 1:55:14taken aback to find not only phenol, but
  3088. 1:55:16also salicylic acid, a substance that is
  3089. 1:55:19generally used to eat away at dead
  3090. 1:55:20tissue like corns, calluses, and warts.
  3091. 1:55:23Phenol, Dr. Prey told me, is a deadening
  3092. 1:55:26agent that literally anesthetizes our
  3093. 1:55:27lips. At which point the salicylic acid
  3094. 1:55:30begins eating away at living tissue,
  3095. 1:55:32namely our lips. In 1993, Dr. Prey
  3096. 1:55:36contacted Karmicess manufacturer in an
  3097. 1:55:38attempt to find out just how much phenol
  3098. 1:55:40and salicylic acid its product
  3099. 1:55:42contained, only to be told it was a
  3100. 1:55:44trade secret. The manufacturer has since
  3101. 1:55:47revealed the concentration of phenol as
  3102. 1:55:490.4% 4% and that of salicylic acid as
  3103. 1:55:52less than 1%. So, how can Carmix, which
  3104. 1:55:56Dr. Prey calls the black sheep of lip
  3105. 1:55:58balms, get away with including an
  3106. 1:55:59ingredient that actually exfoliates the
  3107. 1:56:01dead skin cells, effectively eroding our
  3108. 1:56:04lips? By listing salicylic acid as an
  3109. 1:56:06inactive ingredient, meaning an
  3110. 1:56:08ingredient that's there simply to make a
  3111. 1:56:10product more palatable, like a sweetener
  3112. 1:56:12in cough syrup, rather than an active
  3113. 1:56:14ingredient, which is what it actually
  3114. 1:56:16is, says Prey. Trade Secret Carmics.
  3115. 1:56:20Guess what? The secret's out. The name
  3116. 1:56:23of the game. Zack Richardson is 17 years
  3117. 1:56:26old and lives in Pharmace UK with his
  3118. 1:56:29mother Louise. He doesn't attend school
  3119. 1:56:32and has no job. So instead of spending
  3120. 1:56:34his time doing homework or flipping
  3121. 1:56:36burgers, he sits in his room all day
  3122. 1:56:38every day playing 15 straight hours of
  3123. 1:56:40video games on a small TV set and
  3124. 1:56:42sometimes simultaneously playing an
  3125. 1:56:44online football game on his laptop. Zach
  3126. 1:56:47turns on the Xbox at 9:00 a.m., plays
  3127. 1:56:49through lunch, then finally lays down
  3128. 1:56:51his controls sometime after midnight. He
  3129. 1:56:54often doesn't leave the house for days.
  3130. 1:56:56His mother says, "There is nothing I can
  3131. 1:56:58do to stop him playing." His physicians
  3132. 1:57:01attribute the headaches and blackouts
  3133. 1:57:03from which he's been suffering entirely
  3134. 1:57:05to his video game addiction. Yet, he
  3135. 1:57:08keeps playing. "I left school more than
  3136. 1:57:11a year ago, and I had nothing to do,"
  3137. 1:57:12says Zach. So, I turned to video games
  3138. 1:57:15to fill the days while I searched for a
  3139. 1:57:17job. It started off slowly. I only spent
  3140. 1:57:20two or three hours a day playing. It was
  3141. 1:57:22just for a bit of fun. Now, it has got
  3142. 1:57:25out of control, and I know I have an
  3143. 1:57:27addiction. 24.
  3144. 1:57:30Nearly 9,000 mi away in Perth,
  3145. 1:57:32Australia, a 15-year-old boy sits by
  3146. 1:57:35himself in a dark room playing a game
  3147. 1:57:37called Runescape, one of the most
  3148. 1:57:38popular fantasy online games in the
  3149. 1:57:40world for up to 16 hours a day. A
  3150. 1:57:43community college student, bright and
  3151. 1:57:45formerly before he discovered video
  3152. 1:57:47games, that is outdoorsy and sports mad.
  3153. 1:57:49The boy hasn't attended classes in over
  3154. 1:57:52two months, fooling his parents by
  3155. 1:57:53dressing each morning in his school
  3156. 1:57:55uniform, then changing back into his
  3157. 1:57:57bathrobe after his mother leaves for
  3158. 1:57:59work. He displays all the
  3159. 1:58:01characteristics of a heroin addict, his
  3160. 1:58:03father later said. You haven't got
  3161. 1:58:06someone putting a needle in their arm
  3162. 1:58:07and having a high, but you've got all
  3163. 1:58:09the telltale collateral damage of a
  3164. 1:58:11heroin addict, withdrawal from his
  3165. 1:58:13family, withdrawal from his friends,
  3166. 1:58:15lies to cover his addiction, he'll do
  3167. 1:58:18anything. 25. While these are extreme
  3168. 1:58:22cases, the point is that games can be
  3169. 1:58:24extraordinarily addictive. Whether we're
  3170. 1:58:26playing against our friends, a stranger
  3171. 1:58:28in Tokyo, or even ourselves, and whether
  3172. 1:58:30the objective is to beat the high score,
  3173. 1:58:32unlock the most badges, or build the
  3174. 1:58:34biggest virtual farm, games are
  3175. 1:58:36deliberately designed to be hard to
  3176. 1:58:37quit. According to gamer segmentation
  3177. 1:58:39report 2010, a trade publication Extreme
  3178. 1:58:42gamers spend roughly two full days a
  3179. 1:58:44week playing video games. 26. And
  3180. 1:58:46according to a recent Harris Interactive
  3181. 1:58:48survey, the average 8 to 12year-old
  3182. 1:58:50plays 14 hours of video games per week.
  3183. 1:58:53While 8.5% of gamers between the ages of
  3184. 1:58:568 and 18 can be classified as
  3185. 1:58:58pathological or clinically addicted to
  3186. 1:59:00video games. 27.
  3187. 1:59:03So I suppose it shouldn't come as a huge
  3188. 1:59:05shock that marketers and advertisers
  3189. 1:59:07have picked up on this and taking a page
  3190. 1:59:10from the gaming playbook are using games
  3191. 1:59:12and game-like tactics to persuade us to
  3192. 1:59:14buy. Before we look at how they do this,
  3193. 1:59:17we should first ask, are games truly
  3194. 1:59:19addictive in the strictest sense of the
  3195. 1:59:21word. After all, as we've seen, a true
  3196. 1:59:24addiction is physiological, rewiring our
  3197. 1:59:26brain in such a way that we need more
  3198. 1:59:28and more of that substance or behavior
  3199. 1:59:30to release the amount of dopamine needed
  3200. 1:59:32to satisfy our craving or deliver that
  3201. 1:59:34high. Does playing a video or online
  3202. 1:59:37game really qualify? Well, according to
  3203. 1:59:40a 1,999
  3204. 1:59:42study, our brains do respond to game
  3205. 1:59:44playing in much the same way they do to
  3206. 1:59:46drugs, alcohol, and fatty foods by
  3207. 1:59:48releasing more pleasure inducing
  3208. 1:59:50dopamine. 28. In fact, the study found
  3209. 1:59:53that any kind of repetitive activity
  3210. 1:59:55that becomes increasingly more difficult
  3211. 1:59:57to carry out, which is, as any gamer
  3212. 1:59:59knows, the key to a successful game
  3213. 2:00:01increases the amount of dopamine in our
  3214. 2:00:03brains. A new study in the journal of
  3215. 2:00:05neuroscience shows that we actually get
  3216. 2:00:08a surge of dopamine from playing games
  3217. 2:00:10that we feel we've almost won but have
  3218. 2:00:12lost by a small margin when we play
  3219. 2:00:14games or enter online auctions.
  3220. 2:00:16Something we'll read more about in a
  3221. 2:00:18minute. The authors of the study explain
  3222. 2:00:20near miss outcomes stimulate the brain's
  3223. 2:00:22reward system particularly those regions
  3224. 2:00:25known as the vententral strriatam and
  3225. 2:00:26the anterior insula. The same thing
  3226. 2:00:28happens when we gamble. These brain
  3227. 2:00:31regions are also linked to learning,
  3228. 2:00:32meaning our brains may be duped into
  3229. 2:00:34believing we're gathering new
  3230. 2:00:36information with each near miss. 29. And
  3231. 2:00:39according to another study, games such
  3232. 2:00:41as World of Warcraft are designed to be
  3233. 2:00:43filled with challenges that deliver
  3234. 2:00:44powerfully articulated rewards and seem
  3235. 2:00:47to be engineered specifically to get
  3236. 2:00:48players dopamineergic pathways, pathways
  3237. 2:00:51that mediate interest, focus, and reward
  3238. 2:00:53activated and resonating. 30. But this
  3239. 2:00:57means a lot more for companies and
  3240. 2:00:59marketers than spiking sales of
  3241. 2:01:00PlayStations and Wis. Because as clever
  3242. 2:01:03marketers have discovered, when games
  3243. 2:01:05are designed the right way, repeated
  3244. 2:01:07playing doesn't only hook us on that
  3245. 2:01:09game itself. It can actually rewire our
  3246. 2:01:11brains to addict us to the act of buying
  3247. 2:01:13and shopping. Our brains just want to
  3248. 2:01:16keep on playing. That's right. Marketers
  3249. 2:01:19are using games to make shopping addicts
  3250. 2:01:21out of us. And like any brainwashing
  3251. 2:01:23strategy, it starts at a very tender
  3252. 2:01:25young age. According to one study, when
  3253. 2:01:28habitual gaming teaches the brain to
  3254. 2:01:30rewire its reward mechanism, the brain
  3255. 2:01:32changes its motivation stimulus. The
  3256. 2:01:34brain releases dopamine to reward the
  3257. 2:01:37individual for a beneficial activity
  3258. 2:01:39such as natural habits like eating or
  3259. 2:01:41sex or habits like injecting a chemical
  3260. 2:01:45substance or participating in a
  3261. 2:01:47stimulating behavior like gambling or
  3262. 2:01:49internet shopping. 31. Take Club
  3263. 2:01:53Penguin, a multiplayer online virtual
  3264. 2:01:55world that uses cute and cuddly penguins
  3265. 2:01:57as avatars and is designed for children
  3266. 2:01:59aged 6 to 14. Though most of its users
  3267. 2:02:02are on the younger end, Club Penguin
  3268. 2:02:05advertises itself to parents as a safe
  3269. 2:02:07space, a way to keep kids away from the
  3270. 2:02:09CD underbelly of the internet. The site
  3271. 2:02:11is password protected. There are online
  3272. 2:02:13moderators and any inappropriate
  3273. 2:02:15language is blocked via a sophisticated
  3274. 2:02:17filtration system. What's more, joining
  3275. 2:02:20is free. In fact, Club Penguin actually
  3276. 2:02:23gives its many shop aaholics what more
  3277. 2:02:25or less amounts to their very first
  3278. 2:02:26credit card, virtual coins they are
  3279. 2:02:28encouraged to spend freely on virtual
  3280. 2:02:30things. The free money lasts until the
  3281. 2:02:33moment the children realize their
  3282. 2:02:35penguins have to eat and that they need
  3283. 2:02:38an igloo over their heads and that their
  3284. 2:02:40igloos need furniture and decorations.
  3285. 2:02:43that their penguins need clothing and
  3286. 2:02:46toys and that penguins sometimes get
  3287. 2:02:48lonely and need their own pets known on
  3288. 2:02:51the site as puffles and so on. Once
  3289. 2:02:54these kids get going, you'd be amazed at
  3290. 2:02:56how many things they realize they're
  3291. 2:02:57virtual penguins, i.e. they need. But
  3292. 2:03:00wait, it turns out children can't spend
  3293. 2:03:03their virtual coins unless they're
  3294. 2:03:04full-fledged members of the club. No big
  3295. 2:03:07deal. Club Penguin costs only $5.95
  3296. 2:03:11a month. If you're a parent, that's not
  3297. 2:03:13so bad, right? A small price to keep
  3298. 2:03:16your children away from online
  3299. 2:03:17pornography and YouTube and get some
  3300. 2:03:20peace and quiet. But hold on. What
  3301. 2:03:22happens when the free coins run out?
  3302. 2:03:25Your child can earn more by playing. The
  3303. 2:03:28more you earn, the more you can buy. The
  3304. 2:03:30more you buy, the more you want to earn.
  3305. 2:03:33The site may be keeping kids relatively
  3306. 2:03:35safe, but it's also schooling them in
  3307. 2:03:37the pain and pleasures of compulsive
  3308. 2:03:39shopping. Of course, there are games
  3309. 2:03:42like this for grown-ups, too. Like the
  3310. 2:03:44highly addictive Facebook game Mafia
  3311. 2:03:46Wars, which has so far grossed over $100
  3312. 2:03:48million. And as of August 2010, at 45.5
  3313. 2:03:52million active monthly accounts here,
  3314. 2:03:54completing missions and jobs, like icing
  3315. 2:03:57an enemy or unseeding a boss or pulling
  3316. 2:03:59off a successful heist wins you cash and
  3317. 2:04:01experience points. The more points you
  3318. 2:04:03win, the more levels magically unlock,
  3319. 2:04:06keeping you in the neverending pursuit
  3320. 2:04:07of higher and higher highs and bigger
  3321. 2:04:09and better rewards. Then, of course,
  3322. 2:04:12there's Mafia Wars equally addictive
  3323. 2:04:14cousin, Farmville, another virtual world
  3324. 2:04:16phenomenon that, as of June 2010, was
  3325. 2:04:18the most popular game on Facebook with
  3326. 2:04:20over 61.6 million active users and over
  3327. 2:04:2424.1 million fans. At time of writing,
  3328. 2:04:2720 million players checked into the game
  3329. 2:04:29daily, according to the New York Times.
  3330. 2:04:3232. The structure of the game is more or
  3331. 2:04:34less the same, only here, you win cash
  3332. 2:04:36and unlock levels through activities
  3333. 2:04:38like planting pumpkins, picking apples,
  3334. 2:04:40and harvesting chicken eggs. Though, of
  3335. 2:04:41course, as with Mafia Wars, you can also
  3336. 2:04:44purchase virtual currency with real
  3337. 2:04:45dollars. And the more levels you unlock,
  3338. 2:04:48the bigger and better things you can
  3339. 2:04:49buy. One self-proclaimed Farmville
  3340. 2:04:51addict once told me, and I swear I saw
  3341. 2:04:54stars in her eyes that it was her dream
  3342. 2:04:55in life to someday be able to afford
  3343. 2:04:57what is apparently the most coveted
  3344. 2:04:59purchase in this virtual world, the
  3345. 2:05:00Farmville Villa, priced at, in case
  3346. 2:05:02you're wondering, 1 million Farmville
  3347. 2:05:04coins. Sure, it may sound monumentally
  3348. 2:05:07tedious, but it is in fact utterly
  3349. 2:05:09mesmerizing. So much so that today,
  3350. 2:05:11according to Carnegie Melon professor
  3351. 2:05:13and game designer Jesse Shell, at the
  3352. 2:05:15time of writing, there were far more
  3353. 2:05:17Farmville members on Facebook than there
  3354. 2:05:19were Twitter accounts. 33. And according
  3355. 2:05:21to a new Neielson report, social
  3356. 2:05:23networks and online games eat up roughly
  3357. 2:05:25a third of our internet time. 34.
  3358. 2:05:29Of course, in addition to sending us
  3359. 2:05:30shots of dopamine every time we buy a
  3360. 2:05:33new tractor or renovate our barn, these
  3361. 2:05:35games are also hard at work persuading
  3362. 2:05:37us to buy real world things. Let's not
  3363. 2:05:40forget that while we're racking up all
  3364. 2:05:41those experience points in pursuit of
  3365. 2:05:43that dopamine high, we're also being
  3366. 2:05:46exposed to a whole lot of targeted
  3367. 2:05:48advertising. In fact, Zingga, the parent
  3368. 2:05:51company that publishes both Mafia Wars
  3369. 2:05:53and Farmville, got into hot water in
  3370. 2:05:552009 for its direct marketing program
  3371. 2:05:57that invited users to a mass virtual
  3372. 2:05:59currency in exchange for clicking on
  3373. 2:06:01various offers, filling out surveys, and
  3374. 2:06:03downloading applications. a Mother's Day
  3375. 2:06:05ad campaign in which Farmville players
  3376. 2:06:06could earn virtual currency if they
  3377. 2:06:08clicked on an offer promising that they
  3378. 2:06:10would send someone real flowers. 35. And
  3379. 2:06:13in 2010, a scandal erupted when it was
  3380. 2:06:15discovered that 10 popular Facebook
  3381. 2:06:17applications, including Farmville, may
  3382. 2:06:19have been passing on users personal
  3383. 2:06:21information to marketing companies. 36.
  3384. 2:06:25It probably won't surprise you to learn
  3385. 2:06:27that Facebook itself can be just as
  3386. 2:06:29addictive as the games people play on
  3387. 2:06:31it. I've spoken to teenagers and
  3388. 2:06:34college-aged men and women who have
  3389. 2:06:35attempted to go off the site or rather
  3390. 2:06:38try to take a break from it during say
  3391. 2:06:40final exams. They can't. For most users,
  3392. 2:06:44particularly adolescents, it's all or
  3393. 2:06:46nothing. Like alcoholics who can trust
  3394. 2:06:48themselves not to drink only by emptying
  3395. 2:06:51the liquor cabinet, they find they can
  3396. 2:06:53trust themselves not to log on only if
  3397. 2:06:55they deactivate their accounts. Believe
  3398. 2:06:58it or not, part of the reason the whole
  3399. 2:07:00Facebook experience is so addictive is
  3400. 2:07:02that it's deliberately designed to be
  3401. 2:07:04that way. According to Time magazine,
  3402. 2:07:07Facebook has intentionally created what
  3403. 2:07:08it calls aha moments, which reporter Dan
  3404. 2:07:10Fletcher describes as an observable
  3405. 2:07:12emotional connection, like stumbling on
  3406. 2:07:14the profile of a long-lost friend from
  3407. 2:07:16grade school, seeing a picture of a
  3408. 2:07:18newborn niece for the first time, or
  3409. 2:07:20catching up with an ex-boyfriend.
  3410. 2:07:22And the company knows exactly how many
  3411. 2:07:24of these moments users must have before
  3412. 2:07:26they are good. and truly hooked. Though
  3413. 2:07:28the site will not divulge the magic
  3414. 2:07:30number, at least publicly. How do they
  3415. 2:07:33know? Because they videotaped the
  3416. 2:07:35expressions of test users as they
  3417. 2:07:37navigate the site for the first time,
  3418. 2:07:39says Fletcher, 37.
  3419. 2:07:42Last, but not least, there's Foursquare,
  3420. 2:07:44in which users earn points and badges by
  3421. 2:07:46checking in at bars, stores, and
  3422. 2:07:48restaurants, and compete viciously for
  3423. 2:07:50mayorship of their most frequented
  3424. 2:07:52establishments, giving those
  3425. 2:07:53establishments free advertising in the
  3426. 2:07:55process. Foursquare is hailed as the
  3427. 2:07:58next big thing in social media at the
  3428. 2:08:00time of writing. There were some 2.5
  3429. 2:08:02million users and I've spoken to
  3430. 2:08:03afficionados who describe it as being
  3431. 2:08:05like a drug and admit to feeling uneasy
  3432. 2:08:08and on edge if they go somewhere and
  3433. 2:08:10fail to check in. A recent New York
  3434. 2:08:12Times article reveals the extent of
  3435. 2:08:14players obsession with the game,
  3436. 2:08:16describing one Philadelphia man who was
  3437. 2:08:18competing with his girlfriend overhip of
  3438. 2:08:20her own home and another man who became
  3439. 2:08:22so obsessed with gaining of an alley.
  3440. 2:08:25Yes, an alley that he developed a
  3441. 2:08:27computer program that helped him cheat
  3442. 2:08:29by automatically checking him into the
  3443. 2:08:30alley every day at 1:23 p.m. to explain
  3444. 2:08:33this baffling phenomenon. The article
  3445. 2:08:35quotes Alexander R. Galloway, an
  3446. 2:08:37associate professor in the department of
  3447. 2:08:40media, culture, and communication at New
  3448. 2:08:42York University, who noted that
  3449. 2:08:44Foursquare taps into our urge to win
  3450. 2:08:46when placed in a competitive
  3451. 2:08:47environment, especially in front of our
  3452. 2:08:49peers, and that Foursquare turns spaces
  3453. 2:08:51into a game, and part of its allure is
  3454. 2:08:53the game-like aspect. 38. A similar game
  3455. 2:08:57is SCVNGR, an app you can download to
  3456. 2:09:00your iPhone or BlackBerry, and some
  3457. 2:09:02500,000 users already have. As with
  3458. 2:09:05Foursquare, you earn points and unlock
  3459. 2:09:07badges by telling friends where you are
  3460. 2:09:09and what you're up to. But taking the
  3461. 2:09:11game one step further, you also earn
  3462. 2:09:14points for completing bizarre
  3463. 2:09:15challenges. Want four points? Fold the
  3464. 2:09:18aluminum in which your burrito was
  3465. 2:09:20served into an origami bird. According
  3466. 2:09:23to Fast Company, SCVNGr is even testing
  3467. 2:09:26out a partnership with City Bank to roll
  3468. 2:09:28out a card that is a game itself with
  3469. 2:09:30two buttons and tiny lights that allow
  3470. 2:09:32users to choose at checkout whether to
  3471. 2:09:34pay with credit or rewards points. 39.
  3472. 2:09:38Lately, websites that make a game out of
  3473. 2:09:40real life shopping are cropping up all
  3474. 2:09:42over. I'm talking about social flash
  3475. 2:09:45shopping sites like Guilt, Hotelic, Ru
  3476. 2:09:47Laala, Woot, and Ideally, which hold
  3477. 2:09:49limited time only sales of items from
  3478. 2:09:51top luxury designers. If you visit one
  3479. 2:09:54of these sites in the next 20 minutes,
  3480. 2:09:56the breathless email in your inbox might
  3481. 2:09:58say that you'll get 75% off a Coach
  3482. 2:10:01handbag or a pair of Tom Ford
  3483. 2:10:03sunglasses. The thrill of the hunt, the
  3484. 2:10:06joy of discovery, the satisfaction of
  3485. 2:10:09scoring a deal. How could that not be
  3486. 2:10:11addicting? These sites are increasingly
  3487. 2:10:13gaining traction. Two, at the time of
  3488. 2:10:16writing, Guilt had 2 million members,
  3489. 2:10:1940. And according to Hitwise data
  3490. 2:10:20tracker, Botelik's online market share
  3491. 2:10:23grew 750% in 2010, while Guilt Group and
  3492. 2:10:27Ru Laala grew their shares by 200% and
  3493. 2:10:30160% respectively. 41. So, how can a
  3494. 2:10:34computer game or gambling addiction
  3495. 2:10:36migrate over into a shopping addiction?
  3496. 2:10:39Very simple. Once we shut down one
  3497. 2:10:40dopamine supply, we desperately and
  3498. 2:10:43unconsciously seek another source of the
  3499. 2:10:45feel-good chemical. In short, once we've
  3500. 2:10:47activated addiction in our brains, it
  3501. 2:10:49stays with us forever. Groupon, an
  3502. 2:10:52amalgam of Group and Coupon, is a
  3503. 2:10:54similar and equally ingenious game-like
  3504. 2:10:56site that is catching on fast with, at
  3505. 2:10:58time of writing, a staggering 4 million
  3506. 2:11:00members and a rumored market value of
  3507. 2:11:03$15 billion. 42. As most people know,
  3508. 2:11:06Groupon delivers daily specials in your
  3509. 2:11:08city via an email offering, for example,
  3510. 2:11:11an 82% discount for a one-mon membership
  3511. 2:11:14at Jim. But hurry, the deal will take
  3512. 2:11:17place only if, say, 150 members take
  3513. 2:11:20advantage of it before time runs out.
  3514. 2:11:23When I spoke to Paul Hurley, the CEO of
  3515. 2:11:25Ideally, he admitted that his remarkably
  3516. 2:11:27successful site has both a social
  3517. 2:11:29component and a game structure. When you
  3518. 2:11:32think about it, ideally Groupon and
  3519. 2:11:34these other social flash shopping sites
  3520. 2:11:36really do have everything an addictive
  3521. 2:11:37game could want. A prize, a ticking
  3522. 2:11:40clock, a challenge, other players, an
  3523. 2:11:44invitation only exclusivity, not to
  3524. 2:11:47mention its well fun. One study which
  3525. 2:11:50looked at an online auction site known
  3526. 2:11:52as Swoopo confirmed that although
  3527. 2:11:53consumers are pleased when they lose out
  3528. 2:11:55on a deal, near misses increased the
  3529. 2:11:57desire to play the game. 43. Win or
  3530. 2:12:00lose, our brains just want to keep on
  3531. 2:12:02playing. Jesse Shell predicts that in
  3532. 2:12:05the future, the convergence between
  3533. 2:12:07gaming and buying, especially online,
  3534. 2:12:09will only continue to intensify. And
  3535. 2:12:12what's more, games will increasingly
  3536. 2:12:14migrate over from dream stage to the
  3537. 2:12:16routine stage and become more and more
  3538. 2:12:18integrated in our daily lives. To some
  3539. 2:12:20extent, this is happening already. From
  3540. 2:12:22the bargain hunter who checks her daily
  3541. 2:12:24group and guilt offers first thing every
  3542. 2:12:27morning to the foursquare user for whom
  3543. 2:12:29checking in at Starbucks is as routine
  3544. 2:12:31as drinking his morning coffee. So where
  3545. 2:12:34does it all end? Time will tell. One
  3546. 2:12:37thing though is for sure. Whether by
  3547. 2:12:40engineering cravings, imbooing products
  3548. 2:12:42with chemically addictive properties, or
  3549. 2:12:44turning shopping and spending into a
  3550. 2:12:46game we can't stop playing, companies
  3551. 2:12:48and their marketers will only get better
  3552. 2:12:50and better at manipulating our psyches
  3553. 2:12:52and our desires to hook us on their
  3554. 2:12:54brands and products. Chapter 4. Guess
  3555. 2:12:58how many times a day men across the
  3556. 2:13:00world think about sex. 2 5 20? Try 32
  3557. 2:13:05times a day, which adds up to 224 times
  3558. 2:13:09a week. In my last book, I explored
  3559. 2:13:12everyone's favorite subject, sex.
  3560. 2:13:14Specifically, the question, does sex
  3561. 2:13:16sell? My research found that men and
  3562. 2:13:19women reacted to sexually provocative
  3563. 2:13:21advertising, suggestive commercials, ads
  3564. 2:13:24featuring scantily clad models, that
  3565. 2:13:26sort of thing, in much the same way they
  3566. 2:13:28respond to sexual suggestion in real
  3567. 2:13:30life. In general, women tend to be more
  3568. 2:13:32easily persuaded by ads that are more
  3569. 2:13:35romantic than sexual ones that emphasize
  3570. 2:13:37commitment, devotion, and partnership.
  3571. 2:13:40Not surprisingly, men, on the other
  3572. 2:13:42hand, responded to sexual innuendo and
  3573. 2:13:44women in bikinis, especially when the
  3574. 2:13:46ads or commercials were leavened with a
  3575. 2:13:48heaping dose of adolescent humor. That
  3576. 2:13:51said, my research revealed that when it
  3577. 2:13:53comes to persuading us to buy, sexy ads
  3578. 2:13:55can sometimes backfire. In one study, I
  3579. 2:13:58showed two separate groups of men
  3580. 2:14:00identical ads. The first group watched
  3581. 2:14:02sexually suggestive ads, while the other
  3582. 2:14:05group saw the same ads only without the
  3583. 2:14:07sexual content. Turned out the men who
  3584. 2:14:09saw the sexually suggestive commercials
  3585. 2:14:12were no better at remembering the names
  3586. 2:14:13of the brands and products they'd seen
  3587. 2:14:15advertised than the men who'd seen the
  3588. 2:14:17unerotic ads. In other words, while the
  3589. 2:14:20male volunteers may have enjoyed the
  3590. 2:14:22whiff of sexuality, ultimately it had no
  3591. 2:14:25effect on their memory or impression of
  3592. 2:14:27the actual product. Yet, sexually
  3593. 2:14:29suggestive advertising isn't going
  3594. 2:14:31anywhere anytime soon. Mostly because
  3595. 2:14:33when we see attractive, scantily clad
  3596. 2:14:35young people advertising an energy drink
  3597. 2:14:37or a brand of underwear or a new line of
  3598. 2:14:39cosmetics, the mirror neurons in our
  3599. 2:14:42brain allow us to imagine ourselves as
  3600. 2:14:44being equally attractive and sexually
  3601. 2:14:46desirable. And after all, what is
  3602. 2:14:48advertising about if not planting hopes
  3603. 2:14:50and dreams inside our brains? Sure
  3604. 2:14:53enough, sex and advertising still
  3605. 2:14:55everywhere we look. Abberrombie and
  3606. 2:14:58Fitch has recently reinstated its soft
  3607. 2:15:00porn in store catalog. American apparel
  3608. 2:15:02still showcases its pouty, scandally
  3609. 2:15:04clad models and giant store windows.
  3610. 2:15:06Footballer David Beckham still sprawls
  3611. 2:15:08across a Times Square billboard in his
  3612. 2:15:10skiibbies at the time of writing at
  3613. 2:15:12least. And the $420 million websites
  3614. 2:15:14spawned by the $4.9 billion global
  3615. 2:15:17pornography industry still carry ads for
  3616. 2:15:19everything from sexual enhancement
  3617. 2:15:20products to escort services to well more
  3618. 2:15:23pornography. By the way, in case you're
  3619. 2:15:25wondering, the average age a child
  3620. 2:15:27stumbles across a porn site. I hate to
  3621. 2:15:30say it, but it's 11. And though it may
  3622. 2:15:33not work all the time, there is evidence
  3623. 2:15:35to suggest that a sexed up ad campaign
  3624. 2:15:37can be persuasive if it's done in the
  3625. 2:15:39right way. As Dr. Jeffrey Miller, an
  3626. 2:15:42evolutionary psychologist at the
  3627. 2:15:43University of New Mexico, found people
  3628. 2:15:46are more likely to expend money and
  3629. 2:15:48effort on products and activities if
  3630. 2:15:49they're first primed with photographs of
  3631. 2:15:51the opposite sex or stories about
  3632. 2:15:53dating. Two, to give you one example of
  3633. 2:15:56how sex can still sell, a few years ago,
  3634. 2:15:59one of the world's biggest car
  3635. 2:16:01manufacturers contacted me to help it
  3636. 2:16:03turn around declining sales of one of
  3637. 2:16:05its most iconic brands. Throughout my
  3638. 2:16:08years as a branding consultant, I've
  3639. 2:16:10sought to explore the personality of the
  3640. 2:16:12target customer so that I could help
  3641. 2:16:14import that personality into the brand.
  3642. 2:16:17This time around though, I took a new
  3643. 2:16:19fangled approach to connecting with
  3644. 2:16:21consumer psyches. I created a rather
  3645. 2:16:23unusual deck of cards, each of the 200
  3646. 2:16:26cards picturing a different animal. Then
  3647. 2:16:29I asked a group of middle-aged men, the
  3648. 2:16:31target customers, to identify five
  3649. 2:16:33different animals they believed best
  3650. 2:16:35represented the brand.
  3651. 2:16:37Next, I used fine neuro imaging to
  3652. 2:16:39narrow the findings. When my team showed
  3653. 2:16:42the men pictures of the first four
  3654. 2:16:43animals they' named, it was pretty much
  3655. 2:16:46business as usual in their brains. But
  3656. 2:16:48to everyone's surprise, the final animal
  3657. 2:16:50we showed them lit up those brain
  3658. 2:16:52regions associated with sexual
  3659. 2:16:54attraction and mating. When we then
  3660. 2:16:56showed the same men photos and images of
  3661. 2:16:58their dream cars, cars they either could
  3662. 2:17:00ill afford or felt they were too old to
  3663. 2:17:02drive, bingo, these same Randy Brain
  3664. 2:17:04regions lit up. Turns out that
  3665. 2:17:06subconsciously, these nicely dressed
  3666. 2:17:08businessmen, who had been married an
  3667. 2:17:10average of 23 years and were the fathers
  3668. 2:17:12of an average of 2.5 children associated
  3669. 2:17:15their dream cars and that particular
  3670. 2:17:17animal with one thing and one thing
  3671. 2:17:19only, sex. Bingo. We had our answer.
  3672. 2:17:24From that point forward, the animal
  3673. 2:17:26cenamed asterisk informed every single
  3674. 2:17:28detail of the car's design, engineering,
  3675. 2:17:30and appearance. The animal in question
  3676. 2:17:32was and is black, sleek, and rare with
  3677. 2:17:35smooth lines and long curves mixed with
  3678. 2:17:37a feminine smoothness. The goal was to
  3679. 2:17:39give the car smooth, shapely curves and
  3680. 2:17:42motions to make the male driver feel as
  3681. 2:17:44if he were saddling up, riding, and
  3682. 2:17:46conquering a fast, powerful, supple,
  3683. 2:17:48beautiful animal. The engineers at the
  3684. 2:17:50auto company imported these sensuous
  3685. 2:17:52qualities to the car's dashboard, gear
  3686. 2:17:55stick, interior leather, and even door
  3687. 2:17:57handles. In short, the car was sex on
  3688. 2:18:00four wheels and four years later when it
  3689. 2:18:02finally hit the road, the company
  3690. 2:18:04enjoyed one of the greatest sales
  3691. 2:18:05turnarounds in its history. Peas, for
  3692. 2:18:08the record, it was an Arabian horse
  3693. 2:18:10renowned among other things for uh the
  3694. 2:18:13size of its penis. If you spray it, they
  3695. 2:18:16will come. So, how do I know that men
  3696. 2:18:18think about sex 32 times a day? Because
  3697. 2:18:21I talked to David Kousno, a highly
  3698. 2:18:24regarded Unilver executive and an expert
  3699. 2:18:26in consumer and market insight, who
  3700. 2:18:28shared this, as well as the many other
  3701. 2:18:30surprising findings Unilver's internal
  3702. 2:18:32research team uncovered when preparing
  3703. 2:18:34to roll out what would become a
  3704. 2:18:35multi-million dollar brand, Axe. Axe is
  3705. 2:18:39a line of men's personal care products
  3706. 2:18:40that includes deodorant, body sprays,
  3707. 2:18:42sticks, and rollons, shampoos, and body
  3708. 2:18:45washes with names like Apollo, Kilo,
  3709. 2:18:47Phoenix, Tsunami, and Voodoo. Introduced
  3710. 2:18:50in the United States in 2002, Axe is
  3711. 2:18:52renowned in marketing circles for how it
  3712. 2:18:54craftly positioned as products as
  3713. 2:18:56bottled pherommones, magical potions
  3714. 2:18:58that could transform the greasiest,
  3715. 2:18:59scrawniest, most acne prone schlub into
  3716. 2:19:02a confident, gorgeous, chiseled sex
  3717. 2:19:04magnet. The behind-the-scenes story of
  3718. 2:19:06how Unilver created this now legendary
  3719. 2:19:08axe campaign isn't just another
  3720. 2:19:10demonstration of the power of sex in
  3721. 2:19:12advertising. It's also a fascinating
  3722. 2:19:14example of just how deeply companies and
  3723. 2:19:17marketers probe the depths of our inner
  3724. 2:19:18psyches, our hopes, dreams, and
  3725. 2:19:20daydreams in the service of crafting the
  3726. 2:19:22kinds of provocative, scandalously
  3727. 2:19:24sexual, and smashingly successful
  3728. 2:19:26campaigns that push the very limits of
  3729. 2:19:28advertising as we know it. First, the
  3730. 2:19:31Unilver team conducted an extensive
  3731. 2:19:33in-depth online survey of 12,000 boys
  3732. 2:19:36and men aged 15 to 50 around the world,
  3733. 2:19:38from the United States to the UK to
  3734. 2:19:40Mexico to South Africa to Turkey to
  3735. 2:19:42Japan. But it wasn't your average
  3736. 2:19:45survey. This survey asked these 12,000
  3737. 2:19:48males a series of highly personal,
  3738. 2:19:50somewhat embarrassing questions such as,
  3739. 2:19:52"What is your strategy when you want to
  3740. 2:19:54pick up a girl?" "When do you feel
  3741. 2:19:56really insecure?" When were you rejected
  3742. 2:19:59by a girl? What is your ideal sexual
  3743. 2:20:02fantasy? And the aforementioned, "How
  3744. 2:20:05many times do you think about sex a
  3745. 2:20:07day?" Why was Unilver asking these
  3746. 2:20:09questions? We wanted to identify male
  3747. 2:20:12human truths, recalls Kousno, whose team
  3748. 2:20:14then analyze the research country by
  3749. 2:20:16country. The things that make men tick
  3750. 2:20:19that are the same no matter where you
  3751. 2:20:20go, no matter where you were born or who
  3752. 2:20:23you are. The results were, to say the
  3753. 2:20:25least, revealing. There's nothing like
  3754. 2:20:27online anonymity to get a guy to spill
  3755. 2:20:30his guts. It may sound like a cliche or
  3756. 2:20:32a scene from a bad porn flick, but as it
  3757. 2:20:35turns out, the number one fantasy among
  3758. 2:20:37men is this. A boy or a man is lounging
  3759. 2:20:39in a hot tub or spa. He's surrounded by
  3760. 2:20:42three or four naked women. A corped
  3761. 2:20:44bottle of champagne stands nearby with
  3762. 2:20:46its foam bubbling over into the hot tub.
  3763. 2:20:49Based on these responses and others, the
  3764. 2:20:51axe team realized something. The
  3765. 2:20:54ultimate male fantasy isn't just to be
  3766. 2:20:56found irresistible by a sexy woman. It's
  3767. 2:20:59to be found irresistible by several sexy
  3768. 2:21:02women. This was the groundbreaking
  3769. 2:21:04revelation that was soon to become the
  3770. 2:21:06crux of Ax's campaign, says Kosno. We
  3771. 2:21:09realized, or rather had it confirmed,
  3772. 2:21:11that if the campaign was to be
  3773. 2:21:13successful, it would have to emphasize
  3774. 2:21:15the pheromone aspects of the brand. But
  3775. 2:21:18wait, these marketers weren't done
  3776. 2:21:20probing yet. Next, in a spirit of male
  3777. 2:21:22camaraderie, Kazano and his Unilver
  3778. 2:21:25colleagues accompanied roughly a hundred
  3779. 2:21:26males. Identical studies were later
  3780. 2:21:28carried out across other European
  3781. 2:21:30countries, North America and Latin
  3782. 2:21:32America, age 15 to 50, to the pubs until
  3783. 2:21:353:00 or 4 in the morning and soberly,
  3784. 2:21:37while secretly taking copious notes,
  3785. 2:21:39watched them in action. Their goal was
  3786. 2:21:41to see how these men would pick women
  3787. 2:21:43out of the crowd and ultimately approach
  3788. 2:21:45them to analyze their game as it were.
  3789. 2:21:48After pouring over their pages and pages
  3790. 2:21:50of notes in the end and via a process
  3791. 2:21:52known in the industry as segmentation,
  3792. 2:21:54the Unilver team isolated six
  3793. 2:21:56psychological profiles of the male
  3794. 2:21:58animal and the potential axe user. The
  3795. 2:22:01breakdown. The Predator, as Kouseno
  3796. 2:22:03describes him, conceals his insecurity
  3797. 2:22:06under a facade of swaggering bluster. He
  3798. 2:22:08drives a brand name car, adorns himself
  3799. 2:22:11with high-end fashion brands, and is
  3800. 2:22:13constantly on the prowl. He has little
  3801. 2:22:15if any respect for women and is markedly
  3802. 2:22:18deceptive. He's liable to lie to a woman
  3803. 2:22:20about his job when he's in fact
  3804. 2:22:22unemployed where he lives, typically
  3805. 2:22:24with his parents, and so on. The
  3806. 2:22:26predator tends to target women who are
  3807. 2:22:28out alone, preferably drunk ones he can
  3808. 2:22:31take easy advantage of. In some, the
  3809. 2:22:34predator is any woman's and her father's
  3810. 2:22:36worst nightmare. Natural talent. This is
  3811. 2:22:39the intelligent, athletic, achieving,
  3812. 2:22:42magnetic, naturally confident male. the
  3813. 2:22:44kind of guy other guys like to be around
  3814. 2:22:46and women find inherently appealing.
  3815. 2:22:48Natural talent usually gets the woman
  3816. 2:22:50he's after, though never deceptively.
  3817. 2:22:52Interestingly, when the axe researchers
  3818. 2:22:54pulled all the men, they found that
  3819. 2:22:56nearly everyone not only wanted to be
  3820. 2:22:58the natural talent guy, the vast
  3821. 2:23:00majority believed they were the natural
  3822. 2:23:02talent guy. It was like a sexed up
  3823. 2:23:05version of the Lake Wagon effect. The
  3824. 2:23:08marriage material guy is exactly that,
  3825. 2:23:10gentle, respectful, and self-confident.
  3826. 2:23:13the kind of guy you want to bring home
  3827. 2:23:15to mom. Despite what single women might
  3828. 2:23:17tell you, according to Unilver's
  3829. 2:23:19research, marriage material men make up
  3830. 2:23:21a pretty large segment in the young male
  3831. 2:23:23population. Always the friend. Is there
  3832. 2:23:26a greater kiss of death for an amorous
  3833. 2:23:28young man than to hear the word sorry,
  3834. 2:23:31but I like you more like a brother? Can
  3835. 2:23:33we be just good friends? Cuz remarks,
  3836. 2:23:36not unkindly, you watch them deflate
  3837. 2:23:39right in front of you. Not surprisingly,
  3838. 2:23:41quite a few gay men and closeted gay men
  3839. 2:23:44turned up in this category. The insecure
  3840. 2:23:47novice. These poor young fellows haven't
  3841. 2:23:49the slightest idea what they are doing
  3842. 2:23:51around women. Along with marriage
  3843. 2:23:53material and natural talent, the United
  3844. 2:23:56States boasts quite a few insecure
  3845. 2:23:58noviceses. Ironically, they outwardly
  3846. 2:24:01resemble the predator in that they will
  3847. 2:24:02simply step up and behave in ways that
  3848. 2:24:04make most women uncomfortable, but their
  3849. 2:24:07motives are pure and not deceptive. The
  3850. 2:24:10enthusiastic novice. These young men
  3851. 2:24:12have no idea what they are doing either,
  3852. 2:24:15but they come across as eager rather
  3853. 2:24:17than creepy. They might not score, but
  3854. 2:24:19darn it, no one is going to tell them
  3855. 2:24:21they aren't doing their best. So, now
  3856. 2:24:24that the axe researchers had isolated
  3857. 2:24:26these six segments, what did they do
  3858. 2:24:28with the information? Well, the first
  3859. 2:24:31step was to figure out which of these
  3860. 2:24:33six types of men was their best target.
  3861. 2:24:35Ultimately, they decided the most
  3862. 2:24:37obvious choice would be the insecure
  3863. 2:24:39novice, followed by the enthusiastic
  3864. 2:24:41novice, followed by the natural talent.
  3865. 2:24:43Why? Well, the first two segments, the
  3866. 2:24:46marketers reasoned, with their lack of
  3867. 2:24:48self-esteem and experience, could be
  3868. 2:24:50easily persuaded that axe would be the
  3869. 2:24:52key to enhanced success with women. They
  3870. 2:24:54would spray it on to ramp up their
  3871. 2:24:56self-confidence. The natural talent
  3872. 2:24:59guys, on the other hand, didn't need a
  3873. 2:25:01shot of self-confidence, but they could
  3874. 2:25:03probably be convinced to use Axe as a
  3875. 2:25:05finishing touch before going out for a
  3876. 2:25:07night on the town. This was unlike, say,
  3877. 2:25:10the Predator, who the marketers knew
  3878. 2:25:12would never feel he needed the product
  3879. 2:25:14or anything other than his own sexy self
  3880. 2:25:16to score with women. So with the
  3881. 2:25:19insecure novice as their primary target,
  3882. 2:25:21Axe came up with a series of 30-second
  3883. 2:25:23TV commercials that prayed on what its
  3884. 2:25:25research had revealed to be the ultimate
  3885. 2:25:27male fantasy to be irresistible to not
  3886. 2:25:30just one but several sexy women. These
  3887. 2:25:33ads were nothing short of marketing
  3888. 2:25:34genius. In one 32nd spot, an army of
  3889. 2:25:38bikini clad female Amazon drawn by the
  3890. 2:25:40irresistible scent storms an empty beach
  3891. 2:25:42to surround and seduce a helpless,
  3892. 2:25:44scrawny young male axe user. In another,
  3893. 2:25:47a naked, soapy young man is showering
  3894. 2:25:49when suddenly the bathroom floor cracks
  3895. 2:25:51and he tumbles, still naked and dripping
  3896. 2:25:53with suds into a basement filled with
  3897. 2:25:55scantlyclad young women who proceed to
  3898. 2:25:57bump and grind lasciviously enough to
  3899. 2:25:59make a porn star break out in hives. No
  3900. 2:26:02one wants to play with dirty equipment
  3901. 2:26:04in tones a woman in another less than
  3902. 2:26:06subtle ax before proceeding with the
  3903. 2:26:08help of an assistant. Monica, can you
  3904. 2:26:10help me with these dirty balls? She asks
  3905. 2:26:13to clean and fondle two white golf balls
  3906. 2:26:16in her manicured hand. If you spray it,
  3907. 2:26:18they will come. Is the suggestive
  3908. 2:26:20promise of another ad in which a pair of
  3909. 2:26:22college-aged women bodily drag another
  3910. 2:26:24college-aged beacon to what is
  3911. 2:26:26presumably awaiting bondoir. In others,
  3912. 2:26:29a gaggle of young women need only take a
  3913. 2:26:31deep inhale of a nearby axe man before
  3914. 2:26:33they are immediately compelled to
  3915. 2:26:35surrender their cell phone numbers.
  3916. 2:26:36While in yet another, a man sprays on
  3917. 2:26:38Ax's dark temptation body spray, which
  3918. 2:26:41immediately transforms him into a
  3919. 2:26:42life-sized piece of chocolate, which a
  3920. 2:26:44bevy of hot women off the street nibble
  3921. 2:26:47at suggestively for the remainder of the
  3922. 2:26:4930 secondond spot. The message of each
  3923. 2:26:51of these couldn't be clearer. Use Axe
  3924. 2:26:53and get late repeatedly by different
  3925. 2:26:56women. The campaign was an instant hit
  3926. 2:26:58and Axe quickly became the number one
  3927. 2:27:00male brand in the total antipersperent
  3928. 2:27:03deodorant category. Three, earning
  3929. 2:27:04Unilver $71 million in sales in 20650
  3930. 2:27:08million more than its closest rival TAG4
  3931. 2:27:11and $186 million, excluding Walmart
  3932. 2:27:14sales in 2007, an increase of 14% from a
  3933. 2:27:18year earlier, which was leagues ahead of
  3934. 2:27:20its nearest rival. What's more, sales of
  3935. 2:27:23the brand's other products shot up as
  3936. 2:27:25well because body sprays are often used
  3937. 2:27:27as a training fragrance. And if a young
  3938. 2:27:29male cotton to a brand, he's more likely
  3939. 2:27:31to buy other products from the same
  3940. 2:27:33company, what we in the industry call
  3941. 2:27:35the halo effect. Moreover, Axe had
  3942. 2:27:37achieved global fame for its envelope
  3943. 2:27:39pushing ads, which were variously termed
  3944. 2:27:41funny, brilliant, offensive, or
  3945. 2:27:43outrageously sexist. Either way, it was
  3946. 2:27:46free publicity, and it worked. However,
  3947. 2:27:49the brand's early success soon began to
  3948. 2:27:51backfire. The problem was the ads had
  3949. 2:27:54worked too well in persuading the
  3950. 2:27:56insecure noviceses and enthusiastic
  3951. 2:27:58noviceses to buy the product. Geeks and
  3952. 2:28:00dorks everywhere were now buying Axe by
  3953. 2:28:03the case load, and it was hurting the
  3954. 2:28:05brand's image. Eventually, in the United
  3955. 2:28:07States, at least to most high school and
  3956. 2:28:09college-aged males, Axe had essentially
  3957. 2:28:11become the brand for pathetic losers.
  3958. 2:28:13And not surprisingly, sales took a huge
  3959. 2:28:15hit. Then Axe faced another big problem.
  3960. 2:28:19Insecure high school students had been
  3961. 2:28:21so convincingly persuaded that Axe would
  3962. 2:28:23make them sexually appealing that they
  3963. 2:28:25began completely dousing themselves in
  3964. 2:28:27it. After all, if Axe equals sex, then
  3965. 2:28:30more axe equals more sex, right?
  3966. 2:28:33According to CBC News, some boys have
  3967. 2:28:35been dousing themselves in Axe,
  3968. 2:28:37apparently believing commercials that
  3969. 2:28:38show a young man applying the deodorant
  3970. 2:28:40and being immediately hit on by
  3971. 2:28:42beautiful women. It got to the point
  3972. 2:28:44where the students were wreaking so
  3973. 2:28:46heavily of it that it was becoming a
  3974. 2:28:48distraction at school. So much so that
  3975. 2:28:51in Minnesota, school district officials
  3976. 2:28:53attempted to ban it, claiming that the
  3977. 2:28:55man spray has been abused and the
  3978. 2:28:57aerosol stench is a hazard for students
  3979. 2:28:59and faculty. Five. The principal of one
  3980. 2:29:02Canadian school started actually
  3981. 2:29:04confiscating bottles of axe. They spray
  3982. 2:29:07it all over their heads and their necks.
  3983. 2:29:09One teacher said they don't realize how
  3984. 2:29:12powerful the odor is. They have no idea
  3985. 2:29:14how much it takes to be a walking stink
  3986. 2:29:16bomb, which is basically what they are.
  3987. 2:29:18Six. Today, Unilver is reinvigorating
  3988. 2:29:21the brand with a series of viral videos
  3989. 2:29:24focused more on showing men just where
  3990. 2:29:26to spray axe. Naturally, these two are
  3991. 2:29:28charged with sexual innuendo. After
  3992. 2:29:30spraying a mannequin, the spokeswoman
  3993. 2:29:32tears off the man's right arm and begins
  3994. 2:29:34paddling herself while crying, "I have
  3995. 2:29:36been naughty." Seven. Despite its few
  3996. 2:29:39stumbles, the wild success of Ax's ad
  3997. 2:29:42campaign just goes to show what can
  3998. 2:29:44happen when a brand and its clever
  3999. 2:29:46marketers probe and plug into our most
  4000. 2:29:48private and deeply rooted sexual
  4001. 2:29:50fantasies and desires. And it goes to
  4002. 2:29:52show that these days, as ever, our most
  4003. 2:29:55deeply seated sexual fantasies and
  4004. 2:29:57desires can be some of the most powerful
  4005. 2:29:59persuaders there are. And although some
  4006. 2:30:01entrenched marketing techniques like the
  4007. 2:30:04one you just read about remain in place,
  4008. 2:30:06what most people don't know is that
  4009. 2:30:07companies and advertisers are using sex
  4010. 2:30:10in a host of sneaky new ways. In this
  4011. 2:30:12chapter, we'll take a look at the
  4012. 2:30:14provocative results of some experiments
  4013. 2:30:16I recently did on sex and advertising,
  4014. 2:30:18including shocking revelations of what
  4015. 2:30:20heterosexual men really think about when
  4016. 2:30:22they see naked male bodies in
  4017. 2:30:23advertising. Hint, it isn't their
  4018. 2:30:25girlfriends. And what type of men some
  4019. 2:30:27women won't admit to daydreaming about.
  4020. 2:30:29Hint, check out the posters on their
  4021. 2:30:31tween daughters walls. We'll also take a
  4022. 2:30:34look at how changing gender roles in our
  4023. 2:30:36society are shaping the way companies
  4024. 2:30:38are using sex appeal and beauty to
  4025. 2:30:40brandwash the 21st century man who loves
  4026. 2:30:43you baby. The ads stretch across
  4027. 2:30:46countless Abberrombi and Fitch
  4028. 2:30:48storefronts and billboards from Time
  4029. 2:30:49Square to London to Paris. do-eyed
  4030. 2:30:51shirtless men with broad smooth
  4031. 2:30:53shoulders and six-pack abs jutting
  4032. 2:30:55majestically out of a pair of bulging
  4033. 2:30:57tight-fitting jeans arrayed in various
  4034. 2:30:59supine poses like wrestling in the woods
  4035. 2:31:01or lounging languidly on a summer beach.
  4036. 2:31:04It's all very very sexy. But when you
  4037. 2:31:06stop and think about it for a minute,
  4038. 2:31:08something doesn't add up. The jeans
  4039. 2:31:11being advertised here are for men and
  4040. 2:31:13the majority of a bearby's customers and
  4041. 2:31:15target customers are straight. If these
  4042. 2:31:18billboards are trying to seduce
  4043. 2:31:20customers with hot, near-neaked bodies,
  4044. 2:31:22shouldn't they be women's bodies? In
  4045. 2:31:24other words, why are sexy men being used
  4046. 2:31:27to sell jeans and underwear to
  4047. 2:31:28heterosexual men? To begin to answer
  4048. 2:31:31that question, we have to go back a
  4049. 2:31:33couple of decades. Back in the early 90s
  4050. 2:31:36when Madonna Badger, then senior art
  4051. 2:31:38director at Calvin Klein's in-house
  4052. 2:31:40agency, and today the proprietor of
  4053. 2:31:42Badger and Winters, her own successful
  4054. 2:31:44New York boutique ad agency, and
  4055. 2:31:46photographer Herb Ritz created two ads
  4056. 2:31:48for Calvin Klein underwear. They
  4057. 2:31:50couldn't possibly have predicted what
  4058. 2:31:52effect they would have. I'm sure you've
  4059. 2:31:54seen these now iconic ads. The one for
  4060. 2:31:57men's briefs pictured well-muscled actor
  4061. 2:31:59and stud muffin Mark Wahberg, back then
  4062. 2:32:01known as rapper Marky Mark, clutching
  4063. 2:32:03his crotch and grinning. The one for
  4064. 2:32:05women's skiibbies featured the Wayfish
  4065. 2:32:07Kate Moss hugging her bony arms to her
  4066. 2:32:10bony chest. These homoerotic ads boosted
  4067. 2:32:12sales of Calvin Klein underwear, both
  4068. 2:32:14men's and women's, by roughly 35%,
  4069. 2:32:17instantly broadcasting to the
  4070. 2:32:18advertising world that yes, you can use
  4071. 2:32:20male sex appeal to sell to men and
  4072. 2:32:22female sex appeal, albeit a boyish
  4073. 2:32:25female, to sell to women. And for the
  4074. 2:32:27next two decades, use it. They did. More
  4075. 2:32:30than 20 years later, American Apparel's
  4076. 2:32:32billboard ads, so racy they've been
  4077. 2:32:34accused of being downright pornographic,
  4078. 2:32:36show young men in their underwear with
  4079. 2:32:38their legs spled open, while the male
  4080. 2:32:40models in Dolce and Gabana's cologne ads
  4081. 2:32:42bear their glistening, rippling tan
  4082. 2:32:44chests. In one controversial ad, a
  4083. 2:32:46shirtless man leans suggestively over a
  4084. 2:32:48woman in a skimpy black dress, while
  4085. 2:32:50other men in varying states of dress
  4086. 2:32:51look on. Adidas advertises its sneakers
  4087. 2:32:54with posters showing Canadian model time
  4088. 2:32:57Rogers bearing his perfectly toned
  4089. 2:32:59athletic body while clutching a pair of
  4090. 2:33:01sneakers in front of his crotch. And
  4091. 2:33:03it's worth noting that Men's Health with
  4092. 2:33:05its monthly cover photos of shirtless
  4093. 2:33:07men with six-packs is among the most
  4094. 2:33:09popular magazines in the United States.
  4095. 2:33:12Point is, thanks in no small part to the
  4096. 2:33:15barriers broken by those envelope
  4097. 2:33:16pushing late9s Calvin Klein ads, it's
  4098. 2:33:19not uncommon for advertisers to use
  4099. 2:33:21provocative images of male sexuality to
  4100. 2:33:23sell men on everything from clothing to
  4101. 2:33:25cologne to sporting equipment. Yet, most
  4102. 2:33:28straight males would be loathed to admit
  4103. 2:33:30that these sexually charged images of
  4104. 2:33:32attractive men with their V-shaped
  4105. 2:33:33physiques, broad pectorals, rippling
  4106. 2:33:35upper bodies, and bulging crotches have
  4107. 2:33:37any effect on their buying behavior
  4108. 2:33:39whatsoever. In the United States at
  4109. 2:33:42least, it's still not considered okay
  4110. 2:33:44for a straight man to admire another
  4111. 2:33:46male. And in fact, men are used to
  4112. 2:33:48averting their gaze when any hint of the
  4113. 2:33:50naked male form is present. Which could
  4114. 2:33:52explain why when a man is standing at
  4115. 2:33:53the urinal in a public restroom, a
  4116. 2:33:55second man who enters the bathroom will
  4117. 2:33:57set up shop 10 m away from him for fear
  4118. 2:34:00of being unwittingly perceived as on the
  4119. 2:34:02prowl. Yet, the data doesn't lie. These
  4120. 2:34:05homoerotic ads do work. They work
  4121. 2:34:08incredibly well. So, what's going on
  4122. 2:34:11here? Dr. Delisa Veranic, a Today Show
  4123. 2:34:14psychologist who also serves as the
  4124. 2:34:15psychologist for Gold's Gym and is on
  4125. 2:34:17the advisory board for Shape magazine,
  4126. 2:34:19conjectures that men rationalize ogling
  4127. 2:34:22these ads by telling themselves they are
  4128. 2:34:23simply looking at a single isolated body
  4129. 2:34:25part. Say, to see how the jeans fit
  4130. 2:34:28around the hips or how the t-shirt
  4131. 2:34:29stretches across the chest as opposed to
  4132. 2:34:31the body itself. It's called Playgirl
  4133. 2:34:34Marketing, Dr. Vanic tells me, referring
  4134. 2:34:36to the monthly magazine featuring male
  4135. 2:34:38nudes founded in 1973,
  4136. 2:34:41it says it's for men trying to impress
  4137. 2:34:43women, but it's really men for men.
  4138. 2:34:46Based on what I've seen in all my years
  4139. 2:34:48in the advertising industry, I'd long
  4140. 2:34:50suspected that these ads of chiseled
  4141. 2:34:52males strike a chord in heterosexual
  4142. 2:34:54men. Why else would they be so
  4143. 2:34:56ubiquitous? When I've asked young men
  4144. 2:34:59about the models in the Abbercrombie
  4145. 2:35:00ads, they'll cheerfully admit those
  4146. 2:35:02girls are fit. But when I ask, "What
  4147. 2:35:05about the guys?" The discomfort in the
  4148. 2:35:07room is palpable. Then quite often I get
  4149. 2:35:11a chorus of I didn't really notice them
  4150. 2:35:13or why do you want to know? As if I'm
  4151. 2:35:15challenging their sexuality, which I'm
  4152. 2:35:18not. But whether they cop to it or not,
  4153. 2:35:20I believe that these ads and images that
  4154. 2:35:22evoke male sexuality or the male body
  4155. 2:35:24are powerful persuaders for men and
  4156. 2:35:26influence their buying decisions more
  4157. 2:35:28than they care to admit even to
  4158. 2:35:30themselves. So I decided to carry out an
  4159. 2:35:33infuri research study to see how the
  4160. 2:35:35male brain was affected by this sexually
  4161. 2:35:37stimulating imagery. I wasn't trying to
  4162. 2:35:40make some kind of social statement or
  4163. 2:35:42prove some kind of point like all men
  4164. 2:35:44are secretly gay. As someone who studies
  4165. 2:35:47branding and advertising for a living. I
  4166. 2:35:49simply was curious as to what effect
  4167. 2:35:51photographic imagery of the near naked
  4168. 2:35:53male really has on the heterosexual male
  4169. 2:35:56consumer. So again, with the help of San
  4170. 2:35:58Diego based Mind Sign Neuromarketing, we
  4171. 2:36:01were ready for our research experiment
  4172. 2:36:03to kick off. Our underwear study
  4173. 2:36:05subjects consisted of 16 males between
  4174. 2:36:08the ages of 18 and 25, eight
  4175. 2:36:10heterosexual and eight homosexual men.
  4176. 2:36:13The Mindsai Neuromarketing team scanned
  4177. 2:36:15the volunteers brains under infuri as
  4178. 2:36:17they viewed five images of male models
  4179. 2:36:19stripped down to their tight white
  4180. 2:36:21skiies and boxer briefs. A couple of
  4181. 2:36:24weeks later, some very provocative
  4182. 2:36:26results came in. Turns out that both
  4183. 2:36:29groups of men showed significant
  4184. 2:36:30activation in their visual cortex to be
  4185. 2:36:33expected given the visual nature of the
  4186. 2:36:35stimulus. But far more revealing was the
  4187. 2:36:38fact that both groups also showed
  4188. 2:36:40activity in the area of the brain known
  4189. 2:36:42as the inferior lateral prefrontal gyrus
  4190. 2:36:44that is involved in working memory and
  4191. 2:36:46that most often comes alive when a
  4192. 2:36:48person is attempting to lie, manipulate
  4193. 2:36:50a fact, or somehow convince themselves
  4194. 2:36:52of something not quite true. As a matter
  4195. 2:36:54of fact, you could easily dub this brain
  4196. 2:36:57region the deception area. All of which
  4197. 2:36:59indicated to the Mindsign study
  4198. 2:37:01researchers that our study subjects
  4199. 2:37:03didn't want to be attracted to our
  4200. 2:37:05skiibbyclad male models, but in fact
  4201. 2:37:07they were. And more telling still, the
  4202. 2:37:10heterosexual men's brains responses to
  4203. 2:37:12the male underwear ads denial followed
  4204. 2:37:14by varying degrees of interest were
  4205. 2:37:16extremely similar to those of homosexual
  4206. 2:37:19men. All strong evidence, according to
  4207. 2:37:21the team of experts who analyzed the
  4208. 2:37:23results, that some of the heterosexual
  4209. 2:37:25men were equally stimulated by the ads,
  4210. 2:37:28their brains were just working harder at
  4211. 2:37:30denying it. Scent of a woman. In
  4212. 2:37:33December 2004, when the global fragrance
  4213. 2:37:36firm International Flavors and
  4214. 2:37:38Fragrances was bidding to win the
  4215. 2:37:39account for Calvin Klein's new
  4216. 2:37:41fragrance, Euphoria, it called on Erica
  4217. 2:37:43Smith and her then colleague, Alex
  4218. 2:37:44Mskin, who ran its internal brand
  4219. 2:37:46emotions unit. The way it works in the
  4220. 2:37:49fragrance world is that the
  4221. 2:37:50manufacturer, in this case Calvin Klein,
  4222. 2:37:53then owned by Unilver, tells the
  4223. 2:37:55fragrance companies what it wants the
  4224. 2:37:57scent to evoke and sends them off to
  4225. 2:37:59create it. Then once a fragrance is
  4226. 2:38:01submitted, the company runs focus groups
  4227. 2:38:04to see whether it succeeds in summoning
  4228. 2:38:06the desired associations and emotions.
  4229. 2:38:08So, Unilver first submitted to the
  4230. 2:38:10perfumearies what's known in the
  4231. 2:38:12industry as a mood edit, a montage of
  4232. 2:38:14short, almost subliminal and sexually
  4233. 2:38:16suggestive clips from various films,
  4234. 2:38:18like a scene in which a woman was
  4235. 2:38:20willingly blindfolded and tied up,
  4236. 2:38:22though in a very seductive way. Why does
  4237. 2:38:25the industry use a film instead of
  4238. 2:38:27simply explaining what it wants in the
  4239. 2:38:29fragrance? Because, as David Kousno
  4240. 2:38:32notes, language has a way of dulling
  4241. 2:38:34things. Create a fragrance that takes a
  4242. 2:38:36woman to this emotional space. Unilver's
  4243. 2:38:39team told if and the other biders. Then
  4244. 2:38:42once the fragrance was ready, Unilver
  4245. 2:38:44assembled a focus group of women and
  4246. 2:38:46dabbed juice, the widespread name for
  4247. 2:38:48perfume across the fragrance industry on
  4248. 2:38:50each woman's skin. Then the team asked
  4249. 2:38:52the women to close their eyes and tell
  4250. 2:38:54the first story that came to mind that
  4251. 2:38:57expressed what the fragrance evoked for
  4252. 2:38:59them. Without exception, the stories the
  4253. 2:39:01women told were romantic, sexual, and
  4254. 2:39:04passionate. Interestingly, without
  4255. 2:39:06exception, the fragrance seemed to evoke
  4256. 2:39:08in every woman the same gently clashing
  4257. 2:39:10associations, innocence alongside
  4258. 2:39:12passion, freedom, as well as capture.
  4259. 2:39:14Love that was soft and sweet while
  4260. 2:39:16carnal and sexual at the same time.
  4261. 2:39:18Bingo. If's juice would be Calvin
  4262. 2:39:20Klein's new fragrance. But the process
  4263. 2:39:23was just getting started. Unilver loved
  4264. 2:39:26what if had come up with but wanted to
  4265. 2:39:28refine it further. To ensure they got it
  4266. 2:39:31just right, the Unilver team decided to
  4267. 2:39:34carry out additional research around the
  4268. 2:39:36same question. Where does this fragrance
  4269. 2:39:38take you emotionally? But then they
  4270. 2:39:40realized something. There was no way to
  4271. 2:39:42know whether the fragrance had taken the
  4272. 2:39:44women to that dark sensual place until
  4273. 2:39:46they figured out where for these
  4274. 2:39:48specific women that place might be. So
  4275. 2:39:51they decided to probe a little more
  4276. 2:39:53deeply. This time they led each woman
  4277. 2:39:55through a maze of corridors into various
  4278. 2:39:57dark rooms. The rooms were dark to
  4279. 2:39:59eliminate sensory distractions, each
  4280. 2:40:01suffused with a different variation of
  4281. 2:40:03the if fragrance. The women closed their
  4282. 2:40:05eyes. What did they see, hear, feel?
  4283. 2:40:09Afterward, the Unilever team poured over
  4284. 2:40:11their responses, trying to decode where
  4285. 2:40:14into what space the fragrance took each
  4286. 2:40:16woman. The Unilver team knew where it
  4287. 2:40:18wanted the scent to take them, to a dark
  4288. 2:40:21sexual place. as one of the team members
  4289. 2:40:23put it. But Unilver executives weren't
  4290. 2:40:26sure which of the three or four
  4291. 2:40:27different variations of the scent, then
  4292. 2:40:29dubbed alchemy, had hit the spot. So,
  4293. 2:40:32they showed the women the same mood edit
  4294. 2:40:34they'd submitted to the fragrance houses
  4295. 2:40:36and asked the women to jot down what
  4296. 2:40:38they thought of when they contemplated
  4297. 2:40:40visiting this dark, seductive space
  4298. 2:40:42evoked by both the film and the
  4299. 2:40:43fragrance. The responses ranged from
  4300. 2:40:46dark to sinister to scary. Yet, one
  4301. 2:40:48underlying reaction kept reemerging. The
  4302. 2:40:51women were all drawn to the sensation of
  4303. 2:40:53losing control sexually. It seemed the
  4304. 2:40:56emotional response the Unoliever team
  4305. 2:40:58was after was a kind of imprisoned.
  4306. 2:41:00Thus, we wanted there to be a sense that
  4307. 2:41:02they might lose a little bit of
  4308. 2:41:03themselves, but at the same time, they
  4309. 2:41:05were happy to give it up, David Kousno
  4310. 2:41:07recalls. But by now, Unoliever was torn
  4311. 2:41:10between its alchemy and a submission
  4312. 2:41:12from another house. So, it hired a
  4313. 2:41:15company called Scent Analysis to conduct
  4314. 2:41:17a sophisticated test to figure out which
  4315. 2:41:19fragrance hit every single note the
  4316. 2:41:21women had described and identify the
  4317. 2:41:23best fit between the emotional space and
  4318. 2:41:25the juice. Then, Unilver hired a
  4319. 2:41:28semi-audition to help it come up with a
  4320. 2:41:30word to describe the new fragrance, an
  4321. 2:41:32adjective that would help advertise and
  4322. 2:41:34position the brand. That word turned out
  4323. 2:41:37to be melancholic. Thus, in 2004, a
  4324. 2:41:40sensual yet slightly mourful scent,
  4325. 2:41:42Euphoria, was born. With the help of an
  4326. 2:41:44ad company, Unilver rolled out a series
  4327. 2:41:47of dark, shadowy, sensual, and naturally
  4328. 2:41:50melancholic 30-cond ads. And the new
  4329. 2:41:52Calvin Klein fragrance proceeded to fly
  4330. 2:41:54off the shelves. In fact, even today,
  4331. 2:41:57Euphoria is the only fragrance launched
  4332. 2:41:59in the past decade that remains in the
  4333. 2:42:01top 10 fragrances globally. So, what
  4334. 2:42:04does Sex Appeal really smell like? Turns
  4335. 2:42:07out it smells like money. Robbing the
  4336. 2:42:10cradle. In his book, Why We Buy, retail
  4337. 2:42:13anthropologist Paco Underh Hill refers
  4338. 2:42:15to adults who pay for their children's
  4339. 2:42:16or spouses purchases as the wallet
  4340. 2:42:19carriers because tween and teens
  4341. 2:42:20generally depend on their parents to pay
  4342. 2:42:22for their provisions and goodies,
  4343. 2:42:24whether their school supplies, clothes,
  4344. 2:42:26cosmetics, or music downloads for their
  4345. 2:42:28iPods. As the holder of the purse
  4346. 2:42:30strings, the wallet carrying adult has
  4347. 2:42:32at least some say in what the child is
  4348. 2:42:34buying, which from a marketer's point of
  4349. 2:42:36view poses a bit of a challenge. How to
  4350. 2:42:39craft a marketing or advertising
  4351. 2:42:41strategy that will persuade an adult
  4352. 2:42:43when you're selling a product meant for
  4353. 2:42:45children. very sneakily, as you'll read
  4354. 2:42:48in a minute. Today, thanks to
  4355. 2:42:50technology, never before in the history
  4356. 2:42:52of our species have contemporary parents
  4357. 2:42:55had more in common with their teenage or
  4358. 2:42:57even tweenage children. Mom, dad, and
  4359. 2:43:00the children all have cell phones,
  4360. 2:43:02Facebook accounts, and a roughly similar
  4361. 2:43:04cultural sensibility. They go to the
  4362. 2:43:06same movies, they listen to much of the
  4363. 2:43:08same music, they watch the same shows on
  4364. 2:43:10TV or iTunes or Tibbo or Hulu. The
  4365. 2:43:13result being that Hollywood and the
  4366. 2:43:15music industry have had to find ways to
  4367. 2:43:17develop adult content that will still be
  4368. 2:43:20suitable for young audiences. How do
  4369. 2:43:22they do it? By cleverly crafting
  4370. 2:43:25semi-ambiguous lyrics and dialogue that
  4371. 2:43:27have an adult, which more often than not
  4372. 2:43:29means sexual, meaning to grown-ups, but
  4373. 2:43:31say something completely different and
  4374. 2:43:33innocuous to an 8-year-old. Take for
  4375. 2:43:36example a tune like the black eyed peas
  4376. 2:43:38pumpet or Fergie's solo hit London
  4377. 2:43:41Bridge with its lyrics how come every
  4378. 2:43:43time you come around my London London
  4379. 2:43:45Bridge want to go down makes you long
  4380. 2:43:46for the innocent days of Peter Paul and
  4381. 2:43:48Mary S Puff the magic dragon doesn't it
  4382. 2:43:52to see what I mean try watching an
  4383. 2:43:54episode of the Simpsons with an
  4384. 2:43:558-year-old you'll both be enjoying
  4385. 2:43:58yourselves but the kid will likely be
  4386. 2:44:00gawing at the toilet humor or Homer
  4387. 2:44:02Simpson is a klutz type scenes while
  4388. 2:44:04you'll be chuckling inward wardly at the
  4389. 2:44:06homoerotic tension between Smithers and
  4390. 2:44:08Mr. Burns. In one 2000 Simpsons episode,
  4391. 2:44:11a tale of two Springfields after the
  4392. 2:44:13residents of Old Springfield find gold
  4393. 2:44:15in a nearby river, one woman exclaims,
  4394. 2:44:17"Thanks, Mayor Simpson. From now on,
  4395. 2:44:20we'll all be taking golden showers."
  4396. 2:44:22Movie franchises like Shrek and Toy
  4397. 2:44:24Story employ this strategy as well.
  4398. 2:44:26Consider that the king in Shrek is named
  4399. 2:44:28Farquad, pronounced While in
  4400. 2:44:30Toy Story 2, Buzz's love struck reaction
  4401. 2:44:32to a cowgirl named Jesse makes his wings
  4402. 2:44:35spring rigidly erect. These scenes give
  4403. 2:44:37a wink and nod to the wallet carrying
  4404. 2:44:40parents, but aren't so overtly sexual
  4405. 2:44:42that their children will pick up on it.
  4406. 2:44:44As the BBC points out, Hollywood moguls
  4407. 2:44:47didn't get where they are without being
  4408. 2:44:48aware that the ultimate film is one that
  4409. 2:44:51audiences of every age and type can sit
  4410. 2:44:53through. Eight. So successful is this
  4411. 2:44:56strategy in the entertainment industry
  4412. 2:44:58behind closed doors. They in fact call
  4413. 2:45:00this the Simpsons or Shrek strategy that
  4414. 2:45:02companies have begun to take a page from
  4415. 2:45:04Hollywood's playbook and marketers of
  4416. 2:45:06all stripes are now employing the
  4417. 2:45:08strategy across their brands. For
  4418. 2:45:10example, the sandwich chain Quiznos
  4419. 2:45:12recently came out with a new sub called
  4420. 2:45:14the toasty torpedo. It's 12 in of flavor
  4421. 2:45:18ads proclaim just before a smoky voice
  4422. 2:45:20toaster asks a chef to say it's sexy and
  4423. 2:45:22put it in me. nine years here's hoping
  4424. 2:45:24the eight-year-olds didn't pick up on
  4425. 2:45:26that one. But no brand, and yes, he is a
  4426. 2:45:30brand, has enjoyed so much success from
  4427. 2:45:32the Shrek strategy as contemporary pop
  4428. 2:45:34singing sensation Justin Bieber. As
  4429. 2:45:37anyone with a teenage daughter knows,
  4430. 2:45:38Justin Bieber is a cherubic 17-year-old
  4431. 2:45:41musician who got his start in 2007 when
  4432. 2:45:44his mother uploaded videos of him
  4433. 2:45:46singing in his bedroom onto YouTube.
  4434. 2:45:48Weeks later, Bieber's videos had been
  4435. 2:45:50viewed a hundred times, then a thousand,
  4436. 2:45:52then 10,000, then a million, and two
  4437. 2:45:54years later, Bieber's album, My World
  4438. 2:45:572.0, debuted at number one on Billboard.
  4439. 2:45:59With 50 million subscribers to his
  4440. 2:46:02YouTube channel, Time magazine dubbed
  4441. 2:46:04Bieber the first real teen idol of the
  4442. 2:46:06digital age, a star whose fame can be
  4443. 2:46:08attributed entirely to the internet. 10.
  4444. 2:46:11Aside from this distinction though,
  4445. 2:46:12Bieber merely is the latest in a long
  4446. 2:46:14tradition of moppy hair teenage boys
  4447. 2:46:16whose perfect boyish features adorn the
  4448. 2:46:18walls of countless botted tween and
  4449. 2:46:20teenage girls bedrooms. Plump lips,
  4450. 2:46:23dark, soulful eyes, smooth skin, a
  4451. 2:46:26disarmingly sweet smile, and let's not
  4452. 2:46:29forget the hair flip. Incidentally, if
  4453. 2:46:32you glance at a photo of 1970s tween
  4454. 2:46:34idol Donnie Osmond, who sang Hey There
  4455. 2:46:36Lonely Girl, followed by a photo of
  4456. 2:46:38Justin Bieber, one of whose hits is one
  4457. 2:46:40less lonely girl, you'll be struck by
  4458. 2:46:42the spooky similarity, not just of their
  4459. 2:46:44song's content, but also of their facial
  4460. 2:46:46features. No doubt about it, to girls
  4461. 2:46:49aged 10 to 17, the pure and innocent
  4462. 2:46:52look is hot. But wait a minute, turns
  4463. 2:46:55out not all the millions of adoring
  4464. 2:46:57Bieber fans are teens and tween at all.
  4465. 2:47:00Many are, of course, but not all. Not by
  4466. 2:47:03a long shot. So, who are they, then?
  4467. 2:47:06Believe it or not, a significant
  4468. 2:47:08percentage of this boyish 17-year-old's
  4469. 2:47:10most fervent admirers are actually women
  4470. 2:47:12in their 30s and 40s. That's right,
  4471. 2:47:15women old enough to be his mother. Now,
  4472. 2:47:18over the years, I've spoken to many
  4473. 2:47:20middle-aged women who will admit to an
  4474. 2:47:22occasional crush on a young male
  4475. 2:47:23celebrity. Understand that I'm not
  4476. 2:47:26referring here to anything nefarious,
  4477. 2:47:28illegal, or perverse. I have yet to hear
  4478. 2:47:30of any middle-aged Bieber fans ever
  4479. 2:47:31acting on their crush. At the same time,
  4480. 2:47:33I recognize that if a 47year-old father
  4481. 2:47:36acknowledged lusting after a teenage
  4482. 2:47:38girl, he would be remanded to therapy or
  4483. 2:47:40in the worst case scenario led away in
  4484. 2:47:42shackles. Still, these women can be
  4485. 2:47:45scary in their own way. It's not unusual
  4486. 2:47:47at a Bieber appearance to see eager
  4487. 2:47:49mothers pushing their way through
  4488. 2:47:50clusters of screaming twins, literally
  4489. 2:47:52shoving the young girls out of their
  4490. 2:47:54path to the adolescent heartthrob. 11.
  4491. 2:47:58As a marketer fascinated by the
  4492. 2:47:59celebrity brand, I couldn't help but
  4493. 2:48:02wonder what this was all about. Bieber
  4494. 2:48:04mania among teenagers made perfect
  4495. 2:48:06sense. After all, the teen idol
  4496. 2:48:08phenomenon does go back decades, and
  4497. 2:48:10Bieber is objectively cute in a
  4498. 2:48:1217-year-old kind of way. But what was
  4499. 2:48:15his appeal to these women twice his age?
  4500. 2:48:18Were they sexually attracted to him? Was
  4501. 2:48:21he simply some kind of projection of an
  4502. 2:48:23old fantasy from their own teen years? I
  4503. 2:48:26decided to find out. So I teamed up with
  4504. 2:48:29Murray Hill Associates, a nationwide
  4505. 2:48:31recruitment group. And together we
  4506. 2:48:32assembled a focus group composed of
  4507. 2:48:34women and mothers who in their own
  4508. 2:48:35teenage years had been decided by a teen
  4509. 2:48:38idol. Whether it was Leif Garrett or
  4510. 2:48:39David Cassidy or Davy Jones. But before
  4511. 2:48:42asking these women some admittedly
  4512. 2:48:44personal questions, I first sought the
  4513. 2:48:46insight of a female psychologist and
  4514. 2:48:48mother who herself had admitted to
  4515. 2:48:50similar crushes now and again on
  4516. 2:48:52good-looking underage young men. My
  4517. 2:48:54question intrigued and amused her. She
  4518. 2:48:57paused. It's not necessarily sexual,
  4519. 2:49:00Martin, she said. Then she paused. But
  4520. 2:49:03it's not unsexual either. Of course, I
  4521. 2:49:06had to know more. Which is how on a
  4522. 2:49:09rainy night in Chicago, I found myself
  4523. 2:49:11sitting in a focus group with a dozen
  4524. 2:49:1345year-old mothers gazing at me from
  4525. 2:49:15around an oval table. So, ladies, I
  4526. 2:49:18said, I want to ask you what may seem
  4527. 2:49:20like a strange question. I hesitated. As
  4528. 2:49:24an adult, have you ever had a crush on a
  4529. 2:49:26really, really young guy? At this point,
  4530. 2:49:29I expected looks of utter outrage, maybe
  4531. 2:49:31even a few pens or cups of coffee hurled
  4532. 2:49:34in my face. But amazingly, no one in the
  4533. 2:49:37room took any offense at my suggestion
  4534. 2:49:39whatsoever. Quite the opposite. Every
  4535. 2:49:42female beamed back at me with
  4536. 2:49:44recognition and what could only be
  4537. 2:49:46described as release. Clearly, I'd hit a
  4538. 2:49:49major artery. Ever see the Saturday
  4539. 2:49:51Night Live sketch where Tina Fay,
  4540. 2:49:53playing Bieber's high school teacher,
  4541. 2:49:55mutters to herself, "I don't know
  4542. 2:49:56whether I want to marry him or put him
  4543. 2:49:58in a stroller and push him around the
  4544. 2:50:00mall." Based on what I learned that
  4545. 2:50:02night, this was apparently a widespread
  4546. 2:50:04yet seldom discussed sentiment. The
  4547. 2:50:07women in the room made sport of their
  4548. 2:50:09crushes, all the while being careful to
  4549. 2:50:11stress that, of course, they never acted
  4550. 2:50:13on them. But the sense of pentup desire
  4551. 2:50:16in the room was palpable. I could barely
  4552. 2:50:19hear all the women as they all tried to
  4553. 2:50:21speak over one another, throwing out
  4554. 2:50:22name after name of some alluring
  4555. 2:50:24adolescent boy or another. One woman
  4556. 2:50:27describes taking her daughter to see
  4557. 2:50:29Eclipse, the second of the two films
  4558. 2:50:31based on Stephanie Meyers Twilight
  4559. 2:50:33books. I literally had to contain myself
  4560. 2:50:35in my seat when then 18-year-old Taylor
  4561. 2:50:38Lauder came on screen. She said, "Oh my
  4562. 2:50:40god, he's gorgeous." Though, of course,
  4563. 2:50:43I couldn't say a word since I know my
  4564. 2:50:45daughter would die if she heard that.
  4565. 2:50:47And so it went for the next 10 minutes.
  4566. 2:50:50Finally, one woman at the end of the
  4567. 2:50:53table raised her hand. As a teenager,
  4568. 2:50:55she'd been a huge fan of the singer
  4569. 2:50:57formerly known as Prince. "Well, back
  4570. 2:50:59then, I guess he was just Prince," she
  4571. 2:51:01told me. Just as I began to question her
  4572. 2:51:03taste, she said something
  4573. 2:51:05extraordinarily insightful. "I think
  4574. 2:51:07that women are much more attuned to
  4575. 2:51:08beauty and to beautiful things than men
  4576. 2:51:11are, and that includes boys." Once the
  4577. 2:51:14focus group wrapped up, I realized that
  4578. 2:51:16both my theories had been partially
  4579. 2:51:18correct. These maternal crushes were
  4580. 2:51:20sexual in that they served as a way to
  4581. 2:51:22relive the women's own teenage
  4582. 2:51:24sexuality, but at the same time, they
  4583. 2:51:26were more about the nostalgia than the
  4584. 2:51:28sex, a way to recapture the heat and
  4585. 2:51:30thrill of longing for the Paul McCartney
  4586. 2:51:32and David Cassidies of the women's
  4587. 2:51:34youth. I sense that more than anything,
  4588. 2:51:37these women were trying to prove,
  4589. 2:51:38perhaps to their daughters, as well as
  4590. 2:51:40to themselves, that beneath the armor of
  4591. 2:51:42motherhood, they were still the girls
  4592. 2:51:44they'd once been. More important, I'm
  4593. 2:51:48convinced that certain marketers are
  4594. 2:51:49acutely aware of this Bieber phenomenon.
  4595. 2:51:52And that when they sell the next teen
  4596. 2:51:53sensation, they are deliberately, if
  4597. 2:51:55stealthily, targeting the mothers of the
  4598. 2:51:57teens, they more transparently court. In
  4599. 2:52:00fact, I'm quite certain that when
  4600. 2:52:01marketers use Sex Appeal to sell wallet
  4601. 2:52:04carrying adults on a teenage celebrity
  4602. 2:52:06or any other brand ostensibly meant for
  4603. 2:52:08children or teens for that matter, they
  4604. 2:52:10know exactly what they are doing. Media
  4605. 2:52:13firms are fully aware that a middle-aged
  4606. 2:52:15mother is liable to be watching TV shows
  4607. 2:52:18with her daughter or listening to the
  4608. 2:52:19daughter's music in the car. When you
  4609. 2:52:22have a millennial target referring to
  4610. 2:52:23someone born between 1980 and 2000, says
  4611. 2:52:27Jack McKenzie, president of the
  4612. 2:52:28Millennial Strategy Program at Frank and
  4613. 2:52:30Maget Associates, a consulting firm, you
  4614. 2:52:33necessarily have a secondary target of
  4615. 2:52:35her mother. That's the way it is today.
  4616. 2:52:38Exploiting that is smart business. 12.
  4617. 2:52:42So, husbands, beware. Your wife, who you
  4618. 2:52:45may think is buying that new Justin
  4619. 2:52:46Bieber CD for your daughter, just may be
  4620. 2:52:49concealing a shocking yet common secret
  4621. 2:52:50that companies and marketers have known
  4622. 2:52:52for years. Gay, straight, young, or old,
  4623. 2:52:55sex appeal comes in all shapes and
  4624. 2:52:56sizes. And it's a mighty powerful
  4625. 2:52:58persuader, whether we can admit it to
  4626. 2:53:00ourselves or not. I shop like a woman.
  4627. 2:53:04What it it means to be a male consumer
  4628. 2:53:06in America today is changing.
  4629. 2:53:08Historically in our culture, women have
  4630. 2:53:11been freer to play around with the
  4631. 2:53:12boundaries of their gender than men. For
  4632. 2:53:14example, for many years, it's been
  4633. 2:53:16acceptable for women to wear jeans or
  4634. 2:53:18slacks, spray on a musky scent, or sport
  4635. 2:53:20a masculine looking watch, whereas most
  4636. 2:53:22men wouldn't have been caught dead in a
  4637. 2:53:24pink flowery shirt or wearing perfume or
  4638. 2:53:27makeup. But this is changing fast. In
  4639. 2:53:30the United States at least, more and
  4640. 2:53:32more boys and men are giving themselves
  4641. 2:53:34permission to wear and adapt totems from
  4642. 2:53:36the feminine world. Whether it's an
  4643. 2:53:37earring, skinny jeans, cosmetics, or a
  4644. 2:53:40fragrance. In Europe, more men wear
  4645. 2:53:42fragrance than American females do. In
  4646. 2:53:44fact, men today are more concerned about
  4647. 2:53:46looking good than they've ever been, and
  4648. 2:53:48more willing to shell out the dollars to
  4649. 2:53:50do it. The global men's grooming
  4650. 2:53:52industry is already valued at roughly
  4651. 2:53:55$27 billion worldwide, and fashion
  4652. 2:53:57experts anticipate it will grow to $31
  4653. 2:54:00billion by 2014. And in 2009, the number
  4654. 2:54:04of men who went so far as to undergo
  4655. 2:54:06plastic surgery procedures increased by
  4656. 2:54:09900,000 in the United States alone. 13.
  4657. 2:54:14Companies and marketers are well aware
  4658. 2:54:15of this shift, which is why they are
  4659. 2:54:17going to new lengths to target the
  4660. 2:54:19appearance and beauty conscious male.
  4661. 2:54:21Take the recent roll out of Dove Men
  4662. 2:54:23Plus Care, the first male only line from
  4663. 2:54:26a brand that's always catered to and
  4664. 2:54:28been associated with females. Now that
  4665. 2:54:30you are comfortable with who you are,
  4666. 2:54:32isn't it time for comfortable skin? One
  4667. 2:54:35ad asks. 14. This migration of the male
  4668. 2:54:39consumer into a traditional female arena
  4669. 2:54:42is overturning the rules of marketing
  4670. 2:54:44and advertising for all kinds of
  4671. 2:54:46unexpected products. Take body wash for
  4672. 2:54:49example. According to research data from
  4673. 2:54:52Deutsche Bank and Information Resources
  4674. 2:54:54Incorporated in 2009, body wash out sold
  4675. 2:54:57bar soap $756.3
  4676. 2:54:59million versus $754.2
  4677. 2:55:02million for the first time in the United
  4678. 2:55:05States. And believe it or not, this is
  4679. 2:55:08largely due to the fact that the
  4680. 2:55:09marketers of this historically feminine
  4681. 2:55:11product are more actively going after
  4682. 2:55:13the male customer. So why are so many
  4683. 2:55:16boys and men immunable to using body
  4684. 2:55:18wash all of a sudden? A few reasons. The
  4685. 2:55:22first is that our worldwide
  4686. 2:55:23preoccupation with hygiene, which I
  4687. 2:55:26talked about in an earlier chapter, is
  4688. 2:55:27starting to take hold among more and
  4689. 2:55:29more men. Fear-mongering marketers have
  4690. 2:55:32managed to convince many male consumers.
  4691. 2:55:34Females generally need less convincing
  4692. 2:55:36that bar soap is slimy, germy, even
  4693. 2:55:38downright dirty. A second reason is that
  4694. 2:55:41the makers of liquid hand soaps are
  4695. 2:55:43beginning to hook new generations of men
  4696. 2:55:45at an early age by strategically placing
  4697. 2:55:47dispensers in elementary school boys
  4698. 2:55:49restrooms, high school, and college gym
  4699. 2:55:51shower stalls, and co-ed college
  4700. 2:55:52dormitories. As a result, by the time
  4701. 2:55:55these men are out on their own and
  4702. 2:55:56purchasing their own hygiene products,
  4703. 2:55:58applying a liquid soap to their hands
  4704. 2:56:00and body feels normal, even ordinary.
  4705. 2:56:03Some years ago, one maker of body wash
  4706. 2:56:06noticed that men were resisting the
  4707. 2:56:08product because they felt that the way
  4708. 2:56:09it was applied by touching one's own
  4709. 2:56:11body was too feminine. So what did the
  4710. 2:56:14company do? It invented a new type of
  4711. 2:56:17lofah providing men with a physical
  4712. 2:56:19barrier of sorts between their hands and
  4713. 2:56:21their bodies. It then distributed
  4714. 2:56:23hundreds of thousands across the United
  4715. 2:56:25States. And lo and behold, use of bar
  4716. 2:56:28soap went down and sales of body wash
  4717. 2:56:30went up. The third reason more men are
  4718. 2:56:33using body wash is one even I can't
  4719. 2:56:35attribute to marketers. The rise in
  4720. 2:56:37single motherhood. Today, many sons
  4721. 2:56:39raised by single mothers have grown used
  4722. 2:56:41to using mom's body wash. And as we
  4723. 2:56:44learned in chapter 1, the products we
  4724. 2:56:46grow accustomed to using as children
  4725. 2:56:48tend to stick with us as adults. All of
  4726. 2:56:50which of course is a boon for companies
  4727. 2:56:52like Unilver and Proctor and Gamble
  4728. 2:56:54since selling body wash is far more
  4729. 2:56:56lucrative than selling bar soap. Seeking
  4730. 2:56:59perspective on all this, I spoke with
  4731. 2:57:01Rose Cameron, the chief marketing
  4732. 2:57:03officer of UR CG Chicago and a widely
  4733. 2:57:06acknowledged expert on the male
  4734. 2:57:07consumer. Cameron points out that as the
  4735. 2:57:10first axe generation, as she calls it,
  4736. 2:57:12the guys who were twins in the early
  4737. 2:57:14naughties is coming of age, there's no
  4738. 2:57:16question that the wants and needs of the
  4739. 2:57:18male consumer and in turn how he is
  4740. 2:57:20being targeted by marketers are
  4741. 2:57:21changing. They were the first male
  4742. 2:57:23generation to have scented products that
  4743. 2:57:26early, she explains. So, what's next,
  4744. 2:57:29Rose? I asked. Where are we going with
  4745. 2:57:32all this? The new trends I'm seeing are
  4746. 2:57:35tattooing and the removal of body hair.
  4747. 2:57:38Have you ever heard of smoothies? Just
  4748. 2:57:40the drink, Rose. I'm talking about
  4749. 2:57:43people, men in particular. Apparently,
  4750. 2:57:47getting rid of all, and I mean all, of
  4751. 2:57:49one's body hair is a trend that started
  4752. 2:57:51in the gay community and then caught on,
  4753. 2:57:53albeit for a different reason. In the
  4754. 2:57:55world of professional sports, "In some
  4755. 2:57:58sports, body hair slows you down. At
  4756. 2:58:00least that's the rational
  4757. 2:58:01justification." Rose tells me, "It could
  4758. 2:58:04also come from the pornography industry
  4759. 2:58:06since more and more men shave themselves
  4760. 2:58:08down there, and pornography, as everyone
  4761. 2:58:10knows, is a huge industry. It's a rather
  4762. 2:58:13extraordinary truth." I found out from a
  4763. 2:58:15source who works for a large consumer
  4764. 2:58:17product company. 15% of all US males
  4765. 2:58:20shave their private parts. I kid you
  4766. 2:58:22not. And it's a growing trend. One that
  4767. 2:58:24Gillette was quick to capitalize on by
  4768. 2:58:26posting a video on its website
  4769. 2:58:28instructing men on how to shave their
  4770. 2:58:30groin area. It was entitled trim the
  4771. 2:58:33bush to make the tree look taller. In
  4772. 2:58:36the marketing world, it's long been
  4773. 2:58:38accepted that when a typical woman
  4774. 2:58:40chooses a product, 80% of the reason is
  4775. 2:58:43emotional and only 20% is rational.
  4776. 2:58:46Women will generally respond to an
  4777. 2:58:48intreaty for a conditioner, a new brand
  4778. 2:58:50of makeup, or even a laundry detergent
  4779. 2:58:52from an emotional perspective, as in my
  4780. 2:58:54mother always used this brand, or the
  4781. 2:58:56family down the street drives this car
  4782. 2:58:58before butressing her emotional decision
  4783. 2:59:00with a rational argument. This is why
  4784. 2:59:03most advertising aimed at women tends to
  4785. 2:59:05play to emotions like nostalgia or fear
  4786. 2:59:08or envy. For men, the conventional
  4787. 2:59:10wisdom in marketing circles has always
  4788. 2:59:12been that this ratio is reversed. That
  4789. 2:59:1420% of a man's decision is emotional and
  4790. 2:59:1780% rational. But I don't believe that
  4791. 2:59:21for a second. Men and women are both
  4792. 2:59:23emotional beings. The difference being
  4793. 2:59:25that men need to disguise their
  4794. 2:59:27emotional drivers under features and
  4795. 2:59:29specs. Men's decision-making is 8020ths.
  4796. 2:59:32Two, I simply call their internal
  4797. 2:59:34process emotional, meaning that the
  4798. 2:59:36practical features of a product permit
  4799. 2:59:38men to disguise their own emotional
  4800. 2:59:40natures, and manufacturers are well
  4801. 2:59:42aware of this, too. Ever noticed that
  4802. 2:59:45marketers of products aimed at men tend
  4803. 2:59:47to stress specs and numbers like a 20 GB
  4804. 2:59:50hard drive or a 14.1 megapixel camera?
  4805. 2:59:53Yes, that does make a difference. Or an
  4806. 2:59:55Optimax 225 Sport XS engine and so on.
  4807. 2:59:59That's because these numbers provide a
  4808. 3:00:01rational, quantifiable justification for
  4809. 3:00:03choosing that product over another,
  4810. 3:00:05usually cheaper model. According to Time
  4811. 3:00:08magazine, product specifications
  4812. 3:00:10disproportionately sway our decisions as
  4813. 3:00:12shoppers, even when our own experiences
  4814. 3:00:14tell us they don't matter. 15. And this
  4815. 3:00:16is generally true more for men than for
  4816. 3:00:18women. Yet, the male consumer is
  4817. 3:00:21changing, and so are all the time-
  4818. 3:00:23tested strategies for marketing to them.
  4819. 3:00:25These days, if you look in the cosmetics
  4820. 3:00:27aisle at the products aimed at males,
  4821. 3:00:29you'll notice their macho names like
  4822. 3:00:30Ripped Fuel, Edge, Facial Fuel, and Axe,
  4823. 3:00:33which evoke associations of sporty,
  4824. 3:00:34manly things like Extreme Sports,
  4825. 3:00:36motorcycles, even war. This is because
  4826. 3:00:39marketers know full well that these
  4827. 3:00:40tough guy names allow them to still feel
  4828. 3:00:42tough and athletic even when buying a
  4829. 3:00:44product that's in fact all about beauty,
  4830. 3:00:46a traditional no for most straight
  4831. 3:00:49males. Advertisers tread carefully
  4832. 3:00:51around this issue. Even Menagy, a
  4833. 3:00:54spectacularly successful online male
  4834. 3:00:56cosmetics company that offers a full
  4835. 3:00:58line of natural products, including a
  4836. 3:00:59face mask, a concealer, and an under eye
  4837. 3:01:02treatment, gives its products aggressive
  4838. 3:01:04names like camo and eraser. Axe has even
  4839. 3:01:06rolled out an all black bottle
  4840. 3:01:08constructed to look like a grenade,
  4841. 3:01:10complete with indentations for a young
  4842. 3:01:12man's fingertips. The underlying
  4843. 3:01:14emotional promise these brands are
  4844. 3:01:16making is to smooth out the rough edges
  4845. 3:01:18and make him look good while still being
  4846. 3:01:20rugged and masculine at the same time.
  4847. 3:01:23This upsurge in male vanity is why men
  4848. 3:01:25are increasingly falling prey to a
  4849. 3:01:27cunning trick that retailers use to
  4850. 3:01:29reserve for women. Ever been shopping
  4851. 3:01:31for a pair of khakis or jeans? And when
  4852. 3:01:34you finally find a pair that fits, you
  4853. 3:01:36are delighted to discover that your size
  4854. 3:01:38hasn't changed since you were back in
  4855. 3:01:40graduate school. I have some bad news
  4856. 3:01:42for you. You've likely fallen victim to
  4857. 3:01:45vanity sizing, a devious ploy by which
  4858. 3:01:47stores make clothes bigger so we think
  4859. 3:01:49we can fit into a smaller size. 16. Many
  4860. 3:01:52retailers have been doing this with
  4861. 3:01:54women's clothes for years, but the
  4862. 3:01:56tactic is now starting to creep into the
  4863. 3:01:58men's sections of stores as well. When
  4864. 3:02:01Esquire magazine sent reporter Abram
  4865. 3:02:03Sour into various stores with a tape
  4866. 3:02:05measure, he found that pairs of men's
  4867. 3:02:07pants with so-called 36-in waists
  4868. 3:02:09actually ranged in size from 37 in at
  4869. 3:02:11H&M to 38.5 in at Calvin Klein to 39 in
  4870. 3:02:16at the Gap Hagar and Dockers to a
  4871. 3:02:18generous 41 in at Old Navy. 17. It used
  4872. 3:02:22to be that the typical man couldn't care
  4873. 3:02:24less what the size of his waistband was.
  4874. 3:02:26But today, experts know full well that
  4875. 3:02:28both genders will be more likely to buy
  4876. 3:02:30a product that makes them feel trim and
  4877. 3:02:32spelt. There's no question that
  4878. 3:02:35marketers are making a pretty penny by
  4879. 3:02:37exploiting the fact that it's becoming
  4880. 3:02:38more and more socially acceptable for
  4881. 3:02:41men to take an active role in
  4882. 3:02:43maintaining their appearance. In 1995,
  4883. 3:02:4653% of men shopped for themselves. By
  4884. 3:02:492009, that figure had risen to 75%. As
  4885. 3:02:53Wendy Leeman, the founder and CEO of
  4886. 3:02:55Wsil Strategic Retail, a marketing
  4887. 3:02:57consulting firm, observes, the era of a
  4888. 3:03:00man needing a woman's opinion before he
  4889. 3:03:02buys something may be on the way out.
  4890. 3:03:04Part of what we're witnessing is a
  4891. 3:03:06cultural shift. Leeman says men are
  4892. 3:03:08marrying later in life, and they're
  4893. 3:03:10living on their own longer. 18. Which
  4894. 3:03:13means that when men finally decide to
  4895. 3:03:15walk down the aisle, they already know
  4896. 3:03:16which brands they like. sometimes even
  4897. 3:03:18bringing the brands they love into the
  4898. 3:03:20marriage and influencing what their
  4899. 3:03:22wives buy. Unlike the males of yestery
  4900. 3:03:24year who went straight from under their
  4901. 3:03:26mother's wings to under their wives,
  4902. 3:03:28today's bachelors have to know how to do
  4903. 3:03:30more when it comes to shopping, like how
  4904. 3:03:32to get fitted for a suit, how to pick
  4905. 3:03:34out sheets with the best thread count,
  4906. 3:03:36and so on. This goes a long way toward
  4907. 3:03:39explaining why one smart store, the San
  4908. 3:03:41Antonio-based supermarket HB, has
  4909. 3:03:44created a men's zone, a safe haven set
  4910. 3:03:46apart from the rest of the store where
  4911. 3:03:48beauty conscious men can shop for
  4912. 3:03:49personal care items to their heart's
  4913. 3:03:51content while still feeling macho and
  4914. 3:03:53masculine. Adorned with sci-fi blue
  4915. 3:03:56floor lighting and flat screen TVs, this
  4916. 3:03:58standalone man cave offers 534 items
  4917. 3:04:00that promise to do everything from
  4918. 3:04:02soothe tired skin to tighten baggy
  4919. 3:04:04eyelids to keep a guy smelling like
  4920. 3:04:05fresh lemons all day. while five
  4921. 3:04:07touchscreens provide grooming tips and
  4922. 3:04:09product advice. 19. And just in case it
  4923. 3:04:12all starts to feel a little too girly,
  4924. 3:04:14soccer, car racing, basketball, and
  4925. 3:04:16other sports play continuously on the
  4926. 3:04:18flat screens. 20. Similarly, Proctor and
  4927. 3:04:22Gamble is now ensuring that men's and
  4928. 3:04:24women's cosmetics will be shelved in
  4929. 3:04:26different aisles and stores so that the
  4930. 3:04:28independent male shopper won't feel
  4931. 3:04:29uncomfortable or emasculated picking out
  4932. 3:04:32a facial cream or under eye smoother as
  4933. 3:04:34the woman beside him chooses a shade of
  4934. 3:04:36lipstick. How do these companies know
  4935. 3:04:38that shelving the men's products
  4936. 3:04:40separately will increase sales? Thanks
  4937. 3:04:42to the shadowy investigations they
  4938. 3:04:45conduct in the dead of the night. Very
  4939. 3:04:47few people know this, but most major
  4940. 3:04:49consumer goods companies including
  4941. 3:04:51Unilver, Craft, Pepsico, and Coca-Cola,
  4942. 3:04:54among others, have set up fake
  4943. 3:04:55supermarkets, typically in abandoned
  4944. 3:04:57warehouses in industrial parts of town.
  4945. 3:05:00They stock the shelves with their own
  4946. 3:05:02products as well as their competitors.
  4947. 3:05:04Then, late at night, under the cover of
  4948. 3:05:05darkness, they invite people to come
  4949. 3:05:07and, well, shop. While they're browsing
  4950. 3:05:10the aisles, cameras and in some extreme
  4951. 3:05:12cases, brain scanning equipment are
  4952. 3:05:14measuring what happens in real time as
  4953. 3:05:16they select and reject various brands
  4954. 3:05:18and items. Not unlike in the Phil
  4955. 3:05:20Minority Report, these supermarkets
  4956. 3:05:23generally have a control room lined with
  4957. 3:05:25TV screens on which reps can actually
  4958. 3:05:27measure the changes in consumers brain
  4959. 3:05:29waves as they encounter different
  4960. 3:05:31positioning of products. Based on this
  4961. 3:05:33data, the company develops what in the
  4962. 3:05:36business is called a planagram, a model
  4963. 3:05:38showing where each product should be
  4964. 3:05:39placed on the shelves to generate the
  4965. 3:05:41highest sales, then buy shelf space in
  4966. 3:05:43supermarkets and drugstores accordingly.
  4967. 3:05:46As it turns out, the reason that
  4968. 3:05:48shelving men's beauty products
  4969. 3:05:49separately is such a booster of sales is
  4970. 3:05:51that even though gender roles may be
  4971. 3:05:53changing, many men still don't want
  4972. 3:05:55fellow customers watching them lingering
  4973. 3:05:57over the grooming shelves. But if they
  4974. 3:05:59feel like they can browse freely without
  4975. 3:06:01the scrutiny of other people's stairs,
  4976. 3:06:03they're more likely to go for the
  4977. 3:06:05higherend items or pick up an extra
  4978. 3:06:07item. So, can brands traditionally aimed
  4979. 3:06:10at women with extremely feminine
  4980. 3:06:12ladylike names like Dove make a
  4981. 3:06:14successful crossover to guys? Well, when
  4982. 3:06:16you consider that Marlboro began as a
  4983. 3:06:19filtered cigarette marketed to women
  4984. 3:06:20back in the 1920s that N rolled out a
  4985. 3:06:23chest and back hair exfoliant for men in
  4986. 3:06:252002 and that Ugg was advertised as a
  4987. 3:06:28men's brand long before it became known
  4988. 3:06:30as a must-have female boot. The odds are
  4989. 3:06:32looking pretty good. And for an example
  4990. 3:06:34of how even traditionally male brands
  4991. 3:06:36are catering to men's feminine sides,
  4992. 3:06:38recently Dutch electronics giant Philips
  4993. 3:06:40decided that men wanted a more robust,
  4994. 3:06:43heavyduty tool to tackle hampers of
  4995. 3:06:45laundry. Something with a larger grip
  4996. 3:06:47and a more masculine look. So, it
  4997. 3:06:50created the GC 4490, which offers more
  4998. 3:06:53power, more steam, more performance.
  4999. 3:06:56What exactly is this manly item? It's an
  5000. 3:06:59iron. Sure, sex and advertising may be
  5001. 3:07:02one of the oldest tricks in the book,
  5002. 3:07:04but from what I've seen in my work, one
  5003. 3:07:06thing couldn't be more clear. Whether
  5004. 3:07:08it's by probing our deepest and darkest
  5005. 3:07:10sexual fantasies, by engineering
  5006. 3:07:12nostalgia for the sexual heyday of our
  5007. 3:07:14youth, or by coverly selling the promise
  5008. 3:07:16to make us more sexually attractive,
  5009. 3:07:18today's marketers and advertisers have
  5010. 3:07:20all kinds of new ways of tapping into
  5011. 3:07:22our most basic and primal human desire
  5012. 3:07:24and making a whole lot of money in the
  5013. 3:07:27process. Chapter 5. In 1931, a dedicated
  5014. 3:07:32bird watcher named Edward Celis started
  5015. 3:07:34pondering a curious phenomenon he'd been
  5016. 3:07:36observing for years. How, Celis
  5017. 3:07:38wondered, could so many species of
  5018. 3:07:40birds, rooks, gulls, lap wings, geese,
  5019. 3:07:42starings, you name it, rise from a field
  5020. 3:07:44in complete synchrony as though doing a
  5021. 3:07:46choreographed dance. Everyone knew birds
  5022. 3:07:49aren't that bright and have no way of
  5023. 3:07:51communicating with one another. So, how
  5024. 3:07:53could they possibly coordinate their
  5025. 3:07:55actions in such a seamless manner? It
  5026. 3:07:57must be mind readading, he concluded. At
  5027. 3:08:00the time, no one gave Celus's ESP theory
  5028. 3:08:03credence. After all, he had no proof,
  5029. 3:08:05and the scientific community then, just
  5030. 3:08:07as now, preferred facts over
  5031. 3:08:09speculation. Still, back in the 1930s,
  5032. 3:08:12no one could come up with a better
  5033. 3:08:14explanation. As it later turned out,
  5034. 3:08:17Celis wasn't completely crazy. The
  5035. 3:08:20bird's behavior was the result of a mind
  5036. 3:08:22meld of sorts. The birds weren't reading
  5037. 3:08:25one another's minds, of course, but they
  5038. 3:08:27were, in a sense, acting as if they
  5039. 3:08:29shared one collective brain. This
  5040. 3:08:31phenomenon isn't unique to birds. The
  5041. 3:08:34animal kingdom is rife with examples of
  5042. 3:08:37it. Even termites, yes, those nasty
  5043. 3:08:40little creatures that were put on Earth
  5044. 3:08:41to gnaw down structures and cause the
  5045. 3:08:43foundations of houses to buckle, are
  5046. 3:08:45capable of a collective consciousness.
  5047. 3:08:48To put it not so kindly, a single
  5048. 3:08:50termite is spectacularly dumb. Its brain
  5049. 3:08:53doesn't contain enough neurons even to
  5050. 3:08:55conceive of what it's doing. Yet a
  5051. 3:08:57million termites have enough collective
  5052. 3:08:59brain power to build giant complex
  5053. 3:09:01structures, some as high as 30 ft tall,
  5054. 3:09:03the termite mount. The question is how?
  5055. 3:09:07It wasn't until the late 1950s that
  5056. 3:09:09science came up with an explanation.
  5057. 3:09:12When biologist Pierre Paul Grass
  5058. 3:09:13observed many groups of termites during
  5059. 3:09:15the early phase of building, he found
  5060. 3:09:17that each little fellow appeared to be
  5061. 3:09:19carrying out three simple steps.
  5062. 3:09:22First, the termite would chew a mouthful
  5063. 3:09:24of earth and mold it into a pellet with
  5064. 3:09:26its saliva. Second, the termite would
  5065. 3:09:29wander around directionlessly, and as
  5066. 3:09:31soon as it stumbled upon an elevated
  5067. 3:09:33area, it would dump the pellet just as a
  5068. 3:09:36golden retriever might drop a
  5069. 3:09:37spitcovered tennis ball. Third, the
  5070. 3:09:40termite would repeat steps one and two
  5071. 3:09:42over and over. It's hard to comprehend
  5072. 3:09:45how these dim-witted insects can
  5073. 3:09:47eventually construct a giant
  5074. 3:09:48well-designed structure through this
  5075. 3:09:50achingly slow, seemingly random and
  5076. 3:09:52uncoordinated process. But they can. The
  5077. 3:09:56more earth pellets the termites drop
  5078. 3:09:57into place, the higher the ground
  5079. 3:09:59becomes. And the higher the ground
  5080. 3:10:02becomes, the greater the chance that all
  5081. 3:10:04the other aimlessly meandering termites
  5082. 3:10:06will bash into it, allowing it to grow
  5083. 3:10:08even more. When these few mounds or
  5084. 3:10:10pillars reach a certain height, Grass
  5085. 3:10:12explains, a new behavior kicks in and
  5086. 3:10:14the termites start to build arches
  5087. 3:10:16between them. The whole elaborate
  5088. 3:10:18termite mound with its chambers and
  5089. 3:10:20tunnels and sophisticated air
  5090. 3:10:22circulation channels arises from the
  5091. 3:10:24work of thousands of termites with no
  5092. 3:10:26central coordination at all. Just a few
  5093. 3:10:28simple rules. One the name Grass gave to
  5094. 3:10:31this bizarre phenomenon was cooperation
  5095. 3:10:33without communication. In short, no big
  5096. 3:10:36cheese termite queen issued any orders.
  5097. 3:10:38There was no strategic planning, no
  5098. 3:10:40formal organizing intelligence telling
  5099. 3:10:42the termites what to do. They simply
  5100. 3:10:45created a world by operating as if they
  5101. 3:10:47were tiny singular cells in one enormous
  5102. 3:10:50termite brain. Two, the process can be
  5103. 3:10:53explained by a theory known as complex
  5104. 3:10:55adaptive systems, which says that many
  5105. 3:10:57systems in nature, like birds taking
  5106. 3:10:59simultaneous flight or termites
  5107. 3:11:01painstakingly constructing a colossal
  5108. 3:11:03mound, are inherently emergent and
  5109. 3:11:05non-deterministic, which means in plain
  5110. 3:11:08English, that the whole is mightier than
  5111. 3:11:09the sum of its parts, and that you can't
  5112. 3:11:11predict the collective results simply by
  5113. 3:11:13looking at the individual actions, like
  5114. 3:11:15a single termite holding a saliva
  5115. 3:11:17drenched bit of sand, or one bird about
  5116. 3:11:19to take flight. According to this
  5117. 3:11:21theory, although the process might be
  5118. 3:11:23invisible to the human eye, termites are
  5119. 3:11:26actually able to intuit it when and
  5120. 3:11:28where to add to the structure by
  5121. 3:11:30maintaining a high degree of
  5122. 3:11:31connectivity to others in the colony.
  5123. 3:11:34Three, in other words, only by observing
  5124. 3:11:36and mimicking the behavior of its
  5125. 3:11:38neighbors can a termite figure out what
  5126. 3:11:40it should be doing. We, as consumers,
  5127. 3:11:43I've observed time and again, act in
  5128. 3:11:45much the same way. Just like those birds
  5129. 3:11:47and those termites, we too are wired
  5130. 3:11:50with a collective consciousness in that
  5131. 3:11:52we size up what those around us are
  5132. 3:11:54doing and modify our own actions and
  5133. 3:11:56behaviors accordingly. In a 2008
  5134. 3:11:59experiment conducted by researchers at
  5135. 3:12:01Leeds University, groups of people were
  5136. 3:12:03instructed to walk aimlessly around a
  5137. 3:12:05large hall without conversing with one
  5138. 3:12:07another. But first, the researchers gave
  5139. 3:12:09just a few of the people detailed
  5140. 3:12:11instructions on where precisely they
  5141. 3:12:13should walk. When they observed the
  5142. 3:12:15resulting behavior, they found that no
  5143. 3:12:17matter how large or small the group,
  5144. 3:12:19everyone in it blindly followed that
  5145. 3:12:21handful of people who appear to have
  5146. 3:12:23some idea where they were going. As the
  5147. 3:12:26scientists put it, the research suggests
  5148. 3:12:28that humans flock like sheep and birds,
  5149. 3:12:30subconsciously following a minority of
  5150. 3:12:32individuals for that it takes a mere 5%
  5151. 3:12:35of informed individuals to influence the
  5152. 3:12:38direction of a crowd of up to 200
  5153. 3:12:40people. The other 95% of us trail along
  5154. 3:12:43without even being aware of it. Five.
  5155. 3:12:47According to Professor Yens Krauss, who
  5156. 3:12:49engineered the study, what's interesting
  5157. 3:12:51about this research is that our
  5158. 3:12:53participants ended up making a consensus
  5159. 3:12:55decision despite the fact that they
  5160. 3:12:57weren't allowed to talk or gesture to
  5161. 3:12:59one another. Just like those termites,
  5162. 3:13:01in most cases, the participants didn't
  5163. 3:13:03realize they were being led by others.
  5164. 3:13:06Six. Want more evidence that it takes
  5165. 3:13:09only a few people in a group to steer
  5166. 3:13:11the direction of others around them? In
  5167. 3:13:14a study conducted in Cologne, Germany, a
  5168. 3:13:17crowd of 200 people clustered in the
  5169. 3:13:19center of a large circle that was
  5170. 3:13:21numbered like a clock. Researchers then
  5171. 3:13:23handed out slips of paper to 10 informed
  5172. 3:13:26individuals that read, "Go to 9:00, but
  5173. 3:13:28do not leave the group." The others were
  5174. 3:13:31given no specific instructions, just
  5175. 3:13:33notes that read, "Stay with the group."
  5176. 3:13:35For a while, the group seemed to mix and
  5177. 3:13:38mingle fairly randomly, but soon enough,
  5178. 3:13:40the informed individuals had led all the
  5179. 3:13:43others to the designated 9:00 target.
  5180. 3:13:46Seven. In 2007, the Washington Post
  5181. 3:13:49rolled out an intriguing and now famous
  5182. 3:13:51experiment. The newspaper hired one of
  5183. 3:13:54the best musicians in the world to play
  5184. 3:13:56a $3.5 million Stratavarious violin on a
  5185. 3:13:59subway platform during morning rush hour
  5186. 3:14:02in America's capital city. Most, if not
  5187. 3:14:04all, commuters walked right by and
  5188. 3:14:06ignored him. Just another downtrodden
  5189. 3:14:09street musician after my loose change,
  5190. 3:14:11they undoubtedly thought. The
  5191. 3:14:13violinist's final take for the entire
  5192. 3:14:15morning, $32.17,
  5193. 3:14:18just a fraction of what a single ticket
  5194. 3:14:20to one of his performances would cost.
  5195. 3:14:22On the face of it, it might seem these
  5196. 3:14:24commuters were just Philistines who
  5197. 3:14:26wouldn't know musical talent if it hit
  5198. 3:14:29them over the head. But I believe this
  5199. 3:14:31was an example of our collective
  5200. 3:14:33consciousness, our herd mentality at
  5201. 3:14:35work. Think about it. One harried
  5202. 3:14:38commuter ignores the performer. Maybe
  5203. 3:14:40she was in a particular hurry that
  5204. 3:14:42morning or is tonedeaf. And so the
  5205. 3:14:44commuter behind her, assuming there must
  5206. 3:14:46not be anything to see here, rushes past
  5207. 3:14:48him as well. So does the person behind
  5208. 3:14:51her and the 10 people behind him and so
  5209. 3:14:53on and so forth until the entire mass of
  5210. 3:14:56morning commuters is brushing past a
  5211. 3:14:58worldclass performer whom under other
  5212. 3:15:00circumstances they might have happily
  5213. 3:15:02paid hundreds of dollars to see perform
  5214. 3:15:04at the Kennedy Center or Carnegie Hall.
  5215. 3:15:07Eight. Standing out or being different
  5216. 3:15:10from everyone else causes most of us
  5217. 3:15:12great discomfort. Sometimes even
  5218. 3:15:14literally. I'll never forget a Unilver
  5219. 3:15:17focus group I once observed where
  5220. 3:15:19consumers were discussing shampoos. As
  5221. 3:15:22soon as the moderator brought up the
  5222. 3:15:23topic of itching, everyone in the room
  5223. 3:15:25began scratching their scalps. Did they
  5224. 3:15:28all suddenly develop a head of lice? Of
  5225. 3:15:31course not. They were simply and utterly
  5226. 3:15:34unconsciously mimicking the behaviors of
  5227. 3:15:36others in the room. Over the years, I've
  5228. 3:15:39noticed another interesting phenomenon.
  5229. 3:15:42When you show people a stack of photos
  5230. 3:15:44from a party or an album of pictures
  5231. 3:15:46just uploaded onto Facebook, the first
  5232. 3:15:48thing they do is pause and look at the
  5233. 3:15:50picture of themselves. Not so
  5234. 3:15:52surprising. We're a vain species. But
  5235. 3:15:55what's the second thing they do? Pause
  5236. 3:15:57and look at the pictures of people
  5237. 3:15:59surrounding them. Why? Because once
  5238. 3:16:02they've taken note of how they appear,
  5239. 3:16:04they need to analyze how they appear
  5240. 3:16:06compared to others. Do they look as
  5241. 3:16:08though they belong? Are they making the
  5242. 3:16:10right impression? Are others looking on
  5243. 3:16:12at them approvingly? This is telling. It
  5244. 3:16:15shows that we as human beings never
  5245. 3:16:17assess ourselves, our behaviors, or our
  5246. 3:16:20decisions in a vacuum. We assess them in
  5247. 3:16:22relation to everyone else. The point is,
  5248. 3:16:25we're a social species wired to display
  5249. 3:16:27this kind of herd behavior. Even
  5250. 3:16:3014-month-old babies show evidence of it.
  5251. 3:16:33In a series of studies, researchers
  5252. 3:16:35trained 14-month-olds to play with five
  5253. 3:16:37distinctive toys. These same children
  5254. 3:16:40later demonstrated their newly won toy
  5255. 3:16:42playing skills to other 14-month-old
  5256. 3:16:44children at a daycare. Children who'd
  5257. 3:16:46never seen these particular toys before.
  5258. 3:16:492 days later, one of the researchers
  5259. 3:16:51brought the same toys to each of these
  5260. 3:16:53second children's homes. Without
  5261. 3:16:55hesitation, the children began playing
  5262. 3:16:57with the toys in the exact same way
  5263. 3:16:59they'd witnessed at the daycare center.
  5264. 3:17:01The conclusion. 14-month-old babies
  5265. 3:17:04automatically imitate behaviors carried
  5266. 3:17:06out by peers and bring what they've
  5267. 3:17:08learned home with them even 48 hours
  5268. 3:17:10later. Nine. There is ample research to
  5269. 3:17:14show that we instinctively look to the
  5270. 3:17:15behavior of others to inform the
  5271. 3:17:17decisions we make. Everything from which
  5272. 3:17:19way we should walk to what music we
  5273. 3:17:21should listen to to which kind of car we
  5274. 3:17:23should drive. It seems in short that we
  5275. 3:17:26instinctively believe that others know
  5276. 3:17:28more about what we want than we
  5277. 3:17:30ourselves do. Psychologists have a name
  5278. 3:17:33for this phenomenon. It's called peer
  5279. 3:17:35pressure. When we hear those two words,
  5280. 3:17:38we tend to sigh inwardly as deeply and
  5281. 3:17:41darkly as we did when we were
  5282. 3:17:42adolescence. What a loaded and even
  5283. 3:17:45faintly patronizing expression,
  5284. 3:17:46conjuring up memories of teenage
  5285. 3:17:48insecurity, acne, and trying to fit into
  5286. 3:17:51a small universe where a phantom
  5287. 3:17:52classmate hisses. Come on, just one of
  5288. 3:17:55these won't hurt you into your ear.
  5289. 3:17:57While that kind of old-fashioned peer
  5290. 3:17:59pressure certainly exists, that's not
  5291. 3:18:01exactly the kind I'm talking about here.
  5292. 3:18:03I'm talking about a more implicit kind
  5293. 3:18:05that taps into our primitive human
  5294. 3:18:07desire to be accepted. Those
  5295. 3:18:09evolutionary instincts not to be left
  5296. 3:18:11out or exiled from the human tribe. As
  5297. 3:18:14you're about to read, this implicit pure
  5298. 3:18:16pressure is a far more insidious kind,
  5299. 3:18:19and companies and marketers are taking
  5300. 3:18:21advantage of its persuasive powers in
  5301. 3:18:23ways you couldn't even imagine. Monkey
  5302. 3:18:26see, monkey spend. Author and social
  5303. 3:18:29psychologist Robert Scolini once
  5304. 3:18:31demonstrated the persuasive power of our
  5305. 3:18:33peers in a fascinating experiment.
  5306. 3:18:36Several hundred volunteers took their
  5307. 3:18:38seats in a room purportedly to fill out
  5308. 3:18:40a survey. But that was only a
  5309. 3:18:42distraction from the real purpose of
  5310. 3:18:44Kaldin's experiment, which had to do
  5311. 3:18:46with how our behavior is swayed by those
  5312. 3:18:48around us. A large glass jar of cookies
  5313. 3:18:51stood prominently on a nearby desk
  5314. 3:18:54filled to the brim with deliciousness.
  5315. 3:18:56"Would you like a cookie?" one of the
  5316. 3:18:58researchers asked the survey takers.
  5317. 3:19:01Approximately 1if of the volunteers took
  5318. 3:19:04him up on his offer. How very
  5319. 3:19:06self-disiplined of them. In the second
  5320. 3:19:09stage of the experiment, the research
  5321. 3:19:11team surreptitiously removed most of the
  5322. 3:19:13cookies from the jar so that it looked
  5323. 3:19:15as though others had already taken one.
  5324. 3:19:18Still only about 1/5if of respondents
  5325. 3:19:20reached for a cookie. In the final stage
  5326. 3:19:23of the experiment, however, a researcher
  5327. 3:19:25sat behind a desk beside a large glass
  5328. 3:19:28cookie jar. But this time, before the
  5329. 3:19:30researcher could ask volunteers if they
  5330. 3:19:32wanted a cookie or not, a stranger
  5331. 3:19:34ambled into the room, removed the glass
  5332. 3:19:36lid, took a cookie in front of everyone
  5333. 3:19:38in the room, and walked out again. This
  5334. 3:19:41time, when the survey takers were asked
  5335. 3:19:43if anyone wanted a cookie, nearly every
  5336. 3:19:45single person took one. This experiment
  5337. 3:19:48revealed something that advertisers and
  5338. 3:19:50marketers have long been instinctively
  5339. 3:19:52aware of. Humans want what other humans
  5340. 3:19:55want. And the more visible other
  5341. 3:19:57people's demand is, the more we want
  5342. 3:19:59what they are having. In the cookie jar
  5343. 3:20:01experiment, people didn't want more
  5344. 3:20:04cookies when they thought that others
  5345. 3:20:05might have taken a cookie. But when they
  5346. 3:20:08actually saw another person take a
  5347. 3:20:09cookie, their brain said, "Give me." Now
  5348. 3:20:12imagine it's two weeks before Christmas
  5349. 3:20:15and you have yet to buy a gift for your
  5350. 3:20:17young child. Not surprisingly, as was
  5351. 3:20:19the case with previous Christmases.
  5352. 3:20:21There appears to be one at present that
  5353. 3:20:23you've read and heard about and that
  5354. 3:20:25every parent on the playground has
  5355. 3:20:26already bought or plans to buy for their
  5356. 3:20:29little darling. Those of us with durable
  5357. 3:20:31memories can cast our minds back to
  5358. 3:20:33recent Christmas toy fads, ranging from
  5359. 3:20:35Furbies to Beanie Babies to Razor
  5360. 3:20:37Scooters to Tamagotchas to Tickle Me
  5361. 3:20:39Elmo. the a gift of 1996 which inspired
  5362. 3:20:42such mania that desperate mothers around
  5363. 3:20:45America were duking it out in store
  5364. 3:20:46aisles 10 in each case the furer and
  5365. 3:20:49pursuit of these must have toys reached
  5366. 3:20:51the scale of a full-fledged social
  5367. 3:20:53epidemic meaning a social trend that
  5368. 3:20:55spreads quickly and widely like some
  5369. 3:20:57kind of consumer virus in 2009 the
  5370. 3:21:00hottest must- have Christmas toy on
  5371. 3:21:02every child's wish list was the Juju pet
  5372. 3:21:04hamster though the actual price was $10
  5373. 3:21:07so extraordinary and frankly Bizarre was
  5374. 3:21:10the national demand that the toy was
  5375. 3:21:12being sold on Amazon for three times
  5376. 3:21:14that. And before long, people were
  5377. 3:21:16bidding up to five times its value on
  5378. 3:21:18eBay. Clearly, fads like this are
  5379. 3:21:20extremely contagious. And as we've read,
  5380. 3:21:22when it comes to what we buy for our
  5381. 3:21:24children, guilt can also play a part.
  5382. 3:21:27Still, the question remains, what
  5383. 3:21:29determines which fads catch on and which
  5384. 3:21:31die, or which brands and products become
  5385. 3:21:33social epidemics and which don't? Why
  5386. 3:21:35the Guju pet hamster and not some other
  5387. 3:21:38toy or gizmo? After all, the toy doesn't
  5388. 3:21:41do anything special. It doesn't sing or
  5389. 3:21:43dance or grant wishes. It makes a
  5390. 3:21:46variety of odd sounds like chirping,
  5391. 3:21:48beeping, and mooing, but that's about
  5392. 3:21:50it. Yet, by the end of 2009, CPIA LLC,
  5393. 3:21:54the St. Louis company that created and
  5394. 3:21:56distributed the hamsters, had sold tens
  5395. 3:21:59of millions of dollars worth of the
  5396. 3:22:00furry things. Turns out, this wasn't
  5397. 3:22:03just a happy accident.
  5398. 3:22:05How sepia made its bizarre product via
  5399. 3:22:07Christmas toy is a fascinating example
  5400. 3:22:10of the art and craft of viral marketing.
  5401. 3:22:12In other words, peer pressure. First,
  5402. 3:22:15the company staged hamster giveaways at
  5403. 3:22:17hospitals, zoos, and major league
  5404. 3:22:19baseball games. Next, it sponsored
  5405. 3:22:21roughly 300 invitationonly hamster
  5406. 3:22:24parties where influential mommy bloggers
  5407. 3:22:26were the fortunate recipients of the
  5408. 3:22:27toys, as well as habit trails and a
  5409. 3:22:29recipe for hamster crunch, whatever that
  5410. 3:22:32is. It also hosted a live 9,000 tweet
  5411. 3:22:35interconnected Twitter party complete
  5412. 3:22:37with party prizes on the popular Mom
  5413. 3:22:39Talk Radio channel where host Maria
  5414. 3:22:41Bailey oversaw an interactive discussion
  5415. 3:22:43in which fans across the June never
  5416. 3:22:45share d what made Guju pets so special
  5417. 3:22:47to them. 11. The result was that soon
  5418. 3:22:49mothers around the country were hearing
  5419. 3:22:51and reading about the toy everywhere
  5420. 3:22:53they went creating a phenomenon so
  5421. 3:22:55contagious and a heat so intense that
  5422. 3:22:57Guju hamster sold out all across the
  5423. 3:22:59United States. Then sepia did something
  5424. 3:23:02ingenious and extremely commonplace. It
  5425. 3:23:05started manufacturing fewer Guju pets.
  5426. 3:23:08That's right, fewer. Why? Because
  5427. 3:23:11deliberately limiting inventory makes us
  5428. 3:23:14think that a product is even more in
  5429. 3:23:16demand. If everyone wants one in our
  5430. 3:23:18minds, it becomes more valuable. 12.
  5431. 3:23:21Creating a sense of scarcity stimulates
  5432. 3:23:23our pack mentality, our fear of missing
  5433. 3:23:25out. 13. It's human nature to covet what
  5434. 3:23:28others have. This fear of missing out on
  5435. 3:23:31something being gobbled up by our peers
  5436. 3:23:33is what drives rabid crowds of shoppers
  5437. 3:23:36to line up at 4 a.m. to get their hands
  5438. 3:23:38on the newly launched iPad 2 or a pair
  5439. 3:23:40of Uggs in a hard to come by color. 14.
  5440. 3:23:42And it's why a few years back a bargain
  5441. 3:23:44hunter was trampled to death outside a
  5442. 3:23:46Long Island Walmart on Black Friday. If
  5443. 3:23:49you've ever bid for an item on eBay,
  5444. 3:23:52you've probably unwittingly fallen prey
  5445. 3:23:54to this same trap. With a supply of only
  5446. 3:23:56one, there can be only one penguin tea
  5447. 3:23:59set in the world. The panic that some
  5448. 3:24:01other person might walk away with a
  5449. 3:24:03matching set of orange beaked mugs is
  5450. 3:24:05what can drive people to raise their bid
  5451. 3:24:07exponentially and pay far more than what
  5452. 3:24:09the product is worth. 15. Once social
  5453. 3:24:13contagion sets in, it can take on a life
  5454. 3:24:15of its own. Take another rather bizarre
  5455. 3:24:18example, a fad called icing that caught
  5456. 3:24:20on a few years ago among college
  5457. 3:24:22students and males in their mid20s. No,
  5458. 3:24:25I'm not talking about the sugary stuff
  5459. 3:24:27on top of birthday cakes. I'm talking
  5460. 3:24:30about a phenomenon that the New York
  5461. 3:24:31Times dubbed the world's biggest viral
  5462. 3:24:34drinking game. Never played? Lucky you.
  5463. 3:24:37Here's how it works. First, you give a
  5464. 3:24:40friend a can of Smirnoff ice malt
  5465. 3:24:42beverage. Said friend then has to
  5466. 3:24:45balance the can on his knee and drink
  5467. 3:24:47the whole thing at once. The only way to
  5468. 3:24:50avoid becoming a victim of this
  5469. 3:24:51uncertain fate is to carry a bottle
  5470. 3:24:53yourself, in which case you have to
  5471. 3:24:55drink both bottles before, of course,
  5472. 3:24:57going out and icing someone else. Sounds
  5473. 3:25:00absolutely awful, yet somehow this game
  5474. 3:25:02quickly infected college campuses around
  5475. 3:25:04the country, spawned several websites,
  5476. 3:25:06and according to the New York Times,
  5477. 3:25:08explode from obscurity into a bizarre
  5478. 3:25:10pastime for college kids, Wall
  5479. 3:25:12Streeters, and minor celebrities. 16.
  5480. 3:25:16Smirnoff has emphatically denied that it
  5481. 3:25:18bears any responsibility for icing and I
  5482. 3:25:21believe it's telling the truth. But
  5483. 3:25:22regardless, it's been quite lucrative
  5484. 3:25:25for the company. As the Times reports,
  5485. 3:25:27the phenomenon has not only raised
  5486. 3:25:29awareness of the brand, but also
  5487. 3:25:31extended it to young men who formerly
  5488. 3:25:33saw ice as girly and feminine. And sales
  5489. 3:25:36of ice products almost immediately took
  5490. 3:25:38off in some southern college towns where
  5491. 3:25:40the game took early root. The point is
  5492. 3:25:42whether it emerges organically or is
  5493. 3:25:44deliberately orchestrated by marketers,
  5494. 3:25:47peer pressure delivers a windfall for
  5495. 3:25:49brands and companies. This is exactly
  5496. 3:25:52why companies of all stripes have become
  5497. 3:25:54so skilled at planting the seeds of
  5498. 3:25:56social epidemics and then sitting back
  5499. 3:25:58to watch them grow as Smirnoff was
  5500. 3:26:00accused of doing in this case. As we'll
  5501. 3:26:02read more about in the last chapter, the
  5502. 3:26:04most persuasive marketing messages
  5503. 3:26:06aren't magazine ads or TV commercials or
  5504. 3:26:08billboards. They're the ones that come
  5505. 3:26:10from, or at least seem to come from our
  5506. 3:26:12peers. In fact, one of the most
  5507. 3:26:14effective and sneakiest viral marketing
  5508. 3:26:17strategies is for a company to create a
  5509. 3:26:19blog or YouTube video that is so
  5510. 3:26:21extreme, funny, outrageous, provocative,
  5511. 3:26:23or frightening, or a combination of the
  5512. 3:26:25above that it raises the question, is
  5513. 3:26:27this a joke or is it real? Among the
  5514. 3:26:30most successful and talked about viral
  5515. 3:26:32marketing campaigns of all time were
  5516. 3:26:33ones created by John West Salmon in
  5517. 3:26:36which a man and a bear grapple over a
  5518. 3:26:37fish Trojan condoms which in 2003
  5519. 3:26:40launched the Trojan Games, a sequence of
  5520. 3:26:42Olympics like championships based on
  5521. 3:26:44sexual performance Levis's in which men
  5522. 3:26:46athletically sprang and backflip
  5523. 3:26:47themselves into their blue jeans and
  5524. 3:26:49surfing apparel manufacturer Quicksilver
  5525. 3:26:51which released a memorably phony
  5526. 3:26:53internet video showing a group of kids
  5527. 3:26:55hurling dynamite into a river. then
  5528. 3:26:57surfing the giant wave it created.
  5529. 3:27:00Still, few companies were as downright
  5530. 3:27:02crafty or as downright double-talking in
  5531. 3:27:04their use of viral videos as Viacom, the
  5532. 3:27:07media conglomerate. In a 2010 suit
  5533. 3:27:10against Google, which owns YouTube,
  5534. 3:27:12Viacom, which has long railed against TV
  5535. 3:27:14and movie piracy, claimed that YouTube
  5536. 3:27:16had knownly allowed its users to post
  5537. 3:27:18clips they'd illegally downloaded, i.e.
  5538. 3:27:20stolen from Viacom's copyrighted movies
  5539. 3:27:22and TV shows in order to boost traffic
  5540. 3:27:24and sales. Google counter sued, alleging
  5541. 3:27:27that Viacom had surreptitiously uploaded
  5542. 3:27:29many of the clips itself and also
  5543. 3:27:31manufactured phony YouTube comments in
  5544. 3:27:33an attempt to create phony grassroots
  5545. 3:27:35viral marketing campaigns for its TV
  5546. 3:27:38shows and movies. In fact, Google had
  5547. 3:27:40evidence that Viacom mandated that its
  5548. 3:27:42clips should definitely not be
  5549. 3:27:44associated with the studio should appear
  5550. 3:27:46as if a fan created and posted it. 17.
  5551. 3:27:49How did the studio manage this?
  5552. 3:27:51According to Unsealed Corpor, by hiring
  5553. 3:27:54at least 18 third-party marketing agents
  5554. 3:27:57who used untraceable YouTube accounts
  5555. 3:27:58with no connection to Viacom and by
  5556. 3:28:01deliberately altering the clips to make
  5557. 3:28:02them look pirated or stolen. Then
  5558. 3:28:05marketing agents uploaded the videos
  5559. 3:28:07from untraceable computers and locations
  5560. 3:28:09such as the local Kinkos. 18. Though
  5561. 3:28:13YouTube and Google won the case when a
  5562. 3:28:15federal judge ruled the site was
  5563. 3:28:17protected under US copyright law. 19.
  5564. 3:28:19One thing is certain, these video clips
  5565. 3:28:21wouldn't have become the viral sensation
  5566. 3:28:23they did if YouTube viewers had known
  5567. 3:28:25they were uploaded by marketers rather
  5568. 3:28:27than by their own peers. We've got to
  5569. 3:28:30have it. Many of us spend our days, at
  5570. 3:28:33least parts of them, quietly cursing our
  5571. 3:28:35fellow human beings. The guy in the
  5572. 3:28:38Hummer who cuts us off at the
  5573. 3:28:40intersection. The old woman in the
  5574. 3:28:42supermarket line counting out pennies
  5575. 3:28:44one by one. the teenagers in blue
  5576. 3:28:46hoodies perched in front of the
  5577. 3:28:48convenience store blocking our path to
  5578. 3:28:50our cars. They may be annoying, but when
  5579. 3:28:53all is said and done, we actually rely
  5580. 3:28:55on these people and others like them to
  5581. 3:28:57help dictate our purchasing choices with
  5582. 3:28:59more than a little help from companies
  5583. 3:29:01and marketers. Of course, when it comes
  5584. 3:29:04to the things we buy, what other people
  5585. 3:29:06think matters a lot, even when these
  5586. 3:29:09people are complete strangers. A recent
  5587. 3:29:12survey by Opinion Research shows that
  5588. 3:29:1461% of respondents said they had checked
  5589. 3:29:17online reviews, blogs, and other online
  5590. 3:29:19customer feedback before buying a new
  5591. 3:29:21product or service. 20 in a similar
  5592. 3:29:23February 2008 study commissioned by
  5593. 3:29:25Power Reviews showed that nearly half of
  5594. 3:29:27US consumers who shopped online four or
  5595. 3:29:29more times per year and spent at least
  5596. 3:29:31$500 said they needed four to seven
  5597. 3:29:34customer reviews before making a
  5598. 3:29:36purchase decision. 21. So persuasive are
  5599. 3:29:39the opinions of others that though most
  5600. 3:29:40of us are well aware that at least 25%
  5601. 3:29:43of these reviews are fakes written by
  5602. 3:29:45friends, company staffers, marketers,
  5603. 3:29:47and so forth, we purposely overlook
  5604. 3:29:49this. As the Times of London points out,
  5605. 3:29:52we are born to believe in part because a
  5606. 3:29:55collective belief helps us to bond with
  5607. 3:29:57others. In short, we want to trust in
  5608. 3:30:00these messages, even when we may also be
  5609. 3:30:02deeply skeptical. To see just how
  5610. 3:30:04powerfully complete strangers
  5611. 3:30:06preferences and purchases can sway our
  5612. 3:30:08decisions, consider the phenomenon of
  5613. 3:30:10best seller lists. Imagine that you're
  5614. 3:30:13entering a big chain bookstore where
  5615. 3:30:15you're confronted by square footage that
  5616. 3:30:17rivals a football field. Given the sheer
  5617. 3:30:19number of choices, the risk of shelling
  5618. 3:30:21out $27.99
  5619. 3:30:24for a novel or a memoir that you will
  5620. 3:30:26later deem unreadable is considerable.
  5621. 3:30:29But wait, what's on that standalone
  5622. 3:30:31shelf directly to your right? This
  5623. 3:30:33week's New York Times bestsellers, both
  5624. 3:30:35fiction and non-fiction, perhaps two
  5625. 3:30:37dozen books in all. Subconsciously, you
  5626. 3:30:40think, "If so many people are buying
  5627. 3:30:42this book, then it must be good."
  5628. 3:30:44followed shortly by, "If so many people
  5629. 3:30:46are reading this book, won't I be left
  5630. 3:30:48out if I don't read it?" Two, now not
  5631. 3:30:50only are you spared the ordeal of
  5632. 3:30:52waiting through the four floors of books
  5633. 3:30:54and the anxiety of confronting all that
  5634. 3:30:56choice, but you have a solid endorsement
  5635. 3:30:58from your book buying peers. This is no
  5636. 3:31:01happy accident for the publishing
  5637. 3:31:03industry. In fact, despite what
  5638. 3:31:06publishers might like you to believe,
  5639. 3:31:08the main reason best-seller lists exist
  5640. 3:31:10in the first place isn't just to track
  5641. 3:31:12sales, but also to make us think these
  5642. 3:31:14titles have been preapproved. In other
  5643. 3:31:16words, to imply that if we don't read
  5644. 3:31:18what everyone else is reading, we'll be
  5645. 3:31:20uncultured, irrelevant, and excluded
  5646. 3:31:22from the national conversation.
  5647. 3:31:24Bestseller lists work so well in
  5648. 3:31:26persuading us that they've migrated well
  5649. 3:31:28beyond book publishing to other products
  5650. 3:31:30and industries. From Sephra's list of
  5651. 3:31:32bestselling cosmetics to Entertainment
  5652. 3:31:34Weekly's 10 most popular TV shows to
  5653. 3:31:37Variety's list of the 10 highest
  5654. 3:31:38grossing movies of the week to the Apple
  5655. 3:31:40iTunes music stores list of bestselling
  5656. 3:31:42or recommended which as we'll see in a
  5657. 3:31:44minute eventually become one and the
  5658. 3:31:46same singles, albums, movies, and music
  5659. 3:31:49videos. Let's talk for a moment about
  5660. 3:31:51the latter. Not unlike a Barnes & Noble
  5661. 3:31:54Superstore, the iTunes Start page is a
  5662. 3:31:56cluttered, chaotic place teeming with
  5663. 3:31:58choices. Luckily for the overwhelmed
  5664. 3:32:01shopper, however, these endless
  5665. 3:32:02offerings are organized into tidy
  5666. 3:32:04recommended categories like what we're
  5667. 3:32:06watching, what's hot, what we're
  5668. 3:32:07listening to, new and noteworthy, and of
  5669. 3:32:09course, top songs and top albums. Two
  5670. 3:32:12things of interest are going on here.
  5671. 3:32:15First, I am convinced Apple did this not
  5672. 3:32:17to make life easier for the casual
  5673. 3:32:19browser, but rather to imply that its
  5674. 3:32:21team of music experts have spent the
  5675. 3:32:23past month parsing through thousands of
  5676. 3:32:25albums and that the dozen or so
  5677. 3:32:26highlighted on the start page represent
  5678. 3:32:28their carefully considered picks, the
  5679. 3:32:30cream of this month's crop. Nothing
  5680. 3:32:32could be further from the truth. Chances
  5681. 3:32:35are good that in fact a good deal of
  5682. 3:32:37money changed hands. In a 21st century
  5683. 3:32:39version of the old reviled practice of
  5684. 3:32:42Piola, record companies pay Apple hefty
  5685. 3:32:44sums to get these songs and albums
  5686. 3:32:46featured on the homepage. Just as
  5687. 3:32:48publishers, incidentally, pay bookstores
  5688. 3:32:50to feature their new books on those
  5689. 3:32:52tables you see when you enter the
  5690. 3:32:53bookstore. Regardless, the lists on
  5691. 3:32:56these start pages lead us to believe
  5692. 3:32:58that an expert or a team of experts has
  5693. 3:33:00waited through the seemingly infinite
  5694. 3:33:02number of choices and made a
  5695. 3:33:04discriminating decision on our behalf.
  5696. 3:33:06The second thing that's going on here is
  5697. 3:33:09the classic blockbuster effect.
  5698. 3:33:11Essentially, a two-tier system is being
  5699. 3:33:13created. One that puts a small number of
  5700. 3:33:15brands, in this case, brands being
  5701. 3:33:17musical artists, on the path to success
  5702. 3:33:19while setting up the majority of others
  5703. 3:33:21for failure. Think about it. Due to the
  5704. 3:33:24sheer exposure and the fact the
  5705. 3:33:26customers believe these are the songs
  5706. 3:33:28that have been preapproved as the best,
  5707. 3:33:30don't many, if not all, of the albums
  5708. 3:33:32and artists featured on the start page
  5709. 3:33:34end up making the top songs list? They
  5710. 3:33:37do. I've seen it happen time and again.
  5711. 3:33:39And once a song or album makes the
  5712. 3:33:41bestselling list, that's yet another
  5713. 3:33:43stamp of approval and our impressionable
  5714. 3:33:45minds kick into high gear again. What do
  5715. 3:33:48other people know that I don't know? I'm
  5716. 3:33:50missing out. These kinds of stamps of
  5717. 3:33:53approval can even influence our choice
  5718. 3:33:55of alcoholic beverage. When the beverage
  5719. 3:33:58testing institute dubbed Grey Goose the
  5720. 3:34:00best tasting vodka in the world, Sydney
  5721. 3:34:02Frank, the marketing genius behind the
  5722. 3:34:04brand, not only promptly created giant
  5723. 3:34:06ads boasting this new best tasting in
  5724. 3:34:08the world status, he indoctrinated both
  5725. 3:34:11hundreds of distributors and somewhere
  5726. 3:34:12in the neighborhood of 20,000 bartenders
  5727. 3:34:15with that very information. so that
  5728. 3:34:16anytime a customer came into a bar or
  5729. 3:34:19liquor store and asked what the best
  5730. 3:34:20tasting vodka was, they would be told it
  5731. 3:34:23was Grey Goose. 22. The result. By 2004,
  5732. 3:34:27the company had sold 1.5 million cases,
  5733. 3:34:30and Sydney Frank had sold the company to
  5734. 3:34:32Bikardi for a cool $2 billion.
  5735. 3:34:35Whether it's the world's best tasting
  5736. 3:34:37vodka, the bestselling novel of the
  5737. 3:34:39week, or the highest grossing movie of
  5738. 3:34:41the year, you better believe that
  5739. 3:34:43companies are very deliberately using
  5740. 3:34:45best seller lists to persuade us to buy
  5741. 3:34:47what everyone else likes. Amazon, the
  5742. 3:34:50online book seller and increasingly the
  5743. 3:34:52online seller of just about everything,
  5744. 3:34:54takes this an ingenious step further by
  5745. 3:34:56actually emailing customers to let them
  5746. 3:34:58know that their fellow purchasers of a
  5747. 3:35:00certain item have also purchased some
  5748. 3:35:02new item and thus that they might like
  5749. 3:35:03that item, too. This is a case not only
  5750. 3:35:06of baldly manufacturing peer pressure,
  5751. 3:35:09but also of data mining, a topic we'll
  5752. 3:35:11be looking at in a later chapter. An
  5753. 3:35:14intriguing study published in the
  5754. 3:35:16journal Science shows just how well this
  5755. 3:35:18can work. The researchers invited 27
  5756. 3:35:21teenagers to visit a website where they
  5757. 3:35:23could sample and download songs for
  5758. 3:35:25free. Some of the teens were told what
  5759. 3:35:28songs previous visitors had downloaded,
  5760. 3:35:30whereas others weren't. Indeed, those
  5761. 3:35:32told what songs their peers had chosen
  5762. 3:35:34tended to download those very songs. But
  5763. 3:35:37part two of the study was even more
  5764. 3:35:39telling. This time, the teens were
  5765. 3:35:42divided into eight groups and told only
  5766. 3:35:44what had been downloaded by people from
  5767. 3:35:46their own group. The researchers found
  5768. 3:35:48that not only did the teens tend to
  5769. 3:35:50choose the songs that had been
  5770. 3:35:52previously downloaded by members of
  5771. 3:35:54their groups, but the songs that became
  5772. 3:35:56hits varied across all the groups. The
  5773. 3:35:58implications were clear. Whether or not
  5774. 3:36:00a song became a hit was determined
  5775. 3:36:02solely by whether it was perceived as
  5776. 3:36:04already being popular. 23. This is what
  5777. 3:36:07I mean about the two-tier system.
  5778. 3:36:09Whatever gains an early advantage in
  5779. 3:36:11popularity will win. This may not seem
  5780. 3:36:13so bad at first, but look at it this
  5781. 3:36:16way. If we're duped into buying
  5782. 3:36:17something just because it's popular,
  5783. 3:36:19even if it isn't, think about all the
  5784. 3:36:21great books or songs or CDS we might be
  5785. 3:36:24missing simply because they weren't on
  5786. 3:36:25that top 10 list. But this still doesn't
  5787. 3:36:28explain precisely why our buying
  5788. 3:36:30decisions are so unduly influenced by a
  5789. 3:36:33brand's supposed popularity. So, the
  5790. 3:36:35authors of the study decided to use
  5791. 3:36:37infuri to see what was really going on
  5792. 3:36:39in these impressionable teenagers brains
  5793. 3:36:42when they succumbed to peer pressure.
  5794. 3:36:44They had 12 to 17 year olds rate
  5795. 3:36:4615-second clips of songs downloaded from
  5796. 3:36:49MySpace. Then they revealed to some the
  5797. 3:36:52song's overall popularity. The results
  5798. 3:36:54showed that when the participants own
  5799. 3:36:56ratings of the music matched up with
  5800. 3:36:58what they had been told about the song,
  5801. 3:37:00eg. If they liked a popular song, there
  5802. 3:37:02tended to be activity in the codate
  5803. 3:37:04nucleus, an area of the brain connected
  5804. 3:37:07to rewards. When there was a mismatch,
  5805. 3:37:09however, eg. The teen liked the song but
  5806. 3:37:12discovered it was unpopular areas
  5807. 3:37:14associated with anxiety lit up. The
  5808. 3:37:16researchers concluded that this mismatch
  5809. 3:37:18anxiety motivates people to switch their
  5810. 3:37:21choices in the direction of the
  5811. 3:37:22consensus suggesting that this is a
  5812. 3:37:24major force behind conformity observed
  5813. 3:37:26in music tastes in teenagers. 24.
  5814. 3:37:30Early popularity is so closely tied to a
  5815. 3:37:33brand or products ultimate success that
  5816. 3:37:35even Hollywood is leveraging the
  5817. 3:37:37predictive power of the teeming hordes.
  5818. 3:37:40According to new scientist, one of the
  5819. 3:37:42most widespread new techniques for
  5820. 3:37:43predicting the box office performance of
  5821. 3:37:45a film is by using something called
  5822. 3:37:48artificial markets. On one dump, the
  5823. 3:37:50Hollywood stock exchange movie fans can
  5824. 3:37:52buy and sell virtual shares in
  5825. 3:37:54celebrities and in forthcoming or
  5826. 3:37:56recently released films. This virtual
  5827. 3:37:58market, which operates with a virtual
  5828. 3:38:00currency called Hollywood dollars, uses
  5829. 3:38:02these predictions to create a stock
  5830. 3:38:04rating reflecting the aggregate view of
  5831. 3:38:06each film's popularity or likely
  5832. 3:38:08popularity. Obviously, people only buy
  5833. 3:38:10virtual shares and things they expect to
  5834. 3:38:12be hits. This is currently the gold
  5835. 3:38:15standard in the industry for predicting
  5836. 3:38:17likely box office receipts, says
  5837. 3:38:19Bernardo Huberman at HP Laboratories in
  5838. 3:38:21PaloAlto, 25. And amazingly, the method
  5839. 3:38:24has been so accurate that it's now even
  5840. 3:38:26being used to predict the outcomes of
  5841. 3:38:28political campaigns.
  5842. 3:38:30Of course, we aren't always consciously
  5843. 3:38:33aware that it's perceived popularity
  5844. 3:38:35that's driving our preferences.
  5845. 3:38:37Recently, I asked a focus group of 10
  5846. 3:38:39female Louis Vuitton fans. Why do you
  5847. 3:38:41love the brand so much? Each one spoke
  5848. 3:38:44of the quality of the zipper, the
  5849. 3:38:46leather, and finally the brand's
  5850. 3:38:48timelessness. I was skeptical. So, we
  5851. 3:38:51took these same 10 women and scanned
  5852. 3:38:53their brains using free. In each case,
  5853. 3:38:55when the women were shown pictures of
  5854. 3:38:57Louis Vuitton products, the Broadman
  5855. 3:38:59Area 10, the region of the brain that's
  5856. 3:39:01activated when respondents are observing
  5857. 3:39:04something they perceive as cool, lit up.
  5858. 3:39:06The women had rationalized their
  5859. 3:39:08purchases by telling themselves that
  5860. 3:39:10they liked the brand for its good
  5861. 3:39:11quality, but their brains knew that they
  5862. 3:39:14really chose it for its coolness. The
  5863. 3:39:16fact that even our brains can't seem to
  5864. 3:39:18bear for us to be left out seems to
  5865. 3:39:20suggest that whether it's the hit song,
  5866. 3:39:22be it gift, or the inesigner handbag, in
  5867. 3:39:25the end, what we buy really has little
  5868. 3:39:27to do with what we want and more to do
  5869. 3:39:29with what we think we should want. 26.
  5870. 3:39:32Even marketers themselves fall for this.
  5871. 3:39:35For instance, every advertising agency
  5872. 3:39:37planner, a term used in most European ad
  5873. 3:39:40agencies for the person who conducts
  5874. 3:39:42consumer research of my acquaintance
  5875. 3:39:43owns a fancy Moleskine leather notebook.
  5876. 3:39:46They don't give these out in
  5877. 3:39:47orientation. It's simply become an
  5878. 3:39:49unspoken rule that every ad agency
  5879. 3:39:51planner has to own and use one. If you
  5880. 3:39:54don't, it implies you're on the outside,
  5881. 3:39:56not a member of the in crowd. These
  5882. 3:39:59marketers make their living dreaming up
  5883. 3:40:01ways to prey on consumers fear of being
  5884. 3:40:03left out. But subconsciously, they or
  5885. 3:40:05may I say we are just as vulnerable to
  5886. 3:40:08pure pressure as the rest of us. I've
  5887. 3:40:11just seen a face. In an earlier chapter,
  5888. 3:40:14I wrote about how in our society, cell
  5889. 3:40:16phones and smartphones have fed a fear
  5890. 3:40:18of being alone or of being perceived as
  5891. 3:40:20alone. how paradoxically our ability to
  5892. 3:40:23be constantly connected with others has
  5893. 3:40:25ignited the fear we have of being
  5894. 3:40:27unpopular and even unloved. The internet
  5895. 3:40:30and in particular social networking
  5896. 3:40:32sites have also revealed the extent to
  5897. 3:40:34which many of us fear that our opinion
  5898. 3:40:36and very existence might not matter.
  5899. 3:40:39Just as the ability to be connected all
  5900. 3:40:41the time gives rise to the fear that we
  5901. 3:40:43are actually alone, the ability to
  5902. 3:40:45comment, pontificate, and broadcast
  5903. 3:40:47ourselves all the time gives rise to the
  5904. 3:40:50fear that no one actually cares what we
  5905. 3:40:52have to say. I believe it's this
  5906. 3:40:54insecurity, this feeling of being left
  5907. 3:40:56out that's contributed to one of the
  5908. 3:40:58most contagious social phenomena of our
  5909. 3:41:00times, Facebook. First, a few facts and
  5910. 3:41:04figures about Facebook. As of 2011,
  5911. 3:41:07Facebook has close to 700 million active
  5912. 3:41:09users, which translates into 22% of
  5913. 3:41:12everyone on the internet, and it's still
  5914. 3:41:14growing by 5% a month. 27. According to
  5915. 3:41:18Time, if the website were granted
  5916. 3:41:19terapirma, it would be the world's third
  5917. 3:41:22largest country by population, 2/3
  5918. 3:41:24bigger than the US. 2850% of those users
  5919. 3:41:27log on to Facebook at least once a day
  5920. 3:41:29while more than 35 million users update
  5921. 3:41:32their statuses daily creating a total of
  5922. 3:41:34over 60 million daily status updates. 29
  5923. 3:41:38But the question is how did Facebook
  5924. 3:41:41become the global phenomenon it is
  5925. 3:41:43today? How did it rise above all other
  5926. 3:41:45social networking sites out there? And
  5927. 3:41:47believe me, there are plenty to become
  5928. 3:41:49the one online universe we simply had to
  5929. 3:41:52be a part of. quite simply because it's
  5930. 3:41:54where everyone is. It's where
  5931. 3:41:56invitations are sent, party pictures
  5932. 3:41:58posted, messages exchanged.
  5933. 3:42:01Increasingly, it's also where we conduct
  5934. 3:42:03our social lives. Who wouldn't feel left
  5935. 3:42:05out of a world where more than 25
  5936. 3:42:08billion pieces of information are shared
  5937. 3:42:10a month and where photos are added at a
  5938. 3:42:12speed of nearly 1 billion unique images
  5939. 3:42:14a week. 30. To not be on Facebook would
  5940. 3:42:17guarantee complete social isolation. It
  5941. 3:42:20would be like moving to a hut in the
  5942. 3:42:22Shetland Islands. Most people are more
  5943. 3:42:25or less aware of this, but what is less
  5944. 3:42:27known is the extent to which companies
  5945. 3:42:29are leveraging the persuasive power of
  5946. 3:42:32connections on Facebook to cleverly
  5947. 3:42:34advertise and market their products.
  5948. 3:42:36Take for example the feature on Facebook
  5949. 3:42:39known as the like button, formerly known
  5950. 3:42:41as the become a fan button. Originally,
  5951. 3:42:44people used this to like their friend
  5952. 3:42:45status updates. It was a way to indicate
  5953. 3:42:47our approval of the fact that say Jenny
  5954. 3:42:50had just eaten a ham and cheese sandwich
  5955. 3:42:52or Billy had had a great time in Aruba.
  5956. 3:42:55But increasingly the site has been
  5957. 3:42:56encouraging users to like their favorite
  5958. 3:42:58bands, books, movies, brands, and
  5959. 3:43:01products so successfully that the site
  5960. 3:43:03processes a staggering 100 million
  5961. 3:43:06clicks of the like button daily. 31. Do
  5962. 3:43:08you happen to enjoy the TV show Friday
  5963. 3:43:11Night Lights? If you go to that show's
  5964. 3:43:13Facebook page, it will tell you how many
  5965. 3:43:15friends of yours also like the show.
  5966. 3:43:18Wait, Erica likes Friday Night Lights,
  5967. 3:43:20too. You think Erica is pretty cool and
  5968. 3:43:23have now received what marketers call
  5969. 3:43:25social proof that it's okay to like the
  5970. 3:43:26show, giving you a mandate to recommend
  5971. 3:43:28the show to your best friends. So,
  5972. 3:43:30before you know it, you click the like
  5973. 3:43:32button, which has conveniently popped
  5974. 3:43:34right up on the bottom of the page, too.
  5975. 3:43:37This will then show up in the news feed
  5976. 3:43:38for all your friends to see and they in
  5977. 3:43:40turn may well reach for the like button
  5978. 3:43:42and so on and so forth until any
  5979. 3:43:44Facebook user who comes across a mention
  5980. 3:43:46of the show will spy a little message
  5981. 3:43:48popping up saying Bob and Fred and
  5982. 3:43:50Martin and 712,563
  5983. 3:43:53Facebook users like Friday Night Lights.
  5984. 3:43:56This is pure pressure advertising at its
  5985. 3:43:58best and it works. According to Cheryl
  5986. 3:44:01Sanberg, Facebook's chief operating
  5987. 3:44:03officer, marketers have known this for a
  5988. 3:44:05really long time. I'm much more likely
  5989. 3:44:08to do or buy something that's
  5990. 3:44:09recommended by a friend, she's been
  5991. 3:44:11quoted as saying. 32.
  5992. 3:44:15Facebook isn't the only social media
  5993. 3:44:17site out there that's making gorilla
  5994. 3:44:18marketers and advertisers out of us
  5995. 3:44:20either. Take Foursquare, the popular
  5996. 3:44:23location-based social networking game we
  5997. 3:44:25talked about earlier. Thanks to portable
  5998. 3:44:27GPS apps, it knows where you are at any
  5999. 3:44:30given time. So, all you have to do is
  6000. 3:44:31tap the Foursquare app on your iPhone or
  6001. 3:44:33Blackberry and it will automatically
  6002. 3:44:35show you a list of nearby restaurants,
  6003. 3:44:37bars, stores, and shops. But this is
  6004. 3:44:40more than just a realtime location
  6005. 3:44:42tracking version of Zaget. The point of
  6006. 3:44:44the game is to check into as many of
  6007. 3:44:46these establishments as you can,
  6008. 3:44:48whereupon Foursquare will automatically
  6009. 3:44:50broadcast your whereabouts to other
  6010. 3:44:52Foursquare users, and you can also elect
  6011. 3:44:54to have your Twitter or Facebook feeds
  6012. 3:44:56immediately updated when you check into
  6013. 3:44:58a restaurant, bar, cafe, or store, which
  6014. 3:45:00most users do. You earn points for each
  6015. 3:45:03place you check in, and the user who
  6016. 3:45:05visits an establishment most is dubbed
  6017. 3:45:07its mayor. Not only is this game
  6018. 3:45:10surprisingly addictive, as we discussed
  6019. 3:45:12in chapter 3, and not only does it get
  6020. 3:45:14you to regularly spend money at
  6021. 3:45:16establishments you might not have
  6022. 3:45:18otherwise frequented, but because it
  6023. 3:45:19broadcasts your location to all your
  6024. 3:45:21fellow Fourquare players, Facebook
  6025. 3:45:23friends, and Twitter followers, it
  6026. 3:45:25provides a boatload of free advertising
  6027. 3:45:27for every establishment you set foot in.
  6028. 3:45:30As Twitter founder Evan Williams has
  6029. 3:45:32said, "Many of the great businesses of
  6030. 3:45:34the next decade will be about making
  6031. 3:45:36information about our consumer behaviors
  6032. 3:45:38more visible." 33.
  6033. 3:45:41Marketers and Mean Girls. It's well
  6034. 3:45:44known that our culture glorifies the
  6035. 3:45:46teenage years. Just look at how many
  6036. 3:45:48contemporary movies and TV shows revolve
  6037. 3:45:50around high school. But rosy
  6038. 3:45:52retrospection aside, who over the age of
  6039. 3:45:5530 would want to relive that torment of
  6040. 3:45:57uncertainty, self-consciousness, and
  6041. 3:45:59peer pressure? While it's clear by now
  6042. 3:46:01that peer pressure exists well beyond
  6043. 3:46:03the high school cafeteria, it's also
  6044. 3:46:05true that there is no demographic more
  6045. 3:46:07susceptible to peer pressure than teens
  6046. 3:46:09and tween. And it's worth noting here
  6047. 3:46:11that adolescents today spend five times
  6048. 3:46:13more money than their parents did at the
  6049. 3:46:15same age. Why? largely because teenagers
  6050. 3:46:19don't know who they truly are yet, so
  6051. 3:46:21they sport the brands they do as a
  6052. 3:46:23backup form of ID. In 2010, a
  6053. 3:46:25longitudinal study by the National
  6054. 3:46:27Institute of Mental Health found that
  6055. 3:46:29our brains don't become fully mature
  6056. 3:46:31until age 25 and sometimes not until
  6057. 3:46:33later, indicating that in our teen
  6058. 3:46:35years, our cognitive abilities and thus
  6059. 3:46:38our sense of self are still miles from
  6060. 3:46:40their final development. Studies have
  6061. 3:46:42shown that when twins ask for a pair of
  6062. 3:46:44Hollister jeans or the latest Hotwe game
  6063. 3:46:47for Christmas, they're asking for more
  6064. 3:46:48than the latest hitless product. What
  6065. 3:46:51they're really asking for is a dose of
  6066. 3:46:52self-esteem. Deborah Rotor John at the
  6067. 3:46:55University of Minnesota recruited 250
  6068. 3:46:58kids ages 8 through 18 and asked them to
  6069. 3:47:01select among 100 words and images and
  6070. 3:47:03create a collage answering the question,
  6071. 3:47:05"What makes me happy?"
  6072. 3:47:07When she looked at the results, she
  6073. 3:47:09found that the children with higher
  6074. 3:47:10self-esteem chose words that represented
  6075. 3:47:12non-material activities and achievements
  6076. 3:47:15like getting good grades or
  6077. 3:47:16skateboarding with friends, whereas the
  6078. 3:47:18children with lower levels of
  6079. 3:47:19self-esteem chose possessions like new
  6080. 3:47:21clothes or an iPod. 34.
  6081. 3:47:24Thanks to the deliberate marketing
  6082. 3:47:26strategies by purveyors of everything
  6083. 3:47:28from cigarettes. Look at those smiling,
  6084. 3:47:30laughing white-tooth smokers surrounded
  6085. 3:47:32by friends and having a grand old time
  6086. 3:47:35to razors. If you shave with a Venus
  6087. 3:47:37razor, the ads suggest you too can end
  6088. 3:47:40up with a hot hunky boyfriend. These
  6089. 3:47:42days, many children are socialized to
  6090. 3:47:44believe they can buy themselves into
  6091. 3:47:45popularity and acceptance. Approximately
  6092. 3:47:4860% of the 135 teenagers we pulled in
  6093. 3:47:51our national cyst study for this book
  6094. 3:47:53believed that wearing or owning the
  6095. 3:47:55right brand of clothes, gadgets, or cars
  6096. 3:47:57could help them buy happiness. Moreover,
  6097. 3:48:00compared to adults, teens were more
  6098. 3:48:02likely to buy famous brands, more likely
  6099. 3:48:04to believe that having the right
  6100. 3:48:06clothes, gadgets, and cars could help
  6101. 3:48:08them become more popular, and more
  6102. 3:48:09likely to display expensive items such
  6103. 3:48:11as makeup and perfume conspicuously in
  6104. 3:48:14their bedrooms and bathrooms. While
  6105. 3:48:16teens believed that their favorite
  6106. 3:48:17brands made them feel cool, confident,
  6107. 3:48:20friendly, self-expressive, creative, and
  6108. 3:48:22passionate, they couldn't have cared
  6109. 3:48:23less about whether a brand actually did.
  6110. 3:48:26The adults said their favorite brands
  6111. 3:48:27made them feel more reliable, practical,
  6112. 3:48:30effective, and yes, nostalgic. According
  6113. 3:48:33to a study in the Journal of Consumer
  6114. 3:48:35Research, starting at 11 or 12, children
  6115. 3:48:38begin to understand so much about the
  6116. 3:48:40complex meanings of products and brands.
  6117. 3:48:42And that is the exact time when their
  6118. 3:48:44self-esteem drops. They're thinking, "I
  6119. 3:48:47don't think I'm so popular. I don't
  6120. 3:48:49think kids like me. How do I solve
  6121. 3:48:52that?" Well, I know that popular kids
  6122. 3:48:54wear Gap clothes and Nike shoes. So, if
  6123. 3:48:57I wear those, then I'll be popular. 35
  6124. 3:49:00in short. the less confidence or
  6125. 3:49:02self-esteem they had, the more they seem
  6126. 3:49:04to be dependent on brands. One might
  6127. 3:49:07even conclude from this that the larger
  6128. 3:49:08the logo we wear, the less self-esteem
  6129. 3:49:11we have. In a way, it makes sense. It's
  6130. 3:49:14easier, after all, to fit in with your
  6131. 3:49:16peer group by buying the same brand of
  6132. 3:49:18sneakers than it is to transform your
  6133. 3:49:20personality. According to Amanda Grum, a
  6134. 3:49:23psychologist who specializes in play and
  6135. 3:49:25parenting, peer pressure is most
  6136. 3:49:27effective in children aged 5 to 12, as
  6137. 3:49:29they are starting to develop their own
  6138. 3:49:31identity. Belonging is a powerful urge
  6139. 3:49:33for young children, especially before
  6140. 3:49:35their sense of self is fully developed.
  6141. 3:49:37By aligning themselves with an external
  6142. 3:49:39force, they are able to use the
  6143. 3:49:41attributes of that object or group to
  6144. 3:49:43help define themselves. 36.
  6145. 3:49:46According to a poll of 112,000 teenagers
  6146. 3:49:49in 30 countries, just under half of all
  6147. 3:49:52teenagers factor in the brand when
  6148. 3:49:54making purchase decisions with Nike,
  6149. 3:49:56Lost, Adidas, Sony, and Apple being the
  6150. 3:49:58most popular among the boys and Zara,
  6151. 3:50:00H&M, and Roxy among the girls. What's
  6152. 3:50:03more, just under half of all the teens
  6153. 3:50:06said if there was no visible branding,
  6154. 3:50:08they wouldn't buy an item of clothing at
  6155. 3:50:10all. 37.
  6156. 3:50:12In a focus group I recently conducted in
  6157. 3:50:14conjunction with the Murray Hill Center
  6158. 3:50:16with female teens and tween, I found
  6159. 3:50:19that the more popular a brand, the more
  6160. 3:50:21aware these young women are of its high
  6161. 3:50:23cost. Hollister and Abberrombi weren't
  6162. 3:50:25just cool girl brands by virtue of how
  6163. 3:50:28they looked. They were cool girl brands
  6164. 3:50:30because they cost more than other
  6165. 3:50:31brands. Clearly, companies know that
  6166. 3:50:34teens and often adults are willing to
  6167. 3:50:36pay more for brands they deem cool or
  6168. 3:50:37popular, which is why Apple can get away
  6169. 3:50:39with charging $229 for the iPhone 4 and
  6170. 3:50:43Abberrombi can charge $40 for a tank
  6171. 3:50:45top. The widespread belief that
  6172. 3:50:48expensive high-end brands will bring
  6173. 3:50:50popularity, acceptance, or status goes a
  6174. 3:50:52long way toward explaining the universe
  6175. 3:50:54of knockoff clothing sold on the streets
  6176. 3:50:56of many cities. Ironically, while we may
  6177. 3:50:59often buy those fake coaches, Versace,
  6178. 3:51:01Pradas, and Ray-B bands to feel better
  6179. 3:51:03about ourselves, recent research shows
  6180. 3:51:05they may in fact have the opposite
  6181. 3:51:07effect. Three psychologists, Francesca
  6182. 3:51:10Gino of the University of North Carolina
  6183. 3:51:12at Chapel Hill, Michael Norton of
  6184. 3:51:14Harvard Business School, and Dan Ariel
  6185. 3:51:16of Duke University gave a large sampling
  6186. 3:51:18of women what appeared to be Khloe
  6187. 3:51:20sunglasses. Then told half the women
  6188. 3:51:22they were fake and the other half they
  6189. 3:51:24were real. Then they had the women carry
  6190. 3:51:26out complex math puzzles, grade
  6191. 3:51:28themselves on the honor system, and take
  6192. 3:51:30money for each correct answer. Well, it
  6193. 3:51:33turns out the women wearing the fake
  6194. 3:51:34Chloe glasses. In reality, of course,
  6195. 3:51:37they were all fake cheated a whole lot
  6196. 3:51:39more. A whopping 70% inflated their
  6197. 3:51:41performance and in effect stole cash
  6198. 3:51:43from the coffer. 38. The authors
  6199. 3:51:45concluded that wearing counterfeit
  6200. 3:51:47glasses not only fails to bolster our
  6201. 3:51:49ego and self-image the way we hope, it
  6202. 3:51:52actually undermines our internal sense
  6203. 3:51:54of authenticity. Faking it makes us feel
  6204. 3:51:56like phonies and cheaters on the inside.
  6205. 3:51:5939. I guess it's true what adman David
  6206. 3:52:02Olgvie once said. A fake Rolex will fool
  6207. 3:52:04everyone but you. Lacost is another
  6208. 3:52:07high-end brand that has been extremely
  6209. 3:52:09successful in using peer pressure to
  6210. 3:52:11draw teenagers and college-aged kids to
  6211. 3:52:13its products. Three decades ago, that
  6212. 3:52:16little crocodile was one of the hottest
  6213. 3:52:18logos in Europe and the United States.
  6214. 3:52:21Everyone wanted to wear it. Then Bangkok
  6215. 3:52:24manufactured fakes began swamping the
  6216. 3:52:26market and the brand's reputation went
  6217. 3:52:28down the drain. Lacost came close to
  6218. 3:52:30filing for bankruptcy. So to resurrect
  6219. 3:52:32its image, it gave out free shirts to
  6220. 3:52:35cool looking people at colleges and
  6221. 3:52:36universities as well as famous tennis
  6222. 3:52:39players and pay for product placements
  6223. 3:52:41on MTV. And suddenly the brand was back
  6224. 3:52:43in action. Today, go figure, Lacost is
  6225. 3:52:47as popular as it was 30 years ago. As
  6226. 3:52:50many people know, few brands have
  6227. 3:52:52shrewdly amassed a more cult-like,
  6228. 3:52:53almost religious following than Apple.
  6229. 3:52:55And in fact, in an experiment I
  6230. 3:52:57conducted for my last book, when I
  6231. 3:52:59studied the brains of Apple fanatics
  6232. 3:53:01using Infree, I found that their brain
  6233. 3:53:03activity was similar to that of those
  6234. 3:53:05devoted to Christianity, and peer
  6235. 3:53:07pressure has been central to many of its
  6236. 3:53:09strategies. One such strategy is early
  6237. 3:53:12recruitment, or in other words, very
  6238. 3:53:14deliberately marketing to kids aged 13
  6239. 3:53:16to 17. This campaign has been so
  6240. 3:53:19effective that today a staggering 46% of
  6241. 3:53:22Americans in that age range own an iPod.
  6242. 3:53:24The products teens talk to one another
  6243. 3:53:26about most is the iPod. And one survey
  6244. 3:53:29found that 82% of high school students
  6245. 3:53:31who own a portable music player own an
  6246. 3:53:33iPod. 40. Once these kids get to
  6247. 3:53:37college, Apple even starts recruiting
  6248. 3:53:39officially, going so far as to hire kids
  6249. 3:53:41to become Apple campus reps and turning
  6250. 3:53:43entire sections of college bookstores
  6251. 3:53:45into mini Apple emporiums. This is a
  6252. 3:53:48great opportunity to represent Apple and
  6253. 3:53:50to have some fun, says the online
  6254. 3:53:52recruiting ad. The job description
  6255. 3:53:54includes hosting workshops, growing
  6256. 3:53:56events, and building relationships with
  6257. 3:53:58students, faculty, and parents. And to
  6258. 3:54:01top it off, you'll collaborate with the
  6259. 3:54:02Apple team to run marketing programs on
  6260. 3:54:05campus. From sales promotions to
  6261. 3:54:06increasing awareness of Apple products,
  6262. 3:54:08it takes a leader, someone who can
  6263. 3:54:10inspire peers and work with campus
  6264. 3:54:12organizations. 41. This is a clever
  6265. 3:54:15touch who doesn't want to think of him
  6266. 3:54:17or herself as a leader, a trends setter,
  6267. 3:54:19a person who inspires peers. I might add
  6268. 3:54:22here that if you are a frequent movie
  6269. 3:54:23goer, you would probably assume everyone
  6270. 3:54:25on Earth uses an Apple, a triumph of
  6271. 3:54:28product placement and pure pressure
  6272. 3:54:30allinone. In 2009, nearly one in two
  6273. 3:54:33popular Hollywood movies, roughly 46%
  6274. 3:54:36featured Apple or its products. Though
  6275. 3:54:38it's generally agreed that no money
  6276. 3:54:40changed hands, Apple couldn't have
  6277. 3:54:42bought better advertising or brand
  6278. 3:54:44exposure. Kids and teens want what the
  6279. 3:54:47popular kids have, plain and simple. A
  6280. 3:54:50colleague once told me an intriguing
  6281. 3:54:52story about a computer game that was
  6282. 3:54:53released in California not too long ago.
  6283. 3:54:56Instead of advertising the product in a
  6284. 3:54:58traditional way, the game savvy
  6285. 3:55:00developer simply identified the hundred
  6286. 3:55:02most popular kids in a high school in
  6287. 3:55:04Southern California, gave them free
  6288. 3:55:06versions of the game, then sat back to
  6289. 3:55:08watch it catch on like wildfire. There's
  6290. 3:55:11an actual biological reason for why kids
  6291. 3:55:13are so drawn to the classmates they deem
  6292. 3:55:16more popular. Years ago, the BBC carried
  6293. 3:55:19out a fascinating study. It showed kids
  6294. 3:55:21a stack of photos of other kids who were
  6295. 3:55:23either laughing or smiling and asked
  6296. 3:55:26them to pick out the kids they would
  6297. 3:55:27most like to be around. Every single
  6298. 3:55:30person picked the laughing kids. On the
  6299. 3:55:32face of it, this seems obvious. Who
  6300. 3:55:35wouldn't want to be around someone who's
  6301. 3:55:37laughing and appears to be having a good
  6302. 3:55:39time? But there's another reason behind
  6303. 3:55:41it. Laughing actually makes us feel good
  6304. 3:55:44on a physiological level. When we laugh,
  6305. 3:55:47we're flooding our brains, organs, and
  6306. 3:55:49tissues with oxygen, which is one of the
  6307. 3:55:51primary catalysts for biological energy
  6308. 3:55:53in the human body. 42. So, the popular
  6309. 3:55:56kids at school didn't just get that way
  6310. 3:55:58because of their personalities. They got
  6311. 3:56:01that way because it physically feels
  6312. 3:56:02good to be around them. That said, as
  6313. 3:56:05powerful as peer pressure is in
  6314. 3:56:07persuading teens to buy, when a brand
  6315. 3:56:09becomes too popular, too widespread, it
  6316. 3:56:11can backfire. From studies I've
  6317. 3:56:13conducted over the years, it's become
  6318. 3:56:15clear that young people will always deny
  6319. 3:56:18being a part of any new trend. What's
  6320. 3:56:20more, I found that once an older
  6321. 3:56:22generation catches on to a new brand or
  6322. 3:56:24trend, it becomes unhip and fast. It's
  6323. 3:56:27what I call the generation lap problem
  6324. 3:56:29because it's what happens when the
  6325. 3:56:31younger kids jump ship in an attempt to
  6326. 3:56:33create the generation lap, meaning a
  6327. 3:56:35psychological distance between them and
  6328. 3:56:37older generations. The generation lap
  6329. 3:56:40though is in itself a form of peer
  6330. 3:56:42pressure, a reverse peer pressure if you
  6331. 3:56:44will. Take what happened with the Levis
  6332. 3:56:47brand. In the 80s, Levis's were the
  6333. 3:56:49jeans to have. Anyone who was anyone
  6334. 3:56:52wore Levis's, but by 2001, the brand had
  6335. 3:56:55taken a major hit. Its revenue was
  6336. 3:56:58slashed in half and market share had
  6337. 3:57:00dropped to 12.1% from 18.7%
  6338. 3:57:04in 1986.
  6339. 3:57:06Three Levis was suddenly the brand that
  6340. 3:57:08no one cool would be caught dead in.
  6341. 3:57:10Why? It's a right of passage for every
  6342. 3:57:13child to pass through a rebellious
  6343. 3:57:15phase. That said, a study has shown that
  6344. 3:57:18men and women both recognize that they
  6345. 3:57:20are similar to their parents or accept
  6346. 3:57:22the strength of their parents' influence
  6347. 3:57:23by the time they turn 35. Many
  6348. 3:57:26companies, knowing this, often market
  6349. 3:57:28their brands and products to seem bad or
  6350. 3:57:30subversive, which is what Levis's did
  6351. 3:57:33only a little too well. Levis's was the
  6352. 3:57:36brand of rebellion for the baby boomer
  6353. 3:57:38generation. That rebel without a cause,
  6354. 3:57:41James Dean, wore them. In the 60s, they
  6355. 3:57:44were practically the uniform of hippies
  6356. 3:57:46and protesters. In the 70s, they were
  6357. 3:57:49among the first brands to introduce bell
  6358. 3:57:51bottoms. But once the boomers grew up
  6359. 3:57:54and started having kids of their own,
  6360. 3:57:56the generation lap set in. No rebellious
  6361. 3:57:59youth wants to be seen wearing the same
  6362. 3:58:00jeans as his dad. How can you distance
  6363. 3:58:03yourself from your parents' generation
  6364. 3:58:05if your parents are into the same trend?
  6365. 3:58:08So, the kids started wearing other
  6366. 3:58:10jeans, ones different enough to
  6367. 3:58:12distinguish them from their parents.
  6368. 3:58:15Now, you know what skinny jeans are all
  6369. 3:58:16about. This style is adult proof. Let's
  6370. 3:58:19face it, the trendiest adult on earth
  6371. 3:58:21knows he can't fit his 40s legs into
  6372. 3:58:24those pipe cleaner holes. This is
  6373. 3:58:27exactly why I recommend that companies
  6374. 3:58:29create more and more brand disapproved
  6375. 3:58:31concepts. ideas or products or gadgets
  6376. 3:58:34deliberately built to court parental
  6377. 3:58:35disapproval. A concept so outrageous, so
  6378. 3:58:38provocative, so different, so anything
  6379. 3:58:41that adults will react against it. This
  6380. 3:58:43is harder to do than you might imagine.
  6381. 3:58:46Yet, my research has shown that once
  6382. 3:58:48such a concept has been identified,
  6383. 3:58:50there's almost a 90% chance that it will
  6384. 3:58:52turn out to be a success among the
  6385. 3:58:54younger set. Peer pressure may sometimes
  6386. 3:58:57work in backward ways, but the
  6387. 3:58:59psychology behind it, the desire for
  6388. 3:59:01acceptance remains the same. I've seen
  6389. 3:59:03again and again that there's a certain
  6390. 3:59:05type of consumer who will run away from
  6391. 3:59:07what's popular, even among the people in
  6392. 3:59:09their own generation. If their peers
  6393. 3:59:12start to like indie bands, they'll turn
  6394. 3:59:14up their noses. If their friends are
  6395. 3:59:16decked out in Abbercrombie and Fitch,
  6396. 3:59:18they'll head for the local Goodwill or
  6397. 3:59:20Salvation Army. If they go to a school
  6398. 3:59:23that champions the football team,
  6399. 3:59:24they'll spend their Saturdays playing
  6400. 3:59:26the xylophone or maybe just sit in their
  6401. 3:59:29rooms scowlling and smoking. They
  6402. 3:59:31presume that anything that's popular,
  6403. 3:59:32that's universally adored, or that
  6404. 3:59:34involves long lines snaking around a
  6405. 3:59:36block is probably substandard. Populists
  6406. 3:59:39swill. To them, it's cool to be uncool.
  6407. 3:59:42But this isn't really as
  6408. 3:59:43counterintuitive as it seems because
  6409. 3:59:46these people tend to flock together with
  6410. 3:59:48people who feel exactly the same way.
  6411. 3:59:51So, when one of them bashes the band
  6412. 3:59:53Arcade Fire for being sellouts or
  6413. 3:59:55declares that Converse sneakers are for
  6414. 3:59:57posers, it's likely because he's
  6415. 3:59:59observed those around him doing the
  6416. 4:00:01same. In the end, nonconformity is a
  6417. 4:00:03form of conformity as well. Peering
  6418. 4:00:06overseas. In all my years in the
  6419. 4:00:09marketing world, I've consistently found
  6420. 4:00:11one fact to be true. Nowhere in the
  6421. 4:00:13world are people more easily brandwashed
  6422. 4:00:15than in Asia. In Asian countries, it's
  6423. 4:00:18perfectly normal for a man to own half a
  6424. 4:00:20dozen expensive Swiss watches or for a
  6425. 4:00:23woman to carefully put aside a month's
  6426. 4:00:25salary for a pair of Prada shoes. In
  6427. 4:00:27Asia, more so than even in the United
  6428. 4:00:29States, a person is what he or she
  6429. 4:00:31wears. But the really interesting thing
  6430. 4:00:33about this is how socially contagious
  6431. 4:00:36brand preference is over there. Most
  6432. 4:00:38Asian women who carry a Louis Vuitton
  6433. 4:00:40bag don't do so because they're enamored
  6434. 4:00:42of the brand. As one expert explained,
  6435. 4:00:45the ability or need to fit in is a
  6436. 4:00:47strong driver. Asians are a collectivist
  6437. 4:00:50society and group identity is important.
  6438. 4:00:53So in Japan, if one office lady carries
  6439. 4:00:55a Louis Vuitton bag, then it means that
  6440. 4:00:57to fit in, the rest would do the same.
  6441. 4:01:0044.
  6442. 4:01:01Louis Vuitton has very cleverly
  6443. 4:01:03capitalized on the herd mentality of
  6444. 4:01:05Asian culture by playing on a dream that
  6445. 4:01:07is common to 78% of Japanese women.
  6446. 4:01:10Getting married in Paris. How? by
  6447. 4:01:13playing up its Frenchness in its
  6448. 4:01:14marketing, advertising, and stores.
  6449. 4:01:17First off, in Japan, even more than
  6450. 4:01:19elsewhere, the store design is made to
  6451. 4:01:21look French inspired with its glamorous
  6452. 4:01:23old-fashioned Parisian street scenes and
  6453. 4:01:25paintings of iconic French landmarks
  6454. 4:01:26like the Eiffel Tower or the Arct
  6455. 4:01:28Triumph. Store managers in Japan are
  6456. 4:01:31often French-born with accents that
  6457. 4:01:33typically manage to outdo even Maurice
  6458. 4:01:35chioalieres and the brand suitcases or
  6459. 4:01:37trunks are embossed with French name
  6460. 4:01:39tags and placed conspicuously in the
  6461. 4:01:41foyers of the company's flagship stores.
  6462. 4:01:43The stores even serve French-made Muay
  6463. 4:01:45and Chanden Champagne to their best
  6464. 4:01:46customers. The photos in the Louis
  6465. 4:01:48Vuitton cataloges are also set against
  6466. 4:01:51Parisian backdrops. And even in Japan,
  6467. 4:01:53the models are never ever Japanese.
  6468. 4:01:56They're either ambiguously ethnic or
  6469. 4:01:58stylishly French-l lookinging. And no
  6470. 4:02:00matter what country you're surfing the
  6471. 4:02:01web in, when you go to the Louis Vuitton
  6472. 4:02:03website, you'll immediately be asked if
  6473. 4:02:05you want to read the site in French.
  6474. 4:02:07Even though globally French consumers
  6475. 4:02:09are responsible for only a minuscule
  6476. 4:02:11percentage of Vuitton sales, fact is the
  6477. 4:02:13French elite largely a stew the brand.
  6478. 4:02:16And finally, even though Louis Vuitton
  6479. 4:02:18in fact manufactures a number of its
  6480. 4:02:20products in India, it continues to
  6481. 4:02:22manufacture the luggage it sends to the
  6482. 4:02:24Japanese market in France just to keep
  6483. 4:02:26up that French image. Based on what I've
  6484. 4:02:29seen in my travels, it's also fair to
  6485. 4:02:31say that in places where money is
  6486. 4:02:32relatively new, like China and Russia,
  6487. 4:02:35you'll find the greatest obsession with
  6488. 4:02:36brands. I believe that this too comes
  6489. 4:02:39back to insecurity and the desire to fit
  6490. 4:02:42in. For a long time, both China and the
  6491. 4:02:44Soviet Union felt like the underdogs of
  6492. 4:02:46the global economy. Many of their
  6493. 4:02:48residents have felt as though the rest
  6494. 4:02:50of the world doesn't yet accept or
  6495. 4:02:52respect them. So, they tend to
  6496. 4:02:54overcompensate for this national lack of
  6497. 4:02:56self-esteem by buying brands. The
  6498. 4:02:58louder, bolder, and more in-your-face
  6499. 4:03:01expensive, the better. I won't ever
  6500. 4:03:03forget a story a Russian man once told
  6501. 4:03:06at a conference. He was recalling the
  6502. 4:03:08first time he received special
  6503. 4:03:10permission to travel from his home state
  6504. 4:03:12to America. At the Dublin airport, where
  6505. 4:03:15he was changing planes, he dashed into a
  6506. 4:03:17small kiosk and using the only money he
  6507. 4:03:19had on him, bought a can of cope. But
  6508. 4:03:21the snap top broke off and he couldn't
  6509. 4:03:24open the can. When he tried punching a
  6510. 4:03:26hole in the top and the whole thing
  6511. 4:03:28exploded, he didn't care. He didn't care
  6512. 4:03:31about actually drinking the beverage.
  6513. 4:03:34The point was he bought an original can
  6514. 4:03:36of Coca-Cola and for him that Coke
  6515. 4:03:38symbolized nothing less than America
  6516. 4:03:41skull Nastrovia
  6517. 4:03:43to leave you with one final story of how
  6518. 4:03:45marketers engineer viral trends. Let's
  6519. 4:03:48take a trip to Russia where last year
  6520. 4:03:49Greg Tucker and Chris Lucerst of the
  6521. 4:03:51UK's marketing clinic and I were
  6522. 4:03:53summoned to develop a marketleading
  6523. 4:03:55brand of what else? Vodka. I remember
  6524. 4:03:58the first time I set eyes on the vodka
  6525. 4:04:01section of a Russian supermarket. There
  6526. 4:04:03weren't tens or even hundreds, but
  6527. 4:04:05thousands of varieties of vodka. And
  6528. 4:04:07this wasn't a monstrous supertore,
  6529. 4:04:09either. Later, I learned that Russia
  6530. 4:04:11boasts roughly 3,000 different vodka
  6531. 4:04:13brands and 5,000 different vodka
  6532. 4:04:16flavors. Gregs and my challenge was to
  6533. 4:04:18create brand number 3001 and somehow
  6534. 4:04:21turn it into the market leader. I had
  6535. 4:04:24another mission to transform the Russian
  6536. 4:04:27population's drinking habits. I'm sure
  6537. 4:04:29you're familiar with the place's
  6538. 4:04:31reputation. It's mostly true. And the
  6539. 4:04:34amount of drinking that goes on there
  6540. 4:04:36has caused major societal damage, which
  6541. 4:04:38the Russian government has been
  6542. 4:04:40struggling to combat for many years.
  6543. 4:04:42Now, you might wonder, and rightly so,
  6544. 4:04:45why a vodka company would want to figure
  6545. 4:04:47out a way to get Russian citizens to
  6546. 4:04:49drink less. Good question. The company's
  6547. 4:04:52reasons were twofold. The first was that
  6548. 4:04:55conacs are making significant inroads in
  6549. 4:04:58Russia and becoming serious competitors
  6550. 4:05:00to the long-standing Russian vodka
  6551. 4:05:02industry. The second is a twist on the
  6552. 4:05:04generation lap problem. The rampant
  6553. 4:05:06drinking among the older generation of
  6554. 4:05:08Russians is turning off the younger
  6555. 4:05:10generation who look at their sou parents
  6556. 4:05:13and think, "Dude, I don't want to end up
  6557. 4:05:15like that." So, I was tasked to travel
  6558. 4:05:18around the country and find out why
  6559. 4:05:20Russians drink as much as they did and
  6560. 4:05:22whether there was anything I could do
  6561. 4:05:24about it. And paradoxically, at the same
  6562. 4:05:27time, could I help create a successful
  6563. 4:05:29new vodka brand? To me, these missions
  6564. 4:05:31seemed incompatible, if not impossible.
  6565. 4:05:34That is until one night when I
  6566. 4:05:36discovered something about why Russians
  6567. 4:05:38drink as much as they do. Not completely
  6568. 4:05:41unlike the viral drinking game icing we
  6569. 4:05:44talked about earlier in the chapter. It
  6570. 4:05:46all comes down to a socially contagious
  6571. 4:05:48ritual. Only this one is a century old.
  6572. 4:05:50The skull ritual begins with pouring
  6573. 4:05:52vodka into a large, typically 50ml
  6574. 4:05:55glass. Then all at once, everyone downs
  6575. 4:05:58the stuff and cries out Nastrovia. No
  6576. 4:06:01sipping here either. You have to drink
  6577. 4:06:03it down straight. This is one of
  6578. 4:06:05Russia's oldest and most widespread
  6579. 4:06:07customs, and it's a major part of every
  6580. 4:06:09occasion or celebration, from birthdays
  6581. 4:06:11to dinner parties to funerals. Not doing
  6582. 4:06:14it, in fact, is considered bad luck. But
  6583. 4:06:17once I began talking to hundreds of
  6584. 4:06:19Russians in cities and villages across
  6585. 4:06:21the country, I discovered something
  6586. 4:06:23surprising. Most Russians hate the taste
  6587. 4:06:26of vodka and hate the accompanying
  6588. 4:06:28ritual. They even have to scarf down
  6589. 4:06:30food afterward to get rid of the burning
  6590. 4:06:32taste in their throats. In other words,
  6591. 4:06:35they don't do it because they enjoy it.
  6592. 4:06:37They do it because it's simply what
  6593. 4:06:38everyone else does. It generates a sense
  6594. 4:06:41of belonging and camaraderie. Plus,
  6595. 4:06:44there were no alternative rituals, which
  6596. 4:06:46is when I thought, huh, by introducing a
  6597. 4:06:50new drinking ritual, one that people
  6598. 4:06:51actually enjoyed, maybe I could not only
  6599. 4:06:53gain awareness for a new brand, but also
  6600. 4:06:56show the Russians a new and healthier
  6601. 4:06:58way to drink vodka. Now, the thing about
  6602. 4:07:00the skull ritual is that it requires
  6603. 4:07:02that everyone drink at exactly the same
  6604. 4:07:04speed, fast, which was actually bad for
  6605. 4:07:07the vodka company because a person who
  6606. 4:07:08drinks too much too fast will also be on
  6607. 4:07:10the floor that much more quickly, thus
  6608. 4:07:12reducing overall vodka intake. This
  6609. 4:07:15countrywide ritual was like a fraternity
  6610. 4:07:17during hazing week. It was creating pure
  6611. 4:07:20pressure to binge drink. By altering the
  6612. 4:07:22ritual, my hope was that we could change
  6613. 4:07:25at least the speed of drinking. This
  6614. 4:07:28turned out to be just what many Russians
  6615. 4:07:30had been waiting for, but no one had
  6616. 4:07:31ever dared to say aloud. In the rough
  6617. 4:07:34and tumble Russian culture, sipping a
  6618. 4:07:36drink slowly is generally perceived as
  6619. 4:07:38weak, over delicate, and defeat. No
  6620. 4:07:41red-blooded Russian man would ever dare
  6621. 4:07:43take the risk. The key, therefore, would
  6622. 4:07:46be to introduce a whole new masculine
  6623. 4:07:48way of drinking vodka, this time slowly
  6624. 4:07:50and out of a small glass that would
  6625. 4:07:52still be perceived as Russian. So, I
  6626. 4:07:54borrowed from a country that many
  6627. 4:07:56Russians respect and admire, Finland. By
  6628. 4:07:59setting up hundreds of testing groups
  6629. 4:08:01and analyzing consumers taste pallets
  6630. 4:08:03across Russia, we crafted a vodka
  6631. 4:08:05product that lacked the harsh burn
  6632. 4:08:06everyone loathed. And by combining this
  6633. 4:08:08new taste with a newfound ritual of
  6634. 4:08:10drinking out of a smaller glass, and I'm
  6635. 4:08:12afraid I'm contractually bound to
  6636. 4:08:13secrecy, so I can't divulge anything
  6637. 4:08:15more, a new vodka brand hit the market.
  6638. 4:08:18Time will tell whether the brand will
  6639. 4:08:20take off and whether we actually managed
  6640. 4:08:22to create a healthier kind of peer
  6641. 4:08:24pressure. Chapter six. An American woman
  6642. 4:08:28I know who spent her childhood years in
  6643. 4:08:30Paris is obsessed with the taste of Mars
  6644. 4:08:33bars. Not American Mars bars, just
  6645. 4:08:36French Mars bars. She will raise her
  6646. 4:08:38right hand and swear that the US version
  6647. 4:08:41cannot compare with the taste of the
  6648. 4:08:42Mars bars she snacked on growing up. She
  6649. 4:08:45can't explain why. When pressed, she'll
  6650. 4:08:48say only that the chocolate tastes
  6651. 4:08:50sweeter and the caramel tastes creamier.
  6652. 4:08:52When friends visit France, she begs them
  6653. 4:08:55to bring her back supplies. I have to
  6654. 4:08:58admit, I feel as fondly about my
  6655. 4:09:00memories of the holidays I spent growing
  6656. 4:09:02up in Denmark, though I haven't lived
  6657. 4:09:04there for years. The snow coming down
  6658. 4:09:06outside, the smells drifting out of the
  6659. 4:09:08kitchen, the family members gathered
  6660. 4:09:10around the tree. the simplicity of a
  6661. 4:09:12time that looking back seems so far
  6662. 4:09:15superior to the stride and commercial
  6663. 4:09:17machinery that defines the holidays
  6664. 4:09:19today. Though I've had fantastic
  6665. 4:09:21holidays in recent years, in my mind,
  6666. 4:09:23none compared to the ones I had when I
  6667. 4:09:26was a child. While we're on the topic of
  6668. 4:09:28the past, wasn't the music you grew up
  6669. 4:09:30listening to and the TV shows you liked
  6670. 4:09:33to watch way back when all frankly
  6671. 4:09:34better than the new fangled bands and
  6672. 4:09:36songs and shows that are on TV and the
  6673. 4:09:38radio today? Or have you noticed that
  6674. 4:09:4199% of the time we derive the most
  6675. 4:09:44pleasure from our first experience of
  6676. 4:09:46something? That the original version of
  6677. 4:09:48a song or movie is the best. That the
  6678. 4:09:51house we grew up in is better and more
  6679. 4:09:53attractive than any future home. That a
  6680. 4:09:55story is more enjoyable and more
  6681. 4:09:57believable the first time we hear it
  6682. 4:09:58than the second or third time. In fact,
  6683. 4:10:01I once conducted a study to investigate
  6684. 4:10:03that last one. and indeed found that 72%
  6685. 4:10:06of people believed that the first source
  6686. 4:10:08of a story was more authentic than
  6687. 4:10:10subsequent retellings.
  6688. 4:10:12Sometimes the first experiences were
  6689. 4:10:14objectively better, though not as a
  6690. 4:10:16rule. But objectively better or not,
  6691. 4:10:19they always seem better in hindsight.
  6692. 4:10:21That's because as humans and consumers,
  6693. 4:10:23we've been fooled into thinking the past
  6694. 4:10:25was perfect and by our own brains. Two,
  6695. 4:10:28the culprit, a simple and very powerful
  6696. 4:10:31psychological persuader known as
  6697. 4:10:32nostalgia. one that marketers know all
  6698. 4:10:35too well. Case in point, the 2009 Super
  6699. 4:10:38Bowl, an event that's almost become
  6700. 4:10:40better known for its high-priced
  6701. 4:10:41commercials than for the game itself.
  6702. 4:10:43Some of us can't remember who played,
  6703. 4:10:45others don't care, but almost all of us
  6704. 4:10:47can remember which commercial we liked
  6705. 4:10:49best. During this particular Super Bowl,
  6706. 4:10:52151.6 6 million people won the largest
  6707. 4:10:55TV audience ever. Sat back and watched
  6708. 4:10:57ad starring Don Rickles for the flower
  6709. 4:10:59company Teleora Vagod and Betty White
  6710. 4:11:02for Snickers Chocolate Bars, Stevie
  6711. 4:11:03Wonder for Volkswagen, and an antique
  6712. 4:11:06sock monkey for a new model of Kia.
  6713. 4:11:08What's more, the soundtrack accompanying
  6714. 4:11:10the commercials that span the roughly
  6715. 4:11:12three-hour show featured songs by 70s
  6716. 4:11:14funk stylists Cool and the Gang for the
  6717. 4:11:16Honda Accord crossover, the classic rock
  6718. 4:11:18band Cheat Trick for Audi, the British
  6719. 4:11:20symphonic rocker's electric light
  6720. 4:11:22orchestra, whose global fame peaked in
  6721. 4:11:24the midseies for select 55 beer and 70s
  6722. 4:11:27singer songwriter Bill Withers for
  6723. 4:11:28Electronic Arts Dante's Inferno video
  6724. 4:11:31game. During the halftime show, the 80s
  6725. 4:11:33sensation Bruce Springsteen in the East
  6726. 4:11:35Street Band came out and performed 10th
  6727. 4:11:37Avenue Freeze Out, Born to Run, Working
  6728. 4:11:39on a Dream, and Glory Days. What decade
  6729. 4:11:42were we in anyway? What was going on
  6730. 4:11:45here? Nostalgic for nostalgia. The word
  6731. 4:11:49nostalgia comes from the Greek compounds
  6732. 4:11:51nost meaning to come home and algos or
  6733. 4:11:54pain. It was coined in 1688 by a Swiss
  6734. 4:11:57physician, Johannes Hoer, in reference
  6735. 4:11:59to a bizarre malady affecting Swiss
  6736. 4:12:01nationals stationed overseas,
  6737. 4:12:03homesickness, basically that Dr. Hoffer
  6738. 4:12:05believed could ultimately lead to
  6739. 4:12:07widespread desertions and even death. In
  6740. 4:12:09our modern parliament, however, it's
  6741. 4:12:11generally used to refer to, as Webers
  6742. 4:12:14puts it, a wistful or excessive
  6743. 4:12:15sentimental yearning or return to some
  6744. 4:12:18past period. In a 2006 study carried out
  6745. 4:12:21at the University of Southampton in the
  6746. 4:12:23UK, 79% of the 172 students pled claimed
  6747. 4:12:27they experience nostalgic thoughts at
  6748. 4:12:29least once a week, while 16% reported
  6749. 4:12:32having such fond moments daily. Turns
  6750. 4:12:35out there's a reason we as humans are
  6751. 4:12:37prone to these thoughts. Nostalgia is
  6752. 4:12:39good for us. According to Scientific
  6753. 4:12:41American, rather than being a waste of
  6754. 4:12:43time or an unhealthful indulgence,
  6755. 4:12:45basking in memories elevates mood,
  6756. 4:12:47increases self-esteem, and strengthens
  6757. 4:12:49relationships. In short, nostalgia is a
  6758. 4:12:52source of psychological well-being. Two,
  6759. 4:12:55what's more, when the same researchers
  6760. 4:12:56asked those subjects to assess their
  6761. 4:12:58social competence in three areas, their
  6762. 4:13:00capacity to build relationships, their
  6763. 4:13:02ability to be candid with others about
  6764. 4:13:04their feelings, and whether or not they
  6765. 4:13:06could offer their friends emotional
  6766. 4:13:08support. They found that the
  6767. 4:13:09participants most likely to engage in
  6768. 4:13:11nostalgic thinking did better in all
  6769. 4:13:13three measures of social skills than
  6770. 4:13:15those in the control group. Free
  6771. 4:13:16concluding that nostalgic thinking
  6772. 4:13:18breeds happier moods. Four, another
  6773. 4:13:21reason we have a predilction for
  6774. 4:13:23nostalgia is that our brains are wired
  6775. 4:13:25to recall our past experiences as having
  6776. 4:13:28been far better and more pleasurable
  6777. 4:13:30than we experienced them to be in the
  6778. 4:13:32moment. A phenomenon that goes by the
  6779. 4:13:34names Rossy remembering or rosy
  6780. 4:13:36retrospection. As Brian Urbick, the CEO
  6781. 4:13:39of the UK's Consumer Knowledge Center,
  6782. 4:13:41theorizes, Rosie retrospection may be an
  6783. 4:13:43adaptive mechanism designed to erase and
  6784. 4:13:45protect us from painful memories.
  6785. 4:13:47Evidence suggests it may even have
  6786. 4:13:49evolved to help ensure the continuation
  6787. 4:13:51of the human race. After all, if women
  6788. 4:13:53accurately remembered the pain of giving
  6789. 4:13:55birth, chances are that few of them
  6790. 4:13:57would voluntarily go through the
  6791. 4:13:59experience again. Though surprisingly
  6792. 4:14:01little research has been done on why
  6793. 4:14:03this nearly universal psychological
  6794. 4:14:05phenomenon exists, countless studies
  6795. 4:14:07have shown that we indeed have a strong
  6796. 4:14:09tendency to assess past incidents or
  6797. 4:14:12events more favorably after the fact
  6798. 4:14:14than we did while those same events were
  6799. 4:14:16taking place. Interestingly, our brains
  6800. 4:14:19are also prone to a phenomenon known as
  6801. 4:14:21rosy prospection whereby our
  6802. 4:14:23anticipation of certain events is more
  6803. 4:14:25positive than our actual experience of
  6804. 4:14:27the event. In one such study,
  6805. 4:14:29psychologist Terrence Mitchell and a
  6806. 4:14:31team of colleagues had students who were
  6807. 4:14:33about to embark on one of three
  6808. 4:14:34vacations. A two-week tour of Europe,
  6809. 4:14:37Thanksgiving weekend with their
  6810. 4:14:38families, or a 3-week bicycle tour
  6811. 4:14:40across California rate their
  6812. 4:14:42anticipation of the trip, their level of
  6813. 4:14:44enjoyment during the trip, and their
  6814. 4:14:46memory of the trip after it took place.
  6815. 4:14:48In all three cases, both the students
  6816. 4:14:51anticipation and memories were more
  6817. 4:14:53favorable than their feelings during the
  6818. 4:14:55trip itself. As one study brief points
  6819. 4:14:57out, as memory takes over, the
  6820. 4:14:59unpleasantness fades and the good parts
  6821. 4:15:01remain, perhaps even get amplified
  6822. 4:15:03beyond reality. Five other studies show
  6823. 4:15:07that we're so determined to remember the
  6824. 4:15:09past favorably that on occasion we
  6825. 4:15:11remember pleasant incidents that never
  6826. 4:15:13took place. In one, individuals
  6827. 4:15:16remembered seeing Bugs Bunny during a
  6828. 4:15:18visit to Walt Disney World. an
  6829. 4:15:20impossibility since Bugs Bunny is a
  6830. 4:15:22Warner Brothers creation, not a Disney
  6831. 4:15:25character. The experiment concluded that
  6832. 4:15:27even knowing a memory is not real does
  6833. 4:15:30not make it any less meaningful or
  6834. 4:15:32enjoyable and that the memory of an
  6835. 4:15:34event is more important than the actual
  6836. 4:15:36experience. Six, the point is we tend to
  6837. 4:15:40live in the past and to some extent the
  6838. 4:15:42future and our brains like it that way.
  6839. 4:15:45This is part of the reason why, in my
  6840. 4:15:47experience, no one believes that on the
  6841. 4:15:50inside they're truly their chronological
  6842. 4:15:52age. In fact, I have a theory that most
  6843. 4:15:54people have a psychological age that
  6844. 4:15:56remains fairly stable and consistent
  6845. 4:15:58throughout their adult life, no matter
  6846. 4:16:00how many candles burn on their birthday
  6847. 4:16:02cake. I once asked a top banking CEO who
  6848. 4:16:05was around 50 what his inner age was.
  6849. 4:16:0819, he said at once. ask the same
  6850. 4:16:11question of a room full of people. And I
  6851. 4:16:13guarantee not one person will answer
  6852. 4:16:15their actual age. It's almost as if
  6853. 4:16:17we're two people, the one inside us and
  6854. 4:16:19the older one others see. After all, who
  6855. 4:16:22hasn't felt incredulous at hitting each
  6856. 4:16:24milestone birthday, whether it's 20, 40,
  6857. 4:16:27or 60. Naturally, no one likes the
  6858. 4:16:30thought of getting old. But I believe
  6859. 4:16:32this phenomenon is rooted in something
  6860. 4:16:34more than just a fear of aging. I
  6861. 4:16:36believe it has to do with our rosy
  6862. 4:16:38remembering of what our life was like
  6863. 4:16:40when we actually were that inner age. At
  6864. 4:16:43this point, you might be thinking,
  6865. 4:16:45"Okay, this rings true, but what does it
  6866. 4:16:47have to do with how companies trick us
  6867. 4:16:49into buying things?" Well, a lot
  6868. 4:16:52actually. Companies and marketers know
  6869. 4:16:54full well that our perceived age is a
  6870. 4:16:56huge factor in our shopping decisions
  6871. 4:16:58and buying habits. Why does a 50year-old
  6872. 4:17:01woman buy hair dye or wrinkle cream? Why
  6873. 4:17:04does a 40-year-old man buy Ray-B bands
  6874. 4:17:06or a Ferrari convertible, otherwise
  6875. 4:17:08known as a midlife crisis mobile? Not
  6876. 4:17:11just to look or seem younger, though
  6877. 4:17:13that's part of it, but to bridge the gap
  6878. 4:17:14between how old they are and how old
  6879. 4:17:16they feel inside. It's the very same
  6880. 4:17:19human tendency that drives grown men and
  6881. 4:17:21women to buy all those things they loved
  6882. 4:17:23or remember loving when they were
  6883. 4:17:24younger, like tight jeans, fast cars,
  6884. 4:17:26Converse Allstar sneakers, Pink Floyd
  6885. 4:17:29CDS, and so on. all the kinds of stuff
  6886. 4:17:31that will make us feel younger again, or
  6887. 4:17:33rather make us feel the age we actually
  6888. 4:17:36believe we are on the inside. Clever
  6889. 4:17:39companies know that the older we get,
  6890. 4:17:41the more intense our longings for the
  6891. 4:17:43past become. They also know that our
  6892. 4:17:45preferences for music, movies, trends,
  6893. 4:17:47and products we enjoyed in our carefree
  6894. 4:17:49childhoods, adulences, and early 20s
  6895. 4:17:51remain with us our whole lives. In a
  6896. 4:17:541,998
  6897. 4:17:56New Yorker article, neuroscientist and
  6898. 4:17:58writer Robert Seapolski pondered his
  6899. 4:18:00disintegrating interest in new things,
  6900. 4:18:02food, experiences, and especially music.
  6901. 4:18:05Why, Seapolski wondered, did he keep
  6902. 4:18:07playing Bob Marley's greatest hits over
  6903. 4:18:09and over while his 20some lab colleagues
  6904. 4:18:11were boopping around listening to every
  6905. 4:18:13hot new or old but trendy thing from
  6906. 4:18:15Sigur to Sonic Youth to the Black Eyed
  6907. 4:18:17Peas. In an attempt to understand why he
  6908. 4:18:20was musically stuck in the 70s, Sapolski
  6909. 4:18:23set out to study the windows in which we
  6910. 4:18:25form our cultural tastes and in which we
  6911. 4:18:28are amanable to new experiences. Was
  6912. 4:18:30there, he wondered, an age at which
  6913. 4:18:32these windows of openness slammed shut?
  6914. 4:18:35Seven. Indeed, Seapolski concluded,
  6915. 4:18:37there was. He and his research
  6916. 4:18:39assistants called radio stations that
  6917. 4:18:41specialize in the music of various
  6918. 4:18:43periods and asked the same two questions
  6919. 4:18:46of each station manager. when was most
  6920. 4:18:48of the music that you play first
  6921. 4:18:49introduced and what is the average age
  6922. 4:18:52of your listeners? Based on their
  6923. 4:18:54responses, Seapolski found that most of
  6924. 4:18:56us end up playing and loving the music
  6925. 4:18:58we're exposed to when we're around 20
  6926. 4:19:00years old or younger for the rest of our
  6927. 4:19:03lives, and that if a person is over the
  6928. 4:19:05age of 35 when a new pop music style
  6929. 4:19:07makes its mark, there's a greater than
  6930. 4:19:0995% chance he or she will never listen
  6931. 4:19:12to it. After conducting similar
  6932. 4:19:14inquiries about food and fashion, he
  6933. 4:19:16concluded that our window of openness
  6934. 4:19:18for new experiences like getting our
  6935. 4:19:20tongue pierced slams shut at age 23 and
  6936. 4:19:22our openness to trying out new foods,
  6937. 4:19:25say sweets or calves, livers, pretty
  6938. 4:19:27much closes for good at 39. 8. In my
  6939. 4:19:31career, I found time and again that
  6940. 4:19:33there is often a specific moment or time
  6941. 4:19:35in our lives when we form such powerful
  6942. 4:19:37memories involving a brand that we
  6943. 4:19:38decide subconsciously to consume the
  6944. 4:19:41product for life. When I began working
  6945. 4:19:43for Pepsi and Coca-Cola, I remember
  6946. 4:19:45speaking with a 55-year-old woman who
  6947. 4:19:48was a lifelong fan of Coke. Why? When
  6948. 4:19:51she was 6 years old, her parents allowed
  6949. 4:19:53her to walk alone to a local candy store
  6950. 4:19:55where the owner served real Cokes by
  6951. 4:19:57mixing together soda and syrup and
  6952. 4:19:59pouring the concoction into an iced
  6953. 4:20:01glass bottle. It was cold, frothy, and
  6954. 4:20:04delicious, the highlight of her day. She
  6955. 4:20:07would then trapes back to her
  6956. 4:20:08neighborhood where she would play on the
  6957. 4:20:10street with the other kids until it got
  6958. 4:20:12dark. It was what I call an oasis memory
  6959. 4:20:15when everything seems all right with the
  6960. 4:20:17world, safe, contented, fun, protected,
  6961. 4:20:20shimmering. Today, this woman's life is
  6962. 4:20:23difficult. She works two demanding jobs
  6963. 4:20:25and juggles several children, one
  6964. 4:20:27severely handicapped. But when I stood
  6965. 4:20:30before her and watched her take a sip of
  6966. 4:20:32her coke, I swear the look in her eyes
  6967. 4:20:34changed. The taste had taken her back to
  6968. 4:20:37that moment, that neighborhood, that
  6969. 4:20:38oasis. Such is the power of nostalgia.
  6970. 4:20:43Golden oldies. Nostalgia marketing is a
  6971. 4:20:46perennial, and I should add, wildly
  6972. 4:20:48successful strategy by which advertisers
  6973. 4:20:50resurrect the sites, sounds, and feel of
  6974. 4:20:52a previous decade to sell us a brand or
  6975. 4:20:55product of today. Sometimes it's by
  6976. 4:20:57reviving a commercial or a style of
  6977. 4:20:59packaging or even an icon or
  6978. 4:21:01spokesperson like in those Super Bowl
  6979. 4:21:03commercials that those of us over 30 or
  6980. 4:21:0540 are guaranteed to recall fondly from
  6981. 4:21:07our own childhoods. Other times it's
  6982. 4:21:09done more subtly by implicitly evoking
  6983. 4:21:12the feel or texture of a simpler time.
  6984. 4:21:14And sometimes it's done by reviving an
  6985. 4:21:17old brand itself. Recent research from
  6986. 4:21:20the University of Arkansas shows that
  6987. 4:21:22the older a brand is, the more favorably
  6988. 4:21:24it will be perceived, regardless of how
  6989. 4:21:27well it works. One reason is that when
  6990. 4:21:29we see a nostalgic product from the
  6991. 4:21:31past, whether it's a brand of breakfast
  6992. 4:21:33cereal or a make of sneakers, we are
  6993. 4:21:35reexperiencing the world as we first
  6994. 4:21:37encountered it when we were young, that
  6995. 4:21:39time when everything, thanks to our
  6996. 4:21:41brains, Rosie remembering, was safer,
  6997. 4:21:43simpler, better. Few people know this,
  6998. 4:21:46but one of the main goals of any brand
  6999. 4:21:48or ad campaign is to own a moment. What
  7000. 4:21:51do I mean by owning a moment? Well, if
  7001. 4:21:54you're in your late 40s or early 50s, no
  7002. 4:21:56doubt you remember Kodak inatic cameras,
  7003. 4:21:59peaking in popularity between 1963 and
  7004. 4:22:021970, Kodak inatic cameras were
  7005. 4:22:05inexpensive point andoot apparatuses
  7006. 4:22:07that created a phrase that became so
  7007. 4:22:09ubiquitous as to secure a place in our
  7008. 4:22:11cultural mythology, the Kodak moment. A
  7009. 4:22:14Kodak moment, as many know, is an
  7010. 4:22:16instant in time that captures a
  7011. 4:22:18one-of-a-kind emotional experience that
  7012. 4:22:20second before your son blows out the
  7013. 4:22:22candles on his first birthday cake. The
  7014. 4:22:24instant your daughter reaches out her
  7015. 4:22:26hand to accept her high school diploma,
  7016. 4:22:28and so forth. Though Kodak no longer
  7017. 4:22:30manufactures inatics, the expression
  7018. 4:22:33refuses to die. And for marketers, the
  7019. 4:22:36Kodak moment is pure gold. Owning an
  7020. 4:22:39instant in time is a product's
  7021. 4:22:41equivalent of a land crib, meaning that
  7022. 4:22:43it keeps other brands out and in their
  7023. 4:22:45place. No trespassing. This moment is
  7024. 4:22:48mine. Nesquick, whose slogan is, "They
  7025. 4:22:50only grow up once," has grabbed the
  7026. 4:22:52moment you pack a milk box in your
  7027. 4:22:54child's lunch on his first day of
  7028. 4:22:56kindergarten and realize he is morphing
  7029. 4:22:58from toddler to boy before your eyes.
  7030. 4:23:00The Jenny Craig way control program has
  7031. 4:23:02co-opted the seat belt moment. the
  7032. 4:23:04instant when a woman secures her belt
  7033. 4:23:06across her lap only to find it no longer
  7034. 4:23:09reaches the clasp. What these slogans
  7035. 4:23:12ingeniously do, of course, is subtly
  7036. 4:23:14link their products not just to those
  7037. 4:23:16fleeting moments, but to our emotions
  7038. 4:23:18surrounding those moments. So that when
  7039. 4:23:21little Billy's middle school graduation
  7040. 4:23:23makes us feel wistful, where did the
  7041. 4:23:25time go? We reach for Nesquick. And when
  7042. 4:23:27we feel insecure and embarrassed because
  7043. 4:23:29our jeans feel tighter than usual, many
  7044. 4:23:32of us automatically think, "Time to call
  7045. 4:23:34Jenny Craig." It's all subconscious, of
  7046. 4:23:36course, but that's part of the reason
  7047. 4:23:38it's so powerful. The really ambitious
  7048. 4:23:41marketers and companies even try to lay
  7049. 4:23:43claim to not just a moment, but an
  7050. 4:23:45entire era. Amazingly, McDonald's has
  7051. 4:23:48successfully managed to lay claim to the
  7052. 4:23:50last 30 years with slogans like, "It's a
  7053. 4:23:52good time for the great taste of
  7054. 4:23:54McDonald's or it's Mac time." Because
  7055. 4:23:56together we've shared 30 years of good
  7056. 4:23:58times and great taste. Nine. The result.
  7057. 4:24:01Three entire decades worth of emotions
  7058. 4:24:03and associations linked in our minds to
  7059. 4:24:05their burgers and fries. It's worth
  7060. 4:24:08noting that illusions to time persuade
  7061. 4:24:10us to buy in other ways as well. Did you
  7062. 4:24:13know that just mentioning time in an
  7063. 4:24:15advertising campaign makes us more
  7064. 4:24:17likely to buy a product? It's because as
  7065. 4:24:19soon as we're reminded of how fleeting
  7066. 4:24:21time is, we think, "I'd better have and
  7067. 4:24:23enjoy this before it's too late." And
  7068. 4:24:26did you also know that when we're primed
  7069. 4:24:27to think about time, the chances we'll
  7070. 4:24:30feel a personal connection to a product
  7071. 4:24:32increases exponentially? 10. For
  7072. 4:24:34example, if a suitcase manufacturer or
  7073. 4:24:37coffee company announces it's time for a
  7074. 4:24:39new set of rolling wheels or it's
  7075. 4:24:40espresso time, we're more likely to
  7076. 4:24:42respond positively to these ads than
  7077. 4:24:44not. Why? Because time quite simply is
  7078. 4:24:48one thing we all wish we had more of yet
  7079. 4:24:50rarely give ourselves permission to
  7080. 4:24:52savor. Our tendency to romanticize bygon
  7081. 4:24:55eras helps explain why nostalgia
  7082. 4:24:57marketing is especially potent during
  7083. 4:24:59uncertain economic times. When the stock
  7084. 4:25:01market is down, personal debt is up,
  7085. 4:25:04climate change is in the news, and job
  7086. 4:25:06security is a thing of the past. Anxious
  7087. 4:25:08consumers seek nothing more than the
  7088. 4:25:10retail equivalent of comfort food. the
  7089. 4:25:12sounds, the smells, the appearance, and
  7090. 4:25:14hence the memories and familiar fonts of
  7091. 4:25:16the bestloved brands from our
  7092. 4:25:18childhoods. In other words, an era
  7093. 4:25:20before we were plagued with these
  7094. 4:25:22grown-up worries. In the face of
  7095. 4:25:24insecurity, or uncertainty about the
  7096. 4:25:26future, we want nothing more than to
  7097. 4:25:29revert to a stable time. And what time
  7098. 4:25:31could seem more stable, simple, and
  7099. 4:25:33quaint than the past, even though it was
  7100. 4:25:35in reality crazy and turbulent, and
  7101. 4:25:38we're just not remembering it
  7102. 4:25:39accurately? Plus, oddly enough,
  7103. 4:25:41recalling the past not only provides us
  7104. 4:25:43a source of comfort and security, it
  7105. 4:25:46even makes us feel more hopeful and
  7106. 4:25:47optimistic about the future, more
  7107. 4:25:49equipped to deal with the challenges
  7108. 4:25:51that lie ahead. This is why during hard
  7109. 4:25:54times, we eat more retro foods like
  7110. 4:25:56macaroni and cheese and mashed potatoes,
  7111. 4:25:58and flock toward classic, ever iconic
  7112. 4:26:00brands that have been around forever,
  7113. 4:26:02like Hershey's, May Tag, Hines,
  7114. 4:26:04Helman's, or Hunter Boot. a brand of
  7115. 4:26:06shoe that's been around for 150 years
  7116. 4:26:08and is carried in high-end retailers
  7117. 4:26:10like Berdorf Goodman and Bloomingdales.
  7118. 4:26:1311. This is also why nostalgia marketing
  7119. 4:26:16booms during the turbulent years of
  7120. 4:26:18World War II and has resurged at certain
  7121. 4:26:21points throughout just about every
  7122. 4:26:22decade since. It tends to conform to a
  7123. 4:26:25particular pattern, too. Generally,
  7124. 4:26:28marketers and advertisers home in on
  7125. 4:26:30cultural trends that are most dissimilar
  7126. 4:26:32and therefore most romanticized to the
  7127. 4:26:35ones of the current age. For example,
  7128. 4:26:37during the economic and political
  7129. 4:26:39turbulence of the 1970s came a nostalgic
  7130. 4:26:42fad for products that recalled the state
  7131. 4:26:44conservative 1950s. During the
  7132. 4:26:46button-down Reagan era 1980s, marketers
  7133. 4:26:49paid tribute to the freewheeling 1960s.
  7134. 4:26:52And in the tumultuous first decade of
  7135. 4:26:54the 21st century, which saw 9/11s, two
  7136. 4:26:57wars in the Middle East, and the worst
  7137. 4:26:58economic downturn since the Great
  7138. 4:27:00Depression, marketers were hearkening
  7139. 4:27:02back to the trends and styles of the
  7140. 4:27:04flush and relatively peaceful 80s. Does
  7141. 4:27:07anyone recall the 1,986
  7142. 4:27:10commercial featuring Marvin Gay cruning
  7143. 4:27:12his 1,967
  7144. 4:27:14tune, I heard it through the grapevine
  7145. 4:27:16to a bunch of raisins? What about
  7146. 4:27:18Wendy's dusting off its 1,984
  7147. 4:27:22Where's the beef TV commercial in 2010
  7148. 4:27:24or CocaCola reviving its famous 1,971
  7149. 4:27:28I'd like to teach the world to sing ad
  7150. 4:27:30for its 35th anniversary. The company
  7151. 4:27:32even went so far as to hire a detective
  7152. 4:27:35agency to hunt down the men and women
  7153. 4:27:37who'd first sung the song decades
  7154. 4:27:38earlier. Here, one can't help but note
  7155. 4:27:41the popularity of oldies television
  7156. 4:27:43channels like TV Land, Nick at Night,
  7157. 4:27:45and American movie classics. And what
  7158. 4:27:48about the recent cultural phenomenon,
  7159. 4:27:50the AMC series Mad Men, which so
  7160. 4:27:52impeccably captures the aura essence and
  7161. 4:27:54glamour of Madison Avenue in the early
  7162. 4:27:561960s? And it's not just the show, which
  7163. 4:28:00by the way has been deliberately
  7164. 4:28:02advertised to play into this sepia toned
  7165. 4:28:04nostalgic sentiment we're obsessed with.
  7166. 4:28:07We're also preoccupied with and willing
  7167. 4:28:09to spend money to enjoy its trends and
  7168. 4:28:11fashions in our own lives. All kinds of
  7169. 4:28:13nostalgic items from tunic dresses and
  7170. 4:28:15skinny ties to martinis and
  7171. 4:28:17old-fashionates.
  7172. 4:28:19Today, countless companies and brands
  7173. 4:28:21from Coke to McDonald's to General Mills
  7174. 4:28:23to Target to Unilver are turning huge
  7175. 4:28:25profits by deliberately playing into our
  7176. 4:28:27human fancy and fantasy that the past
  7177. 4:28:29was better, simpler, quainter, more
  7178. 4:28:31authentic, more secure than our lives
  7179. 4:28:33are now. There's even a mall in Shanghai
  7180. 4:28:35devoted exclusively to nostalgic
  7181. 4:28:37products known as Zong Wua Lao of
  7182. 4:28:38Shangqing, which translates to
  7183. 4:28:40time-honored Chinese brand shopping
  7184. 4:28:41mall. 12. However, the risk of this
  7185. 4:28:44approach for marketers and advertisers
  7186. 4:28:46is that if they play up the past too
  7187. 4:28:48much, we might begin to see the product
  7188. 4:28:50or brand as dusty, outdated, or out of
  7189. 4:28:52style. Which is why a lot of brands and
  7190. 4:28:55companies like the ones you're about to
  7191. 4:28:57read about have developed some
  7192. 4:28:58incredibly inventive, not to mention
  7193. 4:29:00psychologically sophisticated strategies
  7194. 4:29:03for towing this delicate line. feasting
  7195. 4:29:06on the past. As I enter the Time Warner
  7196. 4:29:09Center in New York's Columbus Circle, a
  7197. 4:29:11Midtown mall largely populated by
  7198. 4:29:13high-end retailers, and descend the
  7199. 4:29:14escalator to Whole Foods, which we
  7200. 4:29:16visited in chapter 3, it doesn't escape
  7201. 4:29:18my attention that the music playing
  7202. 4:29:20faintly overhead is a dance hit that
  7203. 4:29:21weaves in a sample of ABBA's 1,979
  7204. 4:29:25Gimme. Gimme Gimme: A Man After
  7205. 4:29:27Midnight, providing quite a shot of
  7206. 4:29:29nostalgia and familiarity for shoppers
  7207. 4:29:31over 35. Talk about having it both ways.
  7208. 4:29:34Here at Whole Foods, we see the latest
  7209. 4:29:37agricultural and dietary fads of the
  7210. 4:29:3921st century. From grass-fed beef to
  7211. 4:29:41gluten-free cookies to pesticide-free
  7212. 4:29:43produced to cask ale microbus, united
  7213. 4:29:46with the carefree tunes from an era
  7214. 4:29:48before any of these things even existed.
  7215. 4:29:50Oh, and it's no coincidence that this
  7216. 4:29:52particular song is playing either. In a
  7217. 4:29:55later chapter, we'll be exploring the
  7218. 4:29:57world of data mining, at which time
  7219. 4:29:59you'll discover that there is no such
  7220. 4:30:01thing as a melody playing randomly
  7221. 4:30:03overhead while you shop. The connections
  7222. 4:30:05between the gleaming auditoriumsized
  7223. 4:30:08state-of-the-art Whole Foods and
  7224. 4:30:09nostalgia marketing may not seem
  7225. 4:30:11apparent at first. After all, isn't
  7226. 4:30:14Whole Foods about as modern as you can
  7227. 4:30:16get? The past was a much quaint, far
  7228. 4:30:19less complicated place than labyrinthine
  7229. 4:30:21Whole Foods, right? For most of us, the
  7230. 4:30:23good old days were a time before chain
  7231. 4:30:25stores, anxieties about industrialized
  7232. 4:30:27food, or even the term organic ever
  7233. 4:30:29existed. An era when produce was fresh
  7234. 4:30:31and no frrills, and there weren't 10
  7235. 4:30:33different brands of everything from
  7236. 4:30:35garbanzo beans to graham crackers.
  7237. 4:30:37Perhaps we remember a time when grocery
  7238. 4:30:40shopping meant stopping with our parents
  7239. 4:30:41at a roadside fruit and vegetable stand,
  7240. 4:30:44where we sniffed and unpeled ears of
  7241. 4:30:46corn harvested just that morning, filled
  7242. 4:30:48a basket with apples picked from a
  7243. 4:30:50nearby orchard, or grabbed a bunch of
  7244. 4:30:52flowers whose prices were handcribbled
  7245. 4:30:54on a small slate board. Or was that in a
  7246. 4:30:56movie we once saw? Doesn't matter. I
  7247. 4:30:59once screened photographs with consumers
  7248. 4:31:02in five different countries, asking them
  7249. 4:31:04to rank each photo in order of which
  7250. 4:31:06most evoked a sense of freshness. The
  7251. 4:31:08unanimous winner was a photograph of a
  7252. 4:31:1020-something farm boy wearing a cowboy
  7253. 4:31:13hat and holding a wooden box laden with
  7254. 4:31:15fresh vegetables. When I asked the
  7255. 4:31:17respondents how many of them had seen
  7256. 4:31:19this image in real life, not the farm
  7257. 4:31:22boy in question, but any farmer, only
  7258. 4:31:24one person out of 400 raised his or her
  7259. 4:31:26hand. The point is whether or not we've
  7260. 4:31:29actually set foot on an oldtime farm
  7261. 4:31:31stand in our lives, emotionally we
  7262. 4:31:33associate things like old wooden boxes,
  7263. 4:31:35flowers, and handcrolled signs with
  7264. 4:31:37authenticity, history, and a better,
  7265. 4:31:39simpler time, as well as with freshness,
  7266. 4:31:41as we saw in chapter 2. In other words,
  7267. 4:31:43everything that the modern looking Whole
  7268. 4:31:45Foods is not. Or is it? It might not be
  7269. 4:31:48obvious at first, but the ingenious
  7270. 4:31:50marketers who designed Whole Foods did
  7271. 4:31:52so very carefully to trigger these very
  7272. 4:31:54associations of a simpler era.
  7273. 4:31:57For example, about a dozen feet into the
  7274. 4:31:59store sit a dozen stacked cardboard
  7275. 4:32:01boxes with anywhere from 8 to 10 fresh
  7276. 4:32:03cantaloupes packed inside each one.
  7277. 4:32:06These boxes could have been unpacked
  7278. 4:32:07easily, of course, by any one of Whole
  7279. 4:32:09Foods unionized employees, but they're
  7280. 4:32:12left that way on purpose. Why? For that
  7281. 4:32:15rustic ash touch. In other words, it's a
  7282. 4:32:18symbolic to reinforce the idea of
  7283. 4:32:20oldtime simplicity, as if our mythical
  7284. 4:32:22farmer ran out of cantaloupe crates and
  7285. 4:32:24had to make do with used cartons. But
  7286. 4:32:27wait, something about these boxes looks
  7287. 4:32:29off. Let's move in and take a closer
  7288. 4:32:32look. Funny, upon close inspection, this
  7289. 4:32:35stack of crates looks like one giant
  7290. 4:32:36cardboard box. It can't be, can it? It
  7291. 4:32:40is. In fact, it's one humongous
  7292. 4:32:42cardboard box with fissurers cut
  7293. 4:32:44carefully down the side that faces
  7294. 4:32:46consumers, most likely by some
  7295. 4:32:47industrial machinery at a factory in
  7296. 4:32:49China to make it appear as though this
  7297. 4:32:51one giant cardboard box is made up of
  7298. 4:32:54multiple stacked boxes. It's ingenious
  7299. 4:32:56in its ability to evoke the image of
  7300. 4:32:58Grapes of Wrath era laborers piling box
  7301. 4:33:01after box of fresh fruit into the store.
  7302. 4:33:03But like a lot of what goes on at Whole
  7303. 4:33:05Foods, this image in false. In the
  7304. 4:33:08industry, these cardboard boxes are
  7305. 4:33:10known as dummies, and for good reason.
  7306. 4:33:14We've been punked by nostalgia again.
  7307. 4:33:16Whole Foods ongoing salute to the
  7308. 4:33:18roadside stand of bygone days continues
  7309. 4:33:21with a display of apples perched at top
  7310. 4:33:22a wooden crate. The crate is
  7311. 4:33:24deliberately distressed looking and
  7312. 4:33:26grainy gray, suggesting that the apples
  7313. 4:33:28on display were shipped to this store in
  7314. 4:33:30a dirty flatbed, as they might have been
  7315. 4:33:32in the 1940s. The Apples of Wrath. This
  7316. 4:33:36crate is another symbolic as are the two
  7317. 4:33:38bottles of organic apple juice perched
  7318. 4:33:41behind the apples like ma and paw apple
  7319. 4:33:43overseeing a litter of baby granny
  7320. 4:33:45smiths. Only a person with 6' long arms
  7321. 4:33:48could ever hope to actually reach these
  7322. 4:33:50bottles. But that's not the point.
  7323. 4:33:53Organic apple juice steers our brains to
  7324. 4:33:55the old-fashioned notion of homemade
  7325. 4:33:57cider. Yet another marketing trick
  7326. 4:33:59designed to recall a time when life was
  7327. 4:34:01simpler and better and more delicious.
  7328. 4:34:04Yet, there's an interesting paradox at
  7329. 4:34:06play here. The past is perfect and so is
  7330. 4:34:09its produce, right? Well, not exactly.
  7331. 4:34:12Because what I found in all my years of
  7332. 4:34:14studying consumers and their responses
  7333. 4:34:17to branding is that one essential
  7334. 4:34:19component of the nostalgia factor is
  7335. 4:34:21authenticity. And nothing authentic is
  7336. 4:34:23truly perfect. Is it a bruise on the
  7337. 4:34:26apple? A chip in the china? A scratch in
  7338. 4:34:29the veneer on an old armwire? Just
  7339. 4:34:32enough imperfection to create that
  7340. 4:34:34authentic, slightly used feel can go a
  7341. 4:34:36long way in evoking memories of that
  7342. 4:34:38battered old toy we dug out from the
  7343. 4:34:40attic or the scuffed bracelet we
  7344. 4:34:42inherited from our grandmother. Have you
  7345. 4:34:45noticed the market for pre-washed
  7346. 4:34:46t-shirts? Rationally, we tell ourselves
  7347. 4:34:49that we buy them because they don't
  7348. 4:34:51shrink in the washer or dryer. But
  7349. 4:34:53emotionally, it has more to do with
  7350. 4:34:55their authentic tattered look. Goodwill
  7351. 4:34:57and the Salvation Army are among the
  7352. 4:34:59most popular destinations nowadays among
  7353. 4:35:01teenage girls for whom it's become cool
  7354. 4:35:04to doubt the authenticity of such
  7355. 4:35:05manipulated clothing emporiums as
  7356. 4:35:07Abberrombi and Fitch, Hollister, and
  7357. 4:35:09American Apparel. I recently visited a
  7358. 4:35:12Trader Joe's where they were having a
  7359. 4:35:14sale on the luxury chocolate Gerard
  7360. 4:35:16Deli. But the usual fancy wrappers and
  7361. 4:35:19glitz boxes were nowhere in sight.
  7362. 4:35:22Instead, they were selling bulk Gardelli
  7363. 4:35:24chocolate chunks packed in large brown
  7364. 4:35:26paper bags branded with old-fashioned
  7365. 4:35:28handwriting. Inside were bits of
  7366. 4:35:30chocolate cut into uneven pieces as
  7367. 4:35:32though a chocolate maker at a mom and
  7368. 4:35:34pop candy shop had chopped them by hand.
  7369. 4:35:36There was no doubt that this looked as
  7370. 4:35:38authentic as could be until I happened
  7371. 4:35:40to buy two bags and coincidentally
  7372. 4:35:42discovered that the pieces were
  7373. 4:35:44identical. The broken chunks were not
  7374. 4:35:46hand cut at all. They were molded by a
  7375. 4:35:49machine to look like randomly broken
  7376. 4:35:51pieces. Most consumers are drawn to
  7377. 4:35:54small imperfections and companies know
  7378. 4:35:56it. It's an aesthetic the Japanese term
  7379. 4:35:58wabishabi which can be translated as the
  7380. 4:36:01art of finding beauty in nature. whether
  7381. 4:36:04it's a brown spot on a banana or a knot
  7382. 4:36:06in the bark of a tree. To illustrate, I
  7383. 4:36:09have a friend whose father was the
  7384. 4:36:10Australian ambassador to Japan. One day,
  7385. 4:36:13she told me her father was seated in his
  7386. 4:36:16garden in the middle of Tokyo sipping
  7387. 4:36:18tea. 50 ft away from him, a gardener was
  7388. 4:36:21going around picking up fallen leaves.
  7389. 4:36:23It took him two full hours to complete
  7390. 4:36:25the job. Then when there was not a
  7391. 4:36:28single leaf remaining on the ground, the
  7392. 4:36:30gardener disappeared for 20 minutes,
  7393. 4:36:32came back and started carefully and
  7394. 4:36:34tenderly placing leaves randomly onto
  7395. 4:36:36the lawn. One here, two over there, and
  7396. 4:36:39so on. Why? Because the leafless lawn
  7397. 4:36:42looked unnatural. It looked too perfect.
  7398. 4:36:46Perfection makes us as consumers leery.
  7399. 4:36:49As everyone knows, nothing is truly
  7400. 4:36:51perfect ever. And so when it appears to
  7401. 4:36:53be, we subconsciously seek out the flaw.
  7402. 4:36:55the inauthenticity. We glimpse a
  7403. 4:36:58perfectly shaped hamburger in the
  7404. 4:37:00supermarket, and it suddenly reminds us
  7405. 4:37:02that we're eating mass-roduced beef from
  7406. 4:37:04an industrial slaughterhouse. We see a
  7407. 4:37:07wallet at Old Navy lined with impeccably
  7408. 4:37:09stitched and identically dyed pairs of
  7409. 4:37:11jeans, and we can all but picture them
  7410. 4:37:13rolling off the assembly line in a
  7411. 4:37:15Chinese sweat shop. We're sick and tired
  7412. 4:37:17of picture perfect babies and flawless
  7413. 4:37:20models. Why do we love YouTube videos so
  7414. 4:37:23much? because they're imperfect,
  7415. 4:37:25amateurish, and the people in them
  7416. 4:37:27remind us of us. Recently, there's been
  7417. 4:37:29a trend of using real people in
  7418. 4:37:31mainstream movies and TV shows, and it's
  7419. 4:37:34one I predict will get bigger and
  7420. 4:37:36bigger. According to a 2010 article in
  7421. 4:37:38the New York Times, television
  7422. 4:37:40executives at Fox Broadcasting, for
  7423. 4:37:42example, say they have begun recruiting
  7424. 4:37:44more natural-looking actors from
  7425. 4:37:46Australia and Britain because the amply
  7426. 4:37:48endowed, freakishly young-looking crowd
  7427. 4:37:50that shows up for auditions in Los
  7428. 4:37:51Angeles suffers from too much sameness.
  7429. 4:37:5413. But what is authentic anyway?
  7430. 4:37:58Websters defines it as worthy of
  7431. 4:38:00acceptance and belief. But when it comes
  7432. 4:38:02to the shady corners of the marketing
  7433. 4:38:04and advertising world, that can mean a
  7434. 4:38:07lot of different things. Is canned
  7435. 4:38:09laughter authentic? Is the Paris Hotel
  7436. 4:38:11in Las Vegas authentic? Is the sweater
  7437. 4:38:14from H&M or the skirt from Zara that
  7438. 4:38:17looks just like the one we saw on the
  7439. 4:38:18runways during fashion week, but at
  7440. 4:38:20quadruple the price authentic? I would
  7441. 4:38:23answer technically yes, as in all cases,
  7442. 4:38:26each one is true to what it intends to
  7443. 4:38:28be. But at the same time, one could also
  7444. 4:38:30argue these are mere imitations, clever
  7445. 4:38:33PS to trick our brains into thinking
  7446. 4:38:35we're getting the real thing. These
  7447. 4:38:37kinds of strategies are old hat for
  7448. 4:38:39marketers and advertisers. But I've
  7449. 4:38:41recently begun to notice an interesting
  7450. 4:38:44shift. These days, many marketers are
  7451. 4:38:46introducing tiny, subtle imperfections
  7452. 4:38:48into their products in an attempt to
  7453. 4:38:50create the impression of authenticity or
  7454. 4:38:52what I call inauthentic authenticity.
  7455. 4:38:55This is why in places like Whole Foods,
  7456. 4:38:58we're seeing more and more Brussels
  7457. 4:38:59sprouts and tomatoes still tethered to
  7458. 4:39:01their stocks. Many with dirt still
  7459. 4:39:03clinging to the roots and leaves still
  7460. 4:39:05hanging from the stocks. We're seeing
  7461. 4:39:07more handwritten signs that mimic the
  7462. 4:39:09messy scroll of a roadside fruit and
  7463. 4:39:11vegetable stand, more dusty wooden
  7464. 4:39:13crates, more rustic cardboard boxes,
  7465. 4:39:15more packages that look as though they
  7466. 4:39:17were wrapped casually, messily by loving
  7467. 4:39:19human hands, when in fact a machine
  7468. 4:39:21packaged these containers, in some cases
  7469. 4:39:23with the sticker deliberately attached
  7470. 4:39:25crookedly in an overseas factory. And
  7471. 4:39:27all in the service of pushing our
  7472. 4:39:29nostalgia buttons, evoking a rosy
  7473. 4:39:31remembrance of a simpler time that may
  7474. 4:39:33or may not have ever existed. But the
  7475. 4:39:36tricks Whole Foods plays aren't the only
  7476. 4:39:39ones companies have in their nostalgia
  7477. 4:39:41playbooks. So, let's focus now on
  7478. 4:39:43another variant of nostalgia marketing,
  7479. 4:39:45the old-fashioned kind. Haven't I seen
  7480. 4:39:48you somewhere before? One of the
  7481. 4:39:51classic, literally, and most effective
  7482. 4:39:53ways companies create the nostalgia
  7483. 4:39:55factor is by dusting off and
  7484. 4:39:56re-releasing commercials, slogans, or ad
  7485. 4:39:59campaigns from the past. Few have pulled
  7486. 4:40:01this off better than Hines did in 2009
  7487. 4:40:04when it revived its famous 1970s
  7488. 4:40:06tagline, "Beans means Hines." 14.
  7489. 4:40:09Hines's new, or rather old,
  7490. 4:40:11advertisement features loving mothers
  7491. 4:40:12feeding their kids plates heaped with
  7492. 4:40:14Hines beans to the backdrop of catchy
  7493. 4:40:16slogans like, "Sometimes when I'm
  7494. 4:40:17feeling sad, my mom will read the signs.
  7495. 4:40:20She knows the thing to cheer me up, and
  7496. 4:40:22she knows that beans means Hines." This
  7497. 4:40:24ad was so memorable, it was voted the
  7498. 4:40:27most popular slogan by the advertising
  7499. 4:40:29hall of fame nearly three decades after
  7500. 4:40:31its original launch. The British company
  7501. 4:40:34Hov has adapted an identical approach.
  7502. 4:40:37In one advertisement, consumers see a
  7503. 4:40:39retake of Ridley Scott's original 1,973
  7504. 4:40:43at showing a boy on a bike riding
  7505. 4:40:45through dodgy eras in British history
  7506. 4:40:47from the Blitz to the minor strikes. The
  7507. 4:40:50implicit message. No matter what we've
  7508. 4:40:52been through, Hovus has always been
  7509. 4:40:54there for us. 15. It worked in 1973 and
  7510. 4:40:57worked again in 2009. So well that it
  7511. 4:41:00boosted sales 11%. 16. Even banks and
  7512. 4:41:05tire makers have gotten into the slogan
  7513. 4:41:07repurposing act. Cityroup has recently
  7514. 4:41:09brought back its original 1,978
  7515. 4:41:12tagline, "The city never sleeps," in an
  7516. 4:41:15attempt to seem safer and more
  7517. 4:41:16trustworthy by hearkening back to a time
  7518. 4:41:18before just about everybody hated and
  7519. 4:41:20distrusted Banks. And Michelin is
  7520. 4:41:23bringing back its celebrated icon, the
  7521. 4:41:25Michelin man, created way back in 1898,
  7522. 4:41:28though in its latest incarnation, bowing
  7523. 4:41:30to contemporary health concerns, he
  7524. 4:41:32slims down. 17. All State Insurance's
  7525. 4:41:35new TV ads feature a spokesperson
  7526. 4:41:36strolling through a montage of Great
  7527. 4:41:38Depression era photographs while in
  7528. 4:41:40toning. 1931 was not exactly a great
  7529. 4:41:43year to start a business. But that's
  7530. 4:41:44when all state opened its doors. And
  7531. 4:41:47through the 12 recessions since, they've
  7532. 4:41:49noticed that after the fears subside, a
  7533. 4:41:51funny thing happens. People start
  7534. 4:41:53enjoying the small things in life. It's
  7535. 4:41:56back to basics. And the basics are good.
  7536. 4:41:59Protect them. Put them in good hands.
  7537. 4:42:0218. I began working for Pepsi around the
  7538. 4:42:05time the company launched its retro
  7539. 4:42:07inpired real sugar versions of two of
  7540. 4:42:09its most beloved drinks, which it
  7541. 4:42:11decided to nostalgically dub Mountain
  7542. 4:42:13Dew Throwback and Pepsi Throwback, using
  7543. 4:42:16all natural sweeteners popular during
  7544. 4:42:18the 1960s and 70s. The throwback
  7545. 4:42:20campaign even included a Facebook app
  7546. 4:42:22designed to make a Facebook users photo
  7547. 4:42:25retro or pose him or her behind a retro
  7548. 4:42:27looking template. Well, the viral buzz
  7549. 4:42:29was absolutely staggering, garnering
  7550. 4:42:31over 2 million website mentions, 24,000
  7551. 4:42:34blog posts, hundreds of YouTube videos
  7552. 4:42:36combined with a whirlwind of Facebook
  7553. 4:42:38and Twitter activity. 19. On the luxury
  7554. 4:42:42side, Louis Vuitton recently rolled out
  7555. 4:42:44nostalgic ads featuring Shan Connory and
  7556. 4:42:47Katherine Denuf, symbols of the
  7557. 4:42:48lacquered glamour of old Hollywood.
  7558. 4:42:50Another Vuitton ad recalls a bygone era
  7559. 4:42:53by featuring astronauts Buzz Aldrin,
  7560. 4:42:55Sally Ride, and Jim Lavvel, each
  7561. 4:42:56representing a past generation of space
  7562. 4:42:58explorers. They're perched in a
  7563. 4:43:00secondhand Western pickup truck, gazing
  7564. 4:43:03up at the night sky. But they might as
  7565. 4:43:04well be glancing back, aruck at history
  7566. 4:43:07itself. When you think about it, this
  7567. 4:43:10strategy is really quite brilliant. By
  7568. 4:43:12re-releasing ads and commercials from
  7569. 4:43:14our youth, or in the case of Michelin,
  7570. 4:43:16our grandparents' youth, companies are
  7571. 4:43:18not only triggering our nostalgia for
  7572. 4:43:20that time, they're creating an
  7573. 4:43:21association in our brains between our
  7574. 4:43:23rosy memories of the era and their
  7575. 4:43:25product. It doesn't matter if we never
  7576. 4:43:28once ate Hines beans or banked at City
  7577. 4:43:30Bank in our lives. Those old ads still
  7578. 4:43:33trigger memories of all the other things
  7579. 4:43:35we lovingly remember from that time
  7580. 4:43:37while at the same time costing the
  7581. 4:43:39company next to nothing. In Boon Beach,
  7582. 4:43:42Florida, a town populated mostly by
  7583. 4:43:44retirees, a new free publication
  7584. 4:43:46entitled Nostalgic America attempts to
  7585. 4:43:49hook senior citizens by pairing local
  7586. 4:43:51ads with iconic images from yester year.
  7587. 4:43:54For example, a photograph of the Beatles
  7588. 4:43:561,964
  7589. 4:43:58at Sullivan show appearance accompanies
  7590. 4:43:59an ad for a long-term care facility, and
  7591. 4:44:02a photo of Jean Kelly crewing singing in
  7592. 4:44:04the rain is pictured alongside a
  7593. 4:44:06business selling final expense
  7594. 4:44:07insurance. 21. about the 1,951
  7595. 4:44:11ad for the debut of the TV classic I
  7596. 4:44:14Love Lucy, situated next to a reverse
  7597. 4:44:16mortgage pitch. Still, few crafty
  7598. 4:44:18advertising campaigns aimed at seniors
  7599. 4:44:21can compare with the Social Security
  7600. 4:44:22Administration tapping musician Chubby
  7601. 4:44:24Checker to promote its program in ads
  7602. 4:44:26that feature a black and white video of
  7603. 4:44:28Checker doing the twist with dancers
  7604. 4:44:30dressed in 1960s attire. As Mr. checker
  7605. 4:44:33comes into color. He says a new twist in
  7606. 4:44:36the law makes it easier than ever to
  7607. 4:44:37save on your Medicare prescription drug
  7608. 4:44:39plans. 21. It might not surprise you to
  7609. 4:44:43learn that your everyday supermarket,
  7610. 4:44:45not just those high-end mega stores like
  7611. 4:44:47Whole Foods, is lousy with examples of
  7612. 4:44:50nostalgia marketing. Let's look at
  7613. 4:44:52cereals. Note that the iconic Tony the
  7614. 4:44:55Tiger who has been around since 1952 on
  7615. 4:44:58the box of frosted flakes is appealing
  7616. 4:45:00to the child buried inside the adult who
  7617. 4:45:02dreamed of growing up to be strong and
  7618. 4:45:04powerful. Similarly, the Australian
  7619. 4:45:07brand Neutrorain most commonly consumed
  7620. 4:45:09by males between the ages of 40 and 50
  7621. 4:45:11is aggressively marketed to the little
  7622. 4:45:13boy who wants to someday grow up to
  7623. 4:45:15become an Iron Man hunk. The brand is
  7624. 4:45:17the official sponsor of the 2011 Iron
  7625. 4:45:19Man series, and if you go to the
  7626. 4:45:21website, you'll be assaulted by photos
  7627. 4:45:23of youthful, ripped athletes. I would
  7628. 4:45:26also argue that cereal in and of itself
  7629. 4:45:28is a nostalgia product. Go to any
  7630. 4:45:31college or university cafeteria, and
  7631. 4:45:33you'll find a surprising number of
  7632. 4:45:34homesick students shoveling the stuff
  7633. 4:45:36into their mouths. Why? Sure, they might
  7634. 4:45:40like the taste, but it's also a lifeline
  7635. 4:45:42to their parents, to comfort, and to the
  7636. 4:45:44familiarity of childhood. Cheerios,
  7637. 4:45:46tricks, and cocoa puffs have all
  7638. 4:45:48undergone a 180 degree retro repackaging
  7639. 4:45:51and are sold nowadays in vintage boxes.
  7640. 4:45:54And if you really want to step into a
  7641. 4:45:55time machine, watch one of those new
  7642. 4:45:57black and white Rice Krispies
  7643. 4:45:59commercials in which mom, dad, grandma,
  7644. 4:46:01and their precious band of little ones
  7645. 4:46:03mix up some Rice Krispies treat
  7646. 4:46:05memories. The retro food marketing trend
  7647. 4:46:08doesn't stop with cereal. In 2009,
  7648. 4:46:11Nabiscoco brought out vintage renditions
  7649. 4:46:13of Ritz crackers and Oreo cookies. While
  7650. 4:46:15Hawaiian Punch has brought back its
  7651. 4:46:17classic tagline, how about a nice
  7652. 4:46:19Hawaiian Punch? And Jify Pop Popcorn
  7653. 4:46:22tells consumers, "Some things are even
  7654. 4:46:24better than you remember." And a few
  7655. 4:46:26years ago, Annheiser Bush rolled out a
  7656. 4:46:28reproduction of its first ever Budweiser
  7657. 4:46:30can from 1,936,
  7658. 4:46:33complete with a three-step illustration
  7659. 4:46:35showing consumers how to drink the
  7660. 4:46:36thing. Back in those days, beer in a can
  7661. 4:46:39was unheard of. Speaking of dated
  7662. 4:46:41beverages, could that possibly be Tab on
  7663. 4:46:43the soda shelf? Tab, the favorite soft
  7664. 4:46:46drink of countless female dieters from
  7665. 4:46:48the 1970s is still around. You bet. And
  7666. 4:46:52its original lettering in an oversized
  7667. 4:46:54jutting font has even been retained.
  7668. 4:46:56It's straight out of that girl or the
  7669. 4:46:58Partridge family. Past the soda aisle,
  7670. 4:47:01we make our way toward a vast selection
  7671. 4:47:03of chocolates. Whitman's samplers.
  7672. 4:47:06Funny, the box looks like a patchwork
  7673. 4:47:08quilt, just like the one grandma used to
  7674. 4:47:11have. Werether's caramels. Anyone
  7675. 4:47:14remember the TV ads where Robert
  7676. 4:47:16Rockwell played the kindly grandfather
  7677. 4:47:18lovingly offering a caramel to his
  7678. 4:47:20sweet, innocent looking grandson? Talk
  7679. 4:47:22about nostalgia. And in 2007, the frozen
  7680. 4:47:26food brand Swanson, rebranding itself as
  7681. 4:47:28Swanson Classics, relaunched a line of
  7682. 4:47:30original TV dinners, which included such
  7683. 4:47:321950s staples as chicken pot pie,
  7684. 4:47:35salsberry steak with corn and mashed
  7685. 4:47:36potatoes and meatloaf, all served in
  7686. 4:47:38that iconic segmented styrofoam tray of
  7687. 4:47:41our youth. Of course, marketers know
  7688. 4:47:43that we as consumers are hungry for any
  7689. 4:47:46relic of our past. And not just when it
  7690. 4:47:48comes to food. When we buy a Monopoly or
  7691. 4:47:51part cheesey set or a Rubik's cube, for
  7692. 4:47:53example, we aren't just buying a toy or
  7693. 4:47:55a game. We're purchasing a trip back to
  7694. 4:47:57our childhood. This is why Target has
  7695. 4:48:00reintroduced what the chain calls
  7696. 4:48:01selected retro toys, including sock
  7697. 4:48:04monkeys and gumball machines. We're even
  7698. 4:48:06more likely to buy a game that a brand
  7699. 4:48:09rolled out last week, but that looks
  7700. 4:48:11like a relic of our youth. Take the
  7701. 4:48:13popular Hasbro game taboo. It was
  7702. 4:48:16introduced in the late '9s, but includes
  7703. 4:48:17an old school hourglass instead of a
  7704. 4:48:20timer, which always makes me think of
  7705. 4:48:21The Wizard of Oz, another childhood
  7706. 4:48:23classic, and has a very simple, retro
  7707. 4:48:26look. Nostalgia is also one reason why
  7708. 4:48:28Best Buy, the giant electronics
  7709. 4:48:30retailer, has recently devoted shelf
  7710. 4:48:32space in 100 stores around the United
  7711. 4:48:34States to LP Records. Yes, you read that
  7712. 4:48:37right, Elps. Those bizarre black
  7713. 4:48:39spinning things that make a crackling
  7714. 4:48:40sound when the needle reaches the end.
  7715. 4:48:43Despite the fact that most CD stores
  7716. 4:48:45have closed to make way for the MP3
  7717. 4:48:47generation, vinyl is making a serious
  7718. 4:48:49comeback. Go on eBay and you'll find
  7719. 4:48:51people auctioning off thousands of old
  7720. 4:48:53records, sometimes for hundreds of
  7721. 4:48:55dollars or more. Facebook groups and fan
  7722. 4:48:58sites for lovers of vinyl, and Best Buy
  7723. 4:49:00has deemed its vinyl experiment an
  7724. 4:49:02unqualified success. Some brands and
  7725. 4:49:05products are even going so far as to
  7726. 4:49:08make up a past they don't have. How old
  7727. 4:49:10do you think Bailey's the Irish whiskey
  7728. 4:49:12and creambased lur is? 100
  7729. 4:49:16150. After all, it terms itself the
  7730. 4:49:19original and comes in an authentic
  7731. 4:49:21looking bottle designed to denote the
  7732. 4:49:23good old days. But in reality, Bailey's
  7733. 4:49:26Irish cream will turn a mere 37 this
  7734. 4:49:28year. And those brands unwilling to
  7735. 4:49:30invent a history can buy one. In an
  7736. 4:49:32auction held last year in New York,
  7737. 4:49:34defunct names like Lucky Whip, Handy
  7738. 4:49:36Wrap, Plastic Wrap, and Snowcrop Orange
  7739. 4:49:38Juice, and even such oldtime media names
  7740. 4:49:40as Collier's Magazine and Saturday
  7741. 4:49:42Review came up for sale. 22. The winners
  7742. 4:49:45not only bought a trusted, time-tested
  7743. 4:49:47brand name, they purchased the memories
  7744. 4:49:49of an entire generation. Even places
  7745. 4:49:52designed to recall the texture of a
  7746. 4:49:54bygone era can be extraordinarily
  7747. 4:49:56seductive. Think about your favorite
  7748. 4:49:59restaurant or watering hole. Does it
  7749. 4:50:01have the thick oak bar and wood paneling
  7750. 4:50:04of a 20s saloon? The chrome booths,
  7751. 4:50:07fluorescent lighting, and tabletop
  7752. 4:50:08jukebox of a 50s diner. The dark
  7753. 4:50:11mahogany and leather of an old 18th
  7754. 4:50:14century steakhouse. Does it actually
  7755. 4:50:16date back to the era it's meant to
  7756. 4:50:18recreate? Probably not. More likely,
  7757. 4:50:22some smart marketer knew that making it
  7758. 4:50:24look and feel old-fashioned would help
  7759. 4:50:26lure in crowds and dollars. As a recent
  7760. 4:50:29New York Times article reported, this
  7761. 4:50:31has become a trend in New York's Hip
  7762. 4:50:33West Village neighborhood, where a pride
  7763. 4:50:34of reincarnated restaurants, each taking
  7764. 4:50:37a different area of history for
  7765. 4:50:39inspiration, have turned the
  7766. 4:50:40neighborhood into a theme park of the
  7767. 4:50:42past. As the article goes on to note,
  7768. 4:50:45designers say it is important to give a
  7769. 4:50:47room a detailed storyline that harks
  7770. 4:50:49back to a more intimate way of life. 23.
  7771. 4:50:53The future of the past. Happiness is not
  7772. 4:50:56something you experience, it's something
  7773. 4:50:58you remember. 24 Oscar Levant was once
  7774. 4:51:01quoted as saying, "All these brands and
  7775. 4:51:04companies I've talked about know that
  7776. 4:51:05for most of us, the past is always
  7777. 4:51:07better than the present. Quite simply,
  7778. 4:51:09it is how our brains are hardwired. When
  7779. 4:51:12you think about it, it's one of the
  7780. 4:51:14nicer tricks our brains play on us as it
  7781. 4:51:16protects us from painful memories and
  7782. 4:51:18instills in us an optimism that things
  7783. 4:51:20will be good again. But the danger of
  7784. 4:51:23course is that it also makes us
  7785. 4:51:24unwitting suckers for anything from
  7786. 4:51:26bruised apples to sock monkeys to
  7787. 4:51:28classic motorcycles that reminds us of
  7788. 4:51:31being young. And scarier still,
  7789. 4:51:33sometimes all it takes is a subtle
  7790. 4:51:34subconscious cue like a few bars of a
  7791. 4:51:36song or some old-fashioned lettering or
  7792. 4:51:38a picture of a dead movie star to
  7793. 4:51:40unleash that sly seductress nostalgia in
  7794. 4:51:42us. As America's roughly 78 million baby
  7795. 4:51:46boomers reach their 60s, there is no
  7796. 4:51:48doubt in my mind that nostalgia will
  7797. 4:51:50most likely play an even more integral
  7798. 4:51:53role in marketing than it does today. At
  7799. 4:51:55a time when technology is advancing at
  7800. 4:51:57an everinccreasing pace, legendary
  7801. 4:51:59brands and institutions from Woolworths
  7802. 4:52:01to Tower Records are toppling left and
  7803. 4:52:03right, and nothing feels durable or
  7804. 4:52:05lasting. We as consumers are clinging
  7805. 4:52:07even more protectively to those brands
  7806. 4:52:09that not only have endured from our
  7807. 4:52:11childhoods, but reawaken us and allow us
  7808. 4:52:13to relive the memories from that
  7809. 4:52:15simpler, more stable time. Speaking of
  7810. 4:52:18which, remember the woman I spoke about
  7811. 4:52:20earlier in this chapter who swears that
  7812. 4:52:22the Mars bars from France taste better
  7813. 4:52:24than the same Mars bars manufactured in
  7814. 4:52:27the United States. I believe her. Bear
  7815. 4:52:30with me for a moment and you'll see why.
  7816. 4:52:33For the past few decades, I would say
  7817. 4:52:36nine out of 10 new French parents have
  7818. 4:52:38given their babies Evian water. For
  7819. 4:52:40French parents, it's become a minor
  7820. 4:52:42superstition of sorts. Unless they give
  7821. 4:52:44little France water a bottle or cup of
  7822. 4:52:46Evian, the child won't turn out to be a
  7823. 4:52:49successful adult. Many young French
  7824. 4:52:51families keep two separate bottles of
  7825. 4:52:53water at home, Evian for their babies
  7826. 4:52:55and another brand of bottled water for
  7827. 4:52:57themselves. In the introduction to this
  7828. 4:53:00book, I spoke about the influence
  7829. 4:53:02parents have over their children's
  7830. 4:53:03choice of brands and how whether it's
  7831. 4:53:05the ketchup or mustard in the fridge or
  7832. 4:53:07the scent of shaving cream or perfume
  7833. 4:53:09our parents used, we carry throughout
  7834. 4:53:11our adult lives of fondness for those
  7835. 4:53:14products we grew up with. As it turns
  7836. 4:53:16out, it's not just our personal past
  7837. 4:53:18that can affect our brand preferences
  7838. 4:53:20for years to come. We also have an
  7839. 4:53:23abnormal attachment to past tastes and
  7840. 4:53:25flavors of our history and culture. A
  7841. 4:53:28few years back, Danon, one of the
  7842. 4:53:30world's largest food and beverage
  7843. 4:53:32companies and the manufacturer of Evian
  7844. 4:53:34water, decided that since it was so
  7845. 4:53:36successful in France, why not try to
  7846. 4:53:38penetrate China, which with its more
  7847. 4:53:40than 1 billion potential Evian drinkers
  7848. 4:53:42was a potentially lucrative market.
  7849. 4:53:45Normally, Danon taps its Evian water in
  7850. 4:53:47the French Alps before shipping it to
  7851. 4:53:49retailers and customers across the
  7852. 4:53:51globe. But given that water is quite
  7853. 4:53:53heavy, the costs of shipping all the way
  7854. 4:53:56to China proved to be so financially
  7855. 4:53:58challenging that Danon made a fateful
  7856. 4:54:00executive decision. The company
  7857. 4:54:02executives summoned French water quality
  7858. 4:54:04experts to inspect hundreds of local
  7859. 4:54:06Chinese wells in an attempt to find one
  7860. 4:54:09that met the quality of the French Evian
  7861. 4:54:11water. Millions of dollars in expenses
  7862. 4:54:14later, they uncovered the perfect well,
  7863. 4:54:16or so they thought, and began pumping
  7864. 4:54:18and manufacturing the Chinese variant of
  7865. 4:54:20Evian water. It was a flop and across
  7866. 4:54:23the board disaster. When you think about
  7867. 4:54:26it, it's not hard to see why French
  7868. 4:54:28consumers would turn their noses up at
  7869. 4:54:30the stuff. After all, for many
  7870. 4:54:32Westerners, China conotes pollution and
  7871. 4:54:34industrial waste. Not exactly qualities
  7872. 4:54:37we'd want in our drinking water,
  7873. 4:54:39especially if we were used to getting it
  7874. 4:54:40from the verdant, picturesque natural
  7875. 4:54:42wonder in our backyard. But as it turned
  7876. 4:54:45out, Chinese consumers wouldn't touch it
  7877. 4:54:47either. What was going on? As everyone
  7878. 4:54:50knows, the taste of water is
  7879. 4:54:52frustratingly difficult to put into
  7880. 4:54:54words. Water tastes like everything. It
  7881. 4:54:57tastes like nothing. It tastes like air.
  7882. 4:54:59It tastes like glass. It tastes like a
  7883. 4:55:02cold night. So, an Evian research group
  7884. 4:55:04tasked with figuring out why the Chinese
  7885. 4:55:06hated the water so much decided not to
  7886. 4:55:09bother asking them what they thought of
  7887. 4:55:10the taste of the water. Instead, they
  7888. 4:55:12asked them questions about their
  7889. 4:55:14childhoods. Among them were, "Where did
  7890. 4:55:16you play when you were young? What was
  7891. 4:55:18the first drink you recall drinking as a
  7892. 4:55:21child? And which drink did your parents
  7893. 4:55:23forbid you to drink, but you drank
  7894. 4:55:26anyway? The results explained
  7895. 4:55:28everything. Just two decades earlier,
  7896. 4:55:31metropolitan cities like Beijing,
  7897. 4:55:33Shanghai, and Guangjo had been farmland
  7898. 4:55:35complete with crops, cows, and farming
  7899. 4:55:37traditions. Roughly 60% of the Chinese
  7900. 4:55:40labor force worked in agriculture. By
  7901. 4:55:431,990,
  7902. 4:55:44this number had fallen to 30%. In the
  7903. 4:55:47mid 1990s, it dropped further once the
  7904. 4:55:50Chinese industrial revolution
  7905. 4:55:52reorganized certain cities into economic
  7906. 4:55:54redevelopment zones and the government
  7907. 4:55:56bulldozed farmland in preparation for
  7908. 4:55:58building factories.
  7909. 4:56:00Remember that most of the time we as
  7910. 4:56:02consumers are seeking to activate and
  7911. 4:56:04recreate taste memories from long ago,
  7912. 4:56:06though we're not always conscious of it.
  7913. 4:56:08This was what was going on with Evian
  7914. 4:56:11water in China. Chinese consumers
  7915. 4:56:13weren't used to the bustling urban China
  7916. 4:56:15of today. Most of them had grown up in
  7917. 4:56:18agrarian surroundings that were more
  7918. 4:56:20like the French Alps than modern-day
  7919. 4:56:22Shenzhen, and had grown accustomed, like
  7920. 4:56:24the French, to the faintest, subtlest
  7921. 4:56:26taste of green vegetation in their
  7922. 4:56:28drinking water, even the bottled stuff.
  7923. 4:56:30Farmland can turn into factories, but
  7924. 4:56:32memories are forever green. So, when
  7925. 4:56:34Evian rolled out the new China sourced
  7926. 4:56:36water, Chinese consumers felt deprived
  7927. 4:56:39of the taste of their childhoods, which
  7928. 4:56:41is where Evian's experts had gone wrong.
  7929. 4:56:44They thought they were marketing to the
  7930. 4:56:46China of today, not the China of yestery
  7931. 4:56:48year. Based on the answers to the survey
  7932. 4:56:51questions, Evian had no choice but to
  7933. 4:56:53hunt down wells in China that after
  7934. 4:56:55filtration still boasted a faint,
  7935. 4:56:57grassy, moldy note. This wise shift in
  7936. 4:57:00strategy not only altered how Danon and
  7937. 4:57:02Evian decided to operate their future
  7938. 4:57:04international businesses, but today has
  7939. 4:57:06made Danon the third largest player in
  7940. 4:57:08the Chinese water market. which is a
  7941. 4:57:11long way of saying that I'll bet my
  7942. 4:57:13American friend is right about those
  7943. 4:57:15French Mars bars. To her, at least they
  7944. 4:57:18do taste better than the American ones.
  7945. 4:57:20Oh, this same friend recently joined
  7946. 4:57:23Facebook. She's reffriended several of
  7947. 4:57:25her old classmates from her old French
  7948. 4:57:27lys talk about reliving old times and
  7949. 4:57:30they all agree with her about the Mars
  7950. 4:57:31bars, the probable cause, French cows,
  7951. 4:57:34French milk, French grass growing on
  7952. 4:57:36French soil, and maybe, okay, just
  7953. 4:57:39maybe, nostalgia.
  7954. 4:57:41Chapter 7. According to nationwide
  7955. 4:57:44polls, a faraway royal family's
  7956. 4:57:46popularity ratings were tanking. The
  7957. 4:57:48public was questioning, as they tended
  7958. 4:57:50to do every few years, whether the royal
  7959. 4:57:53family was really worth it. All that tax
  7960. 4:57:55money spent maintaining palaces, paying
  7961. 4:57:58guards, keeping up regal appearances,
  7962. 4:58:00and for what? What exactly do the royals
  7963. 4:58:02do to earn their keep? The royal family
  7964. 4:58:05was facing a PR crisis, and their
  7965. 4:58:07advisers were desperate, which is when
  7966. 4:58:09my telephone rang. Would I be available
  7967. 4:58:12to help strengthen the royal family's
  7968. 4:58:14image to advise it on how it might
  7969. 4:58:17restore its high national ratings? In
  7970. 4:58:19other words, could I help reinvent and
  7971. 4:58:22reinvigorate the royal family's brand?
  7972. 4:58:25After a few conversations, I found
  7973. 4:58:27myself in the employee of one of the
  7974. 4:58:29more recognized families in the entire
  7975. 4:58:31world. There's something about royalty
  7976. 4:58:33that ignites most people's imaginations
  7977. 4:58:35and aspirations. After all, who wouldn't
  7978. 4:58:38want to be a member of royalty and live
  7979. 4:58:40a life of swank balls, elegant clothing,
  7980. 4:58:42sumptuous food, shimmering diamonds, and
  7981. 4:58:45attentive weight staff? Royalty plays a
  7982. 4:58:47part in every fairy tale and fantasy
  7983. 4:58:49most children and plenty of adults to
  7984. 4:58:52ever read or see in the movies. As
  7985. 4:58:54Martantos Aranda, a design manager at
  7986. 4:58:56LEGO's concept lab in Barcelona, Spain,
  7987. 4:58:59notes, according to the company's
  7988. 4:59:01studies, young girls are hardwired to
  7989. 4:59:03grow up wanting to be princesses. They
  7990. 4:59:05even want to sleep with their princess
  7991. 4:59:07costumes. She told me, "Even the richest
  7992. 4:59:10and most powerful people on earth, from
  7993. 4:59:12billionaire CEOs to Hollywood mega
  7994. 4:59:14stars, turn into flustered, tongueti
  7995. 4:59:16children when they come in contact with
  7996. 4:59:18royalty. And even the richest, most
  7997. 4:59:20successful CEOs in the world, including
  7998. 4:59:22Bill Gates, pony up enormous sums to
  7999. 4:59:24dine with the UK's royal family. It's
  8000. 4:59:26because in our culture, royalty is the
  8001. 4:59:28highest class there is. It's the
  8002. 4:59:30ultimate celebrity, the pinnacle of
  8003. 4:59:32fame, status, and envy. What most people
  8004. 4:59:35don't know, however, is that this image
  8005. 4:59:37doesn't come easy. That behind the
  8006. 4:59:39scenes, a royal family is actually a
  8007. 4:59:41high-end brand like any other one that
  8008. 4:59:43is carefully, deliberately, and
  8009. 4:59:45consistently cultivated and maintained.
  8010. 4:59:48So much so that royal families across
  8011. 4:59:50Europe actually meet on a regular basis
  8012. 4:59:52to compare notes and exchange
  8013. 4:59:54experiences and craft long-term
  8014. 4:59:56strategies. As someone in the know once
  8015. 4:59:58said to me, the difference between a
  8016. 5:00:00royal family and a brand is that a brand
  8017. 5:00:02is focused on the next 6 months, while a
  8018. 5:00:05royal family typically has a marketing
  8019. 5:00:07plan for the next 75 years. Among other
  8020. 5:00:10things, keeping up a royal image
  8021. 5:00:12involves maintaining the delicate
  8022. 5:00:14balance between fantasy and reality,
  8023. 5:00:16distance and familiarity. It's important
  8024. 5:00:18for the royals to stay relevant, but
  8025. 5:00:21when they become too real or overly
  8026. 5:00:23familiar, they lose their magic. In
  8027. 5:00:252003, for example, when a reporter for
  8028. 5:00:28the UK's Daily Mirror working undercover
  8029. 5:00:30as a palace footman at Buckingham Palace
  8030. 5:00:32snapped a photo of a Tupperware
  8031. 5:00:34container adorning the royal breakfast
  8032. 5:00:36table, the public was horrified. One,
  8033. 5:00:38they didn't want members of royalty
  8034. 5:00:40using Tupperware. They wanted them to be
  8035. 5:00:43eating from gilded bowls using spoons of
  8036. 5:00:46antique silver. But at the same time, if
  8037. 5:00:48royals behave too loftily or
  8038. 5:00:50high-handedly, they risk that the
  8039. 5:00:52public, who generally foots their bill,
  8040. 5:00:54may perceive them as hotty, remote, and
  8041. 5:00:56out of touch. In the industry, we call
  8042. 5:00:59this the pixie dust phenomenon. And it
  8043. 5:01:01springs from the idea that every time
  8044. 5:01:03celebrities and what they stand for
  8045. 5:01:05interact with the public, they either
  8046. 5:01:06gain or lose some of their magic, their
  8047. 5:01:08pixie dust. When they become too
  8048. 5:01:11familiar or reachable, the pixie dust
  8049. 5:01:13dissipates. I've spent my fair share of
  8050. 5:01:16time around celebrities. And it's true
  8051. 5:01:18that the more time you spend with them,
  8052. 5:01:19the more normal they become. Their
  8053. 5:01:22mystery, magic, and authority vanish. A
  8054. 5:01:24brand withdrawal occurs. Maintaining
  8055. 5:01:26just the right amount of pixie dust is a
  8056. 5:01:28fine balance that celebrity brands have
  8057. 5:01:30to juggle every day. Which is why when
  8058. 5:01:32celebrities meet with their real fans,
  8059. 5:01:35managers, and publicists typically limit
  8060. 5:01:37these encounters to a halfhour maximum.
  8061. 5:01:40And not many people know this, but the
  8062. 5:01:42reason many royals wear those long
  8063. 5:01:44gloves isn't just for elegance. It's to
  8064. 5:01:46create an intentional psychological
  8065. 5:01:48distance from members of the public.
  8066. 5:01:50From a historical standpoint, royal
  8067. 5:01:53families really are the world's first
  8068. 5:01:55ever celebrities. Since practically the
  8069. 5:01:57beginning of civilization, they've been
  8070. 5:01:59the public face of their countries. They
  8071. 5:02:02symbolize a nation's values and
  8072. 5:02:03traditions by commemorating
  8073. 5:02:05anniversaries, birthdays, deaths, and
  8074. 5:02:08even the passage of a new year. They
  8075. 5:02:09unite a country's citizenry. They're
  8076. 5:02:12living, breathing tourist bureaus, and
  8077. 5:02:14as a result, they bring in enormous
  8078. 5:02:16amounts of capital, business, and
  8079. 5:02:17industry. In short, their brands and
  8080. 5:02:20lucrative ones, too. In the case of the
  8081. 5:02:23British royal family, the link between
  8082. 5:02:25the British crown and corporate brand
  8083. 5:02:26management is not as obtuse as might
  8084. 5:02:28first appear, says one study, which
  8085. 5:02:31points out that many of the royal
  8086. 5:02:32family's members refer to the monarchy
  8087. 5:02:34as the firm, and goes on to quote a
  8088. 5:02:36prominent British historian as saying,
  8089. 5:02:38"In the age of democracy, the crown has
  8090. 5:02:40to be like any other brand. It has to
  8091. 5:02:43win the respect of the people." Two, the
  8092. 5:02:47present-day English House of Windsor can
  8093. 5:02:49even be said to have invented the
  8094. 5:02:51concept of merchandising royalty. In
  8095. 5:02:54order to control the queen's image and
  8096. 5:02:56ensure she appeared exactly as we
  8097. 5:02:57recognize her from stamps, coins,
  8098. 5:03:00currency, and posters, the British royal
  8099. 5:03:02family rolled out an image control
  8100. 5:03:04system. Then, as now, whenever the
  8101. 5:03:06public interacts with the queen at
  8102. 5:03:08dinners or receptions, the royal
  8103. 5:03:10photographer is the only person
  8104. 5:03:12permitted to take her photograph. Well,
  8105. 5:03:14naturally, everyone and her mother wants
  8106. 5:03:16to have their photo taken with the
  8107. 5:03:18queen. So, the royal photographer will
  8108. 5:03:20sell these photos to you for a hefty
  8109. 5:03:22price online. You can also buy your
  8110. 5:03:24picture of yourself standing beside the
  8111. 5:03:26queen. But back to my royal family and
  8112. 5:03:29its brand, which two years ago was in
  8113. 5:03:31trouble and needed a shot of pixie dust.
  8114. 5:03:34I started off with a campaign that
  8115. 5:03:35appealed to that country's, sorry, I
  8116. 5:03:38can't say which one, sense of national
  8117. 5:03:39responsibility, reminding the public
  8118. 5:03:41that every great monarchy needs to trust
  8119. 5:03:44and believe in its royal family. Study
  8120. 5:03:46after study shows that if a citizenry
  8121. 5:03:48believes in something, the national
  8122. 5:03:50death rate goes down, and people
  8123. 5:03:51generally are happier, live longer, and
  8124. 5:03:53use fewer social services. All
  8125. 5:03:55information I took pains to make very
  8126. 5:03:57public. I also felt we had to remind the
  8127. 5:04:00country's citizens that the royal family
  8128. 5:04:02was the pinnacle of citizenship,
  8129. 5:04:04responsibility and public service. Royal
  8130. 5:04:06dinners and champagne brunches would no
  8131. 5:04:08longer do the trick. Accordingly, we
  8132. 5:04:11arranged for members of the family to
  8133. 5:04:13carry out a new set of duties for
  8134. 5:04:14assorted handpicked high-profile
  8135. 5:04:16charities. Next, I hired an archavist to
  8136. 5:04:19plum the history books to uncover
  8137. 5:04:21forgotten rituals we could resurrect. My
  8138. 5:04:24research over the years has shown that
  8139. 5:04:26consumers forge greater emotional
  8140. 5:04:28attachments and are therefore more loyal
  8141. 5:04:30to brands that have rituals surrounding
  8142. 5:04:32them and that creating a sense of
  8143. 5:04:34mystery around a brand or product is
  8144. 5:04:36another highly effective branding
  8145. 5:04:38strategy. Lucky for me, royal families
  8146. 5:04:41have many centuries old rituals,
  8147. 5:04:43stories, mythologies, symbols, and
  8148. 5:04:45ceremonies unknown to the general
  8149. 5:04:47public. Many of these rituals are in
  8150. 5:04:50fact designed to protect the royal
  8151. 5:04:51family from embarrassing moments and in
  8152. 5:04:54general to control the public like the
  8153. 5:04:56unspoken rule that commoners should
  8154. 5:04:58never address members of the royal
  8155. 5:04:59family unless the royal addresses them
  8156. 5:05:01first and that commoners must use the
  8157. 5:05:03right titles both of which serve as
  8158. 5:05:05reminders that commoners are subordinate
  8159. 5:05:07to the glittering iborn royals standing
  8160. 5:05:09before them. The royal family I work for
  8161. 5:05:12actually offers training sessions for
  8162. 5:05:14its younger members in which, among
  8163. 5:05:16other things, they're taught the proper
  8164. 5:05:18way to shake hands with commoners. In my
  8165. 5:05:21time working for the royal family, I've
  8166. 5:05:23learned about many secret rituals and
  8167. 5:05:25traditions that I'm not permitted to
  8168. 5:05:27divulge. But I can tell you this much.
  8169. 5:05:29Every single royal family in the world
  8170. 5:05:31knows that the best and quickest way to
  8171. 5:05:33boost its popularity ratings is to host
  8172. 5:05:36a royal wedding. Think of the publicity
  8173. 5:05:38storm surrounding Prince William's
  8174. 5:05:40wedding to Kate Middleton and you'll
  8175. 5:05:42know what I mean. A close second, the
  8176. 5:05:45arrival of a royal baby. Make that lots
  8177. 5:05:48and lots of royal babies. You want a
  8178. 5:05:51royal home run? Have twins. This was a
  8179. 5:05:54feat the Danish royal family managed to
  8180. 5:05:56carry off in 2011 for the first time in
  8181. 5:05:59modern history, boosting its countrywide
  8182. 5:06:01popularity ratings by several percentage
  8183. 5:06:04points. Remember, the more little
  8184. 5:06:06princes and princesses that pop forth,
  8185. 5:06:08the greater likelihood of future
  8186. 5:06:10weddings and future births and thus
  8187. 5:06:12continued popularity. Now you know what
  8188. 5:06:14I mean when I say that royal families
  8189. 5:06:16have a marketing plan that extends for
  8190. 5:06:18decades. At this point, you might be
  8191. 5:06:21thinking, "Okay, well, this is
  8192. 5:06:23interesting, but what does it have to do
  8193. 5:06:25with us?" After all, the United States
  8194. 5:06:28doesn't even have a royal family. Well,
  8195. 5:06:31while that's true technically, we do
  8196. 5:06:32have our own variation on royalty. There
  8197. 5:06:35are Brad Pitt, Angelina Jolie, Julia
  8198. 5:06:37Roberts, Reese Witherspoon, George
  8199. 5:06:39Clooney, Tom Cruz, Katie Holmes, Will
  8200. 5:06:41Smith, Justin Timberlake, Kim
  8201. 5:06:43Kardashian, Ryan Serest, Barack and
  8202. 5:06:45Michelle Obama, and so many more the
  8203. 5:06:47head reels. In our culture, celebrities
  8204. 5:06:49are the kings and queens. And you'd
  8205. 5:06:52better believe that our marketers and
  8206. 5:06:54advertisers are just as shrewd at using
  8207. 5:06:56their fame to brandwash us as the royal
  8208. 5:06:58family's advisers are at selling their
  8209. 5:07:00royal brand to their constituencies.
  8210. 5:07:03Cinderella really did eat our daughters.
  8211. 5:07:06At this point, you might be wondering,
  8212. 5:07:08can a famous face really have that much
  8213. 5:07:10of an impact on how we spend our money?
  8214. 5:07:13Surely we're not that naive, are we? The
  8215. 5:07:16answer is yes, we are. What's more, the
  8216. 5:07:19lure of celebrity begins earlier in life
  8217. 5:07:21than you'd think. By the time most young
  8218. 5:07:23boys reached the ripe old age of three
  8219. 5:07:25or four, they've already begun to
  8220. 5:07:27worship superheroes like Batman,
  8221. 5:07:29Superman, Spider-Man, X-Men, or whoever
  8222. 5:07:31the marketers at Marvel or Pixar have
  8223. 5:07:33decided the popular new hero duour
  8224. 5:07:35should be. By the time they're seven or
  8225. 5:07:37eight, many have transferred this giddy
  8226. 5:07:39adoration onto flesh and blood heroes,
  8227. 5:07:41usually athletes like David Beckham,
  8228. 5:07:43Dale Nhard, Derek Jeder, and Payton
  8229. 5:07:46Manning. Companies of course know this
  8230. 5:07:48which is why there are so many celebrity
  8231. 5:07:50spokespeople for products marketed to
  8232. 5:07:52young boys. When Lego signed an
  8233. 5:07:54endorsement deal with Ferrari when race
  8234. 5:07:56car driver Michael Schumacher was still
  8235. 5:07:58driving the license became huge in
  8236. 5:08:00Germany recalls Mads nipper executive
  8237. 5:08:03vice president of market and products
  8238. 5:08:05for Lego and Lego was able to ride that
  8239. 5:08:08wave. In short may have been a strong
  8240. 5:08:11brand but celebrity was even stronger.
  8241. 5:08:14Why superheroes and sports stars?
  8242. 5:08:17Remember in chapter 2 when I talked
  8243. 5:08:19about how fear-based marketing plays on
  8244. 5:08:21our insecurities about becoming some
  8245. 5:08:22feared future self? Well, marketing
  8246. 5:08:25strategies centered on celebrity do the
  8247. 5:08:27exact opposite. They appeal to fantasies
  8248. 5:08:29about our idealized future selves.
  8249. 5:08:32Thanks to the psychological studies they
  8250. 5:08:34conduct and the consultants they hire, I
  8251. 5:08:36know because I'm one of them, marketers
  8252. 5:08:38are keenly aware that the vast majority
  8253. 5:08:40of young boys dream of growing up to
  8254. 5:08:42become strong and powerful. And in turn,
  8255. 5:08:44they will be drawn to heroes with
  8256. 5:08:46special powers, supernatural, athletic,
  8257. 5:08:48or otherwise. Case in point, I know one
  8258. 5:08:51American man whose mother gave him a jet
  8259. 5:08:53black Batman suit, plus accessories,
  8260. 5:08:55when he was 5 years old. He's well into
  8261. 5:08:58middle age now, but he still remembers
  8262. 5:09:00how powerful he felt with his chintzy
  8263. 5:09:02little bat boomerang cinched to his
  8264. 5:09:04waist. He wasn't just dressed as Batman,
  8265. 5:09:07he recalled 45 years later he was
  8266. 5:09:09Batman. As for girls, in general, young
  8267. 5:09:13girls are seduced less by powerful
  8268. 5:09:15figures. Their ideal future selves are
  8269. 5:09:18graceful, feminine, and stunningly
  8270. 5:09:20beautiful. Hence, the princess fantasy
  8271. 5:09:22that is so pervasive in our culture. In
  8272. 5:09:24her recent book, Cinderella Ate My
  8273. 5:09:26Daughter, journalist Peggy Orinstein
  8274. 5:09:28looks at why the princess has become
  8275. 5:09:30synonymous with the feminine ideal.
  8276. 5:09:32Among other things, she cites the
  8277. 5:09:34princess industrial complex and all the
  8278. 5:09:36ways in which companies and marketers
  8279. 5:09:38are pedalling the princess fantasy to
  8280. 5:09:40our young daughters and making boatloads
  8281. 5:09:42of money in the process. As Orinstein
  8282. 5:09:45points out, with more than 26,000 Disney
  8283. 5:09:48Princess items on the market, Princess
  8284. 5:09:50is not only the fastest growing brand
  8285. 5:09:52the company has ever created, it's the
  8286. 5:09:54largest franchise on the planet for
  8287. 5:09:56girls ages 2 to six. Three. Marta Tantos
  8288. 5:10:00Aranda explains that little girls start
  8289. 5:10:02out wanting to be princesses, but later
  8290. 5:10:04on their role model isn't just Hannah
  8291. 5:10:06Montana or a young gymnast they've seen
  8292. 5:10:08on TV, but very often an older,
  8293. 5:10:10typically gorgeous teenage girl with
  8294. 5:10:12long blonde hair. So, if the Disney
  8295. 5:10:14princess is the idealized image of
  8296. 5:10:16girlhood, the brand that best represents
  8297. 5:10:18teens and tween's idealized, if
  8298. 5:10:20completely unrealistic, image of
  8299. 5:10:22womanhood is none other than Barbie, who
  8300. 5:10:24will turn 53 this year. To be sure, this
  8301. 5:10:27blonde bombshell has had her critics.
  8302. 5:10:29But whether you approve of her and her
  8303. 5:10:31unnatural proportions or not, you can't
  8304. 5:10:33deny her celebrity or her profitability.
  8305. 5:10:35Mattel estimates that two Barbie dolls
  8306. 5:10:37are sold somewhere in the world every
  8307. 5:10:39second of every day with total sales
  8308. 5:10:41around 1.5 billion annually. Four, which
  8309. 5:10:44represents 1/5if of Mattel's yearly
  8310. 5:10:46revenue. When you think about it, it
  8311. 5:10:48really isn't altogether shocking that
  8312. 5:10:50Barbie has endured as one of the most
  8313. 5:10:52famous cultural icons and one of the
  8314. 5:10:55most famous brands of the past half
  8315. 5:10:57century. After all, she was designed and
  8316. 5:11:00marketed to represent exactly what every
  8317. 5:11:02girl, no matter what decade she's born
  8318. 5:11:03in, wants to be. Beautiful, glamorous,
  8319. 5:11:06popular, and adore. This is also the
  8320. 5:11:09appeal of a much newer pop culture idol,
  8321. 5:11:11Miley Cyrus. In case you don't have a
  8322. 5:11:14predine daughter at home, this famous
  8323. 5:11:15young lady is the star of Hannah
  8324. 5:11:17Montana, a wildly popular TV show about
  8325. 5:11:19a teenager named Miley Stewart, who's an
  8326. 5:11:22ordinary school girl by day, but by
  8327. 5:11:23night, disguised in a blonde wig, is a
  8328. 5:11:26hugely successful pop star known as
  8329. 5:11:28Hannah Montana. Just as sports stars do
  8330. 5:11:30for boys, Hannah Montana appeals to
  8331. 5:11:32tween and teen girls fantasies about
  8332. 5:11:34their ideal selves. Cyrus is
  8333. 5:11:35unself-conscious, fun, wild, and bold.
  8334. 5:11:38Everything an insecure teenage girl
  8335. 5:11:39would like her future self to be. Plus,
  8336. 5:11:41name me one kid who hasn't lip cinched
  8337. 5:11:43with a fake microphone before a bedroom
  8338. 5:11:45mirror. If these are the heroes we have
  8339. 5:11:48as children, what happens when we grow
  8340. 5:11:50up? Clearly, our obsession with fame and
  8341. 5:11:53celebrity doesn't end in childhood.
  8342. 5:11:55Well, in the same way that most young
  8343. 5:11:57boys want to grow up to be superheroes,
  8344. 5:11:59and most young girls want to be
  8345. 5:12:00princesses, though granted, there are
  8346. 5:12:02exceptions, the ideal future self for
  8347. 5:12:04most adults, male or female, is more or
  8348. 5:12:07less universal, rich, attractive, and
  8349. 5:12:09famous. I've been asked more than once
  8350. 5:12:12to brand a celebrity. The most recent
  8351. 5:12:14being a well-known television star. In
  8352. 5:12:17general, I use the same playbook I use
  8353. 5:12:19with royalty with a few crucial
  8354. 5:12:21differences. Unlike royal families,
  8355. 5:12:23celebrities lack bloodlines, history,
  8356. 5:12:25timeworn rituals, or pageantry, other
  8357. 5:12:28than strolling the red carpet at one of
  8358. 5:12:29the year's countless awards ceremonies.
  8359. 5:12:32And unlike royal families, traditional
  8360. 5:12:34celebrities have attained fame through
  8361. 5:12:35talent. Though, this is becoming less
  8362. 5:12:37and less the case. And if you don't
  8363. 5:12:39believe me, watch a season or two of
  8364. 5:12:40Dancing with the Stars. Whether that
  8365. 5:12:42talent is acting, singing, dancing, or
  8366. 5:12:44athleticism, although sheer good looks
  8367. 5:12:46don't hurt either. Yes, our celebrities
  8368. 5:12:49are like disposable royals, and that
  8369. 5:12:50they are wealthy, powerful, and
  8370. 5:12:52surrounded by a squadron of agents,
  8371. 5:12:54managers, publicists, and bodyguards.
  8372. 5:12:57But the most important thing they have
  8373. 5:12:59in common is our envy. We want to be
  8374. 5:13:02them. Barring that, we want to be like
  8375. 5:13:04them. So, I suppose it's no surprise
  8376. 5:13:07that advertisers and marketers pay
  8377. 5:13:09celebrities of all stripes, from actors
  8378. 5:13:11to athletes to reality TV stars enormous
  8379. 5:13:14sums of money to sell us everything from
  8380. 5:13:16clothing to cars to breakfast cereal to
  8381. 5:13:18sports drinks. Most people are aware
  8382. 5:13:21that celebrity marketing exists after
  8383. 5:13:23all. It's hard to miss. But what many
  8384. 5:13:26are unaware of is how well it's working.
  8385. 5:13:28According to an online survey sent to
  8386. 5:13:3011,000 adults and teens across the
  8387. 5:13:33country, the large majority of us
  8388. 5:13:34believe that the celebrities who appear
  8389. 5:13:36in advertising or endorsements do not,
  8390. 5:13:38repeat, do not affect our purchasing
  8391. 5:13:40decisions. In fact, more than 80% of
  8392. 5:13:43respondents claimed they would buy the
  8393. 5:13:45products they like, regardless of
  8394. 5:13:47whether or not there was a celebrity
  8395. 5:13:49endorsement. Well, guess what? I believe
  8396. 5:13:52them. At least I believe they don't
  8397. 5:13:55think they're being seduced or persuaded
  8398. 5:13:57by celebrity advertising. But that's
  8399. 5:13:59exactly the point. As the chief industry
  8400. 5:14:02analyst of NPD Insights, Marshall Cohen,
  8401. 5:14:05points out, sometimes it is an unseen
  8402. 5:14:07influence that triggers the consumer's
  8403. 5:14:09attention or encourages a product
  8404. 5:14:10purchase. A celebrity associated product
  8405. 5:14:13can be a very powerful subliminal
  8406. 5:14:15purchase influence. In some cases, it
  8407. 5:14:18may even be the reason a consumer
  8408. 5:14:20recognizes a brand or product just based
  8409. 5:14:22on the mere fact a celebrity is
  8410. 5:14:24associated with it. Five, studies have
  8411. 5:14:28also shown that when celebrities appear
  8412. 5:14:29in advertisements or endorse products,
  8413. 5:14:32not only do we perceive the brand
  8414. 5:14:34message as more authentic, but it also
  8415. 5:14:36enhances our recognition and recall of
  8416. 5:14:38the product in question. So when we see
  8417. 5:14:41that product, whether it's Sarah Jessica
  8418. 5:14:43Parker's perfume, the Triscuits with
  8419. 5:14:45Rachel Ray on the box, or the Nike
  8420. 5:14:47sneaker endorsed by Raphael Nadal, we
  8421. 5:14:49reach instinctively and often quite
  8422. 5:14:51unconsciously for that product over the
  8423. 5:14:53non-ceelebrity branded variety. There's
  8424. 5:14:56even evidence to suggest that the
  8425. 5:14:58persuasive power of celebrity is
  8426. 5:15:00biologically based. One Dutch study
  8427. 5:15:02found that seeing a celebrity endorse a
  8428. 5:15:05product, in this case a pair of shoes,
  8429. 5:15:07actually alters a woman's brain
  8430. 5:15:09activity. In this fascinating study,
  8431. 5:15:11researchers scanned 24 women's brains as
  8432. 5:15:14they viewed 40 color photos of both
  8433. 5:15:16famous and non-famous women all wearing
  8434. 5:15:18the same footwear. Results showed that
  8435. 5:15:20when the women looked at the celebrity
  8436. 5:15:22photos, there was heightened activity in
  8437. 5:15:24a part of the brain associated with the
  8438. 5:15:26feeling of affection, the medial orbital
  8439. 5:15:28frontal cortex, activity that was absent
  8440. 5:15:31when the women looked at the photos of
  8441. 5:15:33the non-ceelebrities. Six. Another
  8442. 5:15:35recent UK study which found that even
  8443. 5:15:37average oml looking celebrity models and
  8444. 5:15:40ads produce a more intense emotional
  8445. 5:15:41response in us than breathtakingly
  8446. 5:15:43gorgeous non-ceelebrity endorsers
  8447. 5:15:45concluded that not only is fame even
  8448. 5:15:47more powerful than beauty in persuading
  8449. 5:15:49us to buy something, but there may
  8450. 5:15:51actually be a dedicated area of the
  8451. 5:15:52human brain that's become hardwired to
  8452. 5:15:55respond positively to celebrity endorsed
  8453. 5:15:57products. Seven. Given that humans
  8454. 5:16:00appear to have a practically innate
  8455. 5:16:02attraction to fame, it also helps that
  8456. 5:16:04talk of celebrities like the weather or
  8457. 5:16:06sports establishes common conversational
  8458. 5:16:08ground among relative strangers and
  8459. 5:16:10helps us feel a sense of belonging. I
  8460. 5:16:13suppose it's no surprise that over the
  8461. 5:16:14past decade, the number of famous people
  8462. 5:16:16in the press has tripled. You read that
  8463. 5:16:19right, tripled. Thanks to reality TV and
  8464. 5:16:22the internet, both of which have
  8465. 5:16:24provided all kinds of new, if somewhat
  8466. 5:16:26ridiculous, avenues for celebrity, the
  8467. 5:16:28boundaries of what it means to be
  8468. 5:16:30famous, have expanded beyond our wildest
  8469. 5:16:32imaginations. Celebrities aren't just
  8470. 5:16:35athletes and movie stars anymore. Today
  8471. 5:16:37they include YouTube sensations like
  8472. 5:16:39Chris Crocker, the Britney Spears
  8473. 5:16:40superfan, MySpace phenomena, Think Tilla
  8474. 5:16:43Tequila, celebrity bloggers like Perez
  8475. 5:16:45Hilton, and of course, reality
  8476. 5:16:46television personalities, too many to
  8477. 5:16:48name, many of whom have inexplicably
  8478. 5:16:50managed to parlay their 15 minutes of
  8479. 5:16:52fame into an hour at least. Accordingly,
  8480. 5:16:55the percentage of ads worldwide using
  8481. 5:16:57celebrities has doubled to roughly 17%
  8482. 5:17:00in the past decade. Aid and let's not
  8483. 5:17:02forget celebrities who are famous just
  8484. 5:17:04for serving celebrities. All the
  8485. 5:17:06doctors, dentists, plastic surgeons,
  8486. 5:17:08real estate agents, chefs, bloggers,
  8487. 5:17:10fashion designers, cosmeticians,
  8488. 5:17:12hairdressers, party planners,
  8489. 5:17:13choreographers, and florists to the
  8490. 5:17:15stars. As Hamish Pringle writes in
  8491. 5:17:17celebrity sales, the proportion of UK
  8492. 5:17:20ads featuring a celebrity is now 1 in5,
  8493. 5:17:22an increase of nearly 100% in a single
  8494. 5:17:25decade. In the United States, this
  8495. 5:17:28figure stands at 1 in4 nine. It's not
  8496. 5:17:32just actors, rock stars, and basketball
  8497. 5:17:34players like it used to be in the old
  8498. 5:17:36days of celebrity marketing. Today's
  8499. 5:17:39product sponsors and spokespeople
  8500. 5:17:40include talk show hosts Kelly Reapa for
  8501. 5:17:43Electrolux, TV chefs Gordon Ramsay for
  8502. 5:17:45Gordon's Jin, former boxers George
  8503. 5:17:47Foreman Hawking his best-selling grill,
  8504. 5:17:49politicians Bob Dole for Viagra,
  8505. 5:17:51business mogul Twitter co-founder Bis
  8506. 5:17:53Stone for Staly Vodka, celebrity spawn
  8507. 5:17:55Billy Joel and Christy Brinkley's
  8508. 5:17:57daughter Alexa Ray Joel for Prell and
  8509. 5:17:59Home Reckers Golfer Tiger Woods s
  8510. 5:18:01alleged mistresses for the auction site
  8511. 5:18:02bidder.com.
  8512. 5:18:04As you're about to read, companies and
  8513. 5:18:06marketers not only recognize that the
  8514. 5:18:08boundaries of fame are expanding, they
  8515. 5:18:11are coming up with all kinds of sneaky
  8516. 5:18:12and underhanded new ways of exploiting
  8517. 5:18:14our obsession with this new breed of
  8518. 5:18:16celebrity to the fullest. That's what
  8519. 5:18:19makes celebrities such a powerful hidden
  8520. 5:18:21persuader. I want to be like Mike. Just
  8521. 5:18:25so we're all on the same page, let's
  8522. 5:18:27define a celebrity as a symbol or an
  8523. 5:18:29icon who possesses and represents a
  8524. 5:18:31variety of desirable attributes to which
  8525. 5:18:34many of us aspire. It could be beauty,
  8526. 5:18:36charm, sex appeal, glamour, coolness,
  8527. 5:18:38suveness, outrageousness, musicianship,
  8528. 5:18:41or athleticism, you name it. When I talk
  8529. 5:18:43about celebritydriven marketing or
  8530. 5:18:45advertising, I'm not talking about
  8531. 5:18:47celebrities simply lending their names
  8532. 5:18:49to a brand or slapping their faces on an
  8533. 5:18:51ad or package. Of course, these tactics
  8534. 5:18:54do work, but it goes deeper than that.
  8535. 5:18:57I'm talking about a more subtle
  8536. 5:18:58psychological maneuver whereby we as
  8537. 5:19:00consumers are duped into believing that
  8538. 5:19:02a celebrity has almost alchemically
  8539. 5:19:04transposed his or her attributes onto a
  8540. 5:19:06food, a drink, an automobile, a perfume,
  8541. 5:19:09a face cream, a luggage brand, a credit
  8542. 5:19:11card, and so forth in a process so
  8543. 5:19:13seamless that we're subconsciously
  8544. 5:19:15persuaded that by purchasing said
  8545. 5:19:17product, we are essentially purchasing a
  8546. 5:19:19piece of the celebrity. To many of us,
  8547. 5:19:22celebrities are living the dream. Each
  8548. 5:19:24time we pick up a gossip magazine or
  8549. 5:19:26watch an awards show, we're instantly
  8550. 5:19:28seduced by the red carpets, $10,000
  8551. 5:19:30dresses, attractive spouses, perfect
  8552. 5:19:32complexions, Fifth Avenue pen houses,
  8553. 5:19:35and beachfront Malibu estates. During
  8554. 5:19:37insecure economic times, celebrities
  8555. 5:19:39lives appear especially idyllic,
  8556. 5:19:41seemingly untouched by the everyday
  8557. 5:19:43troubles and responsibilities that mark
  8558. 5:19:45most of our days. Interestingly, Peggy
  8559. 5:19:47Ornstein writes that the princess craze
  8560. 5:19:49escalated during the recent recession.
  8561. 5:19:51I'll bet Julia Roberts doesn't have to
  8562. 5:19:54take out a second mortgage. We think
  8563. 5:19:56sourly. Why can't my life be that easy?
  8564. 5:19:59Well, by Julia's brand of lipstick, or
  8565. 5:20:02perhaps a handbag, advertisers imply,
  8566. 5:20:04and it can be. If this sounds overly
  8567. 5:20:07simplistic or as though perhaps I'm not
  8568. 5:20:09giving consumers enough credit, think
  8569. 5:20:11again. An interesting study carried out
  8570. 5:20:14by researchers at Duke University's
  8571. 5:20:16Fukua School of Business and Canada's
  8572. 5:20:18University of Waterlue found that even
  8573. 5:20:19fleeting exposure to an established
  8574. 5:20:21brand like Apple or Coke can actually
  8575. 5:20:23cause us to take on the behaviors
  8576. 5:20:25championed or represented by those
  8577. 5:20:27brands. 10. For example, just being
  8578. 5:20:30exposed to an Apple logo, a brand widely
  8579. 5:20:32associated with creativity, made people
  8580. 5:20:35think more imaginatively. So, since
  8581. 5:20:37celebrities are fabulous, can't exposure
  8582. 5:20:40to their brands cause some of that same
  8583. 5:20:41fabulousness to rub off on us, too.
  8584. 5:20:44There's no question that slathering on a
  8585. 5:20:46movie star endorsed face cream, perfume,
  8586. 5:20:49or eyeshadow makes us feel that much
  8587. 5:20:51closer to our favorite celebrity, and
  8588. 5:20:53everything about that celebrity we envy.
  8589. 5:20:56We carry him or her with us all day, and
  8590. 5:20:58in turn, we adopt his or her values and
  8591. 5:21:01attributes to his or her swagger,
  8592. 5:21:03attitude, talent, individuality,
  8593. 5:21:05coolness, or allure. In short, in
  8594. 5:21:07effect, we become that celebrity in the
  8595. 5:21:09deeper recesses of our brains at least.
  8596. 5:21:12We're the same Dolce and Gabana makeup
  8597. 5:21:15Scarlett Johansson wears, and you can
  8598. 5:21:17become as sultry and beautiful as
  8599. 5:21:19Scarlet is. Buy a house that bears
  8600. 5:21:21Fergie's providence, however tenuous,
  8601. 5:21:23eg, she lived two blocks over once, and
  8602. 5:21:26you can look out onto views Fergie's
  8603. 5:21:27eyes once scanned. Spritz on Jennifer
  8604. 5:21:30Lopez's or Halib Berry's perfume, and
  8605. 5:21:32you can smell as irresistible as they
  8606. 5:21:34do, and so on. This may sound a little
  8607. 5:21:37extreme, maybe even hard to believe, but
  8608. 5:21:40in fact, it's a common psychological
  8609. 5:21:41phenomenon known as transference, a term
  8610. 5:21:44that refers to our tendency to
  8611. 5:21:45subconsciously transplant our feelings
  8612. 5:21:47about some person or thing onto another.
  8613. 5:21:50Ever try the South Beach diet? Named for
  8614. 5:21:53a glamorous art deco Miami neighborhood
  8615. 5:21:55and created by Dr. for Arthur Agston, a
  8616. 5:21:58Miami cardiologist. It's an eating plan
  8617. 5:22:00designed to help you lose weight by
  8618. 5:22:02eliminating cravings for sugar and
  8619. 5:22:04refined starches. Anyway, you probably
  8620. 5:22:06would never have heard of the book,
  8621. 5:22:08which was published in 2003 by Rodell
  8622. 5:22:11Press if something incredible hadn't
  8623. 5:22:13happened. When former President Bill
  8624. 5:22:15Clinton, renowned for his love of fast
  8625. 5:22:17food, announced in late 2004 he was
  8626. 5:22:20waiting to undergo heart bypass surgery,
  8627. 5:22:22he made reference in interviews to
  8628. 5:22:24losing weight on the South Beach Diet.
  8629. 5:22:2611. And not only that, he told the
  8630. 5:22:28press, but Hillary Clinton was on it,
  8631. 5:22:31too. Suddenly, sales of the book went
  8632. 5:22:33through the roof. And today, the South
  8633. 5:22:35Beach Diet is not only one of the best
  8634. 5:22:37known diets in the United States,
  8635. 5:22:39perhaps second only to Atkins, the book
  8636. 5:22:41has sold more than 5 million copies. 12.
  8637. 5:22:45This seemingly mundane episode
  8638. 5:22:47highlights exactly why Celebrity is such
  8639. 5:22:49a powerful persuader. By buying the
  8640. 5:22:51South Beach Diet, consumers were able to
  8641. 5:22:54share the eating habits of one of the
  8642. 5:22:56most famous and powerful political
  8643. 5:22:58couples in American history. As an added
  8644. 5:23:00bonus, they could even shed excess
  8645. 5:23:02pounds of their own along the way.
  8646. 5:23:05Whatever your politics, whatever your
  8647. 5:23:07values, I'm betting that the Clintons
  8648. 5:23:09embody some attribute to which you
  8649. 5:23:11aspire. Power, brains, charisma, charm,
  8650. 5:23:16determination. Plus, studies have found
  8651. 5:23:19food to be a powerful emotional
  8652. 5:23:21connector. So, if we sample, say, a
  8653. 5:23:23recipe for chickenpa that Bill Clinton
  8654. 5:23:26favors, it literally makes us feel
  8655. 5:23:28closer to the former president. Just as
  8656. 5:23:30when we wear Michael Jordan sneakers and
  8657. 5:23:32feel the same bounce to our step, we
  8658. 5:23:34imagine we can play just like him. Or
  8659. 5:23:36when we wear Kate Moss's Calvin Klein
  8660. 5:23:38underwear and feel how it must feel
  8661. 5:23:40against her hips, we imagine ourselves
  8662. 5:23:42as sultry and seductive as she is. Or
  8663. 5:23:45when eating Campbell's chunky soup, we
  8664. 5:23:47can feel as mighty as Philadelphia
  8665. 5:23:48Eagles quarterback Donovan McNab and
  8666. 5:23:50picture the fans cheering for us as we
  8667. 5:23:52stride onto an imaginary field.
  8668. 5:23:55Rationally, we know this is foolish and
  8669. 5:23:57delusional. But emotionally, that's
  8670. 5:24:00another matter. A star is born. To
  8671. 5:24:04better understand just how companies
  8672. 5:24:06prey on this fundamental aspect of our
  8673. 5:24:08psychology, let's look at Vitamin Water,
  8674. 5:24:10a brand now owned by Coke that would be
  8675. 5:24:13nothing without celebrities. A few years
  8676. 5:24:15back, the marketers of Vitamin Water
  8677. 5:24:18came up with a very clever plan. Why not
  8678. 5:24:20give celebrities shares in the company
  8679. 5:24:22in return for endorsing the brand? This
  8680. 5:24:25shrewd arrangement accomplished two
  8681. 5:24:27things. First, it got Vitamin Water and
  8682. 5:24:30all-star team of celebrity endorsers,
  8683. 5:24:32including rapper 50 Cent, who's made a
  8684. 5:24:34fortune from the shares he owns in the
  8685. 5:24:36company, fairly cheaply. Second, and
  8686. 5:24:39perhaps more important, now that these
  8687. 5:24:41celebrities had some stake in the
  8688. 5:24:43company, it gave them the motivation to
  8689. 5:24:45position themselves on camera whenever
  8690. 5:24:47possible, sipping the sugary drink. Most
  8691. 5:24:49recently, Ellen Degenerous conducted a
  8692. 5:24:52live commercial for non-caloric Vitamin
  8693. 5:24:54Water Zero, right in the middle of her
  8694. 5:24:56popular TV talk show. After taking a few
  8695. 5:24:58sips, Ellen, or rather a very athletic
  8696. 5:25:01standin, did back flips across the stage
  8697. 5:25:03to show how much energy the stuff gave
  8698. 5:25:05her. Quite an endorsement indeed.
  8699. 5:25:08Marketers are very aware that when
  8700. 5:25:10celebrities are photographed or caught
  8701. 5:25:12on video with a product, sales go
  8702. 5:25:14through the roof, particularly when the
  8703. 5:25:16photo is a candid a shot of said
  8704. 5:25:18celebrity using or enjoying the product
  8705. 5:25:20while simply going about his or her
  8706. 5:25:22normal routine. Take for example what
  8707. 5:25:25happened in 2007 when former Spice Girl
  8708. 5:25:27and Soccer wife Victoria Beckham was
  8709. 5:25:29caught on camera buying the then unknown
  8710. 5:25:31cookbook Skinny in an LA boutique.
  8711. 5:25:34Though it had been a best seller in the
  8712. 5:25:36UK, you could barely give it away in the
  8713. 5:25:39United States. That is until Beckham
  8714. 5:25:41came along. As soon as that photo hit
  8715. 5:25:43the Entertainment Mags, online sales
  8716. 5:25:45shot up by 37,000, inaugurating the
  8717. 5:25:48book's 84 weeks on the New York Times
  8718. 5:25:50best seller list, 13. But of course,
  8719. 5:25:54these photos aren't nearly as candid as
  8720. 5:25:56they seem. Knowing full well what a gold
  8721. 5:25:58mine such a photo can be, marketers and
  8722. 5:26:01advertisers have been even more
  8723. 5:26:03persistent and clever in their attempts
  8724. 5:26:05to catch celebrities on camera using
  8725. 5:26:07their product or brand. Vitamin Water
  8726. 5:26:09did this quite successfully during
  8727. 5:26:11fashion week 2009 when the company
  8728. 5:26:14placed free bottles on the seats closest
  8729. 5:26:16to the runway. The seats typically
  8730. 5:26:17occupied only by a minus list
  8731. 5:26:19celebrities, ensuring that legions of A
  8732. 5:26:21minus List attendees from Sarah Jessica
  8733. 5:26:24Parker to Tyra Banks to Heidi Clum would
  8734. 5:26:26be seen drinking or at least holding a
  8735. 5:26:28bottle of the drink for a couple of
  8736. 5:26:30seconds before taking their seats.
  8737. 5:26:32Apparently, celebrities don't even have
  8738. 5:26:35to be human to be effective persuaders.
  8739. 5:26:38In South America, one of the sponsors of
  8740. 5:26:40a TV reality show called Lrangea VIP is
  8741. 5:26:43a dog food brand known as Master Dog. In
  8742. 5:26:46order to shine through the clutter of
  8743. 5:26:4730-second ads, as you may remember from
  8744. 5:26:50my last book, the more a brand is
  8745. 5:26:52integrated into the content of a TV
  8746. 5:26:54show, the more likely consumers are to
  8747. 5:26:56remember it. Master Dog insisted the
  8748. 5:26:58show it was sponsoring at another
  8749. 5:26:59recurring contestant, a golden retriever
  8750. 5:27:02known as what else? Master. The K9
  8751. 5:27:05contestant was so popular and talked
  8752. 5:27:07about, Master became a celebrity
  8753. 5:27:09virtually overnight. Of course, dog food
  8754. 5:27:12sales skyrocketed. 14. Interestingly,
  8755. 5:27:16the power of celebrity even has a
  8756. 5:27:18trickle down effect to celebrities
  8757. 5:27:20children. Several years ago, Fox News
  8758. 5:27:22reported that Angelina Jolie and Brad
  8759. 5:27:24Pitt's children are the world's most
  8760. 5:27:26imitated little nippers. From baby
  8761. 5:27:28carriers to hairstyles to t-shirts to
  8762. 5:27:30international adoption, the article
  8763. 5:27:31stated, "People are literally copying
  8764. 5:27:33the ways of Jolie's adopted Cambodian
  8765. 5:27:35son Maddox and his wideeyed Ethiopian
  8766. 5:27:38sister, Zahara." 15. Case in point, when
  8767. 5:27:40Maddox was photographed wearing a
  8768. 5:27:42t-shirt reading, "Human cannonball shirt
  8769. 5:27:44maker in Tinky's sales shot up 16."
  8770. 5:27:47Apparently, according to a company
  8771. 5:27:49spokesperson, the company's online store
  8772. 5:27:51has a how did you hear about us section
  8773. 5:27:54and most of the people who bothered to
  8774. 5:27:56write and wrote saw it on Maddox. We
  8775. 5:27:59seem to quite literally want everything
  8776. 5:28:00Jolie and Pit have. As Cheryl Carter
  8777. 5:28:02shots, director of Americans for African
  8778. 5:28:05Adoption, told People magazine, her
  8779. 5:28:07organization began to be flooded with
  8780. 5:28:08calls and emails from people wanting
  8781. 5:28:10information after People magazine ran a
  8782. 5:28:13story about Jolie's adoption of her
  8783. 5:28:14Ethiopian daughter. 17. From the Baby
  8784. 5:28:17Jorn original, the brand of stroller
  8785. 5:28:19favored by the rich and famous to Mark
  8786. 5:28:21Jacob's diaper bags to even designer
  8787. 5:28:23diapers. Yes, the designer Cynthia
  8788. 5:28:25Rolley has joined forces with Pampers to
  8789. 5:28:27create 11 different styles and patterns
  8790. 5:28:30available at Target. 18. If we associate
  8791. 5:28:32something with a celebrity, we just have
  8792. 5:28:34to have it for our child. And what about
  8793. 5:28:37this? Celebrities even influenced the
  8794. 5:28:40names we choose to give our children. In
  8795. 5:28:432009, according to the Social Security
  8796. 5:28:45Administration, the names growing
  8797. 5:28:47fastest in popularity were Malia, the
  8798. 5:28:49name of President Obama's older daughter
  8799. 5:28:51for girls, and Cullen, the surname of
  8800. 5:28:53the heartthrob vampire protagonist in
  8801. 5:28:55Stephanie Meyers Twilight series of mega
  8802. 5:28:57best-selling books and blockbuster
  8803. 5:28:59movies for boys. Sharing the number one
  8804. 5:29:01spot were names of two other Twilight
  8805. 5:29:03characters, Jacob and Bella. Okay, to be
  8806. 5:29:06fair, Jacob and Isabella have been
  8807. 5:29:08popular names for more than a decade,
  8808. 5:29:10but it's no coincidence they rose to the
  8809. 5:29:12top the year Twilight Mania reached its
  8810. 5:29:14peak. 19. Also on the rise in 2009 were
  8811. 5:29:17such famous names as Khloe as in
  8812. 5:29:19Kardashian, Scarlet as in Johansson,
  8813. 5:29:21Violet the name Ben Affleck and Jennifer
  8814. 5:29:23Garner gave to their daughter and
  8815. 5:29:24Valentina as in Salma Hake's daughter
  8816. 5:29:26for girls and for boys, Jet the name of
  8817. 5:29:28John Travolta's late son Romeo, David
  8818. 5:29:31Beckham and Posh Spice's newborn baby,
  8819. 5:29:33and Maddox see above. Among the names
  8820. 5:29:35disappearing from the top 100 list as
  8821. 5:29:37the careers of their namesakes either
  8822. 5:29:39imploded or faded away were Lindsay as
  8823. 5:29:42in Lohan and Tory as in spelling. Making
  8824. 5:29:45us feel like celebrities or royalty or
  8825. 5:29:47some unholy combination of the two has
  8826. 5:29:49long been a marketing strategy of choice
  8827. 5:29:51within the travel, hospitality, banking,
  8828. 5:29:53and gaming industries. These companies
  8829. 5:29:56know full well that none of us likes to
  8830. 5:29:58think of ourselves as mere ordinary
  8831. 5:30:00citizens. That's why for over 30 years,
  8832. 5:30:03American Express has trotted out its
  8833. 5:30:05celebrity members, including Robert
  8834. 5:30:06Dairo, Jerry Seinfeld, Quincy Jones, and
  8835. 5:30:09most recently, Tina Fay, to lure
  8836. 5:30:11customers into its exclusive club, which
  8837. 5:30:13of course isn't exclusive at all. Anyone
  8838. 5:30:16willing to pay the exorbitant annual fee
  8839. 5:30:18can join. Chapter 8. Way way high up in
  8840. 5:30:22the hills of the Himalayas in northern
  8841. 5:30:23Nepal, beyond the moon, beyond the
  8842. 5:30:25stars, its stems grazing the heavens,
  8843. 5:30:27there grows a small magical berry known
  8844. 5:30:29as the goji. Best of luck trying to
  8845. 5:30:32track down the meaning of this word in
  8846. 5:30:34any language. Though one unconfirmed
  8847. 5:30:36source once told me goji means simply
  8848. 5:30:39happy. Whether or not that's the real
  8849. 5:30:41meaning, today, the goji berry or wolf
  8850. 5:30:43berry, which resembles a shriveled red
  8851. 5:30:45raisin, has been squashed, pulverized,
  8852. 5:30:47crushed, and strained into a juice that
  8853. 5:30:49resembles sewer water and is sold in
  8854. 5:30:51health food and organic markets for
  8855. 5:30:53anywhere from $30 to $50 for a 32oz
  8856. 5:30:57bottle. Chinese medicine has used
  8857. 5:30:59lysmium barbaram and elchini, the
  8858. 5:31:02scientific, if slightly less marketable
  8859. 5:31:04names for the goji berry for centuries
  8860. 5:31:06to help protect the liver, improve
  8861. 5:31:08eyesight, and boost immune function and
  8862. 5:31:10circulation. Today, many makers of these
  8863. 5:31:12juices, which include Pepsico, makers of
  8864. 5:31:14Soap Life Water Goji Melon, Coca-Cola
  8865. 5:31:17Honest Te's Honest Superfruit Punch with
  8866. 5:31:18Yumarie and Goji Berry, Schwep's Snapple
  8867. 5:31:21Goji Punch and Heiser Bush 180 Red with
  8868. 5:31:23Goji, Dr. Pepper, Goji Fruit Punch,
  8869. 5:31:25Skinny Water, Campbell, whose VAV
  8870. 5:31:27fusions include Goji Raspberry as well
  8871. 5:31:29as passion fruit tangerine and Free Life
  8872. 5:31:31International, which today carries the
  8873. 5:31:33tagline the Himalayan Goji company and
  8874. 5:31:35which makes up 90% of the global goji
  8875. 5:31:37business across 26 countries with annual
  8876. 5:31:40sales estimated to be in the range of
  8877. 5:31:42$250 million to $500 million. One assert
  8878. 5:31:46that daily consumption of goji juice may
  8879. 5:31:48help cure almost every human ailment in
  8880. 5:31:50existence. From depression to anxiety to
  8881. 5:31:53sexual impetence to lower back pain to
  8882. 5:31:55circulatory problems to blood sugar
  8883. 5:31:56imbalance to autoimmune deficiencies to
  8884. 5:31:59liver failure to macular degeneration to
  8885. 5:32:01some forms of cancer. Some suppliers
  8886. 5:32:02distributing goji juice go so far as to
  8887. 5:32:05claim that a man named Lee Ching Yuan
  8888. 5:32:07ate goji berries every day and lived to
  8889. 5:32:09be 252 years old. two. Yet, as the back
  8890. 5:32:12of one bottle admits somewhat
  8891. 5:32:14sheepishly, these statements have not
  8892. 5:32:16been evaluated by the Food and Drug
  8893. 5:32:18Administration, "This product is not
  8894. 5:32:20intended to diagnose, treat, cure, or
  8895. 5:32:23prevent any disease." So, does this
  8896. 5:32:26pricey little fruit actually have any
  8897. 5:32:28real proven health benefits, or is it
  8898. 5:32:30all just one big sham? One published
  8899. 5:32:33study suggests cautiously that the goji
  8900. 5:32:35berry certainly deserves further
  8901. 5:32:37investigation. Three. Another study
  8902. 5:32:39found that hairless mice who'd been
  8903. 5:32:40given goji juice and then zapped with s
  8904. 5:32:42of ir radiation showed fewer incidents
  8905. 5:32:44of sunburns, suggesting that consumption
  8906. 5:32:46of this juice could provide additional
  8907. 5:32:48photo protection for susceptible humans.
  8908. 5:32:51For in another strange sounding 2004
  8909. 5:32:53study carried out by the college of
  8910. 5:32:55public health at China's Wuhan
  8911. 5:32:57University, diabetic bunnies were found
  8912. 5:32:59to have an increase in HDL or good
  8913. 5:33:01cholesterol and a reduction in their
  8914. 5:33:03blood glucose level 5 after consuming
  8915. 5:33:05goji. Well, that's fantastic for
  8916. 5:33:08diabetic rabbits and sunbathing rodents,
  8917. 5:33:11but what about the rest of us? Though
  8918. 5:33:13there may be a great deal of quicksotic
  8919. 5:33:15charm surrounding the folklore, legend,
  8920. 5:33:17and provenence of the exotic goji berry,
  8921. 5:33:20there's just not much concrete
  8922. 5:33:21scientific proof it actually does
  8923. 5:33:23anything except perhaps cost a lot of
  8924. 5:33:26money. Yet, we keep buying it by the
  8925. 5:33:28case load. In 2009, Goji products were a
  8926. 5:33:31$145 million industry, reaching well
  8927. 5:33:34beyond the juice market to include nine
  8928. 5:33:36product categories, including tea,
  8929. 5:33:37celestial seasonings, goji berry,
  8930. 5:33:39pomegranate, green tea, cereal, me, and
  8931. 5:33:41goji custom artisal cereal and candy.
  8932. 5:33:43Bostas' dark chocolate goji bar. Six.
  8933. 5:33:46But if goji berries haven't been proven
  8934. 5:33:48to have any real medicinal properties,
  8935. 5:33:50that raises an obvious question. How
  8936. 5:33:53exactly are we being brainwashed to buy
  8937. 5:33:55the stuff in such quantities? Turns out
  8938. 5:33:57the real magic of the goji berry has
  8939. 5:34:00less to do with our hearts or our
  8940. 5:34:02circulatory systems or our blood glucose
  8941. 5:34:04and more to do with our brains. As I
  8942. 5:34:07wrote about in my last book, Theology,
  8943. 5:34:09our brains are prone to forming mental
  8944. 5:34:11shortcuts or bookmarks known as somatic
  8945. 5:34:13markers that link cues from our physical
  8946. 5:34:15world to specific emotional states or
  8947. 5:34:17properties. Well, I've seen over and
  8948. 5:34:20over in my work that shrewd companies
  8949. 5:34:22are able to actually plant these somatic
  8950. 5:34:24markers in our minds by creating
  8951. 5:34:26associations between some positive
  8952. 5:34:28emotion and their product. It seems
  8953. 5:34:30that's exactly what's going on when it
  8954. 5:34:32comes to the goji berry. Now, bear with
  8955. 5:34:35me for a minute. The goji berry is found
  8956. 5:34:38in China and Malaysia, but is most often
  8957. 5:34:40linked with the Himalayas, former home
  8958. 5:34:42to the Dalai Lama. And when we think of
  8959. 5:34:45that part of the world, what comes to
  8960. 5:34:47mind? Could it be Buddhism and
  8961. 5:34:49everything Buddhism symbolizes? Purity,
  8962. 5:34:52simplicity, compassion, wisdom,
  8963. 5:34:54selflessness, and ultimately
  8964. 5:34:55enlightenment. Marketers of these
  8965. 5:34:57products know this, which is why they
  8966. 5:34:59have very cleverly prodded our brains to
  8967. 5:35:01associate their products with these
  8968. 5:35:03spiritual properties. How? For one
  8969. 5:35:06thing, by taking great care to emphasize
  8970. 5:35:08the berry's far eastern provenence in
  8971. 5:35:10their packaging and advertising.
  8972. 5:35:13Look, for example, at a bottle of Free
  8973. 5:35:15Life's Dr. Earl Mindle's authentic
  8974. 5:35:17Himalayan goji juice, available in
  8975. 5:35:19Amazon's health and beauty section,
  8976. 5:35:21among other places. Its stylish,
  8977. 5:35:23expensive looking bottle picture snow
  8978. 5:35:25dusted Mount Everest descending
  8979. 5:35:27majestically into the clouds, seemingly
  8980. 5:35:29uncontaminated by humanity. In the
  8981. 5:35:32foreground, like a small miracle, there
  8982. 5:35:34dangles a cluster of blood red goji
  8983. 5:35:36berries affixed to a gently bent leafy
  8984. 5:35:38stock. The price of four one liter
  8985. 5:35:41bottles $186.11.
  8986. 5:35:45Or take goji gold 100% pure organic
  8987. 5:35:48juice created by dynamic health
  8988. 5:35:50laboratories which comes wrapped in
  8989. 5:35:52similar packaging picturing distant
  8990. 5:35:53vaguely Himalayan mountains seemingly
  8991. 5:35:55reaching into the heavens and therefore
  8992. 5:35:57unsullied by man. The company Ste maker
  8993. 5:36:00of organic green teas and energy drinks
  8994. 5:36:03too markets its products using images
  8995. 5:36:05meant to imply a far eastern origin. If
  8996. 5:36:08you go to its website, you'll be greeted
  8997. 5:36:10by yet another Himalayan scene, dark
  8998. 5:36:12mountains covered with snow, clear
  8999. 5:36:14babbling brooks, untraveled pathways, a
  9000. 5:36:16far-off red pigota, and even
  9001. 5:36:18computerenerated hummingbirds swooping
  9002. 5:36:20in to feed on the nectar of virgin
  9003. 5:36:21flowers. Not to mention the words wisdom
  9004. 5:36:24can be obtained within. While these
  9005. 5:36:26brands would have you believe that the
  9006. 5:36:28contents of their bottles are grown,
  9007. 5:36:30handh harvested, and shipped from the
  9008. 5:36:31pristine mountain tops of Tibet or
  9009. 5:36:33Nepal, that couldn't be further from the
  9010. 5:36:35truth. Free Life products are
  9011. 5:36:36mass-roduced and bottled in a giant
  9012. 5:36:38factory in Phoenix, Arizona. Dynamic
  9013. 5:36:41Health Laboratories is based in Georgia,
  9014. 5:36:43and STEA's operations are headquartered
  9015. 5:36:45in New Town, Pennsylvania. I've long
  9016. 5:36:48considered the strongest brands on
  9017. 5:36:49Earth, from Apple to Harley-Davidson, to
  9018. 5:36:52be intriguingly akin to the world's
  9019. 5:36:53religions in that they tend to inspire
  9020. 5:36:55in us a strong ritualistic almost
  9021. 5:36:57evangelistic faith. In this chapter
  9022. 5:37:00though, we'll be talking about a
  9023. 5:37:02different way faith works as a hidden
  9024. 5:37:04persuader. We'll be talking about how
  9025. 5:37:06marketers, advertisers, and purveyors of
  9026. 5:37:08everything from food and beverages to
  9027. 5:37:10clothing to cosmetics and more have
  9028. 5:37:12embarked on an almost religious and
  9029. 5:37:14highly profitable quest of their own to
  9030. 5:37:16ignite desire for their brands and
  9031. 5:37:18products by imbooing them with such
  9032. 5:37:20intangible yet emotionally powerful
  9033. 5:37:22spiritual qualities such as health,
  9034. 5:37:24hope, happiness, faith, clarity, good
  9035. 5:37:26luck, and even the betterment of the
  9036. 5:37:28human soul. Diner Lee, professor of
  9037. 5:37:31behavioral economics at Duke University
  9038. 5:37:33and author of the best-selling book
  9039. 5:37:35Predictably Irrational, notes that what
  9040. 5:37:37we buy is often not only something but
  9041. 5:37:39also an idea embodied by that thing.
  9042. 5:37:42Seven, whether that embodied idea is
  9043. 5:37:44health, happiness, enlightenment, or
  9044. 5:37:46social responsibility, it's this very
  9045. 5:37:48universal psychological tendency that
  9046. 5:37:50makes the hidden persuaders we'll read
  9047. 5:37:51about throughout this chapter so
  9048. 5:37:53incredibly powerful. It was a very good
  9049. 5:37:56year. As anyone who has visited a health
  9050. 5:37:59food store in the past few years is well
  9051. 5:38:01aware, goji isn't the only miracle berry
  9052. 5:38:03in town. Takeawai, the fastest growing
  9053. 5:38:07product in the herbal subcategory with
  9054. 5:38:092009 sales just under $300 million. It's
  9055. 5:38:12the biggest selling botanical product
  9056. 5:38:14today. At the acai berry is a miniature
  9057. 5:38:17grape-like fruit that grows profusely in
  9058. 5:38:19the rainforest of Brazil and is
  9059. 5:38:21available today in the form of various
  9060. 5:38:22tablets, juices, smoothies, yogurts, and
  9061. 5:38:25instant drink powders. There's even a
  9062. 5:38:27goji asai drink I saw once in a health
  9063. 5:38:29food store, which is like the marketing
  9064. 5:38:31version of a double bill concert
  9065. 5:38:32featuring the Rolling Stones and you
  9066. 5:38:34too. Again, the ads and the packages
  9067. 5:38:36deliberately play up the berry's exotic
  9068. 5:38:38provenence. The box of good earth's
  9069. 5:38:40rainforest red tea with acai and
  9070. 5:38:42tropical fruits, of course, pictures a
  9071. 5:38:44savannah on which a mother lion sits
  9072. 5:38:46nursing her cub, whereas rainforest
  9073. 5:38:48therapies asai powder fresh from the
  9074. 5:38:50Brazilian Amazon shows simple wooden
  9075. 5:38:52bats overflowing with the life-giving
  9076. 5:38:54fruit. At first glance, this seems
  9077. 5:38:56perfectly harmless. We can't imagine
  9078. 5:38:58we'd be so gullible as to be duped into
  9079. 5:39:01thinking a berry has magical properties
  9080. 5:39:03just because there's a picture of a
  9081. 5:39:05rainforest on the box. But that's
  9082. 5:39:07exactly the point. The reason these
  9083. 5:39:09subtle, seemingly innocuous images are
  9084. 5:39:12so insidiously persuasive, is because
  9085. 5:39:13they operate deep within our
  9086. 5:39:15subconscious. What's happening here,
  9087. 5:39:17though we're barely aware of it, is that
  9088. 5:39:19when we read the words rainforest or
  9089. 5:39:21Brazilian Amazon, the somatic markers in
  9090. 5:39:24our brains perk up and begin connecting
  9091. 5:39:26various dots, peacefulness, serenity,
  9092. 5:39:30nature, purity, and soon our brains
  9093. 5:39:33begin to ascribe all sorts of spiritual
  9094. 5:39:35and medicinal qualities to the product,
  9095. 5:39:38which of course is exactly what the
  9096. 5:39:40marketers want. If this sounds a bit
  9097. 5:39:42far-fetched, remember that our brains
  9098. 5:39:44are hardwired to connect these dots and
  9099. 5:39:46to make associations that sometimes
  9100. 5:39:48aren't even there. Countless studies
  9101. 5:39:51have shown that thanks to this pattern
  9102. 5:39:52recognition skill humans are born with,
  9103. 5:39:54we often see connections that don't
  9104. 5:39:56exist. Remember the Today Show
  9105. 5:39:59experiment I described earlier? The one
  9106. 5:40:01where I fooled crowds of New Yorkers
  9107. 5:40:03into assuming that Christa, one of the
  9108. 5:40:05shows off air producers, was a
  9109. 5:40:07celebrity. It was because their brains
  9110. 5:40:10had simply put together various dots,
  9111. 5:40:12the dark glasses, the hair, the
  9112. 5:40:15entourage, the paparazzi, the tiny dog.
  9113. 5:40:19From these assorted cues, many concluded
  9114. 5:40:21they'd not only seen Christa before, but
  9115. 5:40:23had attended her concerts, loved her
  9116. 5:40:25music, and so on. In a sense, this is
  9117. 5:40:28exactly what is going on with Asai and
  9118. 5:40:30all the other products marketers would
  9119. 5:40:32have us believe possess miraculous,
  9120. 5:40:34restorative, even spiritual properties.
  9121. 5:40:37External cues trigger associations so
  9122. 5:40:39powerful that the thought of questioning
  9123. 5:40:41or second-guessing them doesn't even
  9124. 5:40:43occur to us. However, companies and
  9125. 5:40:46retailers that sell Asai products don't
  9126. 5:40:48stop there. Not by a long shot. They
  9127. 5:40:51aren't content just sitting back and
  9128. 5:40:52hoping that we'll associate good health
  9129. 5:40:54and spiritual well-being with their
  9130. 5:40:56products. Instead, they come out and
  9131. 5:40:58make all kinds of high falitine.
  9132. 5:41:00Preposterously unsubstantiated claims
  9133. 5:41:02that acai juice increases energy, helps
  9134. 5:41:04you lose weight, improves digestion and
  9135. 5:41:06sexual performance, detoxifies the body,
  9136. 5:41:08relieves insomnia, reduces cholesterol,
  9137. 5:41:10rejuvenates your complexion, and helps
  9138. 5:41:12with heart disease and diabetes, and
  9139. 5:41:14more. Yet, profoundly little evidence
  9140. 5:41:16that acai berry juice improves human
  9141. 5:41:19health actually exists. Like most
  9142. 5:41:21berries, asai has good nutritional
  9143. 5:41:23qualities. But there is not a drop of
  9144. 5:41:25research that supports marketing claims
  9145. 5:41:27that it prevents weight gain and facial
  9146. 5:41:28wrinkles, says Johnny Bowden, a
  9147. 5:41:30certified nutrition specialist and
  9148. 5:41:32author of several health books. Nine.
  9149. 5:41:34The expensive acai berry is the triumph
  9150. 5:41:37of marketing over science. That's the
  9151. 5:41:38bottom line. Bowden says the berry isn't
  9152. 5:41:42useless, but it's not anything that
  9153. 5:41:44people are claiming it is. 10. I really
  9154. 5:41:47have to tip my hat to whoever's out
  9155. 5:41:49there marketing acai and all these other
  9156. 5:41:51super fruits. Sure, there are vitamins
  9157. 5:41:54and omega-3s in the acai berry, just as
  9158. 5:41:56there are in all the other marketkedly
  9159. 5:41:58less expensive fruits like bananas,
  9160. 5:42:00grapes, and cranberries. And yes, one
  9161. 5:42:03study by the University of Florida did
  9162. 5:42:05suggest that an acai berry extract may
  9163. 5:42:07indeed the growth of leukemia
  9164. 5:42:09cells in a petri dish, not in actual
  9165. 5:42:12humans. That is 11. According to Asai
  9166. 5:42:14drink manufacturers, if you drink 4
  9167. 5:42:16ounces of acai berry juice daily, it's
  9168. 5:42:19the equivalent of scarfing down more
  9169. 5:42:20than two dozen fruits a day. Well, that
  9170. 5:42:22may be true only because it's highly
  9171. 5:42:24concentrated. But according to the FDA,
  9172. 5:42:26we actually need only about two cups of
  9173. 5:42:28fruit a day. As you may have surmised by
  9174. 5:42:31now, acai juice isn't cheap. A week's
  9175. 5:42:34supply will cost you roughly $40, which
  9176. 5:42:37if you do the math, comes to nearly
  9177. 5:42:39$2,000 a year. And Asai has even
  9178. 5:42:42migrated over to the skin care category.
  9179. 5:42:44For approximately $40, we can now buy
  9180. 5:42:46Asai hydrating facial cream and
  9181. 5:42:48anti-rinkle hydration cream infused with
  9182. 5:42:50acai in the ladder rosewood or copiba.
  9183. 5:42:53It would seem that the harder it is to
  9184. 5:42:55pronounce, the more it costs. Some
  9185. 5:42:57online sellers of acai berry go even
  9186. 5:43:00further over the line in their sneaky
  9187. 5:43:02efforts to sell us the stuff. Some use a
  9188. 5:43:04tactic called network marketing. A
  9189. 5:43:06clever technique that also incorporates
  9190. 5:43:08a healthy dose of peer pressure. What
  9191. 5:43:11this means is that one day your friendly
  9192. 5:43:13neighbor Meen will knock on the door
  9193. 5:43:15claiming that the acai juice she is
  9194. 5:43:17holding, and by holding I mean selling,
  9195. 5:43:19has cured her of all that ailed her from
  9196. 5:43:21hangovers to varicose veins. A number
  9197. 5:43:23have gone so far as to offer consumers a
  9198. 5:43:26free trial, which seems fairly harmless.
  9199. 5:43:28That is until the trial ends and the
  9200. 5:43:30consumer discovers that the company has
  9201. 5:43:32coverly signed her up to automatically
  9202. 5:43:34keep receiving shipments to the tune of
  9203. 5:43:36$80 a month. Some have had to cancel
  9204. 5:43:38their credit cards just to break free
  9205. 5:43:40from the scheme. According to Arlene
  9206. 5:43:42Winrob in her book selling the fountain
  9207. 5:43:44of youth, how the anti-aging industry
  9208. 5:43:46made a disease out of getting old and
  9209. 5:43:48made billions. The practice was so
  9210. 5:43:50widespread writes that the consumer's
  9211. 5:43:52site complaints board collected more
  9212. 5:43:54than 17,000 posts from furious buyers of
  9213. 5:43:57acai 12 sneakier still. According to
  9214. 5:44:00CNN, many online asai vendors like FWM
  9215. 5:44:03Laboratories of Fort Lauderdale and
  9216. 5:44:05Hollywood, Florida, Advanced Wellness
  9217. 5:44:07Research of Miami Beach, Florida, and
  9218. 5:44:09others stand accused of using fake diet
  9219. 5:44:11blogs to steer consumers to sites
  9220. 5:44:13plugging these free trials. While we're
  9221. 5:44:16on the topic of magical fruits, what
  9222. 5:44:18about pomegranate? That one really does
  9223. 5:44:20have actual health benefits, doesn't it?
  9224. 5:44:23Well, like the goji, the pomegranate has
  9225. 5:44:26been used for centuries in traditional
  9226. 5:44:28medicine across the world to treat
  9227. 5:44:30everything from mouth ulcers to dry
  9228. 5:44:31coughs to diarrhea to conjunctivitis to
  9229. 5:44:34tuberculosis. I might add that artwork
  9230. 5:44:36from the earliest days of Islam,
  9231. 5:44:38Judaism, and Christianity shows
  9232. 5:44:40pomegranates symbolizing both unity and
  9233. 5:44:43eternal life. More recently,
  9234. 5:44:45pomegranates have been shown to reduce
  9235. 5:44:46UV induced skin damage 13 and exert
  9236. 5:44:49favorable effects on lipid profiles,
  9237. 5:44:51whatever that means. 14. What you have
  9238. 5:44:54to keep in mind about these claims
  9239. 5:44:56though is who is funding these studies,
  9240. 5:44:57companies like Palm Wonderful, maker of
  9241. 5:44:59those wonderfully weird shaped bottles
  9242. 5:45:01of pomegranate juice. Incidentally, in
  9243. 5:45:04case you were wondering why those
  9244. 5:45:05bottles are shaped that way, they were
  9245. 5:45:07deliberately designed not only to
  9246. 5:45:09resemble one pomegranate on top of
  9247. 5:45:11another, but also to evoke associations
  9248. 5:45:13of the ideal female form, a little
  9249. 5:45:15fuller on the top and bottom with a
  9250. 5:45:16cinched waist. Similarly, the heart in
  9251. 5:45:19place of the O in the brand logo is
  9252. 5:45:21meant to evoke associations of
  9253. 5:45:23cardiovascular health. In any case, it
  9254. 5:45:26turns out that if you fund enough
  9255. 5:45:27scientific studies, and the owners of
  9256. 5:45:29Palm have not only funded over 55 of
  9257. 5:45:32them, but they've also donated over $34
  9258. 5:45:34million in research support to
  9259. 5:45:36scientists and universities all over the
  9260. 5:45:38world. You can find something redeeming
  9261. 5:45:40in just about any product under the sun.
  9262. 5:45:43Sure, pomegranates have a handful of
  9263. 5:45:45health benefits, but again, so do
  9264. 5:45:47fruits, vegetables, fish, oatmeal, olive
  9265. 5:45:49oil, a healthy lifestyle, exercise, and
  9266. 5:45:52weight control. Did I forget to mention
  9267. 5:45:54that pomegranate juice also contains
  9268. 5:45:56valuable antioxidants? If you're not
  9269. 5:45:59sure exactly what antioxidants are or
  9270. 5:46:01what they do other than bellow at us
  9271. 5:46:03from the shelves of the supermarket and
  9272. 5:46:05health food store, you aren't alone. For
  9273. 5:46:08the record, antioxidants neutralize and
  9274. 5:46:10stamp out the errant unstable molecules
  9275. 5:46:12known as free radicals that damage our
  9276. 5:46:14body cells. Our bodies produce free
  9277. 5:46:16radicals naturally, as do pollution, the
  9278. 5:46:18environment, too much sunlight, and an
  9279. 5:46:20unhealthy lifestyle. But just so you
  9280. 5:46:22know, you don't need to pay $2 an ounce
  9281. 5:46:25for some weird purple juice to stamp out
  9282. 5:46:27these free radicals. Nor do you have to
  9283. 5:46:29travel to Nepal or the rainforest.
  9284. 5:46:31Antioxidants occur naturally in fresh
  9285. 5:46:33fruits and vegetables. According to Dr.
  9286. 5:46:36David Gems of University College London.
  9287. 5:46:39It is not the antioxidant content of
  9288. 5:46:41your food that is critical. It is that
  9289. 5:46:43you don't eat too much food. Get plenty
  9290. 5:46:45of exercise. Get a dog and take it for a
  9291. 5:46:48walk. 15. But that doesn't stop Pong
  9292. 5:46:52Wonderful from claiming on its website
  9293. 5:46:54to be the antioxidant superpower and far
  9294. 5:46:56and away the top performer in terms of
  9295. 5:46:58antioxidant potency defined as the in
  9296. 5:47:01vitro ability to scavenge free radical
  9297. 5:47:03molecules. Nor does it stop the company
  9298. 5:47:05from marketing a line of tees, bars,
  9299. 5:47:08pills, and supplements containing the
  9300. 5:47:10super antioxidant extract it calls Ponx,
  9301. 5:47:12the X, of course, meant to imply a
  9302. 5:47:15medical prescription, despite the fact
  9303. 5:47:17that the products have never been
  9304. 5:47:18medically or clinically tested. So
  9305. 5:47:20specious are the brand's health claims.
  9306. 5:47:22In fact, that in 2010, Palm Wonderful
  9307. 5:47:25received a warning letter from the FDA
  9308. 5:47:27stating that the therapeutic claims on
  9309. 5:47:29your website established that the
  9310. 5:47:30product is a drug because it is intended
  9311. 5:47:32for use in the Cure, Mitigation,
  9312. 5:47:34Treatment, or Prevention of Disease 16.
  9313. 5:47:36And that the marketing of Palm Wonderful
  9314. 5:47:38using these claims was in violation of
  9315. 5:47:40the Federal Food, Drug, and Cosmetic
  9316. 5:47:42Act. 17. Similarly, in 2009, regulators
  9317. 5:47:46accused Kelloggs of deceiving consumers
  9318. 5:47:48with claims that their frosted mini
  9319. 5:47:50wheat cereal improved children's
  9320. 5:47:52cognitive health and attentiveness.
  9321. 5:47:54While Kelloggs quickly agreed to a
  9322. 5:47:56settlement, Palm at time of writing has
  9323. 5:47:58repeatedly claimed innocence and
  9324. 5:48:00according to the company website was
  9325. 5:48:02currently reviewing FDA concerns. 18.
  9326. 5:48:06what that nutrition label is really
  9327. 5:48:08saying. It should come as no surprise
  9328. 5:48:10that selling health or the illusion of
  9329. 5:48:12health is hugely profitable. In fact, it
  9330. 5:48:15is so profitable that it has spawned an
  9331. 5:48:17entire exploding industry of products
  9332. 5:48:20marketed as functional foods. One that
  9333. 5:48:22pulled $ 37.3 billion in 2009 in the
  9334. 5:48:26United States alone. Naturally,
  9335. 5:48:28companies have a lot of tricks up their
  9336. 5:48:30sleeves for snagging a share of this
  9337. 5:48:31hugely profitable and rather bogus
  9338. 5:48:33market witness. For example, the cash
  9339. 5:48:35cow known as 100 calorie packs, which
  9340. 5:48:38cleverly allow manufacturers to create
  9341. 5:48:40smaller servings, typically at twice the
  9342. 5:48:42price. In industry parliament, this is a
  9343. 5:48:45well-known strategy called selling
  9344. 5:48:46perceived health and wellness, with the
  9345. 5:48:48major word here being perceived. This
  9346. 5:48:51illusion of healthy is perpetuated by
  9347. 5:48:53the fact that many of us don't know what
  9348. 5:48:55many of the marketing buzzwords really
  9349. 5:48:57mean. And of course, marketers work hard
  9350. 5:49:00to keep it that way. A national survey
  9351. 5:49:02conducted by the Shelton Group found
  9352. 5:49:04that when asked whether we'd rather buy
  9353. 5:49:06a product build as natural or organic,
  9354. 5:49:08we choose natural thinking organic is
  9355. 5:49:10more of an unregulated marketing
  9356. 5:49:12buzzword, that means the product is more
  9357. 5:49:14expensive, says Suzanne Shelton, who
  9358. 5:49:16conducted the survey. But she explains
  9359. 5:49:18in reality the opposite is true. Natural
  9360. 5:49:21is the unregulated word. And other
  9361. 5:49:23popular buzzwords like organically
  9362. 5:49:25grown, pesticidefree, all natural, and
  9363. 5:49:28no artificial ingredients actually mean
  9364. 5:49:30very little.
  9365. 5:49:31Given how freely companies throw these
  9366. 5:49:33terms around, one can hardly blame us
  9367. 5:49:36for being confused. For example, in a
  9368. 5:49:38clever bit of bait and switch marketing,
  9369. 5:49:40when Silk Soy Milk recently introduced a
  9370. 5:49:43line of milk made from non-organic
  9371. 5:49:44soybeans, it simply switched its organic
  9372. 5:49:46soy milk to a green box and began
  9373. 5:49:49selling the new non-organic version in
  9374. 5:49:51the original red packaging with only one
  9375. 5:49:53perceptible change, replacing the word
  9376. 5:49:55organic with the word natural. 19.
  9377. 5:49:59Companies have gone to great lengths to
  9378. 5:50:01convince us that natural equals healthy.
  9379. 5:50:04But that couldn't be further from the
  9380. 5:50:05truth. Believe it or not, because the
  9381. 5:50:08term is unregulated by the FDA, a
  9382. 5:50:10company can dub just about any product
  9383. 5:50:12natural. Potato chips made from actual
  9384. 5:50:15potatoes instead of potato flakes may
  9385. 5:50:17technically be natural, but they are
  9386. 5:50:19still processed, high in fat, high in
  9387. 5:50:21sodium, and lacking in nutritional
  9388. 5:50:23value. Or take English muffins. As
  9389. 5:50:26someone who has been eating this
  9390. 5:50:27breakfast staple for years, you can
  9391. 5:50:29imagine how delighted I was to pull a
  9392. 5:50:31package off the shelf and learn that
  9393. 5:50:33they are now made with unbleached
  9394. 5:50:35enriched white flour and contain hearty
  9395. 5:50:37grains. How nutritious, I thought,
  9396. 5:50:40feeling more virtuous than ever as I
  9397. 5:50:41placed one in the toaster. But alas,
  9398. 5:50:44this actually just means they are made
  9399. 5:50:46with white flour and contain wheat, a
  9400. 5:50:48standard ingredient for any bread or
  9401. 5:50:50starch. As for multigrain, well, this
  9402. 5:50:53more grains the marrier approach sure
  9403. 5:50:54sounds convincing, but all it means is
  9404. 5:50:56that more than one type of grain is
  9405. 5:50:58involved, which doesn't automatically
  9406. 5:51:00make it healthier. And what about
  9407. 5:51:02products that boast they contain
  9408. 5:51:04isolated fibers? Sorry, but this too is
  9409. 5:51:07meaningless. To reap any actual health
  9410. 5:51:10benefits, you have to consume intact
  9411. 5:51:12fibers such as oats or legumes. As the
  9412. 5:51:15Washington Post points out, fiber 1 oats
  9413. 5:51:17and chocolate bars say they provide 35%
  9414. 5:51:20of daily fiber, but the fiber comes
  9415. 5:51:22mainly from chory root extract, 20,
  9416. 5:51:24which isn't one of the healthy fibers.
  9417. 5:51:27With all this linguistic smoke and
  9418. 5:51:29mirrors, is it any wonder we have no
  9419. 5:51:31idea what it is we're actually eating?
  9420. 5:51:34My favorite slight of hand is the claim
  9421. 5:51:36that a food or drink can give you
  9422. 5:51:38energy. Well, I have news for you.
  9423. 5:51:41Energy is just another way of saying
  9424. 5:51:43calories, which makes this a very clever
  9425. 5:51:46way of putting a positive spin on what
  9426. 5:51:48would otherwise be the kiss of death for
  9427. 5:51:50a health product. Can you imagine a
  9428. 5:51:52company touting the fact that its
  9429. 5:51:54product is high in calories? What about
  9430. 5:51:56those claims made with real fruit or
  9431. 5:51:58contains real fruit juice which
  9432. 5:52:00regularly appear on the packages of
  9433. 5:52:02fruit snacks, soft drinks, cereals,
  9434. 5:52:04cookies, and pretty much any food item
  9435. 5:52:07marketed to children or rather the guilt
  9436. 5:52:09laid in parents of children. Again,
  9437. 5:52:11considering that there is no law in
  9438. 5:52:13place governing how much real fruit a
  9439. 5:52:15food or drink must contain to make this
  9440. 5:52:17claim, don't be surprised if those
  9441. 5:52:18strawberry flavored fruit rolls contain
  9442. 5:52:20maybe half a drop of fruit juice and are
  9443. 5:52:22spiked with eight grams of sugar a
  9444. 5:52:24piece. a perfect example of how food
  9445. 5:52:26companies target children and their
  9446. 5:52:28wallet carriers at the same time. And
  9447. 5:52:30speaking of juice, what about those
  9448. 5:52:32foods advertised as being fortified with
  9449. 5:52:34nutrients like calcium fortified orange
  9450. 5:52:36juice? According to the Washington Post,
  9451. 5:52:39fortifying a junk food does not offset
  9452. 5:52:41the food's negative qualities. Example,
  9453. 5:52:44Froot Loop says it now provides fiber,
  9454. 5:52:47but the nine grams of sugar in each 3/4
  9455. 5:52:50cup serving of the cereal could have far
  9456. 5:52:52more negative effects than any benefit
  9457. 5:52:54from the slim amount of added fiber. 21.
  9458. 5:52:58Another favorite among marketers is the
  9459. 5:53:00low trans fat claim. Recall that several
  9460. 5:53:03years ago, the FDA proclaimed that trans
  9461. 5:53:05fat, the fat created when oils are
  9462. 5:53:07hydrogenated during food processing,
  9463. 5:53:09contributed to coronary heart disease,
  9464. 5:53:11the biggest killer of Americans.
  9465. 5:53:14Naturally, every food product under the
  9466. 5:53:16sun was immediately proud to boast zero
  9467. 5:53:18trans fat on its package. Problem is,
  9468. 5:53:21products with zero trans fat. And by the
  9469. 5:53:23way, thanks to labeling guidelines,
  9470. 5:53:25these actually include any foods
  9471. 5:53:26containing 0.5 g or less per serving are
  9472. 5:53:29typically teeming with saturated fat,
  9473. 5:53:31which can be just as bad for our hearts
  9474. 5:53:33as trans fat. It's kind of like saying,
  9475. 5:53:36"I'm not carrying a gun." While
  9476. 5:53:38neglecting to mention you are packing a
  9477. 5:53:40hand grenade or a switchblade, genie in
  9478. 5:53:43a bottle. These are just the shenanigans
  9479. 5:53:46being pulled with FDA regulated
  9480. 5:53:48products. When it comes to non-regulated
  9481. 5:53:50products like cosmetics, which are not
  9482. 5:53:53considered drugs and thus can sidestep
  9483. 5:53:55many of the clinical trials required by
  9484. 5:53:57the FDA, marketers and advertisers can
  9485. 5:53:59get away with saying just about
  9486. 5:54:01anything. Makers of face creams, for
  9487. 5:54:04example, are happily pedalling all kinds
  9488. 5:54:06of clever and often blatantly unproven
  9489. 5:54:08claims. The La Prairie brand, for
  9490. 5:54:10example, which by the way is sold in a
  9491. 5:54:13jar the shape of a genie bottle to imply
  9492. 5:54:15magical wish-ranting powers, actually
  9493. 5:54:17promises to reduce stress levels. A
  9494. 5:54:19claim that one doctor I spoke to assured
  9495. 5:54:21me is a medical impossibility. 98% of
  9496. 5:54:25the cosutical industry is all about
  9497. 5:54:27marketing. Eric Finsey, a dermatologic
  9498. 5:54:29surgeon in Maryland, was quoted as
  9499. 5:54:31saying, "If you buy a $1,000 cream,
  9500. 5:54:34there's no reason to expect it's better
  9501. 5:54:37than the $50 cream. It might be worse."
  9502. 5:54:4022. La Prairie Cellular Serum Platinum
  9503. 5:54:44Rare claims to maintain your skin's
  9504. 5:54:46electrical balance while warding off
  9505. 5:54:48pollutants. Given cheese le soy noir
  9506. 5:54:50contains black sea algae which according
  9507. 5:54:53to the companies at copy reconstructs a
  9508. 5:54:55catalyst in the skin to counteract the
  9509. 5:54:57signs of aging. Should you be so bold as
  9510. 5:55:00to ask exactly how it does this a given
  9511. 5:55:03spokesperson will offer you nothing more
  9512. 5:55:05than the assurance that the company's
  9513. 5:55:06clinical tests speak for themselves. And
  9514. 5:55:09Lululemon, the maker of popular
  9515. 5:55:11overpriced yoga wear, got into hot water
  9516. 5:55:14in 2007 when the New York Times reported
  9517. 5:55:16that a product called Vitec, which the
  9518. 5:55:18company claimed contained a stress
  9519. 5:55:20reducing underwater healing property
  9520. 5:55:22known as sea cell, in fact contained no
  9521. 5:55:24seaweed, no marine amino acids, no
  9522. 5:55:26minerals, and no vitamins whatsoever as
  9523. 5:55:28the label claimed. 23. Evidently,
  9524. 5:55:31Lululemon agreed to withdraw the claims
  9525. 5:55:33immediately, at least until it could
  9526. 5:55:35prove them scientifically. The world is
  9527. 5:55:38still waiting. 24. Finally, there's La
  9528. 5:55:42Prairie Skin Caviar Crystalline Consent,
  9529. 5:55:44which retails for $375 an ounce and
  9530. 5:55:47contains, I'm not kidding here, stem
  9531. 5:55:49cells from the rare water spatlo Swiss
  9532. 5:55:51apple. So rare that only three trees
  9533. 5:55:53remain in existence. 25 implying some
  9534. 5:55:55magical regenerative or restorative
  9535. 5:55:57properties. The problem with this
  9536. 5:55:59deranged claim is that as Finy explains,
  9537. 5:56:02number one, no cell would stay alive in
  9538. 5:56:04a cream. A cell is a very delicate
  9539. 5:56:06living thing and unless it's in the
  9540. 5:56:08right environment, when you take the
  9541. 5:56:10apple off the tree, it's starting to
  9542. 5:56:12die. Number two, a plant stem cell is
  9543. 5:56:15not going to do anything for human skin.
  9544. 5:56:1826.
  9545. 5:56:20Unfortunately, the fact is that most
  9546. 5:56:22face creams that promise to prevent
  9547. 5:56:24aging, many of which are loaded with
  9548. 5:56:26antioxidants for no good reason other
  9549. 5:56:28than to give marketers an additional
  9550. 5:56:30tagline, have next to no effect.
  9551. 5:56:32According to one prominent British
  9552. 5:56:34researcher quoted in the UK's Daily
  9553. 5:56:36Mail, rather than spending money on
  9554. 5:56:38vitamin loaded potions and pills, people
  9555. 5:56:40who want to retain a youthful look
  9556. 5:56:42should instead concentrate on eating
  9557. 5:56:43healthy foods in sensible amounts and
  9558. 5:56:46exercising. 27.
  9559. 5:56:48And while we're talking specious
  9560. 5:56:50marketing claims, what about the
  9561. 5:56:52multi-billion dollar supplement
  9562. 5:56:53business, which has migrated well beyond
  9563. 5:56:55chains like GNC and is now taking over
  9564. 5:56:57aisles and aisles of most drugstores and
  9565. 5:56:59health food stores? Shark cartilage may
  9566. 5:57:02be used to help treat arthritis and
  9567. 5:57:04cancer. Bollin is a storehouse of all
  9568. 5:57:06naturally occurring multivitamins,
  9569. 5:57:07minerals, proteins, amino acids,
  9570. 5:57:09hormones, and enzymes. Ginobaloba may
  9571. 5:57:12support mental sharpness. And then
  9572. 5:57:13there's my personal favorite, or go
  9573. 5:57:15weed, which we're only told has a long
  9574. 5:57:17history of traditional use by men in
  9575. 5:57:19China and Japan for what. You can draw
  9576. 5:57:21your own conclusions. I could go on and
  9577. 5:57:23on. And despite the fact that these
  9578. 5:57:25statements have not been evaluated by
  9579. 5:57:27the FDA and these products are not
  9580. 5:57:29intended to diagnose, treat, cure, or
  9581. 5:57:32prevent any disease as their labels are
  9582. 5:57:33required by law to read. We continue to
  9583. 5:57:35buy into them. According to a 2009
  9584. 5:57:38survey conducted by Ipso's public
  9585. 5:57:39affairs for the Council for Responsible
  9586. 5:57:41Nutrition in Washington, DC, some 65% of
  9587. 5:57:45Americans label themselves supplement
  9588. 5:57:47users. According to Dr. W. Steven Prey,
  9589. 5:57:50Burnernhard professor at the College of
  9590. 5:57:52Pharmacy at Southwestern Oklahoma State
  9591. 5:57:55University. All this crazy junk became
  9592. 5:57:57available thanks to the 1994 Supplement
  9593. 5:58:00Health Act. It's a completely
  9594. 5:58:02unregulated industry. It just means that
  9595. 5:58:04you or I could find a weed in our
  9596. 5:58:06backyard and start marketing it as a
  9597. 5:58:08dietary supplement. There have been
  9598. 5:58:10reports of kidney stones and liver
  9599. 5:58:12damage. No one knows what's in this
  9600. 5:58:14stuff. It's true. The 1,994
  9601. 5:58:18regulations, or lack of them, allow just
  9602. 5:58:21about anyone to start up a company and
  9603. 5:58:23roll out a supplement in record time. No
  9604. 5:58:25medical license or credentials
  9605. 5:58:27necessary. In general, supplement makers
  9606. 5:58:30aren't even under any responsibility to
  9607. 5:58:32register their products with the FDA. As
  9608. 5:58:35another source puts it, the Dietary
  9609. 5:58:37Supplement Health and Education Act of
  9610. 5:58:391994 opened a floodgate of questionable
  9611. 5:58:42health claims and advertising for herbal
  9612. 5:58:44and dietary supplements. Although
  9613. 5:58:47lawmakers didn't intend that the
  9614. 5:58:48supplement industry be unregulated, this
  9615. 5:58:51has been the practical result. 28. Given
  9616. 5:58:55how easy it is for anyone to get in on
  9617. 5:58:57this very profitable game, it's no
  9618. 5:58:59surprise that the so-called
  9619. 5:59:00neutrauticals industry worth $25 billion
  9620. 5:59:04in the United States alone continues to
  9621. 5:59:06expand. At time of writing though,
  9622. 5:59:08several senators, including John McCain,
  9623. 5:59:10are behind a new dietary supplement
  9624. 5:59:12safety act, which would require dietary
  9625. 5:59:15supplement manufacturers to register
  9626. 5:59:17with the FDA and fully disclose their
  9627. 5:59:19ingredients. Fingers crossed that it
  9628. 5:59:21becomes law. the high price of doing
  9629. 5:59:24good. Ever since the 2008 economic
  9630. 5:59:27downturn, the cult of consumption in our
  9631. 5:59:30culture has lost a lot of followers.
  9632. 5:59:32Over the past couple of years, many of
  9633. 5:59:35us have traded our worship of money and
  9634. 5:59:37things for an almost fervent devotion to
  9635. 5:59:39a new frugality. Forced to adjust to the
  9636. 5:59:42new economic climate in which we
  9637. 5:59:44suddenly found ourselves, our lives
  9638. 5:59:46became smaller and simpler in a hurry.
  9639. 5:59:48We stayed home, hunkered down. We quit
  9640. 5:59:51eating out at restaurants. We sold off
  9641. 5:59:54some of the junk collecting dust in our
  9642. 5:59:56basement and storage lockers. We clipped
  9643. 5:59:59coupons, shopped for bargains, made do,
  9644. 6:00:01and wondered sensibly, too, how on earth
  9645. 6:00:04we gotten so caught up in this spending
  9646. 6:00:06spiral in the first place. So, if we've
  9647. 6:00:08stopped praying at the Church of the
  9648. 6:00:10Material Gods, what's standing in the
  9649. 6:00:12wings? Answer: something no company can
  9650. 6:00:15put a price or even a discount sticker
  9651. 6:00:17on. Serenity. Simplicity. equilibrium,
  9652. 6:00:21happiness, balance, virtue, in short,
  9653. 6:00:25spiritual enlightenment in its many
  9654. 6:00:27purchasable forms. It seems that in a
  9655. 6:00:30world that's increasingly hyperconnected
  9656. 6:00:32and always on today, more than ever,
  9657. 6:00:34we're searching for a simplicity in life
  9658. 6:00:36that few of us have ever known. This
  9659. 6:00:39back to basic sentiment has become so
  9660. 6:00:41pervasive, in fact, that it has spawned
  9661. 6:00:43a number of popular trends. From urban
  9662. 6:00:45farming, think chicken coupe on a fire
  9663. 6:00:47escape to freanism consuming only
  9664. 6:00:49discarded food and goods to clean
  9665. 6:00:51eating, a strict regimen of natural
  9666. 6:00:53eating popularized in part by
  9667. 6:00:54best-selling author Michael Pollen.
  9668. 6:00:57Marketers and companies have jumped
  9669. 6:00:59right on these trends, which is why
  9670. 6:01:01today so many products are marketed in a
  9671. 6:01:04way that emphasizes Mother Earth. Their
  9672. 6:01:06packages are plastered with words like
  9673. 6:01:08wellness and natural and environmentally
  9674. 6:01:11friendly buzzwords that have particular
  9675. 6:01:13meaning and significance for women who
  9676. 6:01:15influence roughly 80% of all consumer
  9677. 6:01:18purchases. 29. The irony of all this is
  9678. 6:01:22that green and ethical and organic
  9679. 6:01:24products often cost more. A virtue,
  9680. 6:01:27charity, health, benevolence, and social
  9681. 6:01:29responsibility are expensive. According
  9682. 6:01:32to a poll conducted by GFK Roper Public
  9683. 6:01:34Affairs and Media and the Yale School of
  9684. 6:01:37Forestry and Environmental Studies,
  9685. 6:01:39nearly half of all people, women in
  9686. 6:01:41particular, say they are willing to pay
  9687. 6:01:43more for environmentally responsible
  9688. 6:01:45products. 30. And according to that same
  9689. 6:01:47survey, the majority of women pulled
  9690. 6:01:49believe not only that consumers have a
  9691. 6:01:51personal responsibility to take care of
  9692. 6:01:54the earth, but also that being green is
  9693. 6:01:56good for your health and well-being. 31.
  9694. 6:02:00Companies know this and are exploiting
  9695. 6:02:02it in all kinds of ways. Take how
  9696. 6:02:04Proctor and Gamble's best-selling Tide
  9697. 6:02:06laundry detergent has begun using social
  9698. 6:02:09responsibility as a marketing tool with
  9699. 6:02:11its hugely successful Loads of Hope
  9700. 6:02:13campaign. Evidently, in the wake of
  9701. 6:02:15Hurricane Katrina, PNG decided it would
  9702. 6:02:17form a Tide Loads of Hope team to travel
  9703. 6:02:19to Louisiana and other afflicted areas
  9704. 6:02:21to supply clean, wash with Tide, of
  9705. 6:02:24course, clothes to displaced residents.
  9706. 6:02:26According to the online magazine slate,
  9707. 6:02:28the team arrives in a rolling
  9708. 6:02:30laundromat, a gigantic orange truck the
  9709. 6:02:32color of the original Tide box carrying
  9710. 6:02:3432 washers and dryers. Then for two or 3
  9711. 6:02:37weeks, the team wearing bright orange
  9712. 6:02:39tied t-shirts will wash, dry, and fold
  9713. 6:02:42the sheets, towels, and clothes of
  9714. 6:02:44families and aid workers for free. It's
  9715. 6:02:46got to be a huge relief for displaced
  9716. 6:02:49people. It's also likely to produce a
  9717. 6:02:51very pleasant association the next time
  9718. 6:02:54anyone who's been helped sees a bottle
  9719. 6:02:55of Tide on the grocery shelf. The
  9720. 6:02:58article notes 32. But is shelling out
  9721. 6:03:01the extra money for these responsible
  9722. 6:03:03products actually doing any social good?
  9723. 6:03:06Or are they just making us feel more
  9724. 6:03:08virtuous in the same way that drinking
  9725. 6:03:10asai juice makes us feel more healthy?
  9726. 6:03:13Signs point to the latter. Given that
  9727. 6:03:15research shows that when we make these
  9728. 6:03:16kinds of purchases, we tend to give
  9729. 6:03:18ourselves permission to make less
  9730. 6:03:20responsible decisions in other areas of
  9731. 6:03:22our lives. Say failing to recycle our
  9732. 6:03:24Coke can after scarfing down an organic
  9733. 6:03:26hamburger or pressing the gas on our
  9734. 6:03:28eco-friendly Priuses with an alligator
  9735. 6:03:30skin boot, thus undoing our efforts to
  9736. 6:03:32do good. One study found that the owners
  9737. 6:03:35of hybrid cars drive more miles, are
  9738. 6:03:37more ticket and accidentprone, and even
  9739. 6:03:39bash into pedestrians more. 33.
  9740. 6:03:43More ironic still is that today buying
  9741. 6:03:45responsible products like hybrid cars is
  9742. 6:03:47actually an act of conspicuous
  9743. 6:03:49consumption, a way of purchasing the
  9744. 6:03:51respect and admiration of our peers. An
  9745. 6:03:53old episode of South Park didn't refer
  9746. 6:03:55to it as the pas for nothing. And in
  9747. 6:03:58fact, Toyota engineered this quite
  9748. 6:04:00deliberately. Not only were its
  9749. 6:04:02designers the first to make an
  9750. 6:04:04environmentally friendly car stylish,
  9751. 6:04:06even sexy with its sleek design,
  9752. 6:04:08powerful engine, and coollooking
  9753. 6:04:10solar-powered moonroof, its marketers
  9754. 6:04:12made the Prius nothing short of a status
  9755. 6:04:14symbol by taking swift advantage of our
  9756. 6:04:17devotion to celebrity. How the company
  9757. 6:04:20turned to Mike Sullivan, the owner of
  9758. 6:04:22Toyota of Hollywood, and arranged for
  9759. 6:04:24him to transport 26 Priuses to the 2003
  9760. 6:04:27Oscars. And before long, Business Week
  9761. 6:04:29notes such stars as Cameron Diaz and
  9762. 6:04:31Leonardo DiCaprio were being
  9763. 6:04:33photographed. Look, we're so green with
  9764. 6:04:35their Priuses, and it became the cool
  9765. 6:04:37thing to do, says Sullivan. 34. Toyota
  9766. 6:04:41also loaned cars to an LA public
  9767. 6:04:42relations agency, thus ensuring
  9768. 6:04:44snapshots of such stars as Harrison Ford
  9769. 6:04:46and Kalista Flockard in Priuses, and
  9770. 6:04:48also provided Priuses for use on such TV
  9771. 6:04:51shows and movies as CSI Miami, Weeds,
  9772. 6:04:53Evan Almighty, and Superb Bad, where the
  9773. 6:04:55cars ended up being featured
  9774. 6:04:56prominently. always driven by the lead
  9775. 6:04:58characters, no less. 35 with celebrities
  9776. 6:05:01like Meil Stre, Brad Pitt, Kirsten
  9777. 6:05:03Dunst, Le Ferrell, Miley Cyrus, Tim
  9778. 6:05:05Robbins, Larry David, who owns three
  9779. 6:05:07Priuses, including the one his character
  9780. 6:05:09drives on his HBO series, Curb Your
  9781. 6:05:12Enthusiasm, 36, and others singing the
  9782. 6:05:14praises of Toyota's Environmental
  9783. 6:05:16Marvel, and both the Sierra Club and the
  9784. 6:05:18National Wildlife Federation, endorsing
  9785. 6:05:20the Prius 37 remember the power of
  9786. 6:05:22experts. It's no wonder that as of this
  9787. 6:05:25writing, the hip brand is Toyota's third
  9788. 6:05:28bestselling model, just behind the far
  9789. 6:05:30more affordable Camry and the Corolla
  9790. 6:05:3338. In fact, several consumer studies
  9791. 6:05:36today rank Toyota as one of the most
  9792. 6:05:38environmentally friendly brands in the
  9793. 6:05:40world. But hold on a moment, isn't
  9794. 6:05:42Toyota a car company? The appeal of the
  9795. 6:05:45Prius is a perfect example of what
  9796. 6:05:47psychologists call competitive altruism.
  9797. 6:05:49A widely accepted theory which asserts
  9798. 6:05:51that people do socially responsible
  9799. 6:05:53things like buy hybrids and other
  9800. 6:05:55environmentally friendly products not so
  9801. 6:05:57much to do good but rather to show off
  9802. 6:05:59their benevolence and enhance their
  9803. 6:06:01social reputations. One study supporting
  9804. 6:06:03this theory found that even the most
  9805. 6:06:05ostensibly environmentally conscious
  9806. 6:06:07consumers tend to actually avoid buying
  9807. 6:06:10green products when no one else is
  9808. 6:06:12around to witness their selfless,
  9809. 6:06:13mindful behavior. When people buy light
  9810. 6:06:16bulbs over the internet, for example,
  9811. 6:06:18they tend to choose the non-green,
  9812. 6:06:20politically incorrect, and less
  9813. 6:06:21expensive option. But if they're buying
  9814. 6:06:23in the store where other people can see
  9815. 6:06:25them, they will typically go with a
  9816. 6:06:27longerlasting LED bulb in the recycled
  9817. 6:06:30package. As the researchers explain,
  9818. 6:06:32status motives led people to make a
  9819. 6:06:34rather economically irrational decision,
  9820. 6:06:36at least from a superficial perspective.
  9821. 6:06:39When people are thinking about status,
  9822. 6:06:41they in fact want to spend more to
  9823. 6:06:43demonstrate not only that they are
  9824. 6:06:44environmentally conscious, but also that
  9825. 6:06:47they can afford to be environmentally
  9826. 6:06:48conscious. 39.
  9827. 6:06:51Is it any coincidence then that in July
  9828. 6:06:542007, according to data from CNW
  9829. 6:06:57Marketing Research, when asked why they
  9830. 6:06:58bought a Prius, most people gave the one
  9831. 6:07:01answer that every marketer loves to
  9832. 6:07:02hear. The main reason for buying a
  9833. 6:07:05Prius, said 57% of owners, was because
  9834. 6:07:08it makes a statement about me. 40. The
  9835. 6:07:12Church of Persuasion. I guess it should
  9836. 6:07:14come as no surprise given the turbulence
  9837. 6:07:17of these times and the return to basics
  9838. 6:07:19that it has inspired in many of us that
  9839. 6:07:21spiritual marketing, the term for trying
  9840. 6:07:23to pass off products as having soothing,
  9841. 6:07:25magical or summoning qualities, has
  9842. 6:07:27become a popular strategy for all kinds
  9843. 6:07:29of unlikely brands and products, ranging
  9844. 6:07:32from candy to sports drinks to even cars
  9845. 6:07:34and computers. Today, those seeking a
  9846. 6:07:37taste of Nirvana can munch Hampton
  9847. 6:07:39chutney or suck on classy yoga candy or
  9848. 6:07:41karma candy. And if this leaves you
  9849. 6:07:43thirsty, andheiser Bush recently rolled
  9850. 6:07:45out a series of ads featuring parched
  9851. 6:07:48Tibetan llamas gazing longingly at a
  9852. 6:07:49blimp labeled Budweiser. Still, when it
  9853. 6:07:52comes to spiritual marketing, few edible
  9854. 6:07:54products can compete with the invention
  9855. 6:07:56of one Gausian Zen, a Chinese farmer who
  9856. 6:07:59has actually come up with a way to grow
  9857. 6:08:00Buddha-shaped pears. Sure, they cost
  9858. 6:08:03about $7.50 a piece, but that hasn't
  9859. 6:08:06stopped this ingenious farmer from
  9860. 6:08:08selling close to 10,000 of them. A
  9861. 6:08:11commercial for the 2010 Hyundai Sonata
  9862. 6:08:13features a suggested daily routine for
  9863. 6:08:15achieving innerpiece essentially just a
  9864. 6:08:17handful of yoga poses, including one
  9865. 6:08:19cleverly christen the Sonata 41. While
  9866. 6:08:21in one spot for Gatorade, basketball
  9867. 6:08:23legend Michael Jordan hikes up a Rocky
  9868. 6:08:25Mountain Himalayan, no doubt, in search
  9869. 6:08:27of a spiritual guru whose sage wisdom
  9870. 6:08:30turns out to be the brand slogan,
  9871. 6:08:31"Life's a sport. Drink it up." and the
  9872. 6:08:34computer maker IBM and web search engine
  9873. 6:08:36Los have both built advertising
  9874. 6:08:38campaigns around Sherpas and Tibetan
  9875. 6:08:40holy men. 42.
  9876. 6:08:43Sometimes holy people even participate
  9877. 6:08:45in this brandwashing. For example, a
  9878. 6:08:48rustic Cersian abbey in the Midwest has
  9879. 6:08:50a for-profit arm called laser monks.com.
  9880. 6:08:53When not praying or fasting, these
  9881. 6:08:55monks, yes, actual monks will refill
  9882. 6:08:58your used printer cartridges. The Monks
  9883. 6:09:00claim that they have served more than
  9884. 6:09:0250,000 customers to date and that they
  9885. 6:09:04process anywhere from 200 to 300 daily
  9886. 6:09:07orders. Their 2005 sales, $2.5 million.
  9887. 6:09:13430. And the website also indulges
  9888. 6:09:16internet prayer requests. 44. and one
  9889. 6:09:18Los Angeles company known as intentional
  9890. 6:09:21chocolate goes so far as to employ a
  9891. 6:09:23recording device that captures the
  9892. 6:09:24electromagnetic brain waves of real life
  9893. 6:09:27meditating Tibetan monks before exposing
  9894. 6:09:29the recording to the chocolates in the
  9895. 6:09:31assembly lines for 5 days per batch.
  9896. 6:09:33According to company founder Jim Walsh,
  9897. 6:09:35whoever consumes this chocolate will
  9898. 6:09:37manifest optimal health and functioning
  9899. 6:09:39at physical, emotional, and mental
  9900. 6:09:41levels and in particular will enjoy an
  9901. 6:09:43increased sense of energy, vigor, and
  9902. 6:09:45well-being for the benefit of all
  9903. 6:09:47beings. 45. If new age spirituality has
  9904. 6:09:51really become the new consumer religion,
  9905. 6:09:53is it any wonder that there is a
  9906. 6:09:55moisturizer called hydroen or that a
  9907. 6:09:57campaign for the beauty company GHD
  9908. 6:10:00which refers to itself as a new religion
  9909. 6:10:02for hair explains how users can live
  9910. 6:10:04their lives according to the gospel of
  9911. 6:10:06GHD or that the logo for Brazil's saga
  9912. 6:10:09popular sugarcebased liquor is Rio de
  9913. 6:10:12Janeiro's Christ the Redeemer.
  9914. 6:10:14Similarly, Gerlin, the upscale Parisian
  9915. 6:10:16perfumer, distributes a fragrance known
  9916. 6:10:18as Samsura, which is named after the
  9917. 6:10:20Buddhist cycle of birth and rebirth and
  9918. 6:10:22whose ad copy reads, "Samsura is the
  9919. 6:10:25symbol of harmony of osmosis between a
  9920. 6:10:27woman and her perfume. The perfume
  9921. 6:10:29stopper even resembles the eye of
  9922. 6:10:30Buddha." The reason all this works so
  9923. 6:10:33well, well, remember that our brains are
  9924. 6:10:36predisposed to believe in something,
  9925. 6:10:38anything. You might say that as humans
  9926. 6:10:40we need to believe. Which is why
  9927. 6:10:43companies are constantly coming up with
  9928. 6:10:45new and ingenious ways to capitalize not
  9929. 6:10:47just on newagy spirituality but also on
  9930. 6:10:50traditional oldw world faith and
  9931. 6:10:52religion. To give one rather surprising
  9932. 6:10:54example, I've noticed that in recent
  9933. 6:10:56years the increasing number of
  9934. 6:10:58modernleaning Muslims in our society
  9935. 6:11:00have presented companies with an
  9936. 6:11:02unexpected yet very lucrative
  9937. 6:11:04opportunity. A little background. If
  9938. 6:11:06you're a devout Muslim, your religion
  9939. 6:11:08dictates that you can only eat foods
  9940. 6:11:10designated halal, which is an Arabic
  9941. 6:11:12term defined as lawful or permitted,
  9942. 6:11:14among other things. This excludes pork
  9943. 6:11:16and its byproducts, animals not properly
  9944. 6:11:18slaughtered, carnivorous animals, and
  9945. 6:11:20alcohol. Now, historically, buying halal
  9946. 6:11:23food meant going to a Muslim grosser or
  9947. 6:11:26butcher who cut the meat in accordance
  9948. 6:11:28with Islamic principles. 46. Such a
  9949. 6:11:31person might not be hard to find in
  9950. 6:11:33downtown Baghdad, but here in the
  9951. 6:11:35States, there aren't exactly Muslim
  9952. 6:11:37butchers on every corner, which is why
  9953. 6:11:39food companies have begun to offer
  9954. 6:11:41thousands of new products boasting the
  9955. 6:11:43halal label. This business, according to
  9956. 6:11:46the Halal Journal, is worth roughly 632
  9957. 6:11:49billion per year, a staggering 16% of
  9958. 6:11:52the global food industry. 47.
  9959. 6:11:56Today, companies are slapping the halal
  9960. 6:11:58label on everything from food to makeup
  9961. 6:12:00to even furniture. In this case, it
  9962. 6:12:02could be the oil, paint, or soap used to
  9963. 6:12:05stain the wood that claims halal
  9964. 6:12:06certification. Canadian drug companies
  9965. 6:12:09even sell halal vitamins, which claim to
  9966. 6:12:11be free of the gelatins and other animal
  9967. 6:12:13derivatives that some Islamic scholars
  9968. 6:12:15say make mainstream products haram or
  9969. 6:12:17unlawful. And there are multiple halal
  9970. 6:12:19cosmetics lines, including a brand
  9971. 6:12:21called OneER, which has supposedly been
  9972. 6:12:23certified in Malaysia by the same
  9973. 6:12:25Islamic body responsible for certifying
  9974. 6:12:27meats. People are always looking for the
  9975. 6:12:29next purity thing, confirms Ma Hussein
  9976. 6:12:32Gambles, who built the halal makeup
  9977. 6:12:34firm, Soft, Pure Skincare. 48. Whether
  9978. 6:12:36or not all these religious claims are
  9979. 6:12:38legitimate, they certainly are
  9980. 6:12:40persuasive. A Muslim taxi driver in New
  9981. 6:12:43York once told me that to make up for
  9982. 6:12:45his lack of devoutness, he began buying
  9983. 6:12:47more and more halal branded products,
  9984. 6:12:50they made him feel better about his
  9985. 6:12:52spiritual lapses, which is exactly the
  9986. 6:12:54point. These shrewd brands aren't really
  9987. 6:12:57selling food and perfume and makeup.
  9988. 6:12:59They're selling purity, spirituality,
  9989. 6:13:01faith, virtue, and in some cases,
  9990. 6:13:03atonement. If you're not a Muslim and
  9991. 6:13:05buying faith is what you're after, never
  9992. 6:13:07fear. eBay has you covered. According to
  9993. 6:13:10Newsweek, in 2008, the popular auction
  9994. 6:13:13site offered strands of hair purportedly
  9995. 6:13:15from the head of St. TZ Delisio. Bidding
  9996. 6:13:17began at $40 per strand. Or you could
  9997. 6:13:20purchase a fragment of bone supposedly
  9998. 6:13:22from the 13-year-old St. Filya, who
  9999. 6:13:24according to legend was flogged,
  10000. 6:13:26drowned, and finally beheaded for
  10001. 6:13:28refusing to marry the Roman Emperor
  10002. 6:13:30Dialesian. 49. All of which prompted the
  10003. 6:13:33author of the article to wonder whether
  10004. 6:13:35it was really possible to purchase a
  10005. 6:13:37piece of God's grace and mystery with a
  10006. 6:13:39credit card. 50. That's not all. Among
  10007. 6:13:43the strangest and arguably most
  10008. 6:13:45ridiculous faith-based eBay offerings
  10009. 6:13:47were a grilled cheese sandwich that
  10010. 6:13:49appeared to be emlazed with the face of
  10011. 6:13:50the Virgin Mary. It was bought by an
  10012. 6:13:52online casino for $28,000 and a Dorito
  10013. 6:13:56that precisely resembled the Pope's
  10014. 6:13:57merit or signature hat. It was bought by
  10015. 6:13:59the same casino for $1,29.
  10016. 6:14:03But don't worry, those with more modest
  10017. 6:14:05budgets need only shell out $326
  10018. 6:14:09for an item claiming to be the meaning
  10019. 6:14:11of life. What exactly would be arriving
  10020. 6:14:13at your doorstep after purchasing such
  10021. 6:14:15an item was unclear. The only picture
  10022. 6:14:18the seller provided was a vista of a
  10023. 6:14:20beautiful rainbow. 51. I can't talk
  10024. 6:14:24about selling faith without mentioning
  10025. 6:14:25the phenomenon of the megaurch, which
  10026. 6:14:27debuted in 1977 with Houston's First
  10027. 6:14:30Baptist, seating capacity 3,300, and
  10028. 6:14:34today is nothing less than a marketing
  10029. 6:14:36machine. Concentrated mostly in the
  10030. 6:14:38south, megaurches tend to look more like
  10031. 6:14:40shopping malls than places of worship,
  10032. 6:14:42outfitted with coffee bars, bookstores,
  10033. 6:14:44video games, food courts, and even
  10034. 6:14:46bowling alleys. Others more closely
  10035. 6:14:48resemble cinniplexes as they've hired
  10036. 6:14:50technological consultants to help them
  10037. 6:14:52install multimedia screens on which the
  10038. 6:14:54sermon is broadcast via the web. With a
  10039. 6:14:57high velocity mixture of music, media,
  10040. 6:15:00print, and web, the amount of technology
  10041. 6:15:02can rival a large concert hall, says
  10042. 6:15:04Jack Duran, executive vice president of
  10043. 6:15:06Turner Partners Architecture, LP 52,
  10044. 6:15:09says another architect who has worked on
  10045. 6:15:11transforming the look of American
  10046. 6:15:13churches as well as theaters and
  10047. 6:15:15entertainment complexes, including one
  10048. 6:15:17at Universal Studios. When you get the
  10049. 6:15:20children to come back again and again,
  10050. 6:15:22the parents will follow. 53. Yet other
  10051. 6:15:25churches have embraced the more
  10052. 6:15:26corporate side of the coin. According to
  10053. 6:15:29Forbes magazine, World Changers
  10054. 6:15:30Ministries operates a music studio,
  10055. 6:15:32publishing house, computer graphic
  10056. 6:15:34design suite, and owns its own record
  10057. 6:15:36label, 54. While the New Birth
  10058. 6:15:38Missionary Baptist Church not only has a
  10059. 6:15:40CEO, and plays, but offers a special
  10060. 6:15:42effects 3D website that offers videos on
  10061. 6:15:44demand. 55. in the Great Bington,
  10062. 6:15:47Illinois based Willow Creek Community
  10063. 6:15:49Church is famous for its marketing
  10064. 6:15:51conferences and seminars and for its
  10065. 6:15:52buzz events featuring speakers ranging
  10066. 6:15:55from business consultant Jim Collins to
  10067. 6:15:57President Bill Clinton to former
  10068. 6:15:59Washington Redskins coach Joe Gibs. 56
  10069. 6:16:02tickets can range anywhere from $25 to
  10070. 6:16:05hundreds of dollars a pop. Oak floats.
  10071. 6:16:09Whether the brand's promise is health,
  10072. 6:16:11happiness, or enlightenment, what all
  10073. 6:16:13the marketing PS we've been talking
  10074. 6:16:15about in this chapter have in common is
  10075. 6:16:17that they tap into our very human desire
  10076. 6:16:19to return to the earth, to reclaim an
  10077. 6:16:21innocence untainted by money or by the
  10078. 6:16:24stresses of contemporary life. They're
  10079. 6:16:26all about selling us inner peace,
  10080. 6:16:28spiritual fulfillment, and a better
  10081. 6:16:30life. And selling us hope as well. This
  10082. 6:16:33is nothing new. Companies have been
  10083. 6:16:35selling hope in one way, shape, or form
  10084. 6:16:37for the past hundred years. Because hope
  10085. 6:16:40works, we crave it. We need it, and we
  10086. 6:16:44buy it. Charles Revson, the founder of
  10087. 6:16:46Revlin, was clearly on to something when
  10088. 6:16:48in 1967 he was quoted as saying, "In the
  10089. 6:16:51factory, we make cosmetics. In the
  10090. 6:16:53drugstore, we sell hope in a bottle.
  10091. 6:16:56Hope is the loan we take out for the
  10092. 6:16:58perfect home or the far away city we
  10093. 6:17:00dream of living in someday. Hope is a
  10094. 6:17:03bunch of camping gear we buy to feel
  10095. 6:17:05closer to nature. Even if we live in the
  10096. 6:17:07middle of a siren filled city, a kayak
  10097. 6:17:09rack for a kayak we'll never paddle.
  10098. 6:17:12Boots intended to scale a mountain we
  10099. 6:17:14will never climb. Attent to pitch under
  10100. 6:17:16the stars we'll never sleep under. Op is
  10101. 6:17:19joining a health club to get the body
  10102. 6:17:20we've always wanted. The local grass-fed
  10103. 6:17:23beef we eat in the service of leaving
  10104. 6:17:24our children a better planet. The
  10105. 6:17:26expensive outfit we buy just in case we
  10106. 6:17:29someday have someplace fancy to wear it.
  10107. 6:17:31It's any product that promises to make
  10108. 6:17:33our life better in some small way. I
  10109. 6:17:37have a friend who recently found his
  10110. 6:17:39sources of income drying up. One day, I
  10111. 6:17:41peered in his garage and saw his
  10112. 6:17:43expensive Hummer, which was hooked to
  10113. 6:17:45his speedboat. "Why don't you sell your
  10114. 6:17:48car and your boat?" I asked. It seemed
  10115. 6:17:51to make sense if he was hurting
  10116. 6:17:53financially. "No," he told me. At first,
  10117. 6:17:56I thought he was being bullheaded. But
  10118. 6:17:58then I realized that he was clinging to
  10119. 6:18:00those objects, those things, because
  10120. 6:18:02they represented hope, and that if he
  10121. 6:18:05sold them, he would be selling his
  10122. 6:18:07entire imagined future, that these
  10123. 6:18:09objects represented a world in which he
  10124. 6:18:11hoped he would someday live. Whenever I
  10125. 6:18:14do speeches across the world, I knock on
  10126. 6:18:16wood just for the hell of it. As far as
  10127. 6:18:19I can tell, it's never brought me any
  10128. 6:18:21spectacularly good luck, but I still do
  10129. 6:18:24it. Hope may be an illusion, but we
  10130. 6:18:26believe in it, and we're willing to
  10131. 6:18:28spend our hard-earned money for it all
  10132. 6:18:30the same. Chapter nine. You're sitting
  10133. 6:18:34at home killing time at your computer
  10134. 6:18:36when an email announces itself. No, it's
  10135. 6:18:39not from a friend or from your boss.
  10136. 6:18:41It's a notice from the chain drugstore
  10137. 6:18:43you frequent down the street. Joanne, it
  10138. 6:18:46says, "Save $5 off your next purchase of
  10139. 6:18:48Neutrogena moisturizer." adding that
  10140. 6:18:51this special offer expires in 3 weeks
  10141. 6:18:53time. Now, how you wonder did the
  10142. 6:18:56drugstore know you were a Neutrogena
  10143. 6:18:58user. Must be a coincidence, you think,
  10144. 6:19:01and then promptly forget about it. That
  10145. 6:19:04is until the following week when you're
  10146. 6:19:06sorting through your snail mail and find
  10147. 6:19:08another flyer from the same store. This
  10148. 6:19:10time it's offering you discounts for
  10149. 6:19:12your brand of laundry detergent. Tide
  10150. 6:19:14your preferred toothpaste, winter green
  10151. 6:19:16crest with extra whitening, and your
  10152. 6:19:18guilty pleasure snack food hint of lime
  10153. 6:19:20tastitos. This is clearly not a
  10154. 6:19:22coincidence. The pieces start to come
  10155. 6:19:25together as you flash back to your last
  10156. 6:19:28drugstore visit. Will you be using your
  10157. 6:19:30loyalty card? The board teenage clerk
  10158. 6:19:33asked as you were paying for your
  10159. 6:19:34purchases, which included, "Besides the
  10160. 6:19:36aforementioned items, band-aids,
  10161. 6:19:39vitamins, your husband's head and
  10162. 6:19:40shoulders, and your family's various
  10163. 6:19:42prescriptions."
  10164. 6:19:44As usual, unthinkingly, you handed over
  10165. 6:19:46the red plastic card, watching
  10166. 6:19:48impatiently as the clerk scanned the
  10167. 6:19:49tiny barcode under her want. After you
  10168. 6:19:52paid up, the clerk pulled up a two-ft
  10169. 6:19:54long receipt, announcing without
  10170. 6:19:56interest, "You've got four coupons
  10171. 6:19:57today. One for half off a pack of Venus
  10172. 6:20:00razors. Funny, you did just switch to
  10173. 6:20:02Venus from another brand. Another for a
  10174. 6:20:046 bottle of Purll. Weird thing is you
  10175. 6:20:07just ran out. A third offering you a 10%
  10176. 6:20:09discount on your next bottle of vitamin
  10177. 6:20:11D tablets. How did they know that
  10178. 6:20:13recently you've been reading tons of
  10179. 6:20:15articles about vitamin D and one for a
  10180. 6:20:18dollar off the next time you develop a
  10181. 6:20:20roll of digital photos. Uh, you do have
  10182. 6:20:22a family reunion coming up. On the way
  10183. 6:20:25out, you were struck by the music
  10184. 6:20:27playing overhead, James Taylor's Fire
  10185. 6:20:29and Rain. Though you'd heard this song
  10186. 6:20:31700 million times in your life, you
  10187. 6:20:34couldn't help but wonder, was it sheer
  10188. 6:20:36coincidence the drugstore knew you're a
  10189. 6:20:38sucker for this particular heart tugging
  10190. 6:20:40late baby boomer lullabi? Did these
  10191. 6:20:42people have a microchip implanted in
  10192. 6:20:44your brain or what? Well, sort of. As it
  10193. 6:20:49turns out, thanks to the sophisticated
  10194. 6:20:50techniques today's companies have for
  10195. 6:20:52keeping track of your every move, this
  10196. 6:20:54drugstore and virtually every other
  10197. 6:20:56place you shop, for that matter,
  10198. 6:20:58probably knows more about your wants,
  10199. 6:20:59your needs, your dreams, and your habits
  10200. 6:21:02than even you do. And it's using this
  10201. 6:21:04information to make money off you in
  10202. 6:21:06ways you couldn't even imagine. Welcome
  10203. 6:21:09to the $100 billion world of data
  10204. 6:21:12mining. Save the data. Data mining,
  10205. 6:21:16euphemistically referred to in the
  10206. 6:21:17marketing industry as knowledge
  10207. 6:21:19discovery or consumer insights, is an
  10208. 6:21:21enormous and rapidly growing global
  10209. 6:21:23business devoted to tracking and
  10210. 6:21:25analyzing consumer behavior, then
  10211. 6:21:27categorizing, summarizing, and smoothing
  10212. 6:21:29that data so it can be used to persuade
  10213. 6:21:31and on occasion manipulate us to buy
  10214. 6:21:33products. Data mining is how companies
  10215. 6:21:36know not only your buying habits but
  10216. 6:21:37also your race, gender, address, phone
  10217. 6:21:39number, education level, approximate
  10218. 6:21:41income, family size, pet's name,
  10219. 6:21:43favorite movie, and much, much more,
  10220. 6:21:45creating what one expert calls a mirror
  10221. 6:21:47world of us. One, the goal of consumer
  10222. 6:21:50insights. According to Stuart Akin, the
  10223. 6:21:52CEO of Donia leading data mining company
  10224. 6:21:55based in Ohio, whose clients include
  10225. 6:21:57Proctor and Gamble, Macy's, PepsiCo,
  10226. 6:21:59Coca-Cola, Kelloggs, Craft Foods, and
  10227. 6:22:02Home Depot. We're looking for the
  10228. 6:22:04motivations and the understanding behind
  10229. 6:22:06what consumers do and buy. Two, being
  10230. 6:22:10able to predict what a consumer is
  10231. 6:22:12likely to buy next. And being the first
  10232. 6:22:14company in line to perfectly target the
  10233. 6:22:17offering to the consumer in question is
  10234. 6:22:19of paramount importance to companies of
  10235. 6:22:21all stripes. Why? Because based on
  10236. 6:22:24marketers data, consumers who try a new
  10237. 6:22:26product are likely to stick with it for
  10238. 6:22:28an average of a year and a half. So, if
  10239. 6:22:31a store can figure out what new product
  10240. 6:22:33you might like and offer a free sample
  10241. 6:22:35or coupon or promotion persuading you to
  10242. 6:22:37try it, it's potentially locked up your
  10243. 6:22:40dollars for the next 18 months. Thanks
  10244. 6:22:42to data mining companies, or as I like
  10245. 6:22:45to call them, Big Brother, every time we
  10246. 6:22:47do a Google search, write on a friend's
  10247. 6:22:48Facebook wall, swipe our credit card,
  10248. 6:22:50download an iTunes song, look up
  10249. 6:22:52directions on our cell phone, or shop at
  10250. 6:22:54the local grocery store, an unseen data
  10251. 6:22:56collector is shadowing us, recording
  10252. 6:22:58every last bit of information, crunching
  10253. 6:23:00and analyzing it, and then turning
  10254. 6:23:02around and reselling it to retailers and
  10255. 6:23:04marketing firms. What's more, the data
  10256. 6:23:07mining industry is growing 10% a year.
  10257. 6:23:10And why? Because thanks to technologies
  10258. 6:23:12like the GPS tracking built into our
  10259. 6:23:14smartphones, the license agreements we
  10260. 6:23:16sign every time we download a new piece
  10261. 6:23:18of software onto our laptops, commercial
  10262. 6:23:20spyware, otherwise known as adwear that
  10263. 6:23:22tracks and records every website we
  10264. 6:23:24visit, and increasingly sophisticated
  10265. 6:23:26algorithms and computer models to
  10266. 6:23:28analyze all this information. Today,
  10267. 6:23:30each and every move we as consumers make
  10268. 6:23:32is producing reams more data than ever
  10269. 6:23:34before. And you better believe companies
  10270. 6:23:36are using this data to take our dollars
  10271. 6:23:38in ways we don't even realize.
  10272. 6:23:41Code blue. Don't you miss the good old
  10273. 6:23:44days when coupons showed up in the
  10274. 6:23:46Sunday newspaper? You put down your
  10275. 6:23:48steaming mug of coffee, get out your
  10276. 6:23:50scissors, cut along the dotted lines,
  10277. 6:23:52then contentedly file away that freshly
  10278. 6:23:55clipped coupon in the handy little
  10279. 6:23:56folder you kept in your desk drawer.
  10280. 6:23:59Well, those days are over. Thanks to the
  10281. 6:24:01web, the coupon has now gone digital.
  10282. 6:24:04and that digital coupon knows more about
  10283. 6:24:06you than you can imagine. Digital
  10284. 6:24:08coupons, another sneaky yet little known
  10285. 6:24:11tool of the data mining world. If you
  10286. 6:24:13think digitizing coupons is merely about
  10287. 6:24:15convenience and saving postage, you're
  10288. 6:24:18wrong. Today, the innocent looking
  10289. 6:24:20barcodes on those ubiquitous online
  10290. 6:24:22coupons are encoded with a shocking
  10291. 6:24:23amount of information about you,
  10292. 6:24:25including your computer's IP address,
  10293. 6:24:27everything written on your Facebook
  10294. 6:24:29profile and posts, the date and time you
  10295. 6:24:31both obtained and redeemed the coupon,
  10296. 6:24:33the location of the store where you used
  10297. 6:24:35it, whether you found the coupon online,
  10298. 6:24:37and even the search terms you used to
  10299. 6:24:39track it down in the first place. And if
  10300. 6:24:42this wasn't bad enough, more and more
  10301. 6:24:43retailers are cross-pollinating this
  10302. 6:24:45data with other information their datab
  10303. 6:24:47bank has about you, including estimates
  10304. 6:24:49of your age, your gender, your income,
  10305. 6:24:51your buying history, what websites you
  10306. 6:24:53visited recently, and your real-time
  10307. 6:24:55whereabouts, creating a profile so
  10308. 6:24:57intricate and detailed it would impress
  10309. 6:24:58a CIA operative. Here's how it works.
  10310. 6:25:02Let's say you receive a coupon in your
  10311. 6:25:04inbox from Macy's. You either print it
  10312. 6:25:07on your computer or send it to your cell
  10313. 6:25:09phone. Then when you go into a store to
  10314. 6:25:12redeem it, the clerk scans it, sending
  10315. 6:25:14all the information I just noted to a
  10316. 6:25:17company called Rift Tracks. RiftX then
  10317. 6:25:19analyzes this information and assigns
  10318. 6:25:21you to a particular cluster or
  10319. 6:25:23cross-section depending on the type of
  10320. 6:25:25consumer the data indicate you are. By
  10321. 6:25:28matching your online behavior with your
  10322. 6:25:30instore purchasing, the retailers can
  10323. 6:25:32figure out which ads or online product
  10324. 6:25:34promotions work best on you, what offers
  10325. 6:25:36you are likely to jump at or ignore, and
  10326. 6:25:38even how long after searching for
  10327. 6:25:40something online you're likely to
  10328. 6:25:41actually go to a store to chase it down
  10329. 6:25:44over time, says Rift Tracks co-founder
  10330. 6:25:46Jonathan Triber, we'll be able to do
  10331. 6:25:48much better profiling around certain IP
  10332. 6:25:50addresses to say, hey, this IP address
  10333. 6:25:53is showing a proclivity for printing
  10334. 6:25:55clothing apparel coupons and is really
  10335. 6:25:57only respond responding to coupons
  10336. 6:25:58greater than 20% off. Three adds Robert
  10337. 6:26:01Dresser, chief executive of Cellfire, a
  10338. 6:26:04mobile coupon company that works with
  10339. 6:26:06grocery chains including Safeway,
  10340. 6:26:08Kroger, and Shopright. We can already
  10341. 6:26:10tell if you are near or inside a store
  10342. 6:26:12and can give you particular offers, but
  10343. 6:26:14that's the kind of thing we're moving
  10344. 6:26:15fairly cautiously on so that the user
  10345. 6:26:17can get to know us and trust us first.
  10346. 6:26:20Four, if you use a coupon on your mobile
  10347. 6:26:23phone, it's even worse. For example,
  10348. 6:26:26Starbucks recently started a program
  10349. 6:26:28that allows coffee drinkers to keep
  10350. 6:26:29track of each purchase on our cell
  10351. 6:26:31phones, rewarding us with a free drink
  10352. 6:26:33for every 15th purchase. Yet, what most
  10353. 6:26:36unsuspecting customers don't know about
  10354. 6:26:38this seemingly bearded program is that
  10355. 6:26:40it's actually pulling data from our
  10356. 6:26:42phones and sending it straight into
  10357. 6:26:44Starbucks database where it's then used
  10358. 6:26:46to target us with personalized
  10359. 6:26:47intreaties. We've tried to build a
  10360. 6:26:50program around recognition and in some
  10361. 6:26:52ways that relevance comes from knowing
  10362. 6:26:53about purchases from data collected from
  10363. 6:26:55the loyalty program. Five. Brady Brewer,
  10364. 6:26:58the vice president of Starbucks
  10365. 6:26:59overseeing brand loyalty and the
  10366. 6:27:01Starbucks card told the New York Times.
  10367. 6:27:04Similarly, last year Target rolled out
  10368. 6:27:06barcode coupons scannable straight from
  10369. 6:27:09your phone at its nearly 2,000 stores
  10370. 6:27:11across the United States. But in
  10371. 6:27:13exchange for receiving five coupons per
  10372. 6:27:15month on various small items from lip
  10373. 6:27:17balm to bubble gum. Are you aware of
  10374. 6:27:20what you're giving up? Check out the
  10375. 6:27:22company's terms and conditions which
  10376. 6:27:23give Target permission to collect user
  10377. 6:27:25cell phone numbers, their carriers
  10378. 6:27:27names, and the date and the time users
  10379. 6:27:29redeemed their coupons. Six worse. A
  10380. 6:27:32Target spokesperson clarifies that the
  10381. 6:27:34company may merge the information it
  10382. 6:27:35pulls from people's phones with
  10383. 6:27:37information from other sources before
  10384. 6:27:39sharing that information with carefully
  10385. 6:27:41selected third parties. Seven Target
  10386. 6:27:43spokespeople were naturally reluctant to
  10387. 6:27:45discuss what kinds of data they collect,
  10388. 6:27:48but one expert estimates that roughly 15
  10389. 6:27:50pieces of information, ranging from what
  10390. 6:27:52search term you typed into your address
  10391. 6:27:54and where you were when you downloaded
  10392. 6:27:55the coupon, thanks to the fact that most
  10393. 6:27:58smartphones are GPS equipped, could be
  10394. 6:28:00relayed via the barcode of a simple
  10395. 6:28:02mobile coupon. That's right, even our
  10396. 6:28:05closest friends, namely our phones, are
  10397. 6:28:07betraying our privacy. A mobile phone
  10398. 6:28:10security firm known as Lookout
  10399. 6:28:11Incorporated analyzed roughly 300,000
  10400. 6:28:14free applications for the iPhone as well
  10401. 6:28:16as for Google's Android and found that
  10402. 6:28:18many of them secretly pull sensitive
  10403. 6:28:20data off users phones and ship them off
  10404. 6:28:22to third parties without notification. A
  10405. 6:28:24by third parties they mean advertisers
  10406. 6:28:26and marketing firms. This information
  10407. 6:28:28these apps are stealing from right under
  10408. 6:28:30our noses. everything from our contact
  10409. 6:28:33lists to our pictures to our text
  10410. 6:28:35messages to our internet search
  10411. 6:28:36histories to our realtime locations.
  10412. 6:28:39Nine. In fact, as the New York Times
  10413. 6:28:41recently reported, when one German
  10414. 6:28:43politician went to court to investigate
  10415. 6:28:45just how much his cell phone company,
  10416. 6:28:47Deutsche Telecom, kept track of his
  10417. 6:28:49whereabouts, he discovered that within a
  10418. 6:28:51six-month period, the company had
  10419. 6:28:53recorded and stored the actual
  10420. 6:28:54coordinates of his location a total of
  10421. 6:28:5635,000 times. We are all walking around
  10422. 6:29:00with little tags and our tag has a phone
  10423. 6:29:02number associated with it, who we called
  10424. 6:29:04and what we do with the phone as Sarah
  10425. 6:29:06E. Williams, an expert on graphic
  10426. 6:29:08information at Colombia University,
  10427. 6:29:10explained to the New York Times. And in
  10428. 6:29:13April 2011, a firestorm erupted when it
  10429. 6:29:16was discovered that the iPhone, the 3G
  10430. 6:29:18version of the iPad, and Google's
  10431. 6:29:20Android phone all contain software that
  10432. 6:29:22silently tracks and records the user's
  10433. 6:29:24location and has been doing so
  10434. 6:29:26unbeknownst to the vast majority of
  10435. 6:29:28users for a year or longer. In the case
  10436. 6:29:30of the Android, the software records
  10437. 6:29:33data about the user's location as
  10438. 6:29:34frequently as every few seconds, then
  10439. 6:29:37transmits that data back to the company
  10440. 6:29:39where it is stored in a database as
  10441. 6:29:41regularly as every few hours. In the
  10442. 6:29:43case of the iPhone and iPad, two San
  10443. 6:29:46Francisco programmers discovered, the
  10444. 6:29:48data also gets stored in a file that is
  10445. 6:29:50automatically copied onto the hard drive
  10446. 6:29:52of any computer synced to the device.
  10447. 6:29:55Meaning that if I charge my iPad on a
  10448. 6:29:57colleague's or acquaintance's computer,
  10449. 6:29:59he or she now possesses a permanent
  10450. 6:30:01record of my whereabouts over the last
  10451. 6:30:03year in a file that could be easily
  10452. 6:30:05hacked, copied, or disseminated via the
  10453. 6:30:07cloud. And the worst part, various
  10454. 6:30:10reputable news outlets report that Apple
  10455. 6:30:12has been loading up phones with this
  10456. 6:30:14software, which can't, by the way, be
  10457. 6:30:16turned off without users knowledge. It
  10458. 6:30:18simply appeared one day silently and
  10459. 6:30:19invisibly as part of a seemingly routine
  10460. 6:30:22upgrade. Understandably, privacy
  10461. 6:30:24advocates were outraged at this blatant
  10462. 6:30:27attempt to capture what the Wall Street
  10463. 6:30:28Journal cites as a $2.9 billion market
  10464. 6:30:31for location-based services. The newest
  10465. 6:30:34ploy to turn our own cell phones into
  10466. 6:30:36data mining tools. An iPhone app called
  10467. 6:30:39Shopkick rolled out in November 2010,
  10468. 6:30:42just in time for the holiday shopping
  10469. 6:30:44season, which offers reward points for
  10470. 6:30:46shopping redeemable everywhere from
  10471. 6:30:48Macy's to Sports Authority to Best Buy.
  10472. 6:30:50A few points are awarded for simply
  10473. 6:30:52checking into a store, more points for
  10474. 6:30:54scanning a product, and of course, still
  10475. 6:30:56more points for buying. But of course,
  10476. 6:30:59that's not all you get. Each time you
  10477. 6:31:01check into a store, scan a product, or
  10478. 6:31:04make a purchase shop, it collects and
  10479. 6:31:06crunches the data about your purchase
  10480. 6:31:08and then uses it to send targeted deals
  10481. 6:31:10and offer straight to your phone. I
  10482. 6:31:13don't know about you, but I'm starting
  10483. 6:31:15to feel creeped out. Charge it at your
  10484. 6:31:18own risk. It may not shock you to learn
  10485. 6:31:20that Walmart, the biggest and most
  10486. 6:31:23profitable retailer in the world, also
  10487. 6:31:25operates one of the most massive data
  10488. 6:31:27banks in the world. Capturing data on
  10489. 6:31:29point of sale transactions from nearly
  10490. 6:31:313,000 stores in six countries, Walmart
  10491. 6:31:34maintains a 7.5 terbteter data warehouse
  10492. 6:31:3710, a database many times the size of
  10493. 6:31:39the federal governments. Because of its
  10494. 6:31:42size, Walmart has unprecedented access
  10495. 6:31:44to information about a staggering number
  10496. 6:31:46of us. Which is why at any given time,
  10497. 6:31:49Walmart always knows what's selling and
  10498. 6:31:51what's languishing and with which
  10499. 6:31:52specific customers. Two. In fact, the
  10500. 6:31:55chain store is famous for hoarding its
  10501. 6:31:57data somewhat obsessively. And it knows
  10502. 6:31:59how to use this information to make us
  10503. 6:32:01spend. I talked earlier about how
  10504. 6:32:04retailers like Walmart employ a company
  10505. 6:32:06to help them predict and capitalize on
  10506. 6:32:08extreme weather events like earthquakes
  10507. 6:32:10and snowstorms. Well, it turns out they
  10508. 6:32:13also use the data about past extreme
  10509. 6:32:15weather events to figure out which
  10510. 6:32:16products beyond the obvious to stock.
  10511. 6:32:19For example, a few years ago when a
  10512. 6:32:22hurricane was approaching the Atlantic
  10513. 6:32:24coast, Walmart crunched the numbers to
  10514. 6:32:26figure out what hurricane victims had
  10515. 6:32:28purchased during the previous hurricane.
  10516. 6:32:30No, it wasn't flashlights. Instead, the
  10517. 6:32:33top selling prehurricane item was beer.
  10518. 6:32:35While, oddly enough, sales of strawberry
  10519. 6:32:37Pop-Tarts of all things had increased
  10520. 6:32:39sevenfold. Accordingly, trucks bulging
  10521. 6:32:42with toaster pastries and six-packs were
  10522. 6:32:44soon speeding toward the sight of the
  10523. 6:32:46oncoming storm. But the scariest thing
  10524. 6:32:48about this isn't that it's making the
  10525. 6:32:50giant retailer a lot of money, which it
  10526. 6:32:52is, of course. It's that the typical
  10527. 6:32:55shopper has absolutely no idea how
  10528. 6:32:57closely she is being monitored. At
  10529. 6:32:59Walmart, there are no loyalty cards to
  10530. 6:33:01swipe, no coupon barcodes to scan, just
  10531. 6:33:04everyday low prices. So, without any
  10532. 6:33:06loyalty program in place, how does
  10533. 6:33:09Walmart capture information? Buy our
  10534. 6:33:11very own credit and debit cards. It's
  10535. 6:33:14amazing what a sophisticated data miner
  10536. 6:33:17can learn from a credit card. In 2002,
  10537. 6:33:20JP Martin, an executive at Canadian
  10538. 6:33:23Tire, which, in addition to tires, and
  10539. 6:33:25car accessories, sells electronics,
  10540. 6:33:27sporting goods, and kitchen appliances,
  10541. 6:33:29began analyzing the data gleaned from
  10542. 6:33:31the credit card transactions the company
  10543. 6:33:33had processed the year before. Among the
  10544. 6:33:35many things Martin found, people who
  10545. 6:33:37bought carbon monoxide monitors
  10546. 6:33:39practically never missed payments, and
  10547. 6:33:41neither did people who bought those
  10548. 6:33:42little soft pads that keep furniture
  10549. 6:33:44legs from scratching up your floor. They
  10550. 6:33:47also found that people who bought cheap
  10551. 6:33:49no-name automotive oil were much more
  10552. 6:33:51likely to miss a credit card payment
  10553. 6:33:52than people who got the expensive brand
  10554. 6:33:54name stuff and that if a person bought a
  10555. 6:33:56chrome skull car accessory, he was
  10556. 6:33:58pretty likely to miss paying his bill
  10557. 6:34:00eventually. 11. From all this, Martin
  10558. 6:34:03concluded that the brands we buy are the
  10559. 6:34:05windows into our souls, or at least into
  10560. 6:34:07our willingness to make good on our
  10561. 6:34:09debts. 12. This wasn't just an isolated
  10562. 6:34:13experiment. Martin's methods are
  10563. 6:34:16actually very common. Most credit card
  10564. 6:34:18companies have and in fact have always
  10565. 6:34:21had, though they are getting far more
  10566. 6:34:23sophisticated thanks to technology
  10567. 6:34:25systems in place that pour through all
  10568. 6:34:27your data looking for clues that you
  10569. 6:34:28might stop making payments. What kind of
  10570. 6:34:31clues? Well, logging onto your online
  10571. 6:34:34account in the middle of the night is
  10572. 6:34:36one as it bespeaks anxiety about your
  10573. 6:34:38finances. If you use a car to buy
  10574. 6:34:40essentials like groceries or
  10575. 6:34:42prescriptions, it's another indication
  10576. 6:34:44that you may have fallen on hard times.
  10577. 6:34:47Have you all of a sudden charged a large
  10578. 6:34:49expense to a credit card you seldom use?
  10579. 6:34:52That's another red flag that you may be
  10580. 6:34:54delinquent with your upcoming monthly
  10581. 6:34:56payment or even teetering toward
  10582. 6:34:57financial insolveny. American Express
  10583. 6:35:00has admitted it once used data about
  10584. 6:35:02where its members shopped to set its
  10585. 6:35:04credit limits, decreasing the limits if
  10586. 6:35:07signs indicated a person was having
  10587. 6:35:09money trouble. Though it has suspended
  10588. 6:35:11the practice, not every company has. In
  10589. 6:35:142008, it was revealed that one subprime
  10590. 6:35:16credit card marketer had decreased
  10591. 6:35:18credit limits on card holders who
  10592. 6:35:19frequented pawn shops, massage parlors,
  10593. 6:35:22tire retread shops, marriage counselors,
  10594. 6:35:24and bars, and nightclubs. 13. no matter
  10595. 6:35:28which credit card you use each and every
  10596. 6:35:30time you charge something on it. The
  10597. 6:35:32company records how much you spent and
  10598. 6:35:34on what type of product. And while KG
  10599. 6:35:37company representatives refuse to reveal
  10600. 6:35:39how they use this data, the least you
  10601. 6:35:41should know is that every single credit
  10602. 6:35:42card transaction online or off is
  10603. 6:35:45assigned a merchant category code, a
  10604. 6:35:47four-digit number that indicates what
  10605. 6:35:49kind of business or service the charge
  10606. 6:35:51was for. The category codes include
  10607. 6:35:53everything from wig and to pay stores to
  10608. 6:35:55package beer, wine and liquor stores to
  10609. 6:35:58pawn shops to wholesale clubs to bail
  10610. 6:36:00and bond payments. 14. All of which,
  10611. 6:36:02when you think about it, tell the credit
  10612. 6:36:04card companies a whole lot about you and
  10613. 6:36:06your lifestyle. Men, please note that if
  10614. 6:36:09you happen to be among the 87% of males
  10615. 6:36:12in the United States who buy less spoken
  10616. 6:36:14about products or subscriptions on
  10617. 6:36:16websites promising that some vague and
  10618. 6:36:18discreet wording like international
  10619. 6:36:20trading company will appear on your
  10620. 6:36:21credit card statement rather than say
  10621. 6:36:24Carl's adult videos, that little
  10622. 6:36:26merchant category code will still reveal
  10623. 6:36:28the truth to the credit card company.
  10624. 6:36:31Have a lot of transactions in the air
  10625. 6:36:33travel category. You may get an offer in
  10626. 6:36:36the mail for either travel related
  10627. 6:36:37services or a rewards equipped credit
  10628. 6:36:40card from a major hotel chain, says Paul
  10629. 6:36:43Stevens, the director of policy and
  10630. 6:36:45advocacy for the San Diego based privacy
  10631. 6:36:47rights clearing house. Depending on how
  10632. 6:36:50extensively you use your credit card,
  10633. 6:36:52they conceivably have a very clear,
  10634. 6:36:54distinct picture of an individual. 15.
  10635. 6:36:57These kinds of tactics explain why a
  10636. 6:37:00person in serious debt can expect to
  10637. 6:37:02find a handful of new credit card offers
  10638. 6:37:04proclaiming to be for individuals with
  10639. 6:37:06less than perfect credit awaiting them
  10640. 6:37:08in their mailboxes. Who's behind these
  10641. 6:37:11offers? And how do they know so much
  10642. 6:37:13about our finances that they show up
  10643. 6:37:15when they do? Well, certain financial
  10644. 6:37:17institutions, including the big three
  10645. 6:37:19credit rating agencies, Equifax,
  10646. 6:37:21Experian, and TransUnion, pour through
  10647. 6:37:23all kinds of documents, including bank
  10648. 6:37:25and court records, to craft intricate
  10649. 6:37:27profiles of the financial lives of over
  10650. 6:37:30100 million Americans. 16. They then
  10651. 6:37:32turn around and sell this detailed data
  10652. 6:37:35including names, addresses, social
  10653. 6:37:36security numbers, marital statuses,
  10654. 6:37:38recent family births, education levels,
  10655. 6:37:40car makes, TV cable service providers,
  10656. 6:37:43and even magazine subscriptions to
  10657. 6:37:45banks, credit card companies, and
  10658. 6:37:46mortgage brokers who then fiercely
  10659. 6:37:48compete to find untapped customers, even
  10660. 6:37:50those who would normally face an uphill
  10661. 6:37:52battle getting credit in the first
  10662. 6:37:54place. Yes, that's right. The companies
  10663. 6:37:57responsible for maintaining and updating
  10664. 6:37:59your credit scores are the very same
  10665. 6:38:00ones turning around and selling your
  10666. 6:38:02financial information to credit card
  10667. 6:38:04companies and mortgage lenders. Most
  10668. 6:38:07people write it off as a timely
  10669. 6:38:09coincidence when an offer for a new home
  10670. 6:38:12equity loan arrives in the mail just as
  10671. 6:38:14they've started struggling to make their
  10672. 6:38:16mortgage payments. But it isn't. We
  10673. 6:38:19called people who are astounded, said
  10674. 6:38:21Alan E. Geller, chief executive of
  10675. 6:38:23Visions Marketing Services, a Lancaster,
  10676. 6:38:25Pennsylvania-based company that carries
  10677. 6:38:27out telemarketing campaigns for banks
  10678. 6:38:30offering new terms of credit. They said,
  10679. 6:38:32"I can't believe you just called me. How
  10680. 6:38:35did you know we were just getting ready
  10681. 6:38:37to do that?" He adds, "We were just
  10682. 6:38:39sitting back laughing." The goal of this
  10683. 6:38:42incredibly devious tactic is to create
  10684. 6:38:44the appearance of almost irresistible
  10685. 6:38:46serendipity 17. like a devil whispering
  10686. 6:38:49into our ears at the precise moment our
  10687. 6:38:51defenses are at their lowest and our
  10688. 6:38:53needs are highest. Thanks to data mining
  10689. 6:38:56practices, banks and lenders know enough
  10690. 6:38:58about our finances to tailor the
  10691. 6:39:00specific wording in unsolicited letters
  10692. 6:39:02to our individual situations. Often they
  10693. 6:39:05even go so far as to calculate to the
  10694. 6:39:07dollar what we would save on a mortgage
  10695. 6:39:09or a monthly credit card payment if we
  10696. 6:39:12took advantage of the offer in question.
  10697. 6:39:14A few years back, one bank took this
  10698. 6:39:16personalization to an extreme. It
  10699. 6:39:19actually took satellite snapshots of a
  10700. 6:39:21particular neighborhood and then
  10701. 6:39:22highlighted each homeowner's property on
  10702. 6:39:24the envelope accompanying the
  10703. 6:39:26personalized credit offer. Not
  10704. 6:39:28surprisingly, most consumers were
  10705. 6:39:30spooked and the campaign was withdrawn.
  10706. 6:39:33Again, while neither banks nor credit
  10707. 6:39:35card companies will confirm their
  10708. 6:39:37precise internal methodologies, it's
  10709. 6:39:39widely acknowledged that property deeds
  10710. 6:39:41are one of their major sources of data.
  10711. 6:39:43Since property deeds are public records,
  10712. 6:39:46each time we buy a piece of property, we
  10713. 6:39:48get put on a list known in the industry
  10714. 6:39:50as a trigger list indicating that we've
  10715. 6:39:52just moved or are about to move.
  10716. 6:39:54Companies then purchase these trigger
  10717. 6:39:56lists and use them to shower us not just
  10718. 6:39:58with loan offers and credit card offers,
  10719. 6:40:00but also with decorating cataloges,
  10720. 6:40:02magazine subscriptions, and more.
  10721. 6:40:05Knowing that homeowners spend close to
  10722. 6:40:07$12,000 furnishing their new digs within
  10723. 6:40:09the first 6 months of moving into a new
  10724. 6:40:12home and a good percentage of that in
  10725. 6:40:14the first weeks or days. A company known
  10726. 6:40:16as Elk Milestones New Movers and New
  10727. 6:40:18Homeowners, for example, sells companies
  10728. 6:40:20and businesses like Crate and Barrel and
  10729. 6:40:22Pottery Barn updates every 24 hours
  10730. 6:40:25about who has just purchased a property
  10731. 6:40:27and is in need of brand new furnishings.
  10732. 6:40:3018. Using a technique known as
  10733. 6:40:32predictive modeling, which is
  10734. 6:40:34essentially comparing your behavior to
  10735. 6:40:36that of consumers who fit roughly the
  10736. 6:40:37profile you do, data compilers and banks
  10737. 6:40:40know whether you are likely to need new
  10738. 6:40:42home credit before even you do. Equifax,
  10739. 6:40:45yes, one of the companies that maintains
  10740. 6:40:47your credit score, even offers lenders a
  10741. 6:40:50brochure called target point predictive
  10742. 6:40:52triggers whose advanced profiling
  10743. 6:40:53techniques promise to help them sniff
  10744. 6:40:55out consumers who show a statistical
  10745. 6:40:57propensity to acquire new credit. 19.
  10746. 6:41:01Naturally, the company declines to
  10747. 6:41:03reveal its exact formula. But let's
  10748. 6:41:05figure out how it might do it. Let's say
  10749. 6:41:08a bank does a mail campaign offering new
  10750. 6:41:10terms for home refinance. You receive
  10751. 6:41:12the offer, check the box saying you
  10752. 6:41:14might be interested and would like to
  10753. 6:41:16learn more, and send the card in,
  10754. 6:41:18complete with your name and address.
  10755. 6:41:20Next, data crunchers proceed to pull
  10756. 6:41:22together other information they have
  10757. 6:41:24about you on file, including the value
  10758. 6:41:26of your home, your outstanding credit
  10759. 6:41:27card debt, and whatever savings you may
  10760. 6:41:30or may not have. The bank then feeds all
  10761. 6:41:32this into sophisticated statistical
  10762. 6:41:34models that far it out other consumers
  10763. 6:41:36who match the profile you do, eg other
  10764. 6:41:39consumers who have a good-sized
  10765. 6:41:40property, shop at Williams Sonoma, etc.,
  10766. 6:41:44whom they then know to target with
  10767. 6:41:46similar offers. In effect, the bank is
  10768. 6:41:48getting us to unwittingly rat out one
  10769. 6:41:51another. In 2010, the US Congress passed
  10770. 6:41:54a bill designed to protect unsuspecting
  10771. 6:41:56consumers, especially young consumers,
  10772. 6:41:59from predatory credit card companies.
  10773. 6:42:01Among the requirements of the new act
  10774. 6:42:03was that colleges and universities
  10775. 6:42:05publicly reveal the long-standing secret
  10776. 6:42:07contracts they enjoy with credit card
  10777. 6:42:09companies. That's how it was discovered
  10778. 6:42:12that in 2007 hundreds of institutions of
  10779. 6:42:14higher learning including some very
  10780. 6:42:16prestigious ones like Yale University
  10781. 6:42:18had entered into a highly lucrative
  10782. 6:42:20affinity agreement by which they were
  10783. 6:42:22essentially selling Chase Bank access to
  10784. 6:42:24their alumni, staff, sports fans, and
  10785. 6:42:26even students. 20. This is also how it
  10786. 6:42:29was revealed that a staggering 800 of
  10787. 6:42:31the United States 2-year colleges and
  10788. 6:42:34700 of the country's four-year colleges
  10789. 6:42:36maintained similar agreements with
  10790. 6:42:38various credit card companies or banks.
  10791. 6:42:41Under some of these agreements, the
  10792. 6:42:43colleges received a cut of every new
  10793. 6:42:45bank account a student opened. Under
  10794. 6:42:47others, they got a percentage of every
  10795. 6:42:49retail purchase a student made with
  10796. 6:42:50their new card. Under still others, the
  10797. 6:42:53schools actually earned money if an
  10798. 6:42:54alumnest took on debt. Obviously, this
  10799. 6:42:57was a huge incentive for these schools
  10800. 6:42:59to encourage their students to rack up
  10801. 6:43:01credit, which is why so many permitted
  10802. 6:43:03credit card companies to advertise on
  10803. 6:43:05campus, with some even granting the
  10804. 6:43:07companies access to private campus
  10805. 6:43:09events. 21. Why were the credit card
  10806. 6:43:13companies so aggressively going after
  10807. 6:43:15these young customers? Simple. These
  10808. 6:43:18students with their meager incomes,
  10809. 6:43:20irresponsible spending habits, and high
  10810. 6:43:23credit limits thanks to the fact that
  10811. 6:43:25many of them open joint accounts with
  10812. 6:43:26their parents are cash cows for these
  10813. 6:43:28banks. According to student lending
  10814. 6:43:31company Sally May, in 2008, seniors
  10815. 6:43:33graduated from college with a median
  10816. 6:43:35credit card debt of more than $4,100.
  10817. 6:43:38And 6 years ago, before the recession,
  10818. 6:43:41the collegiate affinity market
  10819. 6:43:42represented a more than $6 billion
  10820. 6:43:44credit card debt portfolio. 22. And
  10821. 6:43:48don't be fooled. Credit card companies
  10822. 6:43:50love it when students max out their
  10823. 6:43:51cards. In fact, so long as students
  10824. 6:43:54don't default on what they owe, this is
  10825. 6:43:56most credit card company's covered goal.
  10826. 6:43:58Moreover, as Ohio State University
  10827. 6:44:00researchers found, not only are
  10828. 6:44:02firsttime college age card holders eager
  10829. 6:44:04to buy stuff on credit, but they're apt
  10830. 6:44:06to hang on to that particular card for
  10831. 6:44:08up to 15 years. No wonder Bank of
  10832. 6:44:11America's FiA card service unit
  10833. 6:44:13outspends its competitors by 288% to
  10834. 6:44:17entice college students to sign up for
  10835. 6:44:19its card, according to the Federal
  10836. 6:44:21Reserve Board of Governors. What's most
  10837. 6:44:24valuable about these customers from a
  10838. 6:44:25data mining perspective is that to
  10839. 6:44:28prevent these young spenders from
  10840. 6:44:29falling off the bank's radar once they
  10841. 6:44:31graduate. Every single one of these
  10842. 6:44:33affinity agreements requires colleges to
  10843. 6:44:35provide students and graduates personal
  10844. 6:44:37data, including names, phone numbers,
  10845. 6:44:39and addresses. 23.
  10846. 6:44:42What your shopping cart says about you.
  10847. 6:44:45The loyalty card is another sneaky yet
  10848. 6:44:48powerful tool companies use to turn
  10849. 6:44:50every intimate detail about our lives
  10850. 6:44:52into marketing gold. Today, the average
  10851. 6:44:54person carries around 15 so-called
  10852. 6:44:57loyalty cards, now being issued by every
  10853. 6:44:59retailer under the sun, from your local
  10854. 6:45:01drugstore to Staples to Best Buy to
  10855. 6:45:03Starbucks. Yet, most of us forget we've
  10856. 6:45:06even signed up for all these loyalty
  10857. 6:45:08schemes. In a study I once conducted in
  10858. 6:45:10the UK, when I asked a group of
  10859. 6:45:12middle-aged females how many loyalty
  10860. 6:45:14programs they belong to, most were able
  10861. 6:45:16to recall only half. And when to jog
  10862. 6:45:19their memories, I asked them to empty
  10863. 6:45:21their wallets. Most were shocked by the
  10864. 6:45:23number of cards that fell out. So,
  10865. 6:45:25what's so bad about loyalty cards? You
  10866. 6:45:27might be wondering, isn't the whole
  10867. 6:45:29point of them to save me money? No, not
  10868. 6:45:33exactly. Sure, the language and
  10869. 6:45:35terminology that retailers use in
  10870. 6:45:37talking about these programs, reward
  10871. 6:45:38card, loyalty program, preferred
  10872. 6:45:40customer savings may make you feel sort
  10873. 6:45:42of special or may even lead you to
  10874. 6:45:44believe that these programs are about
  10875. 6:45:46rewarding you loyal customer with
  10876. 6:45:47money-saving offers. Well, they aren't.
  10877. 6:45:50The reason these clever programs exist
  10878. 6:45:53isn't to save you 50 cents here, 50
  10879. 6:45:55cents there, as their marketers and
  10880. 6:45:57advertisers would have you believe.
  10881. 6:45:59Loyalty programs exist for one simple
  10882. 6:46:02and rather shifty purpose, to try to
  10883. 6:46:04persuade you to buy more. In fact, each
  10884. 6:46:07time you sign up for a store's loyalty
  10885. 6:46:09program. What you are actually doing is
  10886. 6:46:10giving the store explicit permission to
  10887. 6:46:12collect aggregate, summarize, and crunch
  10888. 6:46:14unparalleled amounts of information
  10889. 6:46:16about you, your family, your habits, and
  10890. 6:46:18your interests. All of which data miners
  10891. 6:46:20then turn around and use to craft
  10892. 6:46:22marketing and advertising in treaties
  10893. 6:46:24too perfect, too persuasive, and too
  10894. 6:46:26uncannily targeted to your individual
  10895. 6:46:28psychology and lifestyle to resist. One
  10896. 6:46:31study about Safeway, the supermarket
  10897. 6:46:33chain, sums up the technique neatly.
  10898. 6:46:35Safeway has turned itself into an
  10899. 6:46:37information broker. The supermarket
  10900. 6:46:40purchases demographic data directly from
  10901. 6:46:42its customers by offering them discounts
  10902. 6:46:44in return for using a Safeway Savings
  10903. 6:46:46Club card. In order to obtain the card,
  10904. 6:46:49shoppers voluntarily divulge personal
  10905. 6:46:52information that is later used in
  10906. 6:46:54predictive modeling. 24. In other words,
  10907. 6:46:56each time we hand the clerk that
  10908. 6:46:58colorful little card we keep on our key
  10909. 6:47:00ring, we're swapping our privacy for a
  10910. 6:47:0225 cent savings here. A dollar off
  10911. 6:47:04there. Maybe the occasional buy two get
  10912. 6:47:06one free deal. Have you ever found
  10913. 6:47:09yourself standing behind someone in the
  10914. 6:47:11checkout line at the grocery store
  10915. 6:47:13trying to figure out who she is based on
  10916. 6:47:15her purchases? Let's say she's buying a
  10917. 6:47:18package of garlic chicken lean cuisine
  10918. 6:47:20and a six-pack of Diet Coke. Okay, you
  10919. 6:47:23tell yourself she probably lives alone
  10920. 6:47:25and is dieting. Next, she sets down a
  10921. 6:47:28bottle of high-end shampoo and
  10922. 6:47:30conditioner. She's brand and beauty
  10923. 6:47:32conscious, you note, and probably makes
  10924. 6:47:34a good living. Also in her basket are a
  10925. 6:47:37can of Lysol with bleach and a bottle of
  10926. 6:47:39Purll, so you figure she's germ
  10927. 6:47:41conscious. Then she surprises you by
  10928. 6:47:44pulling out a home blood pressure kit.
  10929. 6:47:46Does she have an elderly parent living
  10930. 6:47:48at home? You wonder, or is she an iffy
  10931. 6:47:51health herself? You file this last
  10932. 6:47:54observation away, awaiting later
  10933. 6:47:56confirmation.
  10934. 6:47:57This kind of speculation, in a nutshell,
  10935. 6:47:59is what data miners do, only thanks to
  10936. 6:48:02all the sophisticated data tracking
  10937. 6:48:04technology and computer models they have
  10938. 6:48:06at their disposal. These few purchases
  10939. 6:48:08tell them a whole lot more about this
  10940. 6:48:10woman than the naked eye ever could.
  10941. 6:48:12How? Every time you or I use our loyalty
  10942. 6:48:15card in a store, a record of what we've
  10943. 6:48:17bought, how much of it at what time of
  10944. 6:48:19day, and at what price is sent to a data
  10945. 6:48:21warehouse where it is added to our
  10946. 6:48:23digital folder. Most companies and
  10947. 6:48:25retailers with loyalty programs amass
  10948. 6:48:27data continuously, then parse it into
  10949. 6:48:29chunks that sum up our weekly, monthly,
  10950. 6:48:31and yearly behavior. Then algorithms so
  10951. 6:48:34complex they would make a math major's
  10952. 6:48:36head spin crunch all the data to come up
  10953. 6:48:38with all kinds of interpretations of who
  10954. 6:48:40we are and what we're likely to buy
  10955. 6:48:42based on our own buying habits and those
  10956. 6:48:44of millions of consumers similar to us.
  10957. 6:48:47For example, when we use a loyalty card
  10958. 6:48:49to buy groceries, we are being pegged by
  10959. 6:48:51at least one supermarket chain as one of
  10960. 6:48:53six different customer profiles. a
  10961. 6:48:55timeressed meate eater, a back to nature
  10962. 6:48:57shopper, a discriminating leisure
  10963. 6:48:59shopper, a nononsense shopper, a
  10964. 6:49:01one-stop socialite, or a
  10965. 6:49:02middle-of-the-road shopper. 25
  10966. 6:49:04categories used to target us with
  10967. 6:49:06specific deals and offers. There's no
  10968. 6:49:09end to what this data can tell companies
  10969. 6:49:11about what we're likely to buy. If I buy
  10970. 6:49:14yogurt and vitamins, the algorithms
  10971. 6:49:16predict I am probably a good target for
  10972. 6:49:18an invitation to join the new local gym
  10973. 6:49:20that just opened up. If I buy ready to
  10974. 6:49:23eat meals, the data shows it's a sign
  10975. 6:49:25that I'm a busy guy and more likely to
  10976. 6:49:27use a coupon that's delivered straight
  10977. 6:49:29to my phone than one I have to clip from
  10978. 6:49:31the newspaper or print from my inbox. If
  10979. 6:49:34I suddenly start buying baby wipes and
  10980. 6:49:36diapers, I've clearly recently
  10981. 6:49:38experienced a life change that's likely
  10982. 6:49:40left me run down and tired, and I'm
  10983. 6:49:42statistically likely to jump at a
  10984. 6:49:44special offer for a day at the spot. It
  10985. 6:49:47is by crunching these kinds of numbers
  10986. 6:49:49that the data mining industry has
  10987. 6:49:50uncovered some even more surprising
  10988. 6:49:52factoids. Did you know, for example,
  10989. 6:49:54that at Walmart, a shopper who buys a
  10990. 6:49:56Barbie doll is 60% more likely to
  10991. 6:49:59purchase one of three types of candy
  10992. 6:50:01bars? Or that toothpaste is most often
  10993. 6:50:04bought alongside canned tuna? Or that a
  10994. 6:50:06customer who buys a lot of meat is
  10995. 6:50:08likely to spend more money in a health
  10996. 6:50:11food store than a non-meat eater? Or
  10997. 6:50:13what about the data that revealed to one
  10998. 6:50:16Canadian grocery chain that customers
  10999. 6:50:18who bought coconuts also tended to buy
  11000. 6:50:20prepaid calling cards? At first, no one
  11001. 6:50:23in store management could figure out
  11002. 6:50:25what was going on. What could coconuts
  11003. 6:50:27possibly have to do with calling cards?
  11004. 6:50:30Finally, it occurred to them that the
  11005. 6:50:32store served a huge population of
  11006. 6:50:34shoppers from the Caribbean islands and
  11007. 6:50:36Asia, both of whose cuisines use
  11008. 6:50:38coconuts in their cooking. Now, it made
  11009. 6:50:40perfect sense that these Caribbean and
  11010. 6:50:42Asian shoppers were buying prepaid
  11011. 6:50:44calling cards to check in with their
  11012. 6:50:46extended families back home. This is all
  11013. 6:50:49well and good. You might be thinking,
  11014. 6:50:51"But how could that supermarket use this
  11015. 6:50:53information to make more money off us?"
  11016. 6:50:56Well, first and foremost, it could
  11017. 6:50:58create what's known in retail parliament
  11018. 6:51:00as an adjacency. An adjacency is when a
  11019. 6:51:03store positions two or more products
  11020. 6:51:05next to each other that are seemingly
  11021. 6:51:06unrelated but appeal to the same target
  11022. 6:51:09customer. This way, after that Jamaican
  11023. 6:51:11shopper has picked out a coconut to cook
  11024. 6:51:13with, she need only glance to her left
  11025. 6:51:15to find the strategically placed display
  11026. 6:51:17of prepaid phone cards and be reminded
  11027. 6:51:20she owes mom a call. Often adjacencies
  11028. 6:51:23make stores and companies money by
  11029. 6:51:24offering us solutions to problems we
  11030. 6:51:26didn't even know we had. For example,
  11031. 6:51:29imagine it's mid August and recent
  11032. 6:51:31incoming data shows that a lot of people
  11033. 6:51:33are buying frozen strawberry shortcake.
  11034. 6:51:36Now, typically the ingredients for fresh
  11035. 6:51:38homemade strawberry shortcake, local
  11036. 6:51:40strawberries, bottles of whipped cream,
  11037. 6:51:41and pound cake are located in three
  11038. 6:51:43discrete aisles of the store. However,
  11039. 6:51:46gleaning from the data that this
  11040. 6:51:47particular demographic has a weakness
  11041. 6:51:49for strawberry shortcake, the
  11042. 6:51:51supermarket installs a standalone
  11043. 6:51:53display of strawberries, whipped cream,
  11044. 6:51:55and pound cake at the front of the
  11045. 6:51:57store. Thus, the shopper enters the
  11046. 6:51:59store, murmurss to herself, "Instant
  11047. 6:52:01fresh dessert. Why didn't I think of
  11048. 6:52:04that?" and swooshes all three into her
  11049. 6:52:06basket, costing herself about three
  11050. 6:52:08times as much as a box of Sarah Lee.
  11051. 6:52:11Some businesses are using the adjacency
  11052. 6:52:13technique to turn even bigger profits.
  11053. 6:52:16Take Marks and Spencer, the upscale
  11054. 6:52:18English department store chain. A few
  11055. 6:52:21years back, by parsing the data taken
  11056. 6:52:23from loyalty cards, its management
  11057. 6:52:25noticed that more and more of its
  11058. 6:52:26customers were buying Indianstyle
  11059. 6:52:28dishwear followed by ready to eat Indian
  11060. 6:52:30meals. When management realized that a
  11061. 6:52:33large number of first and second
  11062. 6:52:35generation Indians must have started
  11063. 6:52:37shopping there, a light bulb went off.
  11064. 6:52:39Why not open a currency exchange office
  11065. 6:52:42right there in the store? Then another
  11066. 6:52:44thought occurred. Why not sell a service
  11067. 6:52:46organizing travel to these countries?
  11068. 6:52:48Which is why the retailer partnered with
  11069. 6:52:50Thomas Cook, the UK's largest travel
  11070. 6:52:52agency, to create the Marks and Spencer
  11071. 6:52:54Travel Club, which offers holiday
  11072. 6:52:56discounts as well as loyalty points when
  11073. 6:52:58you book your holiday using your M and S
  11074. 6:53:01credit card. 26.
  11075. 6:53:04But this isn't all companies do with the
  11076. 6:53:06information they compile from our
  11077. 6:53:08loyalty cards. Not by a long shot. To
  11078. 6:53:11truly see the volumes that even an
  11079. 6:53:13innocent trip to the grocery store can
  11080. 6:53:15tell a company about us and what it then
  11081. 6:53:17does with that knowledge, let's take a
  11082. 6:53:19quick trip to a regional grocery chain
  11083. 6:53:21we'll call Sparkies. First off, mind if
  11084. 6:53:24I note right off the bat here that
  11085. 6:53:26Sparky's was smart to position its front
  11086. 6:53:28door on the right? That's because data
  11087. 6:53:30compiled from a study of 200 stores
  11088. 6:53:33reveals that shoppers who move
  11089. 6:53:34counterclockwise spend $2 more per trip
  11090. 6:53:37than those who go in the opposite
  11091. 6:53:39direction. Human beings are naturally
  11092. 6:53:41more inclined to move to the left
  11093. 6:53:43because it's easier to reach out with
  11094. 6:53:45our right arms to grab whatever it is we
  11095. 6:53:47need. So, a right side entryway is a
  11096. 6:53:49subtle yet effective way to ensure a
  11097. 6:53:51counterclockwise shopping flow. I might
  11098. 6:53:53add here that Sparky's was smart to
  11099. 6:53:55outfit its store with oversized shopping
  11100. 6:53:57baskets, as studies show that the bigger
  11101. 6:54:00the shopping basket, the more likely we
  11102. 6:54:02are to fill it to the brim. After
  11103. 6:54:04desperately making my way through the
  11104. 6:54:06labyrinth of shelves, towers of
  11105. 6:54:08products, and special displays, looking
  11106. 6:54:09for the apples, I find the Granny Smith
  11107. 6:54:11apples and put five in my basket. I
  11108. 6:54:13really only wanted three. But I saw the
  11109. 6:54:15sign saying, "Buy four, get one free and
  11110. 6:54:17immediately fell for the classic ploy
  11111. 6:54:19that author William Poundstone calls
  11112. 6:54:21nonlinear pricing, meaning the store has
  11113. 6:54:23upped the price of those four apples by
  11114. 6:54:2520%. So, I'm actually paying the exact
  11115. 6:54:27same amount per apple, even though I
  11116. 6:54:29think I'm getting a bargain." My choice
  11117. 6:54:31of organic apples tells Sparky's
  11118. 6:54:33database that I'm pretty well educated,
  11119. 6:54:35make a good living, and am more likely
  11120. 6:54:37to buy eco-friendly products. No
  11121. 6:54:40surprises there. Let's pause once again.
  11122. 6:54:43Notice how I had to navigate around
  11123. 6:54:45numerous displays before I chanced upon
  11124. 6:54:48the apples. It's no coincidence. The
  11125. 6:54:51more complex the navigation paths we're
  11126. 6:54:53asked to walk, the slower we walk and
  11127. 6:54:55the slower we walk, the more stuff we
  11128. 6:54:57are exposed to and tempted to buy. In
  11129. 6:55:00order to combat the increasing
  11130. 6:55:01sophistication of shoppers, many of whom
  11131. 6:55:04have learned to arm themselves with
  11132. 6:55:05shopping lists and make a beline for
  11133. 6:55:07what they want, more and more
  11134. 6:55:09supermarkets are mixing around groceries
  11135. 6:55:11or changing the location of items on a
  11136. 6:55:13monthly basis. So, it's harder for us to
  11137. 6:55:16find what we're looking for. The result
  11138. 6:55:18is that not only are we tempted by more
  11139. 6:55:20products, but finding what we want
  11140. 6:55:22becomes a game of sorts. Remember the
  11141. 6:55:24power of games. At the end of which we
  11142. 6:55:27often reward ourselves for our hard work
  11143. 6:55:29by buying something that wasn't on our
  11144. 6:55:31list. Next, over by the pharmacy aisle,
  11145. 6:55:34I pick up a package of Neorette. Even
  11146. 6:55:37though I've never smoked, it's just part
  11147. 6:55:39of my little experiment. By my buying
  11148. 6:55:41the Necoret, Sparkies is immediately
  11149. 6:55:43able to establish that I'm almost
  11150. 6:55:45certainly between the ages of 25 and 54
  11151. 6:55:48and more likely to buy name brand
  11152. 6:55:50products over the generic or store brand
  11153. 6:55:52variety. Again, makes sense, right?
  11154. 6:55:56Next, just for fun, I buy a package of
  11155. 6:55:58Jerry Curl texturizer in the women's
  11156. 6:56:00hair care section and a small box of
  11157. 6:56:02Dora the Explorer Band eight. Now, the
  11158. 6:56:05store will make two fairly good
  11159. 6:56:06assumptions about me. that I'm an
  11160. 6:56:08African-American female and that I have
  11161. 6:56:10a child under the age of five and am
  11162. 6:56:13thus a good candidate for coupons and
  11163. 6:56:15offers on those particular brands of
  11164. 6:56:17everything from juice to breakfast
  11165. 6:56:18cereals to cosmetics that the data
  11166. 6:56:20miners have found to appeal to my
  11167. 6:56:22demographic. Tucked away at the rear of
  11168. 6:56:25the store so the pharmacists can keep a
  11169. 6:56:27close watch on teenage boys. The condom
  11170. 6:56:30display takes up half a shelf. Just for
  11171. 6:56:32fun, I pick up a pack of neon ribbed
  11172. 6:56:34ones. Now, I'm confirming to the data
  11173. 6:56:37miners that I'm a woman who just happens
  11174. 6:56:39to be named Martin. Why? Because most
  11175. 6:56:43people who buy condoms are in fact
  11176. 6:56:45female. Note that the name of the
  11177. 6:56:46section is family planning, which subtly
  11178. 6:56:48targets the female of the household by
  11179. 6:56:50implying that this is the section for
  11180. 6:56:52the person who is generally in charge of
  11181. 6:56:53schedules, date books, doctor's
  11182. 6:56:55appointments, and yes, condom use.
  11183. 6:56:58Incidentally, this is why 9/10en of the
  11184. 6:57:00condoms for sale proudly exhibit the
  11185. 6:57:02words sensitive and thin. two adjectives
  11186. 6:57:05guaranteed to strike accord with the
  11187. 6:57:07contemporary woman. The one exception to
  11188. 6:57:10the women buy condoms rule. It comes in
  11189. 6:57:12a box similar to the others, except
  11190. 6:57:15nowhere on its packaging does it mention
  11191. 6:57:17the word sensitive or thin. Instead, its
  11192. 6:57:20packaging features what at first glance
  11193. 6:57:22appears to be a Roman soldier's helmet.
  11194. 6:57:24Or, wait, could that actually be the
  11195. 6:57:26engorged head of a penis? The words on
  11196. 6:57:29the box say it all, extra-large Trojan
  11197. 6:57:31condoms. That's right. Had I picked up a
  11198. 6:57:34box of extra-large Trojans, Sparky's
  11199. 6:57:36data, miners would have instantly
  11200. 6:57:38revised their assumption about my gender
  11201. 6:57:40as swaggering, often hopeful males, not
  11202. 6:57:42females, are the ones who buy
  11203. 6:57:44extra-large condoms. And I tip my hat to
  11204. 6:57:46the marketing whiz who thought up that
  11205. 6:57:48one. At the cash register, I give the
  11206. 6:57:51cashier my Sparky's card and pay, though
  11207. 6:57:53not before grabbing a bag of those new
  11208. 6:57:55pretzel M and Miz, a small impulse by
  11209. 6:57:57telling the data mining company that I'm
  11210. 6:57:59amanable to trying new products and
  11211. 6:58:01therefore a good target for future
  11212. 6:58:03coupons on newly rolledout products.
  11213. 6:58:06Next, the second the cashier swipes my
  11214. 6:58:08loyalty card, Sparky's database will
  11215. 6:58:10know exactly what I've purchased and how
  11216. 6:58:12much and will nail my demographic as an
  11217. 6:58:14educated, healthconscious, sexually
  11218. 6:58:16active African-Amean ex-smoker between
  11219. 6:58:18the ages of 25 and 54 who has a young
  11220. 6:58:21daughter. Then the company will add my
  11221. 6:58:24purchases to its datab bank where its
  11222. 6:58:26computers will crunch that data and the
  11223. 6:58:28data generated by every other card
  11224. 6:58:30wielding customer who walked into the
  11225. 6:58:32store that day to make all kinds of
  11226. 6:58:34conclusions and predictions about who I
  11227. 6:58:36am and what my preferences are. Then it
  11228. 6:58:38will turn right around and sell the
  11229. 6:58:40results not just to the companies that
  11230. 6:58:42make the products that I bought, but
  11231. 6:58:44also to the companies that make the
  11232. 6:58:46products my profile indicates I am
  11233. 6:58:48likely to buy. It will do so for each
  11234. 6:58:50and every subsequent visit, just as it
  11235. 6:58:53will for the thousands of other shoppers
  11236. 6:58:55in my particular zip code. And based on
  11237. 6:58:58what the companies now know about me and
  11238. 6:59:00us, they will reformulate their
  11239. 6:59:01marketing messages, rethink their
  11240. 6:59:03inventory, and sneakiest of all, start
  11241. 6:59:05targeting each and every one of us with
  11242. 6:59:07advertising so tailored, so personalized
  11243. 6:59:10that we're powerless to resist it.
  11244. 6:59:12Believe me, in the future, supermarkets
  11245. 6:59:14will get even smarter and more invasive.
  11246. 6:59:17Recordant is an Atlanta-based instore
  11247. 6:59:19monitoring company that provides digital
  11248. 6:59:21audio recorders to capture all customers
  11249. 6:59:24conversations with store employees.
  11250. 6:59:26Sophisticated software then analyzes
  11251. 6:59:28these recordings to isolate recurring
  11252. 6:59:30words or phrases. Then there's
  11253. 6:59:32Brickstream whose clients include toys
  11254. 6:59:34are US Office Depot and Walgreens and
  11255. 6:59:37which uses dual lens cameras to amass
  11256. 6:59:39information about where and for how long
  11257. 6:59:41people shop as well as how they respond
  11258. 6:59:43to various products. 27 and path tracker
  11259. 6:59:46is an electronic monitoring system that
  11260. 6:59:48combines buying data with the paths of
  11261. 6:59:51shopping carts through supermarkets.
  11262. 6:59:53How? It wires carts and baskets with a
  11263. 6:59:56location tracking device that emits an
  11264. 6:59:58inaudible signal every few seconds at
  11265. 7:00:01which point an array of antenna around
  11266. 7:00:03the store's perimeter captures the
  11267. 7:00:04signal which is then analyzed for
  11268. 7:00:06individual shoppers as well as
  11269. 7:00:08aggregated to provide composite views of
  11270. 7:00:10shopping in the store. 28. Yikes.
  11271. 7:00:15They're playing my song. But wait,
  11272. 7:00:17that's not all that's going on at
  11273. 7:00:19Sparky's. As I meander out of the store,
  11274. 7:00:22I catch myself humming the Paul
  11275. 7:00:23McCartney song that was playing overhead
  11276. 7:00:26while I was shopping. Think this is just
  11277. 7:00:28some random selection. It's not. It's
  11278. 7:00:31actually a very carefully and
  11279. 7:00:33deliberately selected track of music, a
  11280. 7:00:35type, and in fact, a brand of music that
  11281. 7:00:38has expanded beyond the insides of
  11282. 7:00:39elevators and today serenates some 100
  11283. 7:00:42million people a day. 29 inside Gaps,
  11284. 7:00:44McDonald's, Barnes & Noble, and
  11285. 7:00:46countless other restaurants and stores.
  11286. 7:00:49So, how does a store decide what tune to
  11287. 7:00:51play overhead? Well, first, one of
  11288. 7:00:53Muzzac's audio architects, a term for
  11289. 7:00:56someone who's trained in the
  11290. 7:00:57physiological and psychological
  11291. 7:00:58applications of music, pays a visit to a
  11292. 7:01:01retailer or restaurant, and looks at the
  11293. 7:01:03store's data mining research to figure
  11294. 7:01:05out what demographic shops or eats
  11295. 7:01:07there. Then, the audio architect
  11296. 7:01:09carefully selects a playlist targeted at
  11297. 7:01:11that demographic. a practice known in
  11298. 7:01:13the biz as narrow casting. It's in this
  11299. 7:01:16way that music has designed 74 music
  11300. 7:01:19programs in 10 categories ranging from
  11301. 7:01:21indie rock to hip hop to classical.
  11302. 7:01:24Mapped out in 15minute cycles that rise
  11303. 7:01:26and fall in intensity using a technique
  11304. 7:01:28known as stimulus progression. The speed
  11305. 7:01:30and pacing of each individual playlist
  11306. 7:01:32are carefully designed to have a certain
  11307. 7:01:34psychological impact. Ever noticed that
  11308. 7:01:37the music playing in supermarkets and
  11309. 7:01:39grocery stores is much slower than the
  11310. 7:01:41music playing in restaurants? Well,
  11311. 7:01:44again, it's because research shows that
  11312. 7:01:46slow music makes us move more slowly and
  11313. 7:01:48the longer we hang around in a store,
  11314. 7:01:50the more likely we are to buy something.
  11315. 7:01:52According to Douglas Rushkoff, author of
  11316. 7:01:54Coercion, why we listen to what they say
  11317. 7:01:56in US department stores, customers
  11318. 7:01:58exposed to music with a slow tempo shop
  11319. 7:02:0118% longer and make 17% more purchases.
  11320. 7:02:04And in grocery stores, shoppers make a
  11321. 7:02:06whopping 38% more purchases when slow
  11322. 7:02:09music is overhead. On the other hand,
  11323. 7:02:11says Rushkoff, fast food restaurants
  11324. 7:02:13play music with more beats per minute to
  11325. 7:02:15increase the rate at which a person
  11326. 7:02:17choose. 30. Thus, they get us out of
  11327. 7:02:20there sooner and can serve more
  11328. 7:02:21customers and earn more money. Thanks to
  11329. 7:02:24narrow casting, musicac can even tweak
  11330. 7:02:27its selections to subconsciously
  11331. 7:02:28persuade us to buy different items
  11332. 7:02:30depending on what day of the week it is.
  11333. 7:02:33Saturdays, the music will be more
  11334. 7:02:35romantic, suggesting, "Buy her something
  11335. 7:02:37like roses or jewelry." This technique
  11336. 7:02:40has been found to be so effective that
  11337. 7:02:42some Japanese supermarkets have split
  11338. 7:02:44their stores into zones. Each one
  11339. 7:02:46serenating consumers with sounds
  11340. 7:02:48designed to optimize spending per
  11341. 7:02:50minute. In the fresh fruits and
  11342. 7:02:52vegetables department, water drips,
  11343. 7:02:54birds sing, and the wind blows from
  11344. 7:02:56overhead speakers. In the confectionary
  11345. 7:02:58department, childish songs are
  11346. 7:03:00interspersed with the sounds of children
  11347. 7:03:01giggling. While over at the butchers, a
  11348. 7:03:03steak sizzles overhead. As if that
  11349. 7:03:06weren't enough, Musak also offers
  11350. 7:03:08retailers a more subtle service dubbed
  11351. 7:03:10atmospherics, designed to hit us on an
  11352. 7:03:12even deeper level. 31. Imagine you're a
  11353. 7:03:1516-year-old girl walking into a clothing
  11354. 7:03:17store in middle America. The mood and
  11355. 7:03:20the decor are silvery, sexy, and urban.
  11356. 7:03:23The employees are uniformly hip, and
  11357. 7:03:25attractive. Now add the seductive beat
  11358. 7:03:28of fast-paced electronic music. Does
  11359. 7:03:31this environment create a fantasy for a
  11360. 7:03:33stareyed young girl who's always dreamed
  11361. 7:03:35of moving out of her small town and into
  11362. 7:03:38the big city? I'll say on a subconscious
  11363. 7:03:41level, the music allows the girl to
  11364. 7:03:43imagine herself as the cool,
  11365. 7:03:44sophisticated city dweller she'd like to
  11366. 7:03:47be, then buy those shirts and pants to
  11367. 7:03:49complete the picture. Believe me when I
  11368. 7:03:51tell you that stores do this
  11369. 7:03:53deliberately. When the Gap was rolling
  11370. 7:03:55out a new sweater line, for example,
  11371. 7:03:57music vice president Alvin Collis
  11372. 7:03:59determined that since sweaters
  11373. 7:04:01represented friendship, family,
  11374. 7:04:02security, and protection, the store
  11375. 7:04:04should play music that evoked fuzzy,
  11376. 7:04:06cozy feelings. Among the songs music
  11377. 7:04:09selected to create this atmospheric,
  11378. 7:04:12Louis Armstrong's it's a Wonderful
  11379. 7:04:14World. 32. A South American banking
  11380. 7:04:17chain once tasked me to help it
  11381. 7:04:19transform the widespread public
  11382. 7:04:21perception of its having shoddy second
  11383. 7:04:23rate customer service and long waiting
  11384. 7:04:25times. When I analyzed the customer
  11385. 7:04:27experience, including how long people
  11386. 7:04:29had to wait, I realized that the wait
  11387. 7:04:32wasn't actually that long because people
  11388. 7:04:34anticipated that their visit to the bank
  11389. 7:04:36would be long and frustrating. They felt
  11390. 7:04:38as if they were in line longer than they
  11391. 7:04:40actually were. So using the data
  11392. 7:04:42compiled by companies like music, we
  11393. 7:04:44carefully choreographed the rhythms of
  11394. 7:04:46the music playing overhead and created
  11395. 7:04:48what was essentially a threeact
  11396. 7:04:50soundtrack. At the door of the bank, the
  11397. 7:04:53music serenating consumers was slow and
  11398. 7:04:55welcoming. In fact, it was a beat slower
  11399. 7:04:57than the average human heartbeat. As
  11400. 7:05:00they came closer to the counter, the
  11401. 7:05:02music would gradually increase in tempo,
  11402. 7:05:04culminating with a fast beat as they
  11403. 7:05:06carried out their transactions. The
  11404. 7:05:08result, customers perceived customer
  11405. 7:05:10service as being twice as good as
  11406. 7:05:12before. And incidentally, the bank's
  11407. 7:05:14revenue increased by 10% all thanks to
  11408. 7:05:17the speed of the music playing overhead.
  11409. 7:05:19The good news, the service was already
  11410. 7:05:22great. Yet, it took music to convince
  11411. 7:05:24the customers of it. I know what you
  11412. 7:05:27bought last summer. Have you noticed
  11413. 7:05:30that those traditional printed price
  11414. 7:05:32tags on the shelves of supermarkets and
  11415. 7:05:34big box stores like Costco and Walmart
  11416. 7:05:36are slowly being replaced by digital
  11417. 7:05:38pricing displays? You probably assumed
  11418. 7:05:41this was for the sake of efficiency.
  11419. 7:05:43After all, why have employees waste time
  11420. 7:05:45walking around the store changing those
  11421. 7:05:47prices every day or week when it can be
  11422. 7:05:49done electronically? And sure, there's
  11423. 7:05:52some truth to this explanation, but it's
  11424. 7:05:54far from the whole story. Have you also
  11425. 7:05:57noticed how, not unlike highways and
  11426. 7:05:59commuter trains, supermarkets have their
  11427. 7:06:01peak traffic times? Swing by the store
  11428. 7:06:04at 5:00 p.m. and it will be jam-packed.
  11429. 7:06:07Stop by at 11:00 in the morning on a
  11430. 7:06:09weekday at least, and it will be nearly
  11431. 7:06:11deserted, except for maybe that elderly
  11432. 7:06:14couple buying a cantaloupe. No big shock
  11433. 7:06:16here. Everyone knows that the vast
  11434. 7:06:18majority of people do their grocery
  11435. 7:06:20shopping when they get off work, if not
  11436. 7:06:22on Saturday or Sunday. But what you
  11437. 7:06:24probably didn't know is that now these
  11438. 7:06:26stores can, in keeping with the traffic
  11439. 7:06:28metaphor here, change the price of the
  11440. 7:06:30toll depending on what time of day
  11441. 7:06:32you're driving. Have you ever felt that
  11442. 7:06:34uncontrollable craving for an ice cream
  11443. 7:06:37sundae at midnight and realized you were
  11444. 7:06:39out of whipped cream? Such an urge is
  11445. 7:06:41too powerful to be denied, so you gun
  11446. 7:06:44your car to the nearest 24-hour
  11447. 7:06:46supermarket to buy some. I'm guessing
  11448. 7:06:48that you're willing to pay more for that
  11449. 7:06:50can of whipped cream than you would have
  11450. 7:06:52paid at the 5:00 p. p.m. peak shopping
  11451. 7:06:54time. Now you can. Companies and
  11452. 7:06:57retailers know full well that our price
  11453. 7:06:59sensitivity varies across the day, week,
  11454. 7:07:01month, and year. Sometimes we enter a
  11455. 7:07:04store determined to find a bargain,
  11456. 7:07:06while other times, like when we're in a
  11457. 7:07:08pinch or a hurry, we couldn't care less.
  11458. 7:07:10Well, guess what? Thanks to data mining
  11459. 7:07:13technology, in some countries,
  11460. 7:07:15supermarkets and other large retailers
  11461. 7:07:17know exactly when we're willing to shell
  11462. 7:07:19out more for products and are altering
  11463. 7:07:21their prices accordingly.
  11464. 7:07:24Enter digital signage. In Scandinavia,
  11465. 7:07:26some supermarkets are already switching
  11466. 7:07:28their prices daily, and across Japan,
  11467. 7:07:30some are even doing so on an hourly
  11468. 7:07:32basis. The factors that currently
  11469. 7:07:35determine the price of an item include
  11470. 7:07:36weather. Bad weather means that prices
  11471. 7:07:39go up and the density of customers in
  11472. 7:07:41the store. Lots of customers means
  11473. 7:07:43prices decrease. I can promise you that
  11474. 7:07:45this trend can lead to one thing and one
  11475. 7:07:47thing only. In the future, prices will
  11476. 7:07:50begin fluctuating like the stock market,
  11477. 7:07:52creating a sort of game. Remember the
  11478. 7:07:54addictive quality of games out of
  11479. 7:07:56getting the lowest prices for your
  11480. 7:07:58everyday stuff. Companies are using data
  11481. 7:08:01mining to play on our price
  11482. 7:08:02sensitivities in other ways, too. Over
  11483. 7:08:05the past year, a whole new data mining
  11484. 7:08:07tool has taken flight, and many Fortune
  11485. 7:08:10100 companies are embedding it into
  11486. 7:08:12their websites as we speak. It's called
  11487. 7:08:14predicta.net, and its purpose is simple.
  11488. 7:08:17Predicta allows websites to identify,
  11489. 7:08:19then segment shoppers based on what they
  11490. 7:08:21do and where they go online, then direct
  11491. 7:08:24highly specific advertising and
  11492. 7:08:26marketing tailored to how much they're
  11493. 7:08:27willing to spend. Let's say that just
  11494. 7:08:30this morning you were perusing a sale on
  11495. 7:08:32Best Buy.com for a digital camera. If
  11496. 7:08:35the Best Buy site is enabled with
  11497. 7:08:37Predicta, whose clients include Visa,
  11498. 7:08:40Phillips, and Huelet Packard 33, it
  11499. 7:08:42immediately knows two things. That
  11500. 7:08:44you're in the market for a digital
  11501. 7:08:46camera, and that you're a true bargain
  11502. 7:08:47hunter. Thus, it serves you up a
  11503. 7:08:50personalized coupon that offers a
  11504. 7:08:51shockingly good discount on, yes, that
  11505. 7:08:54very same camera you've been hunting
  11506. 7:08:56down all morning. There's only one
  11507. 7:08:58catch. You'll have to visit the store to
  11508. 7:09:00buy it, where you may spot and be unable
  11509. 7:09:02to resist that laptop you've had your
  11510. 7:09:04eye on. In short, based on what online
  11511. 7:09:07searches you have made or websites you
  11512. 7:09:08visited, Predictto will ensure that the
  11513. 7:09:10entire homepage of the store you
  11514. 7:09:12coincidentally decided to visit is
  11515. 7:09:14redesigned in a split second to feature
  11516. 7:09:16guess what? The camera you've been
  11517. 7:09:18checking out all morning. This is known
  11518. 7:09:20as behavioral targeting. And as data
  11519. 7:09:22mining technologies become cheaper and
  11520. 7:09:24easier to use, it's becoming an
  11521. 7:09:26increasingly popular tactic among
  11522. 7:09:28marketers of all stripes. Let's take a
  11523. 7:09:31slightly different scenario. Say your
  11524. 7:09:33friend spent the morning searching for a
  11525. 7:09:35premium camera on the Canon or Nikon
  11526. 7:09:37homepage. This time, the Predicta
  11527. 7:09:39enabled site realizes in a split second
  11528. 7:09:41that a bargain offer isn't for her and
  11529. 7:09:43that she's willing to pay a high price
  11530. 7:09:45for all the bells and whistles, which is
  11531. 7:09:47why it offers up its best quality camera
  11532. 7:09:49along with a coupon that gives her a
  11533. 7:09:51slight discount on an equally high-end
  11534. 7:09:53leather carrying bag. Though the camera
  11535. 7:09:55itself is for full price, of course. The
  11536. 7:09:57upshot is essentially what economists
  11537. 7:09:59call price discrimination. You and your
  11538. 7:10:02friend end up buying the same item, but
  11539. 7:10:04at radically different prices. An even
  11540. 7:10:07newer software program known as Bayote
  11541. 7:10:09in use by companies including AT&T and
  11542. 7:10:11apparelmaker Anthropology not only
  11543. 7:10:13tracks your online purchases where you
  11544. 7:10:15scroll on a page, what you click and
  11545. 7:10:17what search terms you use on any given
  11546. 7:10:19site, but also refineses its search
  11547. 7:10:21results to recommend to you products
  11548. 7:10:22based on what products have appealed to
  11549. 7:10:24users who have browsed and searched
  11550. 7:10:26similar products. 34. In one example,
  11551. 7:10:29when AT&T noticed that people were
  11552. 7:10:31plugging in a lot of searches for a new
  11553. 7:10:33phone model known as Insight, Bayote was
  11554. 7:10:36able to bump Insight up higher on the
  11555. 7:10:38search results on the AT&T website in a
  11556. 7:10:40matter of minutes. And AT&T is not
  11557. 7:10:43alone. eBay has a team that buys
  11558. 7:10:46internet search terms in order to drive
  11559. 7:10:48search traffic back to its site.
  11560. 7:10:50Predicta and Bayote are just two of the
  11561. 7:10:52many variations on a new and
  11562. 7:10:54increasingly widespread marketing tool
  11563. 7:10:56called personalized retargeting or
  11564. 7:10:58remarketing that is popular with
  11565. 7:10:59retailers like diapers.com, ebags.com,
  11566. 7:11:02and the Discovery Channel, as well as
  11567. 7:11:04companies that sell real estate, travel,
  11568. 7:11:06and financial services online. These
  11569. 7:11:09programs capture the cookies that your
  11570. 7:11:11computer automatically deposits into
  11571. 7:11:12your web browser, creating an indelible
  11572. 7:11:14imprint of every site you visit and
  11573. 7:11:16every page you view, then use that
  11574. 7:11:18information to send you personalized
  11575. 7:11:20offers relating to anything you have
  11576. 7:11:22read, viewed, or bought online. This, in
  11577. 7:11:25fact, was the mysterious force behind a
  11578. 7:11:27bizarre tale of a pair of stalkerish
  11579. 7:11:29shoes. As the New York Times reported
  11580. 7:11:31last year, one morning, a Canadian
  11581. 7:11:33mother of two saw and admired the pair
  11582. 7:11:35of shoes on Zapos, the huge online shoe
  11583. 7:11:37retailer. From then on, the shoes just
  11584. 7:11:40wouldn't leave her alone. For days and
  11585. 7:11:42weeks, every site I went to seemed to be
  11586. 7:11:44showing me ads for those shoes, the
  11587. 7:11:46woman recalled. Cookies are used by
  11588. 7:11:49virtually all commercial websites for
  11589. 7:11:51various purposes, including advertising,
  11590. 7:11:53keeping users signed in and customizing
  11591. 7:11:55content," the article went on, adding,
  11592. 7:11:57"Bad as it was to be stalked by shoes."
  11593. 7:11:59Ms. Matlin said she felt even worse when
  11594. 7:12:01she wasounded recently by ads for a
  11595. 7:12:03dieting service she had used online.
  11596. 7:12:06"They are still following me around and
  11597. 7:12:08it makes me feel fat," she says. 35.
  11598. 7:12:12Last year, researchers at the University
  11599. 7:12:14of California at San Diego found that a
  11600. 7:12:16significant proportion of the 50,000
  11601. 7:12:18most visited sites on the web 36 were
  11602. 7:12:21engaging in some manner of behavioral
  11603. 7:12:23tracking, with some even employing an
  11604. 7:12:24analysis known as history sniffing,
  11605. 7:12:26which delves into our past browsing
  11606. 7:12:28behavior to uncover what sites we
  11607. 7:12:30visited in past months or even years.
  11608. 7:12:33Note, as of writing, this kind of
  11609. 7:12:35tracking doesn't work on Apple's Safari,
  11610. 7:12:37Google's Chrome, or Firefox, though it
  11611. 7:12:39will work on Internet Explorer.
  11612. 7:12:41Similarly, sites like Perez Hilton,
  11613. 7:12:43Wired, Technarati, and Anserebe employ
  11614. 7:12:45an analytics service known as tint.com,
  11615. 7:12:48which measures what articles users cut
  11616. 7:12:49and paste, a spying protocol known as
  11617. 7:12:51behavior sniffing. 37.
  11618. 7:12:55Experiencing a recurrent pain in your
  11619. 7:12:57abdomen? Having trouble sleeping?
  11620. 7:13:00Concerned about a relative's depression?
  11621. 7:13:02What do you do? I'm guessing you go
  11622. 7:13:05straight to the internet where you
  11623. 7:13:06quickly type in the symptoms. This is
  11624. 7:13:09why some pharmacy chains are now
  11625. 7:13:11monitoring our search patterns online.
  11626. 7:13:14Imagine how valuable this data is for
  11627. 7:13:16drugstores. Not only can they use it to
  11628. 7:13:18send us offers related to our specific
  11629. 7:13:21condition, but they know what health
  11630. 7:13:22concerns are most prevalent in our
  11631. 7:13:24geographic area or among our demographic
  11632. 7:13:27and can alter their inventory or in
  11633. 7:13:29store signage accordingly. As of
  11634. 7:13:31writing, a number of prominent consumer
  11635. 7:13:33organizations are asking the FTC to
  11636. 7:13:36investigate deceptive ads that pop up
  11637. 7:13:38when we go online to hunt down medical
  11638. 7:13:40or prescription drug information. Notes
  11639. 7:13:42the consumer complaint. Nearly $1
  11640. 7:13:44billion will be spent this year by
  11641. 7:13:47online health and medical marketers
  11642. 7:13:49targeting the growing number of US
  11643. 7:13:50consumers who increasingly rely on the
  11644. 7:13:53internet for information about medical
  11645. 7:13:55problems, treatments, and prescription
  11646. 7:13:57drugs. 38 among the companies named in
  11647. 7:14:00the complaint are Google, Yahoo.
  11648. 7:14:02Microsoft, AOL, WebMD, Quala Health,
  11649. 7:14:05Everyday Health, and Health Central.
  11650. 7:14:07What's more, as of writing,
  11651. 7:14:09pharmaceutical and other health oriented
  11652. 7:14:11marketers are pressuring the FDA to
  11653. 7:14:13grant them greater latitude to expand
  11654. 7:14:15their online advertising, whether it's
  11655. 7:14:17through data mining, internet search
  11656. 7:14:19monitoring, or online behavioral
  11657. 7:14:20profiling. In short, even the most
  11658. 7:14:23private details about our health aren't
  11659. 7:14:25safe from data miners.
  11660. 7:14:27Gay or straight advertisers? No. Thanks
  11661. 7:14:31to social media, our digital footprints
  11662. 7:14:33have gone from a faint silhouette in the
  11663. 7:14:35sand to a sprawling multi-clave track
  11664. 7:14:37that could easily belong to Bigfoot. One
  11665. 7:14:40of the main culprits is the website
  11666. 7:14:42everyone loves, loves to hate, and
  11667. 7:14:44otherwise cannot live without, namely
  11668. 7:14:46Facebook. Ready to know what they know?
  11669. 7:14:49Although Facebook's much maligned
  11670. 7:14:51privacy policies have generated a lot of
  11671. 7:14:53controversy, they are fairly
  11672. 7:14:55straightforward. that is if you bother
  11673. 7:14:56to take the time to read them. The site
  11674. 7:14:59claims it does not share personally
  11675. 7:15:01identifiable information with
  11676. 7:15:03advertisers unless we get your
  11677. 7:15:05permission. At the same time, Facebook
  11678. 7:15:07does allow advertisers to choose the
  11679. 7:15:09characteristics of users who will see
  11680. 7:15:11their advertisements 39 and retains the
  11681. 7:15:13right to use any attributes the site has
  11682. 7:15:15collected, including information you may
  11683. 7:15:18have opted to keep private, such as your
  11684. 7:15:20birthday, to select the appropriate
  11685. 7:15:21audience for those advertisements.
  11686. 7:15:24Scarier still, the site ads, when users
  11687. 7:15:26click on or otherwise interact with an
  11688. 7:15:28advertisement, there is a possibility
  11689. 7:15:30that the advertiser may place a cookie
  11690. 7:15:32in their browser and note that it meets
  11691. 7:15:34the criteria they selected, which is
  11692. 7:15:37just a confusing way of saying that if
  11693. 7:15:39you click on an ad, that advertiser
  11694. 7:15:41reserves the right to pull up as much
  11695. 7:15:43information as your Facebook account
  11696. 7:15:45permits and use it to sign you up for
  11697. 7:15:47months and even years of conveniently
  11698. 7:15:49personalized ads. In the fall of 2010, a
  11699. 7:15:52Wall Street Journal article made waves
  11700. 7:15:54when it revealed that nearly a dozen
  11701. 7:15:56popular Facebook apps, including Texas
  11702. 7:15:58Holden Poker, Frontierville, and
  11703. 7:16:00Farmville, were sharing information,
  11704. 7:16:02including users names and the names of
  11705. 7:16:04those users friends, with at least 25
  11706. 7:16:06advertising and internet tracking
  11707. 7:16:07companies, shattering all Facebook's
  11708. 7:16:09privacy rules, and compromising the
  11709. 7:16:11privacy of 70% of all those who
  11710. 7:16:13regularly use apps on Facebook, even
  11711. 7:16:15those who maintained the most secure
  11712. 7:16:17privacy settings. Though no one was able
  11713. 7:16:19to prove that Facebook had any prior
  11714. 7:16:21knowledge of this breach, the shocking
  11715. 7:16:23affair renew questions about Facebook's
  11716. 7:16:26ability to keep identifiable information
  11717. 7:16:28about its users activities secure. The
  11718. 7:16:30journal reported 40. If this wasn't
  11719. 7:16:33enough to make you want to sell your
  11720. 7:16:35virtual farm, disband your mafia crew,
  11721. 7:16:37and deactivate your profile. A few weeks
  11722. 7:16:39later, the other shoe dropped. This time
  11723. 7:16:42it was the New York Times that broke the
  11724. 7:16:44story, revealing that in some cases
  11725. 7:16:46Facebook advertisers or as the article
  11726. 7:16:48put it, Snoops posing as advertisers
  11727. 7:16:50could capture sensitive profile data,
  11728. 7:16:52including user sexual orientations and
  11729. 7:16:54religions. Even though as a policy,
  11730. 7:16:56Facebook does not trade this information
  11731. 7:16:58with marketers. As an experiment,
  11732. 7:17:01researchers in India and Germany created
  11733. 7:17:03six separate Facebook user accounts.
  11734. 7:17:06These accounts were identical except for
  11735. 7:17:08one difference. In two of the six, the
  11736. 7:17:10fake user checked off that he she was
  11737. 7:17:12interested in persons of the same sex.
  11738. 7:17:15Not surprisingly, gay specific ads, eg
  11739. 7:17:18ads for gay bars, soon began to pop up
  11740. 7:17:20on the sites of the individuals who had
  11741. 7:17:22revealed themselves to be gay, as did
  11742. 7:17:24other ads that had no link to users
  11743. 7:17:26sexual preferences. However, since these
  11744. 7:17:29seemingly neutral ads appeared
  11745. 7:17:31exclusively on gay men's pages, if the
  11746. 7:17:33user clicked on one of them and was
  11747. 7:17:35taken to that company's site, he would
  11748. 7:17:37be dropping a unique identifier telling
  11749. 7:17:39that company or advertiser that he was
  11750. 7:17:41gay. And while the identifier, typically
  11751. 7:17:44a cookie or a computer's internet
  11752. 7:17:46address, does not necessarily disclose
  11753. 7:17:48the identity of the person who clicked.
  11754. 7:17:50The Times reported, "Privacy experts
  11755. 7:17:52said an advertiser could potentially
  11756. 7:17:54obtain the name in other ways and link
  11757. 7:17:55it to the user's sexual orientation,
  11758. 7:17:58perhaps by asking the person to sign up
  11759. 7:18:00for a newsletter, or fill out a form."
  11760. 7:18:02In a related experiment, a Stanford
  11761. 7:18:05researcher placed an ad on Facebook
  11762. 7:18:06targeting users based on their location,
  11763. 7:18:09age, gender, interests, and sexual
  11764. 7:18:11orientation. She next placed a Facebook
  11765. 7:18:13ad targeting those characteristics,
  11766. 7:18:15including ads aimed at users interested
  11767. 7:18:17in same-sex relationships. As the
  11768. 7:18:20advertiser, she was able to see whom
  11769. 7:18:22Facebook had chosen to display that
  11770. 7:18:24particular ad to and could thus conclude
  11771. 7:18:26that that person was gay. According to
  11772. 7:18:29the New York Times, she concluded that
  11773. 7:18:31someone could use this same technique to
  11774. 7:18:32find other profile information
  11775. 7:18:34supposedly protected by the privacy
  11776. 7:18:36settings, including relationship status
  11777. 7:18:38and political and religious
  11778. 7:18:39affiliations, and that it could even be
  11779. 7:18:41on other social networks or websites
  11780. 7:18:43like Google and MySpace. 41.
  11781. 7:18:47True. No identifying names are involved.
  11782. 7:18:49And true, Facebook doesn't directly or
  11783. 7:18:51deliberately share your personal
  11784. 7:18:53information with advertisers, or if it
  11785. 7:18:55does, I can't prove it. Still, it
  11786. 7:18:57doesn't make it all that difficult for
  11787. 7:18:59probing advertisers to get around its
  11788. 7:19:01privacy control either. In fact, the
  11789. 7:19:04site is notorious for constantly
  11790. 7:19:05changing and tweaking its privacy
  11791. 7:19:07policy. And each time it does, it's an
  11792. 7:19:09excuse for the site to reset users
  11793. 7:19:11privacy controls to a default setting.
  11794. 7:19:14And after all, what is Facebook if not
  11795. 7:19:16an incomparably rich database of
  11796. 7:19:18information about every detail of our
  11797. 7:19:20lives? And what is Facebook's business
  11798. 7:19:22model if not one of reliance on its
  11799. 7:19:24partnerships with advertisers? Noting
  11800. 7:19:26that someday soon Facebook will
  11801. 7:19:28represent the default single sign on for
  11802. 7:19:30the web. The Financial Times imagines a
  11803. 7:19:32nightmarish future fantasy in which a
  11804. 7:19:34user shares information about their
  11805. 7:19:36eating and exercise habits on Facebook.
  11806. 7:19:38And this is paired with other
  11807. 7:19:39information such as web browsing history
  11808. 7:19:42by any number of so-called data mining
  11809. 7:19:44companies. These companies create a
  11810. 7:19:46profile of the user that is sold to
  11811. 7:19:48various parties potentially including
  11812. 7:19:50health insurers. Based on some of this
  11813. 7:19:52unflattering information, the insurer
  11814. 7:19:55decides to deny the user coverage. 42.
  11815. 7:19:59every step you take. If you want to keep
  11816. 7:20:02your personal information away from data
  11817. 7:20:04miners, I also suggest you stay away
  11818. 7:20:06from Foursquare, which not only stores
  11819. 7:20:08any information you provide, including
  11820. 7:20:10your IP address, browsing history, phone
  11821. 7:20:12number, birthday, and more each time you
  11822. 7:20:15check in somewhere, but also reserves
  11823. 7:20:16the right to draw upon this personal
  11824. 7:20:18information in order to adapt the
  11825. 7:20:20services of our community to your needs,
  11826. 7:20:22to research the effectiveness of our
  11827. 7:20:24network, and to develop new tools for
  11828. 7:20:26the community as well as to provide
  11829. 7:20:28aggregate information to our partners.
  11830. 7:20:30parters about how our customers
  11831. 7:20:32collectively use our site. 43. Of
  11832. 7:20:35course, for Square claims, we share this
  11833. 7:20:37type of statistical data so that our
  11834. 7:20:39partners also understand how often
  11835. 7:20:40people use their services and our
  11836. 7:20:42service so that they too may provide you
  11837. 7:20:44with an optimal online experience. But
  11838. 7:20:46this really means it reserves the right
  11839. 7:20:48to share any of your information with
  11840. 7:20:50thirdparty search engines, businesses,
  11841. 7:20:52and advertisers and in real time too.
  11842. 7:20:54And what happens if you broadcast your
  11843. 7:20:56Foursquare location to all your buddies
  11844. 7:20:58on Facebook as most people do? Well, uh,
  11845. 7:21:02then such information is no longer under
  11846. 7:21:04the control of Foursquare and is subject
  11847. 7:21:06to the terms of use and privacy policies
  11848. 7:21:08of such third parties. 44. In other
  11849. 7:21:11words, it's fair game for all. But
  11850. 7:21:14perhaps the biggest thorn in privacy
  11851. 7:21:16advocates paw is Google, the king of the
  11852. 7:21:18internet, which has made it a corporate
  11853. 7:21:20mission to organize the world's
  11854. 7:21:22information. Known for having the most
  11855. 7:21:24sophisticated and predictive algorithms
  11856. 7:21:26and data tracking capabilities of any
  11857. 7:21:28site on the web, Google not only knows
  11858. 7:21:30what you search for and links our
  11859. 7:21:32accumulated search patterns to the
  11860. 7:21:33computers we use. It knows what online
  11861. 7:21:35videos you watch, what music you stream,
  11862. 7:21:38what articles you read, what files you
  11863. 7:21:40download, and more. It also knows what's
  11864. 7:21:42in your emails, which it scans
  11865. 7:21:44automatically for the purpose of serving
  11866. 7:21:46you up contextual advertising, that is
  11867. 7:21:48targeted advertising for products
  11868. 7:21:50somehow related to something you've just
  11869. 7:21:52emailed about. And of course, thanks to
  11870. 7:21:55Google Maps, it also knows where you
  11871. 7:21:57live, what books are on your shelves,
  11872. 7:21:58what car is parked in your driveway, and
  11873. 7:22:01whether or not there's a wisp of smoke
  11874. 7:22:03coming out of your chimney. If you sign
  11875. 7:22:05up for Google Buzz, an online service
  11876. 7:22:07that's also available via your
  11877. 7:22:09smartphone, Google will know even more.
  11878. 7:22:11Google Buzz works by bringing together
  11879. 7:22:13all the information you post on various
  11880. 7:22:15social media, including Facebook,
  11881. 7:22:17Twitter, Flickr, Forsquare, and Picassa
  11882. 7:22:20in one place. If you subscribe, Buzz not
  11883. 7:22:23only will know who appears in your
  11884. 7:22:24photos, what topics you tweet about on
  11885. 7:22:26Twitter, and what you like on Facebook,
  11886. 7:22:28it will geo tag your Buzz post. So, it
  11887. 7:22:30will also know exactly where you are at
  11888. 7:22:32all times. And since what Google Buzz
  11889. 7:22:35does differently from other social media
  11890. 7:22:37services is filter the information from
  11891. 7:22:39people you've signed on to follow so
  11892. 7:22:41that only the most popular content shows
  11893. 7:22:43up in your inbox. Google will also know
  11894. 7:22:45which individuals are the most valuable
  11895. 7:22:48or influential members of your circle.
  11896. 7:22:50In other words, which individuals are
  11897. 7:22:52the most irresistible marks for
  11898. 7:22:54advertisers.
  11899. 7:22:55Still, if you thought this was bad, wait
  11900. 7:22:58until you find out how advertisers and
  11901. 7:23:00data miners will use social media to
  11902. 7:23:02brandwash you in the future. Software
  11903. 7:23:04company SAS recently rolled out a
  11904. 7:23:06product that can analyze the chatter
  11905. 7:23:08across social media, including Facebook
  11906. 7:23:10and Twitter, and identify those who post
  11907. 7:23:12the most influential comments and are
  11908. 7:23:14therefore the best marketing targets.
  11909. 7:23:17Last year, a broad array of companies,
  11910. 7:23:19including Amazon, joined forces with
  11911. 7:23:21Facebook. Now, if you opt into this
  11912. 7:23:23particular alliance, not only will
  11913. 7:23:25Amazon be able to see what books and
  11914. 7:23:27music you and any of your friends who
  11915. 7:23:29have also opted in deem cool and market
  11916. 7:23:32to you accordingly, but if you view a
  11917. 7:23:34product on Amazon, a little icon will
  11918. 7:23:36tell you how many of your friends like
  11919. 7:23:38it on Facebook. It's data mining needs
  11920. 7:23:41pure pressure at its finest.
  11921. 7:23:43Surrendering our immortal souls. As if
  11922. 7:23:46this digital spying weren't enough,
  11923. 7:23:48companies also have a lot of tricks up
  11924. 7:23:50their sleeves for getting us to
  11925. 7:23:51voluntarily divulge a whole lot of data.
  11926. 7:23:54If you want to cash a paycheck at a
  11927. 7:23:56Walmart, for example, you must surrender
  11928. 7:23:58both your social security number and
  11929. 7:24:00your driver's license information and
  11930. 7:24:02quite often your email address. Guess
  11931. 7:24:05where that information ends up? You
  11932. 7:24:07guessed it, in Walmart's headquarters in
  11933. 7:24:09Bentonville, Arkansas. And if Walmart
  11934. 7:24:12were working with a data enhancement
  11935. 7:24:14company, which as of writing it's not,
  11936. 7:24:16merely divulging your email address
  11937. 7:24:18could reveal not just your name and
  11938. 7:24:20address, but also additional information
  11939. 7:24:22about the value of your house and even
  11940. 7:24:24the size of your mortgage. Often, we
  11941. 7:24:26unwittingly give companies permission to
  11942. 7:24:28share our personal information with
  11943. 7:24:30other companies and advertisers by
  11944. 7:24:32blindly agreeing to terms of service or
  11945. 7:24:34license agreements on sites like the
  11946. 7:24:36iTunes store. It's no secret that
  11947. 7:24:38companies bury all kinds of privacy
  11948. 7:24:40waiverss in pages and pages of writing
  11949. 7:24:42so complex, tedious, and confusing. Only
  11950. 7:24:45a member of Mensa using a microscope
  11951. 7:24:47could decipher it. But take a guess how
  11952. 7:24:50many people read these disclaimers,
  11953. 7:24:52known in industry circles as Ula's end
  11954. 7:24:54user license agreements, before clicking
  11955. 7:24:56yes or I agree. According to a 2009
  11956. 7:24:59study conducted by the New York
  11957. 7:25:01University School of Law, of the 45,091
  11958. 7:25:04households tracked over a 30-day period,
  11959. 7:25:06only one or two per every thousand
  11960. 7:25:08shoppers, that's about 0.01%,
  11961. 7:25:11spend longer than a single second
  11962. 7:25:12reading a products ula, 45. And what's
  11963. 7:25:14more, the 2005 National Spyware study by
  11964. 7:25:17Ponman Institute found that only 13% of
  11965. 7:25:20people bother to read Ulas before they
  11966. 7:25:22download free software. Did you bother
  11967. 7:25:24to read the latest Apple iTunes user
  11968. 7:25:26agreement? Me neither. So, let's review
  11969. 7:25:29what it says. Included are new terms and
  11970. 7:25:32conditions in which Apple asks, or
  11971. 7:25:34rather requires that iTunes users
  11972. 7:25:36consent to let Apple know where their
  11973. 7:25:37iPhone, iBook, or MacBook is at any
  11974. 7:25:40time. In other words, if you want to use
  11975. 7:25:42the Apple iTunes Store and it won't let
  11976. 7:25:44you in until you click I accept, you
  11977. 7:25:46have to agree to let Apple track your
  11978. 7:25:48computer in real time 24/7 and share
  11979. 7:25:51that information with third parties.
  11980. 7:25:53Don't forget that Apple knows a lot
  11981. 7:25:55about you already, including all your
  11982. 7:25:57past purchases and your credit card
  11983. 7:25:59number, which it keeps on file. No
  11984. 7:26:02wonder Germany responded to Apple's
  11985. 7:26:04demands with the country's federal
  11986. 7:26:05justice commissioner insisting that
  11987. 7:26:07Apple without delay disclose the details
  11988. 7:26:09of the location data it is collecting
  11989. 7:26:11from handhelds and that in the United
  11990. 7:26:13States the House Bipartisan Privacy
  11991. 7:26:15Caucus has demanded that Steve Jobs
  11992. 7:26:17explain the sudden appearance of this
  11993. 7:26:19new policy and how precisely he intends
  11994. 7:26:21to guarantee users anonymity. 46.
  11995. 7:26:25A few years ago, a neat little April
  11996. 7:26:27Fool's joke revealed just how little
  11997. 7:26:30attention we pay to this kind of fine
  11998. 7:26:32print. GameStation, a British online
  11999. 7:26:34video game retailer, playfully buried a
  12000. 7:26:36clause in its terms and conditions that
  12001. 7:26:38read, "By placing an order via this
  12002. 7:26:40website on the first day of the fourth
  12003. 7:26:42month of the year 2010 anodominy. You
  12004. 7:26:44agree to grant us a non-transferable
  12005. 7:26:46option to claim now and forever more
  12006. 7:26:49your immortal soul. Should we wish to
  12007. 7:26:51exercise this option, you agree to
  12008. 7:26:53surrender your immortal soul and any
  12009. 7:26:55claim you may have on it within 55
  12010. 7:26:57working days of receiving written
  12011. 7:26:58notification from gamestation.co.uk
  12012. 7:27:01or one of its duly authorized minions.
  12013. 7:27:0447. How many souls did the company
  12014. 7:27:06capture? Roughly 7,500 or 88% of all the
  12015. 7:27:11people who bought stuff from the site on
  12016. 7:27:12that April 1st. April fools. A
  12017. 7:27:16post-privacy society. Yes, it's true
  12018. 7:27:19that we as consumers are partly to blame
  12019. 7:27:21for all that companies know about us. We
  12020. 7:27:24place way too much information online.
  12021. 7:27:27We blog, we chat, we tweet, we play
  12022. 7:27:31foursquare, we post our favorite YouTube
  12023. 7:27:34videos. We enter our credit card numbers
  12024. 7:27:37every time we want to buy a book, a
  12025. 7:27:38t-shirt, a plane ticket, and more. We
  12026. 7:27:41announced to our Facebook friends where
  12027. 7:27:43we're going on vacation that we like
  12028. 7:27:45Pink Floyd, Cold Stone, Ice Cream,
  12029. 7:27:47Pixar, and House. And each time we do,
  12030. 7:27:50we're playing right into the hands of
  12031. 7:27:51the data miners. It's no huge surprise
  12032. 7:27:55given how much of their lives the
  12033. 7:27:56younger generation spends on Facebook
  12034. 7:27:58and Twitter that when I gather groups of
  12035. 7:28:00teenagers from across the country to
  12036. 7:28:02talk about privacy in conjunction with
  12037. 7:28:04the recruitment firm Murray Hill
  12038. 7:28:06Associates, the word privacy appeared to
  12039. 7:28:08mean nothing to them. Either they were
  12040. 7:28:10completely indifferent to the subject or
  12041. 7:28:12they'd completely given up on it. It was
  12042. 7:28:15a little chilling. It should also come
  12043. 7:28:17as no surprise given how much time
  12044. 7:28:19today's kids spend online that data
  12045. 7:28:21miners are collecting information about
  12046. 7:28:23children as young as four or five. Some
  12047. 7:28:26do this via online questionnaires that
  12048. 7:28:28pop up on kid-friendly sites asking kids
  12049. 7:28:30their age, favorite toys, and cartoon
  12050. 7:28:32characters and buying behavior and
  12051. 7:28:34sometimes even the buying behavior of
  12052. 7:28:36their parents. Your kid wants to
  12053. 7:28:38register for the Warner Brothers Looney
  12054. 7:28:41Tunes kids website. Well, you'll have to
  12055. 7:28:44join first by giving his first name,
  12056. 7:28:46answering a security question, and
  12057. 7:28:48offering up his parents, i.e. your email
  12058. 7:28:50address. Once you've answered with a
  12059. 7:28:52confirming email, Warner Brothers will
  12060. 7:28:55ask for your child's email address,
  12061. 7:28:57followed by his zip code and year of
  12062. 7:28:59birth, and then we'll require you to
  12063. 7:29:01check a box agreeing to the terms of
  12064. 7:29:03agreement on his behalf. What are those
  12065. 7:29:06terms of agreement? According to the
  12066. 7:29:08website, we may ask them to provide us
  12067. 7:29:10with their first name, hometown, and
  12068. 7:29:12email address. On some pages of our
  12069. 7:29:14sites, such as where children can send
  12070. 7:29:16electronic postcards to their friends,
  12071. 7:29:19we also may ask your child to provide
  12072. 7:29:21personal information about other people.
  12073. 7:29:2348. Then again, even if your kids don't
  12074. 7:29:27sign up for the Looney Tunes website,
  12075. 7:29:29it's not too difficult for marketers to
  12076. 7:29:30mine data about them, given the fact
  12077. 7:29:32that according to internet security firm
  12078. 7:29:34AVG, 92% of American children have a
  12079. 7:29:37digital footprint before the age of two,
  12080. 7:29:39497% of babies exit the womb to find
  12081. 7:29:42they already have an existing email
  12082. 7:29:44address, and 5% have a social network
  12083. 7:29:46profile, and almost a quarter of all
  12084. 7:29:48newborns already have a photographic
  12085. 7:29:50presence online. too. As 23% of parents
  12086. 7:29:53upload their sonogram photos online, and
  12087. 7:29:56as social networking becomes even more
  12088. 7:29:58ubiquitous, there's no question in my
  12089. 7:30:00mind that these numbers will continue to
  12090. 7:30:02grow, remarks J.R. Smith, the CEO of
  12091. 7:30:05AVG. It's shocking to think that a
  12092. 7:30:0830-year-old has an online footprint
  12093. 7:30:09stretching back 10 to 15 years at most,
  12094. 7:30:12while the vast majority of children
  12095. 7:30:14today will have online presence that
  12096. 7:30:16will continue to build throughout their
  12097. 7:30:17whole lives. He also cautions parents to
  12098. 7:30:20be mindful of the privacy settings on
  12099. 7:30:22websites where parents share photos and
  12100. 7:30:24information about their children,
  12101. 7:30:26including YouTube and Flickr. 50. Still,
  12102. 7:30:30while many of us are fully aware that
  12103. 7:30:31all these details about our likes,
  12104. 7:30:33dislikes, habits, and personal lives are
  12105. 7:30:36out there floating around in the ether,
  12106. 7:30:38most of us are ignorant of the extent to
  12107. 7:30:40which every movement we make, every step
  12108. 7:30:42we take, every item we buy is being
  12109. 7:30:44recorded and transcribed onto an
  12110. 7:30:45indelible digital footprint that stays
  12111. 7:30:47with us for the rest of our lives and in
  12112. 7:30:49fact will outlive us long after we're
  12113. 7:30:51gone. As the New York Times notes, all
  12114. 7:30:54of us are members of the post privacy
  12115. 7:30:56society where we have lost track of how
  12116. 7:30:58many entities are tracking us, not to
  12117. 7:31:01mention what they are doing with our
  12118. 7:31:02personal information, how they are
  12119. 7:31:04storing it, whom they might be selling
  12120. 7:31:06our dossas to, and yes, how much money
  12121. 7:31:08they are making off them. 51. It's true.
  12122. 7:31:13We are living in a post-privacy society.
  12123. 7:31:16Nothing drove this point home more for
  12124. 7:31:18me than a poignant irony. IBM boss Sam
  12125. 7:31:20Palmazano noted in a recent speech that
  12126. 7:31:22today some 32 closed circuit cameras sit
  12127. 7:31:25within 200 yards of the London flat
  12128. 7:31:27where author George Orwell wrote 1,984
  12129. 7:31:30his dystopian book about the prying eyes
  12130. 7:31:32of big brother. So yes, we all know that
  12131. 7:31:36every time we tweet our whereabouts on
  12132. 7:31:37Twitter, update our Facebook profiles,
  12133. 7:31:39buy something online with our credit
  12134. 7:31:41card, or swipe our reward card at a
  12135. 7:31:43drugstore, we're letting information
  12136. 7:31:45about ourselves out into the world. But
  12137. 7:31:48we don't fully realize that every time
  12138. 7:31:50we do, we're essentially giving
  12139. 7:31:51companies and marketers permission to
  12140. 7:31:53record, store, compile, and analyze
  12141. 7:31:55every last bit of information we choose
  12142. 7:31:57to share and many pieces of information
  12143. 7:31:59we don't, and then turn around and use
  12144. 7:32:01it to trick, manipulate, and seduce us
  12145. 7:32:03into buying more stuff. The fact is, as
  12146. 7:32:06our world becomes increasinglyworked,
  12147. 7:32:08digitized, and hyperconnected, and we
  12148. 7:32:10inevitably conduct even more of our
  12149. 7:32:12lives online, it will become harder and
  12150. 7:32:14harder to escape the prying gaze of the
  12151. 7:32:17data miners. Sure, we could toss out our
  12152. 7:32:19cell phones, deactivate our Facebook
  12153. 7:32:21profiles, and cancel our credit cards,
  12154. 7:32:24but let's get real. We're far too
  12155. 7:32:26brawashed to do anything as drastic as
  12156. 7:32:28that. Conclusion. It was close to
  12157. 7:32:31midnight Pacific Standard Time as one
  12158. 7:32:34truck after another crept down a quiet
  12159. 7:32:36gated village road in the heart of
  12160. 7:32:37Lagona Beach, one of the most beautiful
  12161. 7:32:39oceanside communities in Southern
  12162. 7:32:41California, as well as one of the most
  12163. 7:32:43affluent and most expensive. The median
  12164. 7:32:45income for a family is $146,562
  12165. 7:32:50and the average home price easily tops
  12166. 7:32:52$1 million. Most of the ornate sprawling
  12167. 7:32:55Stuckco houses were in shadows. Their
  12168. 7:32:57owners asleep with the exception of the
  12169. 7:32:59very last house on the block.
  12170. 7:33:01Considering the time of night, it was
  12171. 7:33:03unusual to see one, let alone several
  12172. 7:33:05vehicles on the road. Yet, five or six
  12173. 7:33:08trucks stood silhouetted in the driveway
  12174. 7:33:10and along the front curb as workers
  12175. 7:33:12silently unloaded camera equipment and
  12176. 7:33:14cardboard boxes, then carried them
  12177. 7:33:16inside the house. What was about to take
  12178. 7:33:19place over the next 8 weeks was among
  12179. 7:33:21the most risky and unconventional
  12180. 7:33:23operations my team and I had ever
  12181. 7:33:25concocted. If a single person in the
  12182. 7:33:28neighborhood had found out what we were
  12183. 7:33:29up to, the entire project, which we've
  12184. 7:33:32been planning and preparing over the
  12185. 7:33:33past 6 months, would be jeopardized.
  12186. 7:33:36Why? Because the families in this
  12187. 7:33:38upscale neighborhood could have no idea
  12188. 7:33:40they were about to become unwitting
  12189. 7:33:42participants in a massive $3 million
  12190. 7:33:45social experiment whose results would
  12191. 7:33:47reveal a side of consumer behavior few
  12192. 7:33:49of them would have believed. Inspired by
  12193. 7:33:52the 2010 Hollywood movie The Joneses
  12194. 7:33:55about a family of stealth marketers who
  12195. 7:33:57move into an upper middleclass
  12196. 7:33:58neighborhood to pedal their wares to
  12197. 7:34:00their unsuspecting neighbors. My scheme
  12198. 7:34:02was both simple and ambitious to test
  12199. 7:34:04the power of word of mouth marketing. I
  12200. 7:34:07would create a real life version of the
  12201. 7:34:09film, taking a real life California
  12202. 7:34:11family, dropping them in a real life
  12203. 7:34:13California neighborhood, and then film
  12204. 7:34:15them in every waking moment as they went
  12205. 7:34:17about covertly persuading friends,
  12206. 7:34:19colleagues, and loved ones to buy a
  12207. 7:34:21number of carefully selected brands.
  12208. 7:34:24First step, I hired one of America's top
  12209. 7:34:26reality show casting directors, Marcy
  12210. 7:34:28Tishke, who has worked on shows ranging
  12211. 7:34:30from Jersey Shore to Paris Hilton's My
  12212. 7:34:32New BFF, and producer Andy Massanti,
  12213. 7:34:34whose credits include The Millionaire
  12214. 7:34:36Matchmaker and Extreme Makeover Home
  12215. 7:34:38Edition to narrow a large field of
  12216. 7:34:40candidates to select our perfect
  12217. 7:34:41all-American family. If our experiment
  12218. 7:34:44was to succeed, the Morgensson family
  12219. 7:34:46had to represent a perfect mix of ages,
  12220. 7:34:48styles, interests, and aspirational
  12221. 7:34:50values. After a lengthy search, Marcy
  12222. 7:34:53and Andy found their ideal candidates in
  12223. 7:34:55Eric and Gina Morgensson and their three
  12224. 7:34:57sons, Jack, Sam, and Max, a successful,
  12225. 7:35:00good-looking, picture perfect Southern
  12226. 7:35:02California family who agreed to make it
  12227. 7:35:04their life's mission well for at least a
  12228. 7:35:06month to discreetly persuade their
  12229. 7:35:08neighbors to buy a broad array of
  12230. 7:35:09products. Let's meet them. Eric
  12231. 7:35:13Morgensson in his mid-4s with a degree
  12232. 7:35:15from an East Coast College. Eric is a
  12233. 7:35:17successful, compassionate, funny, sports
  12234. 7:35:19obsessed and involved father with a
  12235. 7:35:21latent party hearty streak. Gina
  12236. 7:35:24Morgensson, sophisticated, charming, and
  12237. 7:35:26popular. Gina is politically and
  12238. 7:35:28environmentally aware, as well as a
  12239. 7:35:30fashion trends setter among her friends.
  12240. 7:35:33Jack, Sam, and Max Morgensson as sports
  12241. 7:35:35crazy and outdoorsy as their father.
  12242. 7:35:37Jack, Sam, and Max are hip, handsome.
  12243. 7:35:39Justin Bieberesque Southern California
  12244. 7:35:41adolescence ages 16, 14, and 12, smitten
  12245. 7:35:44with music, skateboarding, technology,
  12246. 7:35:46and like most teens and tween, the
  12247. 7:35:48latest brands and styles. Now I want you
  12248. 7:35:51to picture the scene that took place
  12249. 7:35:53several days later in the Morgensson
  12250. 7:35:56spacious yard complete with heated in
  12251. 7:35:58ground swimming pool toro mode and
  12252. 7:36:00impeccably landscaped lawn and threecar
  12253. 7:36:02garage housing a 2005 Ford Expedition
  12254. 7:36:04Eddie Bower edition a 2008 BMW 750 LII
  12255. 7:36:08and a 2008 Nissan Ultima coupe. Eric
  12256. 7:36:10Morensson shows off his grilling
  12257. 7:36:12techniques and new front gate and TJ
  12258. 7:36:14Maxx barbecue tools to a handful of male
  12259. 7:36:16buddies. 200 f feet away. Gina
  12260. 7:36:19Morgensson is entertaining a group of
  12261. 7:36:21female friends in her state-of-the-art
  12262. 7:36:22kitchen containing an array of
  12263. 7:36:24top-of-the-line kitchen and appliances,
  12264. 7:36:26including a combination microwave oven,
  12265. 7:36:28induction cooktop, ice maker, trash
  12266. 7:36:30compactor, toaster, immersion blender,
  12267. 7:36:32and water filter, gushing about how hard
  12268. 7:36:34she's fallen for a beautiful new jewelry
  12269. 7:36:36line. Upstairs, Jack, Sam, Max, and a
  12270. 7:36:39few school friends play the newest game
  12271. 7:36:41on Xbox while showing off the hip new
  12272. 7:36:43Vans and Etnne sneakers they've recently
  12273. 7:36:45picked up on a family shopping spree.
  12274. 7:36:47The point of this multi-million dollar
  12275. 7:36:50experiment was to test the seductive
  12276. 7:36:52power of word of mouth marketing. By
  12277. 7:36:55filming a real family in spontaneous,
  12278. 7:36:57unscripted situations and scenarios like
  12279. 7:36:59these, from barbecues to champagne
  12280. 7:37:01brunches to shopping expeditions, we
  12281. 7:37:03would document how the Morgensson's
  12282. 7:37:05circle of friends responded to specific
  12283. 7:37:07brands and products the Morgenssons
  12284. 7:37:09brought into their lives. When put face
  12285. 7:37:11tof face with another family's enviable
  12286. 7:37:13lifestyle and the brands and products
  12287. 7:37:15that sustain it, would they want all the
  12288. 7:37:18things that family has? And more
  12289. 7:37:20important, would this influence be so
  12290. 7:37:22powerful as to make them actually go out
  12291. 7:37:24and buy those things? With the help of
  12292. 7:37:2735 video cameras, 17 hidden from view,
  12293. 7:37:30and 25 microphones tucked away inside
  12294. 7:37:33the furniture and fixtures, providing us
  12295. 7:37:35with a 360° view of every room in the
  12296. 7:37:38house, so we could follow the
  12297. 7:37:39Morgenssons wherever they went. The
  12298. 7:37:41results of this clandestine operation
  12299. 7:37:43would ultimately reveal something
  12300. 7:37:44shocking, that the most powerful hidden
  12301. 7:37:46persuader of them all isn't in your
  12302. 7:37:48television set or on the shelves of your
  12303. 7:37:50supermarket or even lurking in your
  12304. 7:37:52smartphone. It's a far more pervasive
  12305. 7:37:55influence that's around you virtually
  12306. 7:37:57every waking moment, brainwashing you in
  12307. 7:37:59ways you don't even realize, your very
  12308. 7:38:01own friends and neighbors. You run your
  12309. 7:38:04mouth and I'll run my business. Over
  12310. 7:38:07these past pages, we've learned that
  12311. 7:38:09few, if any, accidents take place in the
  12312. 7:38:11marketing and advertising world. We've
  12313. 7:38:13looked at many of the tricks, minations,
  12314. 7:38:16untruths, and manipulations that
  12315. 7:38:18marketers and advertisers use to
  12316. 7:38:19pressure, cajol, and entice us. We've
  12317. 7:38:22seen how they use fear, sex, celebrity,
  12318. 7:38:25new age promises, insecurity, nostalgia,
  12319. 7:38:27data mining, and more to prey on our
  12320. 7:38:29most deeply rooted fears, dreams, and
  12321. 7:38:31desires in the service of selling us
  12322. 7:38:33their products. We've witnessed up close
  12323. 7:38:35the alarmingly young age, often before
  12324. 7:38:38we've even left our mother's wombs, at
  12325. 7:38:40which they begin to target us, and the
  12326. 7:38:42sometimes surreal lengths they'll go to
  12327. 7:38:44in order to secure us as lifelong
  12328. 7:38:46customers. We've even looked at the role
  12329. 7:38:48peer pressure can play in shaping our
  12330. 7:38:50buying habits. But this chapter goes
  12331. 7:38:53well beyond that. In a world where
  12332. 7:38:55roughly 60% of all Americans are members
  12333. 7:38:58of Facebook and some 175 million people
  12334. 7:39:01worldwide log into Facebook each day and
  12335. 7:39:04Twitter has around 190 million users who
  12336. 7:39:06tweet approximately 65 million times
  12337. 7:39:09during a 24-hour period. I believe I've
  12338. 7:39:12only just scratched the surface in
  12339. 7:39:13exploring how vulnerable and susceptible
  12340. 7:39:15we are to the advice, recommendations,
  12341. 7:39:17and subconscious influence of our
  12342. 7:39:19friends, neighbors, and peers. The seed
  12343. 7:39:22of the idea for the reality TV show we
  12344. 7:39:24dubbed the Morgenssons occurred to me
  12345. 7:39:26almost 18 months before I started
  12346. 7:39:28writing this book when I'd been
  12347. 7:39:30unknowingly lured into a cover marketing
  12348. 7:39:32ploy that prompted me to doubt my own
  12349. 7:39:34ability to separate reality from
  12350. 7:39:36advertising spin. As I pulled up to a
  12351. 7:39:38gas station in Sydney, Australia, the
  12352. 7:39:41guy across from me, who just finished
  12353. 7:39:43filling up his own tank, approached me.
  12354. 7:39:45"Hey, mate. Love your car," he said.
  12355. 7:39:48"Oh, thanks," I said politely. "But
  12356. 7:39:50mate," he went on, "Yes, Australian men
  12357. 7:39:53do love to use this endearing term. You
  12358. 7:39:55really should consider using Superctane
  12359. 7:39:5798 gas." He proceeded to tell me he had
  12360. 7:40:00the same model of car as mine at home in
  12361. 7:40:02his garage, adding, "You can't believe
  12362. 7:40:04the difference in your car's
  12363. 7:40:05performance. It's amazing. I thanked
  12364. 7:40:08him, then promptly forgot his advice.
  12365. 7:40:11Yet, over the next few weeks, every time
  12366. 7:40:13I needed to gas up my car, I couldn't
  12367. 7:40:16get his words out of my mind. Whenever I
  12368. 7:40:18drove into a gas station, the same
  12369. 7:40:20internal dialogue, should I buy the
  12370. 7:40:22Octane or the Superctane 98 rolled
  12371. 7:40:24around in my brain. What the hell? I'd
  12372. 7:40:27begun thinking. It couldn't hurt, and it
  12373. 7:40:30costs less than 10 cents more. And sure
  12374. 7:40:33enough, from then on, each time I needed
  12375. 7:40:35gas, I'd fill up with the Super Octane
  12376. 7:40:3798. Then a few months later, with the
  12377. 7:40:40needle of my gas gauge close to empty, I
  12378. 7:40:43pulled into the very same gas station. I
  12379. 7:40:46was filling up when I heard an extremely
  12380. 7:40:48familiar voice. It was him, the Super
  12381. 7:40:51Octane 98 man. This time, though, he
  12382. 7:40:54wasn't addressing me, but another car
  12383. 7:40:56owner who was filling his tank with the
  12384. 7:40:58cheapest brand of gas. Hey mate, he
  12385. 7:41:01called over. love your car. Thanks," the
  12386. 7:41:03guy replied in the same polite tone as I
  12387. 7:41:06had. "But mate," the man went on. You
  12388. 7:41:08really should consider using Super
  12389. 7:41:10Octane 98. Thing is, I have the same
  12390. 7:41:13model of car at home, and once you tried
  12391. 7:41:15it, you won't believe the difference.
  12392. 7:41:17It's amazing. I've been completely
  12393. 7:41:19punked. Either this guy owned every
  12394. 7:41:22brand of car ever manufactured and knew
  12395. 7:41:24only two sentences in the English
  12396. 7:41:26language or the gas station had planted
  12397. 7:41:28him to ramp up sales of its higherpriced
  12398. 7:41:30gas. At the same time, I couldn't help
  12399. 7:41:33wondering, Martin, how could you fall
  12400. 7:41:35for it? You who work day in and day out
  12401. 7:41:38in the marketing industry have been
  12402. 7:41:40duped into changing your whole buying
  12403. 7:41:42behavior thanks to 5 seconds of covert
  12404. 7:41:45marketing. But it wasn't until a year
  12405. 7:41:47later when the film The Jones hit the
  12406. 7:41:49big screen that I was inspired to hatch
  12407. 7:41:51my own marketing experiment to test the
  12408. 7:41:54effects over an 8-week period of that
  12409. 7:41:56same tactic I had succumbed to in the
  12410. 7:41:58suburbs of Sydney. A month later, after
  12411. 7:42:01screening literally hundreds of hours of
  12412. 7:42:03videotape, the results from the
  12413. 7:42:05Morgenssons came in. But anecdotal
  12414. 7:42:08evidence like this, no matter how many
  12415. 7:42:10hours of it, isn't always the most
  12416. 7:42:11scientific, which is why I decided to
  12417. 7:42:14conduct an additional free study to
  12418. 7:42:16confirm our findings. The results prove
  12419. 7:42:18beyond any doubt whatsoever that
  12420. 7:42:20marketers, advertisers, and big
  12421. 7:42:22businesses have nothing at all compared
  12422. 7:42:24to the influence we consumers have on
  12423. 7:42:27one another. Mrs. Morgensson goes
  12424. 7:42:29shopping. Picture this. Gina and a
  12425. 7:42:33gaggle of friends are going shoe
  12426. 7:42:34shopping at DSW, the giant retail chain.
  12427. 7:42:38DSW, for the uninducted, stands for
  12428. 7:42:40designer shoe warehouse and routes to
  12429. 7:42:43the giant shoe mecca. Gina ingenuously
  12430. 7:42:45asks a car full of her friends, "Has
  12431. 7:42:47anyone been to DW before? I just love
  12432. 7:42:50the whole concept. You're just bound to
  12433. 7:42:53find the shoe you want there." 2 hours
  12434. 7:42:55later, she's managed to convince subtly,
  12435. 7:42:57of course, five of her friends to buy
  12436. 7:42:59multiple pairs. Some, in fact, have
  12437. 7:43:02walked out of the store armed with as
  12438. 7:43:03many as five new pairs of boots, heels,
  12439. 7:43:05and flats. Not only that, but I
  12440. 7:43:08discovered later that following their
  12441. 7:43:09trip, three of Gina's friends visited
  12442. 7:43:11DSWS website, liked the store on
  12443. 7:43:14Facebook, and as of writing had bought
  12444. 7:43:16several more pairs of its shoes online.
  12445. 7:43:19How did I know this? Well, because I
  12446. 7:43:21called upon Chhat Threads, a company
  12447. 7:43:23that specializes in capturing data on
  12448. 7:43:25how, when, and where consumers notice
  12449. 7:43:27specific brands in their day-to-day
  12450. 7:43:29lives, then analyzing how these
  12451. 7:43:30encounters impact buying behavior. Both
  12452. 7:43:33before and after the experiment, the
  12453. 7:43:35Cathreads team interviewed Gina's
  12454. 7:43:37friends about their buying behavior. The
  12455. 7:43:39before interviews were under the guise
  12456. 7:43:40of a random survey and were thus able to
  12457. 7:43:43analyze exactly how exposure to the
  12458. 7:43:45brands they'd encountered had influenced
  12459. 7:43:47their subsequent buying behavior. Plus,
  12460. 7:43:50once the experiment had wrapped up,
  12461. 7:43:52Gina's friends were asked to text
  12462. 7:43:54message whenever they came across the
  12463. 7:43:55brand, saying how they felt about and
  12464. 7:43:57interacted with it. DSW came up numerous
  12465. 7:44:01times. Perhaps even more telling, in
  12466. 7:44:03later scenes, two of Gina's friends
  12467. 7:44:05showed up at the Morgensson's house
  12468. 7:44:07wearing the shoes they bought on the
  12469. 7:44:08expedition, and on hidden camera, one of
  12470. 7:44:10the friends even boasted about her $30
  12471. 7:44:13shoes, adding, "I love them. They are
  12472. 7:44:15the most comfortable heels I own."
  12473. 7:44:17What else did I observe on that shopping
  12474. 7:44:19trip? Well, for one thing, that Gina's
  12475. 7:44:22friends seemed very reluctant to buy an
  12476. 7:44:24item unless their friends approved of
  12477. 7:44:26their purchase beforehand. At one point,
  12478. 7:44:28two of the friends opted to buy the same
  12479. 7:44:30style of shoes as the other, whereupon
  12480. 7:44:32one of the women was heard to gleefully
  12481. 7:44:34use the word samesies, another testament
  12482. 7:44:36to the power of peer influence,
  12483. 7:44:38especially given that there are hundreds
  12484. 7:44:40of different shoe styles in the store.
  12485. 7:44:43In addition, I noticed that a woman's
  12486. 7:44:45friends could sway or change her choice
  12487. 7:44:46up until the very last second. At one
  12488. 7:44:48point, Gina talked a friend into
  12489. 7:44:50changing her purchase while the clerk
  12490. 7:44:52was scanning the product behind the cash
  12491. 7:44:54register. We saw similar effects of peer
  12492. 7:44:57pressure again and again. At one point
  12493. 7:45:00during our filming, Gina invited a dozen
  12494. 7:45:02or so friends over for a champagne
  12495. 7:45:04brunch, more like one long infomercial
  12496. 7:45:06disguised as a champagne brunch. First,
  12497. 7:45:09everyone was served Tlarney, a sparkling
  12498. 7:45:11wine from Australia. "Isn't it yummy?"
  12499. 7:45:14Gina asked at one point, repeatedly
  12500. 7:45:17dropping the name of the brand, which
  12501. 7:45:19her friends continued to describe as
  12502. 7:45:21yummy for the rest of the evening. Then
  12503. 7:45:23she went on to show her friends the
  12504. 7:45:25amazing new Pandora brand jewelry she
  12505. 7:45:27was wearing. "Isn't it spectacular?" she
  12506. 7:45:30asked. Gina explained that Pandora's
  12507. 7:45:33website allowed her to customize her new
  12508. 7:45:35charms and that she especially loved the
  12509. 7:45:37breast cancer charm that the company had
  12510. 7:45:39created in honor of National Breast
  12511. 7:45:41Cancer Awareness Month. Gina was so
  12512. 7:45:44skilled at pushing this particular
  12513. 7:45:45jewelry line on her friends that one
  12514. 7:45:47even asked her to write down the name of
  12515. 7:45:49the brand so she could visit the website
  12516. 7:45:52once she got home. Bingo. But Gina
  12517. 7:45:55wasn't done. After all, she needed to
  12518. 7:45:58tell her friends that she'd recently
  12519. 7:45:59replaced every single one of her beauty
  12520. 7:46:01soaps and lotions with a brand of
  12521. 7:46:03natural products called Kiss My Face,
  12522. 7:46:05which sells everything from toothpaste
  12523. 7:46:07to mouthwash to shaving cream. She even
  12524. 7:46:10loved the brand so much she told them
  12525. 7:46:12that she decided to give every single
  12526. 7:46:14one of her guests a gift bag that
  12527. 7:46:16included Kiss My Face soaps and lip
  12528. 7:46:18balms. Later on, she popped open a few
  12529. 7:46:20bottles of Claus Duvel wine from a Napa
  12530. 7:46:23winery known for their fantastic reds.
  12531. 7:46:25She told her guests, "Oh, and by the
  12532. 7:46:28way, had everyone seen her exquisite new
  12533. 7:46:30bag created by the London company Nommo?
  12534. 7:46:33A stylish modern briefcase that would be
  12535. 7:46:35perfect for all you corporate girls."
  12536. 7:46:37So, how did Gina's friends respond?
  12537. 7:46:40Well, we first witnessed the impact of
  12538. 7:46:42Gina's influence two weeks later when
  12539. 7:46:44three of her friends showed up at a
  12540. 7:46:46Lagona Beach party newly adorned in
  12541. 7:46:47bracelets, charms, and earrings, all
  12542. 7:46:50created by the jewelry company Gina had
  12543. 7:46:52trumpeted. Later on, Chathred's
  12544. 7:46:55interviews revealed that after the
  12545. 7:46:56brunch, a handful of Gina's friends had
  12546. 7:46:58gone out and actually bought Nommo bags
  12547. 7:47:00along with a whole bunch of Kiss My Face
  12548. 7:47:02products. In subsequent interviews, one
  12549. 7:47:05friend actually stated that using these
  12550. 7:47:07products at Gina's house made her really
  12551. 7:47:09impressed at how great the products are.
  12552. 7:47:12I thought because they are so lowriced
  12553. 7:47:14that they would not be so great. Now I
  12554. 7:47:16love the products and because of the low
  12555. 7:47:18price and accessibility, I will
  12556. 7:47:20definitely start using them. Class
  12557. 7:47:23Duval, our branded California wine too
  12558. 7:47:25had caught on. The women started buying
  12559. 7:47:27it in bulk and in later scenes several
  12560. 7:47:29women told Gina how much they liked the
  12561. 7:47:31taste. One stated later in an interview,
  12562. 7:47:34"I really enjoy wine. I am reluctant to
  12563. 7:47:37purchase wine that I have not tasted. I
  12564. 7:47:40have not had a tasting of that
  12565. 7:47:41particular brand, but I was happy to
  12566. 7:47:44hear that a friend I trust has given her
  12567. 7:47:46seal of approval, so I would be more apt
  12568. 7:47:48to purchase it when I come across it."
  12569. 7:47:51Turned out the power of word of mouth
  12570. 7:47:53extends even beyond footwear and jewelry
  12571. 7:47:55choices. among women at least. It seemed
  12572. 7:47:58that a preference for even the most
  12573. 7:48:00personal of personal products can spread
  12574. 7:48:02like wildfire. At one point during our
  12575. 7:48:05filming, Gina brought out a box of
  12576. 7:48:07Libres, a Swedish brand of tampons
  12577. 7:48:09unavailable as of writing in the United
  12578. 7:48:11States, which allowed us to ensure that
  12579. 7:48:13Gina's friends didn't have prior
  12580. 7:48:15knowledge of the product. What's so
  12581. 7:48:17amazingly different about Libres? Among
  12582. 7:48:20other things, it's hard to tell at first
  12583. 7:48:22glance what the box contains. Gina's
  12584. 7:48:24friends went crazy for the brand, also
  12585. 7:48:27proving that as far as certain products
  12586. 7:48:29are concerned, subtle packaging is an
  12587. 7:48:31irresistible selling point. What else
  12588. 7:48:34did this experiment reveal about the
  12589. 7:48:36power of guerilla marketing,
  12590. 7:48:38particularly among women? Well, it seems
  12591. 7:48:40if a female is actually wearing or using
  12592. 7:48:43the brand or product in question, a new
  12593. 7:48:45line of jewelry, a brand of skincare
  12594. 7:48:47products, a pair of boots, or a stylish
  12595. 7:48:49new bag, her influence over her peers is
  12596. 7:48:52that much more formidable. What's more,
  12597. 7:48:54if a friend is impressed enough to write
  12598. 7:48:56down the name of a brand on a piece of
  12599. 7:48:58paper, it's pretty much a slam dunk
  12600. 7:49:00certainty that she is going to later buy
  12601. 7:49:03the thing. Now, I'm going to get fat.
  12602. 7:49:06So, what about Mr. Morgensson? Was he
  12603. 7:49:09able to sway his friends and neighbors
  12604. 7:49:11brand choices as effectively as his wife
  12605. 7:49:13was? Here's where the genders go their
  12606. 7:49:16separate ways a little. It turns out
  12607. 7:49:19that Eric's male buddies were actually
  12608. 7:49:21more likely to come right out and
  12609. 7:49:23challenge him when he recommended a
  12610. 7:49:25brand or a product. What makes you the
  12611. 7:49:27expert was the unspoken and default male
  12612. 7:49:30response. In one scene, for example, a
  12613. 7:49:33friend visibly bristled when Eric
  12614. 7:49:35suggested he try a certain brand of
  12615. 7:49:37barbecue marinade. My guess, many men
  12616. 7:49:40experienced these kinds of suggestions
  12617. 7:49:42as an assault on their authority, as if
  12618. 7:49:44Eric were implying he knew better. Yet,
  12619. 7:49:47we did come across some exceptions to
  12620. 7:49:49this rule. Turns out Eric's male friends
  12621. 7:49:52were happy to accept a word of mouth
  12622. 7:49:54recommendation about a brand or a
  12623. 7:49:56product that was aspirational and that
  12624. 7:49:58signaled money, power, and worldly
  12625. 7:50:00success. Say a new Jaguar or a
  12626. 7:50:02state-of-the-art grill or an expensive
  12627. 7:50:04bottle of wine. That said, they would
  12628. 7:50:06only accept this kind of word of mouth
  12629. 7:50:08recommendation if it came from another
  12630. 7:50:10male whose opinion and expertise they
  12631. 7:50:12respected, like Eric. Without that, as
  12632. 7:50:15our footage clearly showed, another
  12633. 7:50:17man's recommendation carries no impact
  12634. 7:50:19whatsoever. In our experiment, we saw
  12635. 7:50:22evidence of this in the mere words
  12636. 7:50:23people used to describe a product. In
  12637. 7:50:26one scene, when one neighbor, who was
  12638. 7:50:28clearly not a member of Eric and his
  12639. 7:50:30friend's inner circle, used the word
  12640. 7:50:32super cool to describe one of the Kiss
  12641. 7:50:34My Face products, the gang was visibly
  12642. 7:50:36dismissive of his recommendation. But
  12643. 7:50:39when one of Eric's other friends who
  12644. 7:50:40clearly was in the inner circle used the
  12645. 7:50:42term funky, the term caught on among the
  12646. 7:50:45group like wildfire. Another surprising
  12647. 7:50:48thing I noticed from the Morgensson's
  12648. 7:50:49footage was that the men in the
  12649. 7:50:51Morgensson's circle seemed to be more
  12650. 7:50:53easily influenced by their peers food
  12651. 7:50:55and dietary choices than the women. At
  12652. 7:50:58one point during the filming, Eric went
  12653. 7:51:00so far as to change his drink order when
  12654. 7:51:02a friend reminded him of the drink's
  12655. 7:51:04caloric content. And not because he was
  12656. 7:51:06scripted this way either. Remember,
  12657. 7:51:08there was no script. "There's a ham
  12658. 7:51:10sandwich in a glass of dark beer," Eric
  12659. 7:51:12remarked after his friend suggested he
  12660. 7:51:15switch to a vodka and cranberry juice,
  12661. 7:51:17adding, "Now I'm going to get fat." The
  12662. 7:51:20Junior Morgenssons.
  12663. 7:51:22Earlier, we talked about how susceptible
  12664. 7:51:24teens and tween are to peer pressure,
  12665. 7:51:26and the Morgensson's sons friends were
  12666. 7:51:28no exception. Part of their influence
  12667. 7:51:30over their peers had to do with the aura
  12668. 7:51:32of confidence Jack, Sam, and Max exuded.
  12669. 7:51:35The Morgensson boys always seemed to
  12670. 7:51:37know exactly what they were talking
  12671. 7:51:39about, and it helped that they were cool
  12672. 7:51:41and handsome. At one point, Jack was
  12673. 7:51:43telling his friend about an
  12674. 7:51:45environmentally friendly snowboard he
  12675. 7:51:47was trying out and planned to buy. His
  12676. 7:51:49friend was clearly impressed and
  12677. 7:51:51immediately wanted one. "Hey, I'll look
  12678. 7:51:54into it when I get my own board," he
  12679. 7:51:56said completely unprompted. It seemed
  12680. 7:51:58that the boy's influence persisted even
  12681. 7:52:01across ages and genders when Jack told
  12682. 7:52:03his college-age female cousin, who was
  12683. 7:52:05not in on the experiment, about Stinky
  12684. 7:52:07Stink, the brand of body spray marketed
  12685. 7:52:09to teen boys that I mentioned in chapter
  12686. 7:52:111 and gave her a whiff. She commented
  12687. 7:52:13that the young men in her dorm should
  12688. 7:52:15use the stuff. Interestingly though, it
  12689. 7:52:18turned out that as much brainwashing
  12690. 7:52:20power as the Morgensson kids had on
  12691. 7:52:22their friends and peers, the people they
  12692. 7:52:25ended up having the most persuasive
  12693. 7:52:27power over were their own parents. At
  12694. 7:52:29one point during our filming, forgetting
  12695. 7:52:31the cameras were running, Eric and Gina
  12696. 7:52:33took their three sons shoe shopping.
  12697. 7:52:36Over and over again, Eric approached his
  12698. 7:52:38sons with one brand of sneaker after
  12699. 7:52:40another. Would you ever wear something
  12700. 7:52:42like this? He would ask. It should come
  12701. 7:52:45as no surprise, given how brand obsessed
  12702. 7:52:48most teenagers are, that Jack, Sam, and
  12703. 7:52:50Max made it clear that unless the
  12704. 7:52:52sneaker was made by Nike, Vans, or
  12705. 7:52:54Etnne, they weren't interested. In the
  12706. 7:52:56end, in an obvious and somewhat sweet
  12707. 7:52:59attempt to gain their children's
  12708. 7:53:01approval, Eric and Gina ended up buying
  12709. 7:53:03exactly those brands. The sounds of
  12710. 7:53:06science. After watching the hundreds of
  12711. 7:53:08hours of footage, I could come to only
  12712. 7:53:10one conclusion. Whether it's shoes,
  12713. 7:53:12jewelry, barbecue tools, or sports
  12714. 7:53:14equipment, there's nothing quite so
  12715. 7:53:16persuasive as observing someone we
  12716. 7:53:18respect or admire using a brand or
  12717. 7:53:20product. Still, as convincing as the
  12718. 7:53:22Morgensson's footage was, I wasn't
  12719. 7:53:24completely satisfied with this anecdotal
  12720. 7:53:27data. I wanted to empirically measure
  12721. 7:53:29and validate our findings. So, we had
  12722. 7:53:32Chathreads analyzed the data. This
  12723. 7:53:34revealed a couple of interesting trends.
  12724. 7:53:38The first was that whether Gina was
  12725. 7:53:40telling her friends about a great spa
  12726. 7:53:42where she just spent a week or simply
  12727. 7:53:43drinking a new brand of coffee in front
  12728. 7:53:45of them, the Morgensson's friends were
  12729. 7:53:47by a long shot most likely to be
  12730. 7:53:49susceptible to guerilla advertising in
  12731. 7:53:51the mornings, specifically between the
  12732. 7:53:53hours of 8 and 10. Why? Because in the
  12733. 7:53:57wake of our dreams, mornings are when we
  12734. 7:53:59tend to be most vulnerable to influence,
  12735. 7:54:01persuasion, and suggestion. My guess is
  12736. 7:54:04that mornings are also the time when we
  12737. 7:54:06haven't yet been exposed to marketing
  12738. 7:54:08messages. Thus, our filters haven't yet
  12739. 7:54:11been activated. At the same time, it's
  12740. 7:54:14worth noting that not a single person we
  12741. 7:54:16spoke to in the show recalled even one
  12742. 7:54:18TV commercial they'd seen over the past
  12743. 7:54:21month. Not one. Yet, when we asked the
  12744. 7:54:24Morgensson's friends to reel off a few
  12745. 7:54:26random brand names, practically everyone
  12746. 7:54:28came up with the brands that Eric and
  12747. 7:54:30Gina had recommended. It was as though
  12748. 7:54:33they'd stored these Morgensson approved
  12749. 7:54:35brands in an easily recallable personal
  12750. 7:54:37place in their brains as opposed to a
  12751. 7:54:39corporate or commercial region that
  12752. 7:54:41usually puts our brains on the
  12753. 7:54:42defensive. The brands the Morgenssons
  12754. 7:54:45advocated had another effect as well.
  12755. 7:54:48They went viral faster. Perhaps more
  12756. 7:54:50important, they also carried a halo
  12757. 7:54:52effect, meaning they became safe,
  12758. 7:54:54preapproved, and endured to any possible
  12759. 7:54:56criticism. Consequently, roughly
  12760. 7:54:59onethird of the Morgensson's friends
  12761. 7:55:00began promoting and even flaunting these
  12762. 7:55:03same brands to their friends and
  12763. 7:55:04acquaintances. It even reached the point
  12764. 7:55:07that when several of Gina's friends came
  12765. 7:55:09home raving at such length about the
  12766. 7:55:11brands the Morgenssons had recommended,
  12767. 7:55:13the location producer suspected he was
  12768. 7:55:15the victim of a setup. These women
  12769. 7:55:18sounded like walking talking TV
  12770. 7:55:20commercials. Later, he discovered that
  12771. 7:55:22the women were simply enthusiastically
  12772. 7:55:24repeating what Gina had said to them,
  12773. 7:55:26even using her exact same phrases and
  12774. 7:55:28words. Might I take a moment here to add
  12775. 7:55:31that during our four-week shoot, none,
  12776. 7:55:33and I mean, not one of the Morgensson's
  12777. 7:55:36friends ever suspected anything, even
  12778. 7:55:37when Gina drove an hour and a half out
  12779. 7:55:39of her way to go shoe shopping. Gina
  12780. 7:55:42later told me she'd never driven this
  12781. 7:55:44far to any store. At times, Eric and
  12782. 7:55:47Gina both felt they were pushing the
  12783. 7:55:48products too hard. That is until they
  12784. 7:55:50realized just how much many people's
  12785. 7:55:52natural everyday conversations actually
  12786. 7:55:54do revolve around brands. Perhaps not
  12787. 7:55:58surprisingly, Chathreds also found that
  12788. 7:56:00the brands the Morgensson's peers were
  12789. 7:56:02most likely to go out and buy at the
  12790. 7:56:04Morgensson's subtle suggestion were the
  12791. 7:56:06bigger and better known ones, which
  12792. 7:56:08confirmed my theory that conventional
  12793. 7:56:10marketing and the more cover variety
  12794. 7:56:12work best together. that the most
  12795. 7:56:14persuasive of advertising strategies
  12796. 7:56:16become that much more so when amplified
  12797. 7:56:18by word of mouth advertising.
  12798. 7:56:20In the end, even I was genuinely
  12799. 7:56:22flabbergasted by the power of word of
  12800. 7:56:25mouth marketing. Going in, my paranoid
  12801. 7:56:28fear had been that perhaps I'd
  12802. 7:56:29overestimated the power of peer
  12803. 7:56:31pressure. What if no matter how much the
  12804. 7:56:33Morgenssons promoted this or that brand,
  12805. 7:56:36none of their friends actually went out
  12806. 7:56:38and bought anything or at best just
  12807. 7:56:40bought a single brand now and again?
  12808. 7:56:42Turns out I needn't have worried. The
  12809. 7:56:45fact that the Morgensson's friends
  12810. 7:56:46actually ended up buying an average per
  12811. 7:56:49person of three brands recommended by
  12812. 7:56:51the Morgenssons blew my mind. More
  12813. 7:56:53amazing still, the impact the experiment
  12814. 7:56:56had on the buying habits of the
  12815. 7:56:58Morgensson family themselves. Once our
  12816. 7:57:01reality show wrapped, Eric, Gina, and
  12817. 7:57:03their boys continued using and buying
  12818. 7:57:05six out of the 10 brands they'd spent
  12819. 7:57:07the last month touting. A few more
  12820. 7:57:09things took me a back. I was surprised
  12821. 7:57:12to learn that according to Chathred's
  12822. 7:57:14analysis, even off camera, more than 50%
  12823. 7:57:16of people's everyday conversations
  12824. 7:57:18revolve around brands. I was surprised
  12825. 7:57:21by the extent to which people show off
  12826. 7:57:23brands in their homes, both consciously
  12827. 7:57:25and unconsciously. As one woman told me,
  12828. 7:57:28I guess I wanted to display the brand
  12829. 7:57:31because it gave me something to talk
  12830. 7:57:32with all my friends about. Finally, I
  12831. 7:57:35was surprised that when we told Eric and
  12832. 7:57:37Gina's friends and acquaintances that
  12833. 7:57:39the whole thing was a hoax and a reality
  12834. 7:57:41show, no one was angry or upset or cared
  12835. 7:57:44even slightly that they had been duped.
  12836. 7:57:46Let me reiterate this last point. When I
  12837. 7:57:49finally revealed the truth about the
  12838. 7:57:51reality show experiment, the
  12839. 7:57:53Morgensson's friends were at first
  12840. 7:57:54disbelieving. Come on, who wouldn't be?
  12841. 7:57:57But when I asked them if they minded
  12842. 7:57:59that two of their closest friends had
  12843. 7:58:01betrayed them in order to convince them
  12844. 7:58:03to buy brands, it was my turn to be
  12845. 7:58:05shocked. It was okay, they said. If the
  12846. 7:58:08Morgenssons told us a brand was good, it
  12847. 7:58:11was totally okay. But what if the brands
  12848. 7:58:13the Morgenssons recommended weren't ones
  12849. 7:58:16they liked? I asked the answer. Even if
  12850. 7:58:19the Morgenssons recommended brands they
  12851. 7:58:21disliked, I'd still buy them. And what's
  12852. 7:58:24more, not one person felt that our
  12853. 7:58:26reality show experiment had been
  12854. 7:58:28unethical or wrong. Strange, huh? I kept
  12855. 7:58:32asking questions. When asked if they
  12856. 7:58:35could measure how influenced they were
  12857. 7:58:36by the Morgensson's recommendations on a
  12858. 7:58:38scale of 1 to 10, Eric and Gina's
  12859. 7:58:41friends unanimously answered 10 out of
  12860. 7:58:4310. What's more, when I asked one man, a
  12861. 7:58:46corporate speaker, whether he had ever
  12862. 7:58:47mentioned the Morgensson approved brands
  12863. 7:58:49on stage, he told me he'd probably
  12864. 7:58:52passed on the names of the brands to
  12865. 7:58:53thousands of audience members. Assuming
  12866. 7:58:56I'd misheard him, I asked him to repeat
  12867. 7:58:58the figure. Thousands, he repeated,
  12868. 7:59:01adding, I just happened to love the
  12869. 7:59:02shoes they recommended. In some
  12870. 7:59:05instances, the persuasive effect was
  12871. 7:59:07unconscious. In these cases, it was only
  12872. 7:59:10after multiple prompting that the
  12873. 7:59:11Morgensson's friends did admit that yes,
  12874. 7:59:14come to think of it, they had altered
  12875. 7:59:15their purchase patterns by buying
  12876. 7:59:17precisely the products the Morgenssons
  12877. 7:59:19had recommended. More than once, one of
  12878. 7:59:22Gina's friends volunteered that her
  12879. 7:59:23favorite cosmetics brand was Kiss My
  12880. 7:59:25Face and that she'd heard about it.
  12881. 7:59:27Well, seems she couldn't remember where.
  12882. 7:59:30When asked to recall the date she first
  12883. 7:59:32started using the brand, it turns out it
  12884. 7:59:34was the day after she'd had dinner at
  12885. 7:59:36the Morgensson. At another point, that
  12886. 7:59:39same woman mentioned how thrilled she
  12887. 7:59:41was that her 12-year-old had picked up
  12888. 7:59:43his childhood Lego obsession. Why did he
  12889. 7:59:46suddenly start playing with Lego again?
  12890. 7:59:48I asked. The woman confessed she had no
  12891. 7:59:51idea, but finally revealed that
  12892. 7:59:53something had literally snapped into
  12893. 7:59:55place after we had dinner at the
  12894. 7:59:57Morgens. Talk about unconscious. Eric
  12895. 8:00:00and Gina had never even promoted the
  12896. 8:00:03brand by name. But upstairs, while the
  12897. 8:00:05adults were at dinner, this woman's son
  12898. 8:00:07had spent a half hour playing Lego with
  12899. 8:00:09the Morgensson boys. Clearly, the
  12900. 8:00:12Morgenssons had exerted a very powerful
  12901. 8:00:14influence on both conscious and
  12902. 8:00:16subconscious levels. Still, I wanted to
  12903. 8:00:19learn more. So now it was time to
  12904. 8:00:21measure precisely just how much guerilla
  12905. 8:00:23marketing can amplify the persuasive
  12906. 8:00:26power of a marketing or advertising
  12907. 8:00:28strategy by carrying out infuri research
  12908. 8:00:30study. My goal to compare the power and
  12909. 8:00:34effectiveness of personal word of mouth
  12910. 8:00:36recommendations to the blizzard of other
  12911. 8:00:38media pushing and persuading us to buy
  12912. 8:00:40stuff whether it's a TV commercial, an
  12913. 8:00:42internet campaign or a fashion magazine
  12914. 8:00:44spread touting the latest miracle
  12915. 8:00:46cosmetic. Six weeks later, after
  12916. 8:00:48analyzing millions of pieces of Marie
  12917. 8:00:50data, the research team sent me the
  12918. 8:00:52results, allowing me to put into words
  12919. 8:00:54finally why the Morgensson held in their
  12920. 8:00:56hands the most irresistible tool of
  12921. 8:00:58persuasion there is. You see, in
  12922. 8:01:01contrast to conventional TV or magazine
  12923. 8:01:03advertising, a very surprising event
  12924. 8:01:05takes place in our brains the moment
  12925. 8:01:07other people recommend a car, a book, a
  12926. 8:01:09band, a makeup, or a wine. The rational
  12927. 8:01:12executive regions of our brains close
  12928. 8:01:14down while a fireball of activity occurs
  12929. 8:01:16in the insula, a brain region that is
  12930. 8:01:18responsible for social emotions such as
  12931. 8:01:20lust, disgust, pride, humiliation,
  12932. 8:01:23guilt, empathy, and even love. In
  12933. 8:01:25addition, the brain scans showed our
  12934. 8:01:27friends recommendations stimulate the
  12935. 8:01:29sensory regions of our brains, causing a
  12936. 8:01:31sensation not dissimilar to the
  12937. 8:01:33biological cravings I described in the
  12938. 8:01:35chapter on addiction. In other words,
  12939. 8:01:38it's as though word of mouth
  12940. 8:01:39endorsements are recorded on multiple
  12941. 8:01:41brain tracks. And I know from my
  12942. 8:01:43experiments in biology that the more
  12943. 8:01:45tracks of the brain a brand or a product
  12944. 8:01:47affects, the more engaged and attuned we
  12945. 8:01:49are with it and the more likely the
  12946. 8:01:51recommendation is to stick. Once again,
  12947. 8:01:54the inner workings of the brain explain
  12948. 8:01:56why word of mouth advertising lingers in
  12949. 8:01:59our memory for weeks, whereas we can't
  12950. 8:02:01even recall the TV commercials we saw
  12951. 8:02:03just this morning. More interesting
  12952. 8:02:05still, it explains why we seem to have
  12953. 8:02:08an innate tendency to spread these word
  12954. 8:02:10of mouth endorsements to others. Recent
  12955. 8:02:12research into the evolutionary roots of
  12956. 8:02:14gossip itself a form of word of mouth
  12957. 8:02:17marketing when you really think about it
  12958. 8:02:19has found that whenever someone tells us
  12959. 8:02:20something good like this is a delicious
  12960. 8:02:23wine or this makeup makes you look 5
  12961. 8:02:25years younger and we go on to repeat it
  12962. 8:02:27our brains reward us with a shot of
  12963. 8:02:29dopamine that feelgood neurotransmitter
  12964. 8:02:31associated with everything from
  12965. 8:02:32addiction to sensation seeking. In
  12966. 8:02:35short, whenever we hear about a brand
  12967. 8:02:37from people we like and admire then
  12968. 8:02:39spread the secret along to others. Not
  12969. 8:02:41only are our brains emotionally engaged,
  12970. 8:02:43they are also dowsted with a chemical
  12971. 8:02:44reward that as the expression goes keeps
  12972. 8:02:47on giving. In short, if you can get word
  12973. 8:02:50of mouth influence behind your brand,
  12974. 8:02:52that influence multiplies the power of
  12975. 8:02:54your brand exponentially.
  12976. 8:02:57Which is why I predict the premise
  12977. 8:02:58behind the Morgenssons will soon become
  12978. 8:03:00a reality that in the future companies
  12979. 8:03:03will hire and plant thousands of
  12980. 8:03:04Morgensson like families and communities
  12981. 8:03:06everywhere, tasking them with the
  12982. 8:03:08mission of promoting a brand or even an
  12983. 8:03:10entire family of brands. We may even
  12984. 8:03:13reach the point where certain households
  12985. 8:03:14begin to accept salary positions as
  12986. 8:03:17stealth marketers. Think of these
  12987. 8:03:19thousands of households as marketing
  12988. 8:03:21sleeper cells that will come to life
  12989. 8:03:23once a company releases a new product.
  12990. 8:03:25or conversely when a brand endures a
  12991. 8:03:27bout of bad publicity. Sure, there may
  12992. 8:03:30be resistance at first, but quite
  12993. 8:03:32simply, companies have too much to gain.
  12994. 8:03:35So, consumers, when you receive product
  12995. 8:03:37recommendations and advice from that
  12996. 8:03:38affluent, attractive family who lives
  12997. 8:03:41down the block from you, beware.
  12998. 8:03:43Remember that to companies, their words
  12999. 8:03:45are worth roughly $10,000 a month in
  13000. 8:03:48marketing power. And companies won't
  13001. 8:03:51have to look hard to find these cover
  13002. 8:03:53marketers either. According to our
  13003. 8:03:55incredible casting director Marcy Tishke
  13004. 8:03:58and producer Andy Massanti when they
  13005. 8:04:00began their search to find the perfect
  13006. 8:04:02family to play the Morgenssons,
  13007. 8:04:03countless auditioning families were all
  13008. 8:04:06but begging to be cast in the
  13009. 8:04:07experiment. So let's say that a show
  13010. 8:04:09like the Morgenssons morphs from
  13011. 8:04:11experiment to reality. I said to Marcy
  13012. 8:04:14and I tked you to identify families who
  13013. 8:04:16would be willing to carry out a similar
  13014. 8:04:18job of secretly promoting brands to
  13015. 8:04:20their friends and acquaintances. How
  13016. 8:04:22difficult would that be? Oh, it would be
  13017. 8:04:25pretty easy, Marcy replied. Could you
  13018. 8:04:27recruit, say, tens of families like the
  13019. 8:04:30Morgenssons? I pressed. Martin, Marcy
  13020. 8:04:33said patiently. Yes. But not tens
  13021. 8:04:36thousands. Whenever I meet up with
  13022. 8:04:38executives around the world, I remind
  13023. 8:04:40them that today the most powerful force
  13024. 8:04:43in marketing is not a corporation. It's
  13025. 8:04:46not a CEO. It's not a big budget
  13026. 8:04:48marketing department. And that with all
  13027. 8:04:51apologies to Don Draper, the madman days
  13028. 8:04:53of sneaky one-way mirror marketing are
  13029. 8:04:56over. Today and in the future, the
  13030. 8:04:58people who hold the real power are
  13031. 8:05:00hyperconnected, mouse clicking consumers
  13032. 8:05:02and their wide circles of virtual and
  13033. 8:05:04real life friends and acquaintances. In
  13034. 8:05:07other words, the people who hold the
  13035. 8:05:09real power are us. As consumers, we may
  13036. 8:05:12think that brands own us, but in
  13037. 8:05:14reality, it's the other way around. So,
  13038. 8:05:16the good news I want to leave you with
  13039. 8:05:18is this. In our hyperconnected world of
  13040. 8:05:20Twitter and YouTube and Wikileaks, a
  13041. 8:05:22world in which a single trick or
  13042. 8:05:24deception or secret can be immediately
  13043. 8:05:26broadcast to the world with the click of
  13044. 8:05:28the mouse, the consumer is more
  13045. 8:05:30empowered than ever. As a result, brands
  13046. 8:05:33of the future simply must be transparent
  13047. 8:05:36and live up to their promises. Trust me,
  13048. 8:05:38and you marketers out there, take note.
  13049. 8:05:41Any brand that doesn't will be instantly
  13050. 8:05:43and painfully exposed and reviled. That
  13051. 8:05:46in the end is what this book is all
  13052. 8:05:48about. Mountain greenery. At this point
  13053. 8:05:51in the experiment, I began to wonder
  13054. 8:05:53something. If cover marketing could be
  13055. 8:05:55used to persuade us to buy all sorts of
  13056. 8:05:57luxury brands and products, could it
  13057. 8:06:00also be used for a more noble purpose,
  13058. 8:06:02like nudging us to buy more socially and
  13059. 8:06:04environmentally friendly products and
  13060. 8:06:06even live greener, more ecologically
  13061. 8:06:08conscious lives? And after all, if
  13062. 8:06:10Toyota can peer pressure us into buying
  13063. 8:06:12environmentally friendly Priuses, the
  13064. 8:06:14Morgenssons could peer pressure their
  13065. 8:06:16friends into buying environmentally
  13066. 8:06:18friendly soap. As of writing, according
  13067. 8:06:21to the World Meteorological
  13068. 8:06:22Organization, the past decade has been
  13069. 8:06:24the hottest ever, a trend that many
  13070. 8:06:26scientists attribute to man-made
  13071. 8:06:28pollutants trapping heat in the
  13072. 8:06:30atmosphere. In 2010, as you may recall,
  13073. 8:06:3311,000 people in Moscow died heat
  13074. 8:06:35related deaths. Floods overran Pakistan,
  13075. 8:06:38Thailand and Vietnam. Heavy rain
  13076. 8:06:39saturated Australia and Indonesia and
  13077. 8:06:42parts of China endure droughts. All
  13078. 8:06:44tragic events that are at least in part
  13079. 8:06:45attributable to the major climate
  13080. 8:06:47changes sweeping our planet. Which is
  13081. 8:06:50why one of the goals with which I tasked
  13082. 8:06:52the Morgans and family was to increase
  13083. 8:06:54awareness within their circle of friends
  13084. 8:06:56of the crucial importance of going green
  13085. 8:06:58and to try to covertly persuade their
  13086. 8:07:00friends and neighbors to buy more
  13087. 8:07:02environmentally friendly products which
  13088. 8:07:04they succeeded in doing in small yet
  13089. 8:07:07meaningful ways. But before the
  13090. 8:07:09Morgensson family embarked on this last
  13091. 8:07:11mission, I brought in an environmental
  13092. 8:07:13coach known locally as the green
  13093. 8:07:15goddess. Sophie Aliono, the author of
  13094. 8:07:18the book Gorgeously Green: Eight Simple
  13095. 8:07:20Steps to an Earth Friendly Life, is a
  13096. 8:07:21leading expert who has built a career
  13097. 8:07:23around helping consumers begin living
  13098. 8:07:26greener lives. Following Aliono's
  13099. 8:07:28advice, the Morgensson family began
  13100. 8:07:30using the same tactics they used to
  13101. 8:07:32persuade their friends to buy those
  13102. 8:07:34beautiful bracelets and those bottles of
  13103. 8:07:36California bubbly to persuade them to
  13104. 8:07:38live in more ecologically mindful ways.
  13105. 8:07:40For example, the Mortensson boys began
  13106. 8:07:43showing up at school with green smart
  13107. 8:07:44bags, eco-conscious backpacks, messenger
  13108. 8:07:47bags, and lunch boxes that are created
  13109. 8:07:49entirely from recycled materials. And
  13110. 8:07:51sure enough, a number of their
  13111. 8:07:53classmates soon started doing the same.
  13112. 8:07:56Gina introduced these same bags to her
  13113. 8:07:58friends as great picnic tote bags,
  13114. 8:08:00perfect for keeping hot things hot and
  13115. 8:08:02cold things cold. She told them, "This
  13116. 8:08:04little mini experiment within my
  13117. 8:08:06experiment worked better than even I
  13118. 8:08:08anticipated." In the 60 days following
  13119. 8:08:11the Morgensson's ecological mission,
  13120. 8:08:13Chathreds found that the number of green
  13121. 8:08:15activities the Morgensson's friends and
  13122. 8:08:17neighbors engaged in increased by an
  13123. 8:08:19astonishing 31%. Moreover, the influence
  13124. 8:08:22seemed to stick. According to Cathread's
  13125. 8:08:24analysis, these same friends and
  13126. 8:08:26neighbors showed a strong likelihood of
  13127. 8:08:28performing at least one green behavior
  13128. 8:08:30or activity or making an eco-friendly
  13129. 8:08:32purchasing decision each day over the
  13130. 8:08:34next 30 days as well. The fact of the
  13131. 8:08:37matter is that pure pressure is the only
  13132. 8:08:39way to make people go green. The most
  13133. 8:08:42powerful persuader, for better or for
  13134. 8:08:44worse, guilt. Naturally, most people
  13135. 8:08:47recognize the importance of living
  13136. 8:08:49environmentally mindful lives. We've
  13137. 8:08:51read the articles and watched the TV
  13138. 8:08:53documentaries. But in this era of media
  13139. 8:08:56overload and instant amnesia, the
  13140. 8:08:58influence of our peers ends up being
  13141. 8:09:00far, far more powerful. I couldn't help
  13142. 8:09:03but noticed that when Eric took center
  13143. 8:09:05stage to announce to his friends what
  13144. 8:09:07green products he was using, everyone in
  13145. 8:09:09the room not only listened intently to
  13146. 8:09:11what he was saying, they later actually
  13147. 8:09:13changed their habits. It's easy enough
  13148. 8:09:16to imagine. A woman mentions to a friend
  13149. 8:09:18in passing that she just bought a green
  13150. 8:09:21smart bag. That second woman goes out
  13151. 8:09:23and buys it, mentions it to six of her
  13152. 8:09:26friends, several of whom go out and buy
  13153. 8:09:28it, and then talk about it to their
  13154. 8:09:30friends. Or a businessman is aboard an
  13155. 8:09:32airplane, his laptop enclosed in a green
  13156. 8:09:35smart bag, when his seatmate asks,
  13157. 8:09:36"Where'd you get that bag?" That
  13158. 8:09:38passenger happens to be a popular
  13159. 8:09:40blogger who buys it and gives it a plug
  13160. 8:09:43in his widely read weekly column. A day
  13161. 8:09:45or so later, 250,000 readers are aware
  13162. 8:09:48of Greens Smart and its products and are
  13163. 8:09:50liking the GreenSmart Facebook page. And
  13164. 8:09:53remember, if our Facebook friends like a
  13165. 8:09:55product, we perceive it as pre-approved
  13166. 8:09:57and like it more ourselves. From there,
  13167. 8:09:59buzz about the brand and what it stands
  13168. 8:10:01for, spreads virally, and in no time at
  13169. 8:10:03all, it has a worldwide following that's
  13170. 8:10:05stronger, deeper, and far more loyal
  13171. 8:10:07than any big budget campaign that even
  13172. 8:10:09the savviest marketer, advertiser, or
  13173. 8:10:11corporation could ever concoct. In 2011,
  13174. 8:10:15Barrett Anand of Harvard University and
  13175. 8:10:17Alexander Rosinski, a former visiting
  13176. 8:10:19researcher there, found that we are far
  13177. 8:10:22more likely to be persuaded by a product
  13178. 8:10:24recommendation when it comes from a
  13179. 8:10:26source we trust and respect. When they
  13180. 8:10:28placed the exact same ad in two
  13181. 8:10:30different publications, one a respected
  13182. 8:10:32print publication, the other an online
  13183. 8:10:34news site. They found that the more
  13184. 8:10:36respected the publication, the more that
  13185. 8:10:38people would trust the app. I would
  13186. 8:10:40argue that when it comes to word of
  13187. 8:10:41mouth recommendations, which we expect
  13188. 8:10:44to be authentic and genuine rather than
  13189. 8:10:46paid for by a company, the source
  13190. 8:10:48matters even more. Which brings me back
  13191. 8:10:50to the Morgenssons. The Morgenssons
  13192. 8:10:53embody the American dream. They are
  13193. 8:10:56successful, wealthy, attractive, the
  13194. 8:10:58picturesque, harmonious family living a
  13195. 8:11:00life we all want to live. In short, we
  13196. 8:11:02not only respect them, we aspire to be
  13197. 8:11:05them and in turn we trust them. We all
  13198. 8:11:08have the equivalent of the Morgensson
  13199. 8:11:10family in our own social circle because
  13200. 8:11:13they've created a life we all somehow
  13201. 8:11:15would like to have. We believe
  13202. 8:11:16consciously or not that buying the
  13203. 8:11:18things they buy and doing the things
  13204. 8:11:20they do just might give us a whiff of
  13205. 8:11:22their success or their happiness. Just
  13206. 8:11:24as with a beloved celebrity, our respect
  13207. 8:11:26and admiration for the Morgenssons or
  13208. 8:11:29the equivalent in our neighborhood gets
  13209. 8:11:31transported onto every brand they
  13210. 8:11:33recommend. So yes, while companies and
  13211. 8:11:36marketers have all kinds of sneaky ways
  13212. 8:11:38of tricking us into buying their
  13213. 8:11:39products, at the end of the day, we're
  13214. 8:11:41not just being brawashed by companies,
  13215. 8:11:43the fact is we're also being brainwashed
  13216. 8:11:46and sometimes in a good way by one
  13217. 8:11:47another. Here I will leave you with just
  13218. 8:11:50one final reflection. For better or for
  13219. 8:11:52worse, a year after my brand detox, I'm
  13220. 8:11:55still coming to terms with how
  13221. 8:11:56completely hooked I was and still am on
  13222. 8:11:58the brands I love and use. from my
  13223. 8:12:00Gillette Fusion razor to the Clarins
  13224. 8:12:02moisturizer I slather over my face after
  13225. 8:12:04a long plane flight to the Pepsis in my
  13226. 8:12:07fridge at home. At the same time, my
  13227. 8:12:10failed detox helped open my eyes to the
  13228. 8:12:12fact that I may be a marketer, but I'm
  13229. 8:12:14also a consumer just like the rest of
  13230. 8:12:16us. It helped me realize that there are
  13231. 8:12:19simply a handful of brands I cannot live
  13232. 8:12:21without. Brands that define who I am and
  13233. 8:12:23who I wish to become. I hope this book
  13234. 8:12:26has similarly helped you to understand
  13235. 8:12:28your own complicated relationship with
  13236. 8:12:30brands and that it's educated and
  13237. 8:12:32empowered you to be able to recognize
  13238. 8:12:34when you're being manipulated and when
  13239. 8:12:36you're not. And by the way, I still
  13240. 8:12:39Cyprus. In my experience, we all have
  13241. 8:12:42three bank accounts as most of the world
  13242. 8:12:45knows. The first is where you stash your
  13243. 8:12:47money. The second, our personal brand
  13244. 8:12:50account is a place where we actively
  13245. 8:12:52innovate or enhance our brand. Just as
  13246. 8:12:54critical as our third account, which I
  13247. 8:12:56dub our exploration account, a time
  13248. 8:12:58period or state of mind when we learn,
  13249. 8:13:00improve ourselves, or just plain evolve
  13250. 8:13:04or enhance our personal brand. When did
  13251. 8:13:06you last set aside time to strengthen
  13252. 8:13:09the skills you were born with? It's
  13253. 8:13:11pretty hard to remember, right? The
  13254. 8:13:14point is a deposit into our brand and
  13255. 8:13:16exploration accounts takes place only
  13256. 8:13:18with the help, support, encouragement,
  13257. 8:13:20and talent of others. and without them,
  13258. 8:13:23this book would never have hit the
  13259. 8:13:25bookstores or made it into your hands in
  13260. 8:13:27the first place. First, a huge thanks
  13261. 8:13:30goes to all the sponsors of Brandwashed,
  13262. 8:13:32in particular, Julia Steerman and the
  13263. 8:13:34Murray Hill Center, one of the top focus
  13264. 8:13:37group companies in the United States,
  13265. 8:13:39who have not only helped support some of
  13266. 8:13:40the fascinating results you've just read
  13267. 8:13:42about, but helped confirm many of my
  13268. 8:13:45hypotheses and theories. Headed up by
  13269. 8:13:48Ruth Stenat, CIS International made our
  13270. 8:13:50nationwide study on kids and parents
  13271. 8:13:52become a reality by exploring millions
  13272. 8:13:54of data points, which led to a host of
  13273. 8:13:57intriguing conclusions. A big thank you
  13274. 8:13:59also goes to Ashon Khan, John Nuding,
  13275. 8:14:02and John Spadaro of Zenith Media for
  13276. 8:14:04giving me access to some rather
  13277. 8:14:05spectacular media habits across the US.
  13278. 8:14:08without and Marie Kovac who forwarded me
  13279. 8:14:11the trailer to the film the Joneses
  13280. 8:14:13months before its theatrical release and
  13281. 8:14:15helped craft the experiments hypothesis
  13282. 8:14:17and outline the inspiration for the
  13283. 8:14:19Morgenssons would never have taken place
  13284. 8:14:22and Marie also co-ran focus groups in
  13285. 8:14:25Chicago related to many of the topics in
  13286. 8:14:27this book I owe you one or several Marie
  13287. 8:14:31which brings me back to my sponsors
  13288. 8:14:33without which this project would never
  13289. 8:14:35have become a reality I'd like to thank
  13290. 8:14:38my number one favorite brand, LEGO. If
  13291. 8:14:41you've read my previous books, you
  13292. 8:14:43probably know about my lifelong love
  13293. 8:14:45affair with that company. A special
  13294. 8:14:47thank you goes to LEGO senior vice
  13295. 8:14:49president, Mads Nipper, with whom I've
  13296. 8:14:51worked since the birth of the internet.
  13297. 8:14:53That's 16 years, Mads if you're
  13298. 8:14:55counting. Also, a big thank you to Chris
  13299. 8:14:58Sers from Stink is Stink. You're really
  13300. 8:15:00an amazing guy and I'm grateful for all
  13301. 8:15:02your support. Let's pause for a moment
  13302. 8:15:05because here comes without any doubt the
  13303. 8:15:07most important part of my thank you
  13304. 8:15:09speech. The editorial team. First of
  13305. 8:15:12all, Peter Smith, my favorite ghost
  13306. 8:15:14writer. Peter and I works together on
  13307. 8:15:17Bology. The success of Bology can
  13308. 8:15:19without any doubt be credited to his
  13309. 8:15:21amazing work. Peter and I have worked on
  13310. 8:15:24Brandwashed for close to 2 years. He's
  13311. 8:15:27more than a ghost writer. Peter, we
  13312. 8:15:29really need to rebrand that stupid term.
  13313. 8:15:31A he's a mentor, creative genius, and
  13314. 8:15:34amazing writer. Traveling as much as I
  13315. 8:15:37do means impossible working hours and
  13316. 8:15:39constant jet lag. Can you imagine what
  13317. 8:15:42it's like to work with me? Peter coped
  13318. 8:15:44with it all and did so with brilliance.
  13319. 8:15:47Thanks for everything, Peter. Close
  13320. 8:15:50behind Peter is the team behind Guology
  13321. 8:15:52and now brainwashed. First, my
  13322. 8:15:55extraordinarily talented editor, Talia
  13323. 8:15:57Cron. The truth. I didn't invent the
  13324. 8:16:00concept for this book and neither did I
  13325. 8:16:03come up with the title. Both were
  13326. 8:16:05Talia's doing, which I think says it
  13327. 8:16:07all. Talia has worked extraordinarily
  13328. 8:16:10hard on this book and performed magic.
  13329. 8:16:12My gratitude to her skills and patience
  13330. 8:16:14is enormous. I'd also like to thank a
  13331. 8:16:17truly essential member of the Crown
  13332. 8:16:19team, senior editor Roger Schul, who has
  13333. 8:16:21kept a critical objective eye on this
  13334. 8:16:23project over the past two years. Among
  13335. 8:16:26the biggest champions of this book from
  13336. 8:16:28the get-go were senior vice president
  13337. 8:16:30and publisher Tina Constable and crown
  13338. 8:16:32deputy publisher Michael Pulan. Tina,
  13339. 8:16:35you did a great work in guiding the
  13340. 8:16:37entire publication of Brandwashed,
  13341. 8:16:39making everyone believe this was
  13342. 8:16:41something special. Amy Bourstein, thank
  13343. 8:16:43you for your guiding hand and a special
  13344. 8:16:45thanks to the Random House sales team,
  13345. 8:16:47which in my mind is an essential reason
  13346. 8:16:49why Brandwashed became what it is today.
  13347. 8:16:52Okay, let's get this in writing once and
  13348. 8:16:54for all. You are my favorite publisher,
  13349. 8:16:56but you all know that. Another big thank
  13350. 8:16:59you goes to my hardworking agent, Jim
  13351. 8:17:01Lavine, and his foreign rights director,
  13352. 8:17:03Elizabeth Fischer. Jim was one of the
  13353. 8:17:05forces behind brand sense and dology,
  13354. 8:17:08and I know our professional relationship
  13355. 8:17:10will only flourish in the future. What
  13356. 8:17:13is a book without marketing? By now, you
  13357. 8:17:16probably know the answer. Not a lot.
  13358. 8:17:18First of all, a big thank you goes to
  13359. 8:17:20Melissa Hobi at Lindstöm Company in New
  13360. 8:17:23York. Melissa oversaw the entire
  13361. 8:17:26marketing machine, a team of more than
  13362. 8:17:2810 people in and out of house. Melissa
  13363. 8:17:30not only made our Morgensson's
  13364. 8:17:32experiment a reality, she did an amazing
  13365. 8:17:34job overseeing the free studies, the CIS
  13366. 8:17:36studies, and all our promotion and
  13367. 8:17:38marketing plans. Supporting Melissa is
  13368. 8:17:41Kate Ferfea, who worked day and night to
  13369. 8:17:43craft online strategies and make our
  13370. 8:17:45online visibility a reality. Much of our
  13371. 8:17:48online presence, our marketing concepts,
  13372. 8:17:51graphics, and viral videos was overseen
  13373. 8:17:53by Jonathan Greenstein and Laura
  13374. 8:17:55Greenstein at Juice, my favorite
  13375. 8:17:57marketing company operating out of
  13376. 8:17:59Canada. They know how to create magic,
  13377. 8:18:01and I'm deeply in debt to them for
  13378. 8:18:03sharing their amazing skills and talents
  13379. 8:18:05with me. A huge debt of gratitude also
  13380. 8:18:08goes to Random House's amazing marketing
  13381. 8:18:10and publicity team. In particular, I'd
  13382. 8:18:13like to thank Meredith McGinness,
  13383. 8:18:15Jennifer Robbins, Katie Connelly, Tara
  13384. 8:18:17Gilbride, Jacob Bronstein, and Denell
  13385. 8:18:20Catllet. But I've also had to learn a
  13386. 8:18:22lot, and in order to do so, there are a
  13387. 8:18:25ton of people I need to thank. Mark
  13388. 8:18:28Fortier has been a cornerstone behind
  13389. 8:18:30all the publicity for Brandwashed. Mark
  13390. 8:18:32and I have now worked together on two
  13391. 8:18:35books. And Mark, you are without any
  13392. 8:18:37doubt one of the top PR people, not just
  13393. 8:18:39in the US, but in the world. Period. As
  13394. 8:18:43you've probably noticed, marketing and
  13395. 8:18:44psychology go together, which is why I'd
  13396. 8:18:47like to thank psychologist Dr. Bisa
  13397. 8:18:49Veranic, a Today Show contributor and a
  13398. 8:18:51just plain amazing person. Bisa not only
  13399. 8:18:54oversaw many of the psychological
  13400. 8:18:56behaviors taking place in Los Angeles,
  13401. 8:18:59she also contributed with amazing
  13402. 8:19:00observations and interpretations during
  13403. 8:19:03Brandwashed's journey. Bisa, you're a
  13404. 8:19:05true also sexy as hell star. Thank you.
  13405. 8:19:09Oh, and Christa Brunson from the Today
  13406. 8:19:11Show. You're quite literally a star as
  13407. 8:19:13well. I'd also like to thank Dr. Greg
  13408. 8:19:16Dylan, Dr. Hawksmith, Dr. Jorge Patit,
  13409. 8:19:19Dr. Isabelle Suantront, Dr. Gertie
  13410. 8:19:21Quintandon, Rose Garcia, John Dullworth,
  13411. 8:19:23and Ron Mitchell, who helped shape some
  13412. 8:19:25of my thoughts and clarify some of my
  13413. 8:19:27hypotheses.
  13414. 8:19:29Among my goals in a book is to share
  13415. 8:19:31observations, fascinating statistics,
  13416. 8:19:33and of course, access to people who my
  13417. 8:19:35readers never thought existed. Making
  13418. 8:19:37all this possible is my number one
  13419. 8:19:39researcher, Bobby 7. Yep, that's really
  13420. 8:19:42her name. Bobby 7 has worked for me for
  13421. 8:19:44over 10 years. Together, we've worked on
  13422. 8:19:47four books, yet we've never met. Part of
  13423. 8:19:49her brand is to be mysteriously unknown.
  13424. 8:19:53Thank God I found you, Bobby 7. Joining
  13425. 8:19:56our research effort were the talented
  13426. 8:19:58Reese Saxs and Amelia Castle, who ran
  13427. 8:20:00some of the primary and secondary
  13428. 8:20:02research jobs for almost one year.
  13429. 8:20:04They've interviewed and screened
  13430. 8:20:06hundreds of people and helped me verify
  13431. 8:20:08hard to track down data. I'm so proud to
  13432. 8:20:11have worked with both of you. Thanks
  13433. 8:20:13heaps for all your hard work. Frank
  13434. 8:20:16Foster, thanks for your friendship and
  13435. 8:20:18thanks for your guiding hand turning the
  13436. 8:20:20last chapter around in the 11th hour.
  13437. 8:20:23All of which leads me to the hundreds of
  13438. 8:20:25people we've interviewed worldwide. A
  13439. 8:20:28special and enormous thank you goes to
  13440. 8:20:30Unilver's David Kousno, a shining star
  13441. 8:20:32in the field of consumer insight. Thank
  13442. 8:20:35you so much for sharing the most amazing
  13443. 8:20:37insights about a fascinating project led
  13444. 8:20:39by a fantastic company. Howard Roberts
  13445. 8:20:42and Richard Huntington, both from Sachi
  13446. 8:20:44and Sachi, also contributed amazing
  13447. 8:20:47insights. I'd also like to thank
  13448. 8:20:49Isabelle Lopes, Msley's assistant
  13449. 8:20:51librarian, Center on Media and Child
  13450. 8:20:53Health, Children's Hospital, Harvard
  13451. 8:20:55Medical School, Harvard School of Public
  13452. 8:20:57Health, and Sally J. Persing, Center on
  13453. 8:20:59Media and Child Health, Seamic
  13454. 8:21:01Children's Hospital, Boston. Also, a
  13455. 8:21:03special thank you to Linda Aki and Beth
  13456. 8:21:05Given, privacy activism, for their
  13457. 8:21:08insight into online practices. Steven
  13458. 8:21:11Prey, Ph.D. Def Professor of
  13459. 8:21:13Non-prescription Products and Devices at
  13460. 8:21:15College of Pharmacy, Southwestern
  13461. 8:21:17Oklahoma State University, helped me
  13462. 8:21:19understand the addictive qualities of
  13463. 8:21:21products. Thanks also go to Dr. Charles
  13464. 8:21:24Lind, past president of the Canadian
  13465. 8:21:26Dermatology Association, assistant
  13466. 8:21:28professor at the University of Toronto.
  13467. 8:21:30Jazelle Witwell, music therapist of
  13468. 8:21:32Pioneer in Music Therapy Especially for
  13469. 8:21:34Prenatal and Early Childhood. Peter
  13470. 8:21:36Heer, Fetal Behavioral Research Center,
  13471. 8:21:38Queens University, Belfast, Northern
  13472. 8:21:40Ireland. Katherine Lynch and Joanne
  13473. 8:21:42Irwin and Jenny Saffron, Distinguished
  13474. 8:21:44Professor Psychology, University of
  13475. 8:21:46Rochester, Group Coordinator,
  13476. 8:21:48Communication, and Cognitive Sciences
  13477. 8:21:50Group. Thank you to Janet D. Petro,
  13478. 8:21:52associate dean for research, professor,
  13479. 8:21:55department of population, family and
  13480. 8:21:57reproductive health, John's Hopkins
  13481. 8:21:59Bloomberg School of Public Health,
  13482. 8:22:00Claire Learner, director of parenting
  13483. 8:22:02resources, 0ero to3, and David
  13484. 8:22:05Chamberlain, PhD, author of prenatal
  13485. 8:22:07memory and learning in the mind of your
  13486. 8:22:09newborn baby, among other books. I'd
  13487. 8:22:12also like to thank Marcy Axnus of
  13488. 8:22:14Quantum Parenting for help understanding
  13489. 8:22:15the uses of data mining. Brian Pearson,
  13490. 8:22:18president and CEO, Alliance Data and
  13491. 8:22:20Loyal Tionaire Miles Reward program.
  13492. 8:22:22Michael Barry, data miners, Peter Feder,
  13493. 8:22:24Wharton School of Business, Herbs SAN
  13494. 8:22:26Sun, TNS Global, and Wendy W Mo,
  13495. 8:22:28Associate Professor of Marketing, Robert
  13496. 8:22:30H. Smith School of Business, University
  13497. 8:22:32of Maryland. for help with early
  13498. 8:22:35childhood issues. I'd like to thank
  13499. 8:22:37Emily Korns, Nestle Infant Nutrition,
  13500. 8:22:39and Abigail Tuller, editor-inchief,
  13501. 8:22:41Pregnancy Magazine, and Pregnancy
  13502. 8:22:43360.com.
  13503. 8:22:45Thank you both for all your amazing
  13504. 8:22:47insight. Last, but certainly not least,
  13505. 8:22:50thanks to the talents of our incredible
  13506. 8:22:52casting director, Marcy Tishke, we
  13507. 8:22:54searched for months for a beautiful,
  13508. 8:22:56kind, outgoing, smart, beautiful family.
  13509. 8:22:58And boy were Eric and Gina Morgensson
  13510. 8:23:01and their children Jack, Sam, and Max
  13511. 8:23:03ever up for it. A very significant and
  13512. 8:23:06major thank you to the Morgensson family
  13513. 8:23:08who couldn't have made this project more
  13514. 8:23:10interesting, easier, or more exciting,
  13515. 8:23:12and to all their lovely friends in
  13516. 8:23:14Lagona who allowed us to observe their
  13517. 8:23:16consumer habits. We are forever
  13518. 8:23:18grateful. Enormous thanks also go to our
  13519. 8:23:21TV producer Andy Masanti who made this
  13520. 8:23:24project so successful and provocative
  13521. 8:23:26and without whose expertise, ideas and
  13522. 8:23:28warmth this project would never have
  13523. 8:23:30happened. Finally, Chathreads, a company
  13524. 8:23:33that captures data on how, when, and
  13525. 8:23:35where consumers notice individual brands
  13526. 8:23:37in their day-to-day lives, then analyzes
  13527. 8:23:39how these encounters impact purchase
  13528. 8:23:41behavior, helped measure the profound
  13529. 8:23:43impact of word-of- mouth marketing. I
  13530. 8:23:46truly believe no other company can
  13531. 8:23:48perform better than they did.

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