Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information
Going against conventional marketing wisdom, Absolute Value reveals what really influences customers today and offers a new framework—the Influence Mix, a totally new way of thinking about consumer decision making and marketing, and about developing more effective business strategies.
How people buy things has changed profoundly—yet the fundamental thinking about consumer d...more
Fortunately (for the sake of my career), the authors miss a crucial point about the role of brands that cripples this morbid hypothesis. I'll get to that in a moment. First their thesis:
In a nutshell, the the authors argue that thanks to the likes of Yelp, TripAdvisor, and online reviews on...everything, consumers will be able to easily identify the "Absolute" Value of a product or service, rather than have to make a deci ...more
Simonson and Rosen divide purchase choices into three ideas:
P is for previous beli ...more
Some gaping holes: This book assumes reviews are a quality gauge for others, but he ignores the demographics of the reviewers themselves. He mentions Yelp several times, but the #1 seafood restaurant in Chicago according to Yelp is at Navy Pier, which is a tourist trap; the #1 steak restaurant is a pa ...more
In their book, the authors seek to portray how beliefs about marketing and decision-making are changing due to the availability of reviews online. Simply put, we, as consumers, are able to determine the absolute value of a product ...more
THE SOUNDVIEW REVIEW:
It used to be that if you were selling consumer goods your field of play was limited to the shelf space immediately to the right and left of your item. People could compare packaging, price and quantity to determine if your item was worth their money and at ...more
Strong consumer brands of inexpensive, high volume items provide some of the most reliable abnormal returns on capital, which can be also rewarding to long-term shareholders, especially those able to further take advantage of the predictability of returns. Think Coca-Cola and its march towards million-fold growth in market-cap over 150 years.
This is among core tenets of students ...more
Their premise is that more and more industries are becoming O industries because the availability of real information direct from consumers about a product's quality and product experiences is growing rapidly. This means that cons ...more
Although I d ...more