Tuesday, June 26, 2012

Trends in Advertising Psychology

Authenticity
Several years ago, a TED talk on the changing focus of advertisement noted that the history of advertising largely focused on product superlatives such as "better, faster, stronger."  Marketers still touts superlatives but consumers supposedly have become inured to this constant barrage.  The point of the TED talk was people now desire authenticity and the most effective marketers, entertainers, and media outlets are able to reach the modern consumer because they communicated this concept.  I believe the desire for authenticity speaks to the whole idea of the long tail, the green movement, the resurgence of Americana and Folk in music, the growing interest in yoga and barefoot running, the increased attention to treating illness through homeopathy/naturopathy/folk medicine, the push for free range/ antibiotic-free/ organic/ vegetarian-fed/ humanely-killed livestock, the successes of Whole Foods and Trader Joe's, the proliferation of farmers markets and food co-ops, Etsy, even Apple's depiction of how each component of their devices is lovingly produced.

At some point people felt their lives or experiences had become synthesized, synthetic, artificial, produced, overproduced, and controlled by brand power.  Such disillusionment may be rightly placed.  The collective response has been a nostalgic desire to reclaim or connect to a simpler, more free, purer and natural idyllic history—whether real of imaginary, whether the connection is to your history or someone else's.  The New York Times columnist David Brooks recently wrote about the massive and mad devotion of European fans to Bruce Springsteen.  He postulated on the "power of particularity."  The fixation of Springsteen's music on his roots in a New Jersey town powerfully connected people to a microcosm/paracosm because the depictions were so specific and thus more authentic.

This, at least in part, answers the question:  "How does one make the abstract concept of authenticity concrete?"  It boils down to the ability to create and draw upon paracosms.  The irony of course is that authenticity is not created but the experience of authenticity could be simulated.  Advertisers are still telling us what they offer is "better" not necessarily in an overt fashion but by specifically portraying their offers as natural, pure, and real and thus "better."

Morality
The second perhaps more powerful trend in advertising is the use of moral overtones.  This breed of better communicates, "By choosing our product you are in fact doing good, helping the local community, creating jobs, and saving the world."  With products labeled as RED for Africa, pink for breast cancer, Oprah-endorsed, fair trade, uses recycled products, reduces carbon footprint, earns carbon credits, you can pat yourself on the back and morally justify your purchases.  Having moral overtones is not intrinsically wrong but one should be aware of the force of advertising behind the products.  When we make such purchases or use such services do we actually make a difference or just pass the moral buck?

Gamification
The third trend of gamification has seen a flurry of coverage.  This speaks to two elements of psychology:  generating a sense of ownership and incentivizing use through a short term rewards system (even if the rewards are virtual as they are often).  Fantasy sports well illustrates both concepts well.  The end result is product loyalty and consumer retention.  Even though studies have shown that children whom are willing to work/ wait for the long term gain tend to be more successful (see marshmallow study), the majority of people do not demonstrate such patience.  Why not then appeal to the hyperstimulated, ADHD culture and provide a form of immediate gain?  This is not far from the impulses driving gambling: the promise of quick gain without necessarily any regard for real gains/losses.  Gamification ultimately is a tool for influencing behavior whether it is in purchases, services or promoting good habits in some examples (like education).

"Friends" as ESL

From a small sampling of conversations with students from three countries, it seems the television show that has the greatest influence on portraying American culture and teaching English to non-English speakers is the show "Friends."  I wonder if there are actual statistics on this.

Friday, June 08, 2012

Pharma Dilemma

Forbes recently calculated the cost of drug discovery to be between $3.7 and $11.8 billion per drug that actually goes to market by accounting for the total cost of research over five years and the number of drugs approved during those years.  Essentially pharmaceutical companies operate at a loss unless they make at least $3.7 billion on sales per drug.  Despite this, the article's author criticizes the pharmaceutical industry for using this cost of development to justify the high cost of drugs, calling them "dumb."  Many have recognized the increasing difficulty in developing new drugs.  For example there are a scarcity of new antibiotics in the face of ever growing antibiotic resistance and superbugs.  With the cost of healthcare shackling companies and governments, stricter price bargaining, and generic drugs vying for consumer wallets, selling medication and funding research will not get any easier.

University Professor Salaries

Chronicles of Higher learning has posted the salaries of U.S. professor salaries.