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MARKETING AND SALES BOOKS

Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Don Tapscott. By McGraw-Hill. The regular list price is $27.95. Sells new for $17.10. There are some available for $16.69.
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4 comments about Grown Up Digital: How the Net Generation is Changing Your World HC.
  1. Businesses and marketers take note. There's no way to ignore the Net Generation; they're 81 million strong. (That's bigger than the Boomer generation!) It's time we get to know them, intimately. Don Tapscott's Grown Up Digital gives you the opportunity to see how Net Geners think, act, learn, purchase, and relate. The book is packed with information yet written in a casual, first person voice making it easy to read and enjoy. All around us we're seeing the impact of this intelligent, savvy, self-confident generation. They're in our workplace, in our homes (if you're a Boomer), and on the Web critiquing and customizing our products and services. Say what you will...they're coddled by parents who hover and never miss a soccer game...but understand we are learning the ways of the social Web from them. And they are pushing the envelope of what is possible. They fully democratize information and access to it; they collaborate across geographical boundaries, and they are highly mobile and always connected.

    While reading Grown Up Digital, I realized I have been a bit set in my traditional Boomer generation thinking (rather linear). Today's 30-year-old doesn't think twice about your age or ethnicity or your years of experience. They simply reach out and instinctively look for ways to collaborate (rather non-linear). If you have Net Geners in your workplace, learn from this book how to manage and incent them. If you have them in your home, revel in their technical and social networking expertise. And if you market to them, deeply understand their motivations, desires, and demands for the products and services they purchase.

    I've been reading Don's books for over 10 years. He wrote the foreword to my book [full disclosure]. I like the way Don thinks, and the thorough research, thoughtfulness and creativity he puts in his books!


  2. For starters, I would say this book is slightly more accessible than Don's previous book Wikinomics (with Anthony Williams), especially in terms of its mass appeal. Everyone knows some young people, so I thing everyone can relate. If you are a parent and you have Internet-addicted kids, this book will help you better understand where they're coming from. If you're an employer and you are looking for bright young talent, this book will help you attract and retain them. If you are a marketer and you are trying to sell to young people, this book will definitely help you do so more effectively. If you're an educator trying to reach young people in the classroom, the book provides a few suggestions on how to get through to them. Finally, if you're a young person yourself, the book provides a good introspective look at why you are the way you are.

    It's definitely an interesting time to be writing about this topic. I think Grown up Digital provides a solid argument against those that suggest that the Internet and video games are rotting the minds of today's youth. Of course, every generation is different than the previous one in very fundamental ways--generational differences are nothing new. Why I think this is a valuable read is because this book explains these differences using a research-backed scientific approach, with plenty of interesting anecdotes and observations to keep you engaged.


  3. I'll admit, I didn't read this book cover to cover. I spent about 3 hours reading it, which probably means that I `read' about half and skimmed the rest. This speaks both to the book's strengths and its weaknesses. On one hand, the book is clearly organized, with three levels of subtitles within the book making skimming much more efficient. On the other hand as a member of the generation that Tapscott is trying to describe, at least 60% of the information is intuitive to the point of banality.

    What Tapscott does bring to the table, however, is a quantitative approach to how the Net Generation is truly different from those preceding it, with some concrete information deeper than our ubiquitously cited ability to multitask or our improved hand eye coordination. His chapter on "The Net-generation Brain" contained some interesting statistics. For example, he discusses how 10,000 hours of video games and 20,000 hours of internet before age 20, have a positive effect on our ability to process visual information in rapid and complex ways. Additionally, like the Economist review that introduced me to the book, I believe the chapter on `Obama, Social Networks, and Digital engagement' is the primary selling point for the book with interesting anecdotes and a broad view picture of its effectiveness, although the book was published too early to claim it was the reason for his victory.

    In the end, there's not enough new information contained in this book for a blanket recommendation. It is has enough to interest genre hacks willing to wade through the banalities, or those who have not yet been exposed to Net Gen ideas. I guess that means I should recommend this book to my mother.


  4. While I fouund Mr. Tapscott"s book interesting I got a little tired of reading how the net generation is the answer to the world's present and future problems. It seemed to me that Mr. Tapscott's purpose for writing this book was to debunk any negative comments or research that he had ever heard or read regarding the net generation. According to Mr. Tapscott, other then their one negative of sharing too much personal information on facebook, the net generation will make all other generations pale in compaison.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Michael Masterson and MaryEllen Tribby. By Wiley. The regular list price is $24.95. Sells new for $13.83. There are some available for $15.51.
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5 comments about Changing the Channel: 12 Easy Ways to Make Millions for Your Business (Agora Series).
  1. In today's economy making more from less has become a theme that any business owner can relate to. This means that you have to maximize your revenue streams by leveraging the work that you have. Using multiple marketing channels to drive business is not only smart, it's essential for survival. This model is applicable to any business from bricks and mortar to online and beyond. Check it out today!


  2. I am almost done reading this book and I have to say that I've learned more from it than from anything else I have read about marketing your business. I used to CRINGE when I thought about marketing my business, because I used to think it meant that I had to go out and call people up.

    I own a video production company and I also offer a service for small businesses called Social Network Marketing. The chapter on Social Network Marketing in this book is an invaluable tool for anyone wanting to make use of MySpace and Facebook, etc. I offer my clients a way to set up their Social Network and maintain it on a daily basis. This book has helped me to explain to people why this channel is an important one not to be disregarded.

    If you want to know about Direct Marketing techniques and the benefits to all of the different forms of marketing, this book is a MUST READ!

    I'm sending a BIG thanks to the authors of this book.

    -Angie Lile


  3. The authors do a great job of covering a wide range of marketing channels. Maybe not all of them are applicable to every business, but understanding them can be helpful to improve the methods a business does use. I found myself getting many ideas to help in my marketing efforts.


  4. Changing the Channel is one of those rare business books that offers workable ideas for both small and large businesses. Tribby and Masterson offer valid real-world examples of how to use the Internet and direct marketing in tandem with other sales channels to expand your business. No academic doublespeak here. This is the book to get if you want to understand multichannel marketing and implement it for your company.


  5. This book is more of an into into multi channel marketing than it is a "how to" manuel. After reading the book a non-marketing person will have a wonderful direction to be pointed in, although a lot more information will be needed if one is to implement any action.

    All in all a great review of a tough subject, but not a solution to using the synergy such a system could provide.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by W. Chan Kim and Renée Mauborgne. By Harvard Business School Press. The regular list price is $29.95. Sells new for $15.00. There are some available for $12.95.
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5 comments about Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant.
  1. Strategy:

    1. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Companies need to go beyond competing. To seize new profit and growth opportunities, they also need to create blue oceans.

    2. Put the clock forward 20 to 50 years and ask yourself how many unknown industries will exist. Surprisingly, many of the unknown industries will exist.

    3. Value innovation is focusing on making competition irrelevant by creating a leap in value for your buyers and you company, thereby opening up new and uncontested market space.

    4. Value innovation is neither cutting edge technology nor timing of the market. Value innovation occurs when companies align with utility, price, and cost positions. "If the companies fail to anchor innovation with value in this way, technology innovators and market pioneers often lay eggs that other companies hatch."

    5. Blue ocean innovation seeks differentiation and low cost simulataneously. The goal is too drive costs down while simulataneously driving value up for buyers.

    6. Utility alignment starts at the top. Production innovation may improve subsystem performance without impacting the company's overall strategy. The production costs savings do not realign the utility proposition of the company. The product cost saving reinforce strategic leadership validating the status quo. "Although innovations of this sort may help to secure and even lift a company's position in the existing market space, such a subsystem approach will rarely create a blue ocean of new market opportunity." Market opportunity results from changing the utility proposition.

    7. Red ocean strategy assumes that an industrial structural condition are given and that firms are forced to compete within them, a structuralist or environmental determinism view. In contrast, value innovation is based on the view that market boundaries and industry structure are not given and can be reconstructed by actions and beliefs of industry players.

    8. In red ocean, differentiation costs because fimrs compete with the same best practice rule. In recontructionist world, the strategic aim is to create new best-practice rules by breaking the existing value cost trade-off and thereby create a blue ocean.

    9. Strategy will always include opportunity and risk.

    New markets:

    1. How to conceive a new market space: a. Look across alternative industries b. look across strategic groups within industries c. redefine the industry buyer group d. look across to complementary product and services e. rethink the functional-emotional orientation of the industry f. participate in shaping external trends over time.

    2. Emotionally oriented industries offer many extras that add price without enhancing functionality. Stripping away these extras may create a fundamentally simpler, lower-priced, lower-cost business model that customer will welcome.

    3. Products and services that have different forms but offer the same functionality are substitutes for each other. Alternatives include products and services that have different functions and form but serve the same purpose. Alternatives are broader than substitutes.

    4. A strategic group is a group of companies within an industry that pursue a similar strategy. Strategic groups can be ranked in a rough hierarchy according to price and performance. Most companies focus on improving their competitive position within a strategic group. "The key to creating a blue ocean across existing strategic groups is to break out of this narrow tunnel vision by understanding which factors determine customer decisions to trade up or down from one group to another."

    5. Individual companies in an industry often target different customer segments. An industry typically converges on a single buyer group. "Challenging an industry's conventional wisdom about which buyer group to target can lead to the discovery of new blue oceans."

    6. Untapped value is often hidden in complementary products and services. The key is to define the total solution buyers seek when they choose a product or service. A simple way is to think about what happens before, during, and after your product is used.

    7. All industries are subject to external trends that affect their businesses over time. Looking at these trends with the right perspective can show you how to create blue ocean opportunities. Most companies adapt incrementally or passively as events emerge. They pace their own actions to keep up with the development of the trend they are tracking. Key insights occur by discovering how trends will change value to the customer and impact the company's business model. Look for the value a market will deliver today to the value it will deliver tomorrow - "managers can actively shape their future and lay claim to a new blue ocean." The trends must be decisive to your business; they must be irreversible; and they must have a clear trajectory


  2. This book helps focus the reader on looking at their business, competition and offerings in different and exciting ways. If you are considering a new business venture or product offering, you really should read this book.


  3. Watch Video Here: http://www.amazon.com/review/R284Y5A1JGFA8I Jake Olsen's review was made as part of a critical review assignment for the Fall 2008 Honors Colloquium on Creative Destruction at the University of Nebraska at Omaha, taught by Art Diamond. (The course syllabus stated that part of the critical review assignment consisted of the making of a video recording of the review, and the posting of the review to Amazon.)


  4. I have been paying attention to the work of Kim and Mauborgne, since they published their first articles in the Harvard Business Review. The thinking they have developed since those days, i.e. building a strategy canvas, accessing non-users of your company's products, and then devising a process to create a blue ocean strategy expand one's ability to apply their ideas.

    Building a strategy canvas, however, is a lot harder than it looks. I've tried, with varying levels of success. Discovering the elements of your differentiation is more than half the battle. It's not so difficult to look at an already innovative product or service and abstract back to the strategy canvas. But, starting from scratch and developing your own, means paying attention to the blocking and tackling of Blue Ocean Strategies: Reconstructing Market Boundaries, fund in Chapter 3. In it, the authors identify the six paths to Blue Ocean Strategies. They are to look across Industry, Strategic Group, Buyer Group, Scope of Product, Functional/Emotional Orientation and Time. But one they left one out, which was in their original thinking. It is simply to look across Borders. Ask how do they do it in Spain or China? Just understanding how the healthcare system works in France, for example, can provide huge insights into anyone who sells products or services to in that industry anywhere in the world. I also find 'Crossing Borders' to be the easiest way to find the assumptions you have about your business model. This is the key starting point in how to create Blue Oceans.

    (see [.....] for more information).

    Understanding the 'how's' of Blue Ocean Strategy, like most things, let's you apply it rather than just to understand what the authors mean.


  5. Its is a good book to read not only for marketing people but for anybody who is interested in looking at things from a new perspective.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Ori Brafman and Rom Brafman. By Doubleday Business. The regular list price is $21.95. Sells new for $13.09. There are some available for $12.94.
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5 comments about Sway: The Irresistible Pull of Irrational Behavior.
  1. I have read some great books the past few months. One of these is Sway: The Irresistible Pull Of Irrational Behavior by Ori and Rom Brafman.

    Having loved The Starfish and the Spider, I was curious as to how SWAY would live up to its touted, will change the way you think about the way you think.

    Essentially SWAY is a book that seeks to identify the unseen forces that sway us in our decision making. What was fascinating is how vulnerable we all are to these psychological forces. What I often consider "rational, reasoned, logical thinking" is, admittedly, more often than not, my own "blind spots" influencing the way I think and reason.

    For anyone dealing with people, ministry, organizations, church work, etc. this book will be an eye-opener. All of us tend to think of others as irrational in their behavior and thinking. But few of us believe we ourselves are influenced by these same factors. Sway helped me understand some of the deeply-rooted psychological forces at work influencing the choices I make. What often passes as "God's will" or the "right thing" is frequently more the irresistible pull of one of these hidden forces at work upon our thinking and reasoning.

    "We're all susceptible to the sway of irrational behaviors. But by better understanding the seductive pull of these forces, we'll be less likely to fall victim to them in the future."

    Some of the forces that sway us and are backed with fascinating real life stories and research:

    loss aversion: how we overreact to perceived losses...our natural tendency to avoid the pain of loss distorts our thinking

    commitment: strong resolve to stay the course to the way we have been doing things for years and our inability to react to superior strategies

    value attribution: our tendency to imbue someone or something with certain qualities based on perceived value, rather than on objective data...once we attribute a certain value to a person or thing, it dramatically alters our perceptions of subsequent information

    diagnosis bias: our propensity to label people, ideas, or things based on our initial opinions of them and our inability to reconsider those judgments once we've made them

    chameleon effect: when we brand or label people they take on the characteristics of the diagnosis

    fairness: and the great lengths to which we'll go to defend it...when it comes to fairness it's the process not the outcome that causes us to react irrationally...how important it is for people to feel they have a voice when it comes to the issue of fairness

    group conformity: depends on unanimity for its power...the temptation to align ourselves with everyone else...a lone dissenter is enough to break the spell and "give permission" to break ranks with others in the group


  2. I thought it was a wonderful book. Pointed out mistakes I make in my own thinking and though I may not be able to change my thinking much, at least it was able to make me aware of some of the traps I may be falling into. Very good book.


  3. Who knew that financial compensation had the same effect on the brain as snorting a line of cocaine? After reading "Sway" you know this, as well as a number of other surprising facts. This must-read is subtitled The Irresistible Pull of Irrational Behavior. While it isn't a career coaching book its lessons are applicable to jobseekers:

    Hot dog company Nathan's couldn't get people to try their hot dogs so they paid doctors to eat it. If doctors liked it, then they must be okay for the common folk, and hot dog sales took off. This is how the Brafmans demonstrate value attribution. Jobseekers, think about who is giving you referrals and recommendations. Get a highly regarded person in your corner and let value attribution work for you.

    My heart is still in my mouth regarding the story of the toddler who died after doctors in the ER repeatedly missed her symptoms. Diagnosis bias caused them to overlook what the symptoms could mean and instead see only what they had predetermined. Jobseekers, if you've already diagnosed your search as beyond repair, then it is. You will see only what is wrong. You will be too easily discouraged. You will miss opportunities that do arise. Change your search first and foremost by changing your thinking.

    Anecdotes from politics, sports, business and everyday life teach other lessons in commitment, loss aversion, the chameleon effect and more. Jobseekers, you don't want to go down a road that's not working just because that's what you've always done (commitment). You also don't want to play it so safe that you don't take enough chances to win the job (loss aversion). Finally, the chameleon effect warns us that we take on the characteristics that others ascribe to us. So jobseekers, in this often tumultuous job market, keep company with people who believe in you so you live up to their high expectations. Avoid the naysayers, lest they convince you to be less than you truly can be.


  4. This review of humans' irrational quirks reminded me pleasantly of Predictably Irrational, by Dan Ariely. Several of the examples overlap. Both works discuss the mechanisms in the human mind that substitute for reason - ways that our evolutionary history has apparently left us with some mental baggage that functions pretty well in some common circumstances, but badly in others. For example, why will people bid $200 for the right to buy a $20 bill?

    I found the writing clear and entertaining, and some of the issues quite useful for understanding my own and others' behavior. It's a quick read and maybe a little too short. I read it in one rainy afternoon. But very entertaining and something I will read again. I highly recommend this book.


  5. I could never understand why rational people made irrational decisions. After reading this book, I do. It's an easy read with practical examples to make it even easier. It's had a huge impact on the way I now look at behavior... including my own. Very worthwhile reading.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Noah J. Goldstein and Steve J. Martin and Robert B. Cialdini. By Free Press. The regular list price is $25.00. Sells new for $14.40. There are some available for $13.90.
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5 comments about Yes!: 50 Scientifically Proven Ways to Be Persuasive.
  1. I bought this book based on a reference in Secrets of the A Game by Logan Edwards. I originally purchased this book to help with attracting women, but I actually got much more out of it. Of course, it DID help out with attracting women, but also gave me a better perspective on interacting at work and with family. I highly recommend it.


  2. i love this book! Not only is the research explained but the authors give suggestions on how to use the techniques in real life.




  3. "Just because yes is simple and obtainable, we shouldn't be fooled into believing that anyone can easily secure it from others"

    "Yes!; 50 Scientifically Proven Ways to Be Persuasive" by Noah J. Goldstein, Steve J. Martin, and Robert B. Cialdini

    The title says it all really; the book is filled with 50 ways (I'd rather say "examples") of persuasion. They are (for examples);

    "What one word can you start using today to increase your persuasiveness by more than fifty percent?"

    "Which item of stationery can dramatically increase people's responses to your requests?"

    SPOILER ALERT!! (the answer to the two questions are; "because" and "Post-It notes")

    ...

    I'm not going to list all 50 ways from the book; I'll go right to my Six Elements Review that the ideal business book is "easy to read, distinct, practical, credible, insightful, and provides great reading experience"

    Ease of Understanding: 8/10; the small book is separated into 50 chapters and each chapter takes less than 5-10 minutes so, it is easy to understand. However, the drawback of Yes! is its lack of structure; 50 ways are loosely tied (if at all) together.

    Distinction: 8/10; it is undoubtedly a great compilation of persuasion techniques. The highlight is the word "50; it is difficult to provide readers with 50 ways "persuasively" but Cialdini, Goldstein, and Martin could do it.

    Practicality: 4/10; as interesting as those fifty ways are, I can say that it is very difficult (if possible at all) to implement any of them appropriately. Each situation in the book or in your lives is unique. It is more possible to successfully persuade others and look back to the techniques in the book and match them than the other way around.

    Credibility: 6/10; the gook point is that every way is backed with good and, sometimes, amazing example(s). The bad point is, it might not be enough to use one example (or a couple of them) to describe the ways and claim that they are "scientifically proven".

    Insight: 5/10; I think 5 is fair because as you know that there are fifty ways! It is impossible to dig deep into every (any) way.

    Reading Experience: 9/10; This is, by far, the most outstanding element of Yes!; this book is fun. Take this book with you along with another book and if you're bored with the other book, take some times off and read Yes!; it is refreshing. I would compare the book to Aesop Fable not that they are childish and fictional but they are;

    1. Concise and precise

    2. Every story teaches you a valuable lesson

    3. You mention it in a hindsight when something already happened! ("Oh, this situation is like the story of "The Hare and The Tortoise"... "I persuaded my friend and it was like the way no.XX from Cialdini's book"!)

    Overall: 6.7/10; I'd say "buy it"; it's fun and won't waste your time because you'll learn many things from the book and you'll find those examples and stories amazing. However, be careful when you try to do any of those ways; make sure you think of the other 49 ways first!

    Viriya Taecharungroj
    www.tedded.net


  4. Yes! is a quick read with short easy chapters, the kind you can flip back to and read to a friend or co-worker. The fact that the authors (and others) put these ideas to the test lend the book more credibility. The examples and stories are useful but I wonder if the quirky titles add to the chapters or take from them.

    I found this book useful and at time enjoyable. Some stuff I started using minutes after flipping the last page; with other ideas I can see a use for them in the future; and some of the stuff will likely go unused in my lifetime. The bottom line: there's something for everybody.


  5. Most people have covered what's good about this, and there is no doubt that the author knows his stuff. What I like, in addition to the solid materials, is that the author has used a lot of these theories in the field, it's not just some stuff observed in a lab. Also, I really like the bite-sized format of giving each relevant topic a one or two page treatment, along with real world example. It makes is really easy for you to pick it up, give it a read, and get back to what you are doing, and still able to remember what you read about days later.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Richard H. Thaler and Cass R. Sunstein. By Yale University Press. The regular list price is $26.00. Sells new for $16.30. There are some available for $18.04.
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5 comments about Nudge: Improving Decisions About Health, Wealth, and Happiness.
  1. This is a terrific book. The authors cover terrain which has been explored recently in books such as "Predictably Irrational" and "Sway" -- loosely speaking, why we humans persistently engage in behavior patterns which do not benefit us in the long term. Their own research, at the University of Chicago, builds upon the work of Tversky and Kahneman in behavioral economics; the behavioral insights gained form the basis for public policy changes in a number of different areas.

    The book provides a funny, engaging, remarkably clear exposition of the various factors which lead us to make poor decisions. This alone would make it worth reading. What makes it exceptional is that they actually suggest *remedies* that might help us save ourselves from our own flawed gut instincts. Indeed, they go one step further, making a convincing argument for incorporating these remedies as a part of public policy. The examples that they consider are directly relevant to decisions each of us faces routinely: choices that primarily affect our own welfare, like decisions about health and lifestyle, credit and money management, investing for retirement; and choices with broader societal implications, like those pertaining to environmental behavior, organ donation, charitable giving and community involvement. They use the term "libertarian paternalism" to characterize their public policy recommendations; don't allow the term to put you off - their suggestions really make a lot of sense.

    "Nudge" is very well-written and extremely readable. I was impressed by the amount of useful and interesting material the authors managed to incorporate in just 250 pages. I highly recommend this book.


  2. This is an important book to read given that the authors are Obama's advisors. The authors are from University of Chicago, the school famous for libertarian Milton Friedman who was a favorite of Ronald Reagan. The authors introduce the concept of libertarian paternalism. They do not embrace a pure libertarian nor a left leaning pro-government solution to common problems we face today. My guess is that libertarian idealogues will find some of the ideas offensive.

    There is considerable overlap with other books on behavioral economics and psychology such as:
    Predicably Irrational by Ariely
    Influence by Cialdini
    Yes! by Goldstein et al
    Whereas the above books were fun to read, Nudge gets dry after the first part.

    The book takes a practical but boring turn when it starts tackling specific issues such as social security and healthcare. I found reading these parts boring and not written well. Nevertheless if you trudge through the book you may be rewarded with gaining insight into what an Obama Presidency may look in the future.


  3. This was an interesting book. It talked about how to structure choices to nudge people in the right direction concerning health, wealth, and happiness. The books lays a foundation for the discipline. The authors believe in freedom of choice, but also believe that organizations have the role of nudging people towards the best choices in life. The book highlights that people are typically lazy and not proactive. It made me think about ministry in the sense that few ministers actively plan for retirement. Congregations should automatically set up a retirement fund for them and put in a certain amount of money per month. The book is weighty and not the most enjoyable read. Some of the information was more common sense advice than radically changing ideas. To boil down the book, be proactive and put your savings and house payments on a automatic plan. Pretty much structure your life in an appropriate way and you will retire well. Use incentives because these are powerful pushes for companies and churches to guide people in the right direction.


  4. As has been demonstrated numerous times, and reported in numerous books, humans are not rational decision makers. Therefore, why not take advantage of human tendencies to help people make better choices for themselves and for society? "Nudge" is a little wordy, but that is really its only fault. I certainly don't mind being reminded of the various controlled experiments on decision making conducted by psychologists, the humor is good, and I enjoyed the authors' personal experiences. Perhaps more important, the authors are careful in finding and assembling evidence for their recommendations.

    Sometimes it is a matter of choosing the proper default to overcome inertia: so organ donation becomes the default rather than the opposite. If this bothers you, then there should be no default: to renew your license you would have to make a choice. Other times it is a matter of eliminating misconceptions: teens tend to overestimate the frequency of teen drinking and smoking, and conformity is a powerful influence. If you inform people about average energy use, and how they compare, they will tend to move toward the average, so the under users actually start using more; just using emoticons with the information (smiley face for the under users) eliminates the negative effects of providing the information and accentuates the positive. Routines are important reminders, so birth control pills for days 20-28 are placebos, but people remember they need to take a pill every day.

    The government must take a better role in requiring useful information (such as nutrition labels); Thaler/Sunstein carry this idea farther in suggesting that more standardized/computer readable information be provided, for example on drug plans or mortgage terms: not because this will help the typical consumer directly, but because 3rd party providers could then develop software for the consumer.


  5. EXCELLENT PRIMER FOR FIRST TIMERS ON BEHAVIORAL ECONOMICS. IT EXPLAINS IN PLAIN PROSE HOW WE CAN BE INFLUENCED BY OUR ENVIRONMENT TO DO THINGS WITHOUT THOUGHT.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Robert B. Cialdini. By Collins Business. The regular list price is $17.95. Sells new for $9.49. There are some available for $9.45.
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5 comments about Influence: The Psychology of Persuasion (Collins Business Essentials).
  1. I can only agree that Cialdini has done it again. Everyone has something to learn from this. Beeing a surgeon it is very important for me to know what patients read into what I tell them, and as well to know if I'm (subconciusly) persuading them to go through a treatment they really didn't want or the other way round.
    Everyone should read it!
    GB


  2. Dr. Cialdini's book is highly readable, thought provoking, and occasionally frightening. His insights into some of the most celebrated (and notorious) experiences and experiments in mass psychology (such as the Milgram project and the Kitty Genovese case) are worth the price of the book alone. But it is Dr. Cialdini's categorizing of the elements of mass psychology and the tools of persuasion that stay with the reader long after the book is back on the shelf. Highly recommended.


  3. This book is truly amazing!

    It really goes deep into the hidden psychology on why people buy things and how they justify themselves to do it...

    The author supports all his theories by quoting studies that were done to assess the psychology on why people buy.

    The best part is, now you can learn to turbo-charge your business by knowing why and how people will buy from you.

    Definitely a recommended book!


  4. Cialdini's classic book on influence contains universal principles that govern our every day behavior, whether we are aware of them or not! Anyone who wants to achieve anything in this world must master these rules of persuasion. This is one of the most important psychological works ever created. It shows both the science and art of success.


  5. Diversion 3/5--easy read,decently edited,moderately interesting examples of behavioral psychology. Instruction 3/5--Maybe the field is young but the described experiments are often familiar,the Milgram electroshock experiments for example. Inspiration 2/5--Mostly negative suggestions,do not always listen to the automatic click/whir response. Be more aggressive toward those hijacking these responses for profit. Not quite a Henry V type motivation. Overall 3/5 if not already familiar with behavioral psych.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Martin Lindstrom. By Doubleday Business. The regular list price is $24.95. Sells new for $12.00. There are some available for $9.99.
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5 comments about Buyology: Truth and Lies About Why We Buy.
  1. I would agree that Buyology contains some fascinating insights; however, I can't help thinking that the data would be more useful if the research methodology and findings were published in a way that opened them up to more rigorous scholarly review.

    As the book reads now, Buyology seems to include numerous necessary but insufficient conditions. For example, before measuring neural activity in the brains of smokers (in response to cigarette logos, cigarette packs and subliminal imagery) smokers were required (as a necessary test condition) to abstain from smoking for two hours prior to the test. Respondents involved in tests to gauge brain activity in relation to anti smoking warning labels, were required not to smoke for a total of four hours (although I remain unclear as to what point this timeframe kicked in).

    In this light, one question that seems to emerge from these conditions is the possible impact on research findings, brought about by the extent to which test subjects may have experienced abstinence based cravings during test time. Moreover, it is commonly understood that cigarette cravings become intensified when smokers are faced with stressful situations (McLernon & Gilbert, 2005; Erblich et al., 2005). On that basis, Lindstrom's own comparison of an MRI test experience to feeling "as if you are being buried alive in a phone booth" seems well worth noting. Additionally, when referring to test respondent "Marlene"; Lindstrom observes that even before the FMRI scan, whilst engaging in the written questionnaire, Marlene was "twirling her pen around in her fingers as though she was about to ignite the thing". This strongly suggests that cravings in Marlene's brain may have been active even before the FMRI test had begun.

    Following a similar line of thought, perhaps it would also be worth questioning possible affects of the sequence in which the tests were carried out. For example, if subliminal images (thought to cause higher craving responses) were shown after the respondents viewed the branded images; would the affects of time lapsed and image sequencing not be as pertinent to the results as the potential affects induced by the branded and subliminal images themselves? This may be particularly relevant if smokers were not given the opportunity to reduce cravings by smoking in between tests. Indeed, research by Bovbjerg and Erblich (2006) suggests that abstinence-induced cravings to smoke are predicted by CBF increases (abstinence minus satiety) in the right OFC, right dorsolateral prefrontal cortex, occipital cortex, ACC, ventral striatum/nucleus accumbens, thalamus, amygdala, bilateral hippocampus, left caudate, and right insula. This data suggests that increased activation in the brain's visuospatial and reward circuitry underlies abstinence-induced cravings to smoke. Note that the nucleus accumbens, the same area that Lindstrom describes as showing a pronounced response in relation to cigarette warning labels, packs and subliminal imagery, is also activated by abstinence-induced cravings.

    In addition, the relationship between test images is not sufficiently clear. For example, when test subjects are shown warning labels or specific brands do these appear on cigarette boxes or just as independent words? One reason that this may be important is that the size and shape of a cigarette box, with or without branding, would probably have strong associative value for any smoker. After all, it is the box that contains a large part of the ritualized and habitual associative value, in that it is the box that is carried around on the person and opened and closed on a regular basis. This may be increasingly relevant given the unique shape and dimensions of a cigarette box, which is more or less common across most brands. In this light, if warning labels and brands were shown to respondents on boxes, how can we even be sure if it was the box, the brand or the warning label that stimulated activity in the brain's craving spot?

    Another point that seems worth addressing is the question of how test imagery was benchmarked? Without a proper indication of benchmarking across tests, method seems reliant on a sort of inverted association testing. In this way Lindstrom lays himself open to criticism for finding what he brings. On that basis, it also seems interesting to note that none of the findings from this new body of research appear to challenge any of Lindstrom's earlier ideas. Rather, they mostly work in support of the ideas that he laid out in Brand Sense prior to conducting all this research. This does seem to stand in direct contradiction with the statement he makes on the books jacket cover "How everything we believe about what we buy is wrong". I guess by "we" he must mean everyone except for Martin?

    Finally, there also seems to be insufficient explanation and consideration of the mind-brain-body relationship. For one thing, activating a craving is different to reflecting on it, which is again different to making a decision to act on it. Surely, if that were not the case, nobody would ever quit smoking.

    In summary, I would say that although neuroscience may well have much to offer, I think we would do well not to toss the baby out with the bath water. Not "everything" we believe about why we buy is wrong, there are many valuable insights to be gained from other disciplines and there are also many other very talented branding practitioners and academics.

    If I am to be completely honest, I am not entirely convinced that Buyology substantiates Lindstrom as the guru he claims to be.


  2. It has taken me longer to read it than normal because of the busy travel timetable. Fortunately, I was able to get into the book this week. The book is a scientific study into the reasons why people buy certain items. The author has a background in branding. He conducted a huge research project in testing the brain stimulus for certain objects or brand awareness. Books that have a scientific background can sometimes labor on the boring side because of all the technical jargon, but this book does an excellent job in telling stories about brand and marketing campaigns with the brain testing commentating on the results. This book helps a minister to better market or present the church in a positive manner to those around him. In fact, there is a special section of the brain that operates concerning religious elements. The book is excellent for helping to know what messages to present to the larger public within a location. The book is readable and enjoyable.


  3. Martin Lindstrom has done me and everyone a huge favor by writing his book Buy-ology!! I simply loved it.

    After reading this book I'm more aware of the triggers that move me to make certain purchases and why I tend to stay with the same brands year after year - and why my friends do ;-) It has been such an eye opener.

    Because Mr Lindstrom combines scientific technology such as the MRI with marketing know-how I feel that the information is more informative and reliable than an ordinary survey. I also found the topics interesting, especially 'Does Sex Sell', and the comparison between religion and consumer loyalty.

    Because it's written in everyday language with minimal use of scientific terms I found this book to be an easy read - a page turner, indeed.

    I know I will re-read this and will pass information from it along to friends and family.


  4. This book was an interesting exercise in marketing. It starts out with an explanation of how totally cool and revolutionary the experiments were. Then, every chapter ends with a promise that in the next chapter you are finally going to learn something really REVOLUTIONARY. But you never do. I kept thinking: "Oh, this next chapter sounds like it's going to be great!" And then, it wasn't, but it looked like the next one might be. As far as I can tell, Lindstrom presents actual results from his much-hyped experiments in chapters 2 and 6. Maybe there are some minor results elsewhere that I have already forgotten. And these results aren't really ground-breaking, they just tend to back up what real psychologists have been writing about for years in much better books.

    Anyway, the book has the feel of a short research article that was expanded into a book because it seemed like that might sell. Thus, there's a LOT of fluff, a LOT of space wasted on promising to tell us something really cool really soon, and very, very little actual information. Don't waste your time on this one.

    What confuses me is all of the great reviews from places like Newsweek and the like. It makes me actually want to reread the book because it feels like I must have been missing something. I'm not going to, because I thought the book was worthless, but it makes me wonder: do people really not already know this stuff? If you know nothing about psychology, then, I guess, maybe this book could be interesting.


  5. Some excellent revelations, but laboured the point too much with anecdotal examples throughout. I felt the whole book could be summarized to about 50 pages. Still, definitely worth buying.


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Dan Ariely. By HarperCollins. The regular list price is $25.95. Sells new for $15.47. There are some available for $12.98.
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5 comments about Predictably Irrational: The Hidden Forces That Shape Our Decisions.
  1. This book is extremely interesting and a quick read. I couldn't put it down. I do not have an economics or business background but I found the topic of behavioral economics to be very interesting.


  2. My friend recommended this book to me and it turned out to be an absolutely great read. The basic premise of this book is that people do not act rationally and certainly not as the rational agents that one assumes in classical economics. Instead, we act in ways that would be considered "irrational" but are often quite consistent (hence the title).

    Mr. Ariely is a professor in Behavioral Economics in MIT so his case studies are tested through experiments conducted on various college campuses. For example, one of his case studies examined the appeal of "FREE!". In the experiment, they put up a concession stand selling chocolates - Hershey's Kisses at 1¢ and Lindt Truffles at 15¢ a piece (you could only buy one). 73% chose the Truffle over the Hershey's Kiss, even when they raised the prices a penny. They then took the prices and dropped them a penny. With the Hershey's Kiss as "FREE!", only 31% of the folks chose the Truffle. According to rational economics, this total reversal in behavior makes no rational sense (the price difference between Kiss and Truffle remained the same), and yet it does make "common sense".

    The book is filled with other such studies of "common sense" behavior tested empirically through different experiments. He closes each chapter with takeaway concepts which could be applicable in more substantial situations (i.e. if you want people to get preventative health care, it would be much more effective to make it FREE! instead of "really cheap").

    Well written and very readable, it is well worth picking up -- not necessarily a classic tome that I must have on my bookshelf (I got my copy at the library) but is definitely worth the time to pick up and read.


  3. This book is for intelligent readers in finance or marketing fields. I belong to both groups and find it very useful for marketing ideas as well as my own financial decision making flaws. Human behaviour is an important component of economics which is often not given as much exposure as it deserves.
    I highly recommend this book.


  4. A well written and engaging look at some "irrational" behaviors that turn out to be - who knew?!?! - a whole lot less randon than we thought. I may never look at a sale flyer, or even a resturant menu the same way again.


  5. Predictably Irrational is one book that satisfies so many audiences that it is simply amazing, and it does an awesome job at that. Without delving into the research that Dan Ariely and his group of eminent researchers/friends have carried out - that would take away the fun of discovering some of the insights presented in the book - I must say that the book had great appeal for me as a business-person, as a family man & parent and as a person living in society at large. It has some very important implications for people working in government who are responsible for policy-making and for individuals who wish to avoid making mistakes they could've been making repeatedly. In all honesty, my behaviour has changed in some measure after reading this book and I think the results that I can monitor in the short-term, are positive. A really, really good book!!!


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Posted in Marketing and Sales (Tuesday, December 2, 2008)

Written by Malcolm Gladwell. By Back Bay Books. The regular list price is $14.99. Sells new for $3.99. There are some available for $3.50.
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5 comments about The Tipping Point: How Little Things Can Make a Big Difference.
  1. If you work in marketing, like me, you know that traction for a brand is critical and good products have tipping points en route to skyrocketing sales. Malcolm Gladwell's The Tipping Point is a fascinating exploration of makes ideas explode. His anecdotes and research are fascinating, and some of his exploration focuses directly on consumer products, such as the resurgence of Hush Puppies.


  2. This book is a lot of words that don't really go anywhere. Why is this a best seller?


  3. The book is interesting, with some enlightening stories and amusing anecdotes.

    However, I take exception Mr. Gladwell's touting of the small-changes-can-lead-to-big-consequences 'butterfly effect' philosophy as if it were his own. Either he is not very well versed in the world of chaos mathematics (which would be disappointing, scientifically), or he is not giving due deference to all those who came before him in developing New Math. I'm not sure which scenario is more disturbing, but the book has the feel of being disconnected from reality, due to his disregarding of those who established the field.


  4. My best attitude is that this book is very interesting, also try:
    Tao Cycle Therapy: Natural Happiness via Self Directed Cure for Chronic Anxiety & Depression [Updated 2008 3nd Edition]


  5. I guess I like this stuff? I'm divided. The one thing I can say for sure is that it is thought provoking. You may also like this one: Tao Cycle Therapy: Natural Happiness via Self Directed Cure for Chronic Anxiety & Depression [Updated 2008 3nd Edition]


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Grown Up Digital: How the Net Generation is Changing Your World HC
Changing the Channel: 12 Easy Ways to Make Millions for Your Business (Agora Series)
Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant
Sway: The Irresistible Pull of Irrational Behavior
Yes!: 50 Scientifically Proven Ways to Be Persuasive
Nudge: Improving Decisions About Health, Wealth, and Happiness
Influence: The Psychology of Persuasion (Collins Business Essentials)
Buyology: Truth and Lies About Why We Buy
Predictably Irrational: The Hidden Forces That Shape Our Decisions
The Tipping Point: How Little Things Can Make a Big Difference

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Last updated: Tue Dec 2 10:08:13 EST 2008