Archive
Internet economics

  • New Scientist: Recruiting Smell for the Hard Sell
    Image from New ScientistSamsung’s coercive atmospherics strategy involves the smell of honeydew melon:

    THE AIR in Samsung’s flagship electronics store on the upper west side of Manhattan smells like honeydew melon. It is barely perceptible but, together with the soft, constantly morphing light scheme, the scent gives the store a blissfully relaxed, tropical feel. The fragrance I’m sniffing is the company’s signature scent and is being pumped out from hidden devices in the ceiling. Consumers roam the showroom unaware that they are being seduced not just via their eyes and ears but also by their noses.

    In one recent study, accepted for publication in the Journal of Business Research, Eric Spangenberg, a consumer psychologist and dean of the College of Business and Economics at Washington State University in Pullman, and his colleagues carried out an experiment in a local clothing store. They discovered that when “feminine scents”, like vanilla, were used, sales of women’s clothes doubled; as did men’s clothes when scents like rose maroc were diffused.

    A spokesman from IFF revealed that the company has developed technology to scent materials from fibres to plastic, suggesting that we can expect a more aromatic future, with everything from scented exercise clothing and towels to MP3 players with a customised scent. As more and more stores and hotels use ambient scents, however, remember that their goal is not just to make your experience more pleasant. They want to imprint a positive memory, influence your future feelings about particular brands and ultimately forge an emotional link to you – and more importantly, your wallet.

    (via Martin Howard‘s very interesting blog, and the genius Mind Hacks)

  • Consumerist: 5 Marketing Tricks That Unleash Shopping Frenzies
    Beanie BabiesThe Consumerist’s Ben Popken outlines “5 Marketing Tricks That Unleash Shopping Frenzies”:

    * Artificially limit supply. They had a giant warehouse full of Beanie Babies, but released them in squirts to prolong the buying orgy.
    * Issue press releases about limited supply so news van show up
    * Aggressively market to children. Daddy may not play with his kids as much as he should but one morning he can get up at the crack of dawn, get a Teddy Ruxpin, and be a hero.
    * Make a line of minute variations on the same theme to create the “collect them all” effect.
    * Make it only have one highly specialized function so you can sell one that laughs, one that sings, one that skydives, etc, ad nauseum.

    All of us are familiar with these strategies – whether consciously or not – but can similar ideas ever be employed in a way which benefits the consumer, or society in general, without actual deception or underhandedness? For example, can artificially limiting supply to increase demand ever be helpful? Certainly artificially limiting supply to decrease demand can be helpful to consumers might sometimes be helpful – if you knew you could get a healthy snack in 5 minutes, but an unhealthy one took an hour to arrive, you might be more inclined to go for the healthy one; if the number of parking spaces wide enough to take a large 4 x 4 in a city centre were artificially restricted, it might discourage someone from choosing to drive into the city in such a vehicle.

    But is it helpful – or ‘right’ – to use these types of strategy to further an aim which, perhaps, deceives the consumer, for the ‘greater good’ (and indeed the consumer’s own benefit, ultimately)? Should energy-saving devices be marketed aggressively to children, so that they pressure their parents to get one?

    (Image from Michael_L‘s Flickr stream)

  • Kazys Varnelis: Architecture of Disappearance
    Architecture of disappearance
    Kazys Varnelis notes “the architecture of disappearance”:

    I needed to show a new Netlab intern the maps from Banham’s Los Angeles, Architecture of Four Ecologies and realized that I had left the original behind. Luckily, Google Books had a copy here, strangely however, in their quest to remove copyrighted images, Google’s censors (human? algorithmic?) had gone awry and had started producing art such as this image.

    It’s not clear here whether there’s a belief that the visual appearance of the building itself is copyrighted (which surely cannot be the case – photographers’ rights (UK at least) are fairly clear on this) or whether that by effectively making the image useless, it prevents someone using an image from Google Books elsewhere. The latter is probabky the case, but then why bother showing it at all?

    (Thanks to Katrin for this)

  • Fanatic Attack
    Finally, in self-regarding nonsense news, this blog’s been featured on Fanatic Attack, a very interesting, fairly new site highlighting “entrancement, entertainment, and an enhancement of curiosity”: people, organisations and projects that display a deep passion or obsession with a particular subject or theme. I’m grateful to be considered as such!
  • Read More

    Around ten months ago, this site was accepted into 9rules, a diverse network of blogs which, at the time, had this aim:

    9rules is a community of the best weblogs in the world on a variety of topics. We started 9rules to give passionate writers more exposure and to help readers find great blogs on their favorite subjects. It’s difficult to find sites worth returning to, so 9rules brings together the very best of the independent web all under one roof.

    It was a great honour to be accepted, given the quality of the other blogs involved and the number that applied during the 24 hour ‘submission window’. I remember sitting in a coffee shop on Lothian Road in Edinburgh having taken my laptop away on holiday purely to do the 9rules submission at the right time: some ‘recognition’ on this level meant a lot to me, and it still does.

    And the site’s got a lot of new readers through 9rules: the start of every new post appeared, within a couple of hours, in both the ‘Design‘ and ‘Technology‘ feeds on the 9rules site, and a lot of people clicked through to read the full things, and then (often) stayed to read other posts. Equally, I found some truly amazing new blogs and interesting voices through perusing other members’ feeds: there is a wealth of passionate talent and opinion out there, and 9rules’ members never failed to impress. To a large extent I was a passive consumer of what 9rules brought me; I didn’t get involved with the ‘my.9r‘ social networking feature of the site, nor write any ‘Notes‘ (if I’m going to write something intelligent, I’ll write it on the blog, was my reasoning, but I certainly read a number of interesting discussions in the Notes section, and enjoyed doing so).

    Bye bye 9rulesHowever, 9rules is changing its membership policy (compare the current ‘About’ page) and yesterday I received an email from 9rules’ Tyme White indicating that, effectively, any members who don’t participate in the community aspects of the site are no longer welcome:

    Members spoke out about their displeasure concerning members that they never interact with and never hear from, yet all member entries carry the same weight on 9rules, which is not fair. After talking it out in Clubhouse, we made participating either in the private member area or my.9rules a requirement, part of the membership agreement… If you feel you are contributing by your entries being shown, 9rules is no longer a good fit for you, decline the agreement (or do not respond), remove the leaf from your site and we will remove your site from displaying on 9rules. If you agree but don’t have the time to interact or don’t feel you should (or don’t want to), the participation will become a chore, something you didn’t want to do in the first place. It just won’t work in the long-term so it would be best to decline now…

    Let me be clear – participation in either the new member area or my.9rules is required for all members, requested by members.

    I understand what she’s saying, and I’m not going to argue – but it’s a shame: forced participation would certainly “become a chore” and I’m not going to agree to commit to anything along those lines (I wonder how the level of participation will be measured or assessed?), so this site will be leaving 9rules, sadly, in due course.

    Taking a broader view, in internet terms, 9rules’ move – to more of a ‘walled garden’, turned in on itself – seems very much at odds with the increased openness which has driven the dramatic growth of, say, Facebook. Perhaps 9rules wants ‘quality’ rather than ‘quantity’, but defining ‘quality’ as ‘frequency of participation’ seems to be rather arbitrarily quantitative, if that makes sense. I’m not sure there’s actually any correlation between time spent on interactive banter within a closed community, and creating worthwhile blog content that people want to read: it would seem that time spent on one precludes spending time on the other.

    I hope some of the readers who originally found this site through 9rules will continue to read it (the RSS/Atom feed links are in the sidebar on the right), and I thank 9rules for the extra exposure it gave this site during my time as a member.

    Read More

    All heading the same way

    L.J.K. Setright, the late motoring writer and commentator, self-taught mechanical engineer and all-round Renaissance Man, once wrote:

    Fashion is a terrible fetter; convention, since it lasts longer, is even worse.

    This was in an issue of Car, when it was still any good.

    Setright wrote it in reference to car design, and the lack of progress thereof, but I think we can all see how applicable it is to many fields of endeavour, not just in technology but in society also. We should be very wary when fashions become conventions – or at least we should think them through before they become norms. And we should always leave ourselves a way out. (I’ve mentioned this in a few contexts before, perhaps with a little hyperbole.)

    What almost became a norm – DRM’d music – is now apparently on the way out. DRM was a fashion, not a convention: still a fetter, but one which can ultimately be shaken off, as it should be.

    The great thing about fashions, of course, is that they can be talked into existence, and talked out of existence too. Fashions are not architecture.

    Read More

    Gmail ads related to mp3 being played?

    A few minutes ago I was playing a track in Winamp, with Gmail open in an Opera window, and on refreshing Gmail, the Google ‘web clip’ at the top of the inbox display contained the same phrase, ‘jet stream’, as the track.

    Is that merely a coincidence, or does Gmail monitor what music is being played by a user? I don’t have Google Desktop or Toolbar or any of that installed.

    Read More

    Digital architectures of control

    Some developments in – and commentary on – digital architectures of control to end 2006:

  • Peter Gutmann’s ‘A Cost Analysis of Windows Vista Content Protection’ (via Bruce Schneier) looks very lucidly at the effects that Vista’s DRM and measures to ‘protect’ content will have – on users themselves, and knock-on effects elsewhere. The more one reads, the more astonishing this whole affair is:

    Possibly for the first time ever, computer design is being dictated not by electronic design rules, physical layout requirements, and thermal issues, but by the wishes of the content industry.

    Vista appears to be just about the worst consumer product of all time. However, unlike other discretionary purchases, consumers will have less of a choice: Vista will come with any PC you buy from a major store, and all the hardware manufacturers will have to pass on the extra costs and complexity required to customers, whether or not they intend to use that hardware with Vista. When critical military and healthcare systems start to be run on Vista, we’ll all end up paying.

    As Peter puts it:

    The Vista Content Protection specification could very well constitute the longest suicide note in history

  • In a similar vein, the ‘format wars’ over high-definition video appear to have descended into a farce:

    Basically, what we have is a series of anti-consumer DRM infections masquerading as nothing in particular. They bring only net negatives to anyone dumb enough to pay money for them, and everything is better than these offerings. They sell in spite of the features they tout, not because of them.

    And, of course, HD-DVD encryption has already been “(partially) cracked” as Uninnovate puts it, with that decryption effort being triggered directly as a result of consumer frustration with incompatibility:

    I just bought a HD-DVD drive to plug on my PC, and a HD movie, cool! But when I realized the 2 software players on Windows don’t allowed me to play the movie at all, because my video card is not HDCP compliant and because I have a HD monitor plugged with DVI interface, I started to get mad… This is not what we can call “fair use”! So I decide to decrypt that movie.

  • “Consumers buy only 23 songs per iPod” – clearly, the vast majority of music on iPods and other portable music players has been acquired through CD-ripping or file-sharing, something which we all know, but which has been an elephant in the room for a long time when the industry is discussed (and remember that the Gowers’ Review has only just recommended that ripping CDs be legalised in the UK).

    Of course, Bill Gates also recommends ripping CDs (see also some great commentary from LilBambi on this).

    Andrew Kantor in USA Today has some pragmatic analysis of the situation:

    People want their music without restrictions, and too many legal downloads, like those from iTunes, come with restrictions. You can’t copy them to another player, or you’re limited to how often you can do it, or you have to jump through the hoops of burning your iTunes tracks to CD and re-ripping them to a more useful format… as cellphones with built-in MP3 players gain popularity, users will find themselves up against an entirely new set of usage restrictions. Some subscription services will delete the music from your player when you cancel your subscription.

    Buy a CD or use a program like eMule… and you have no restrictions. And that’s what people want.

    They don’t want to have to match their music store with their music player any more than they want to have to match their brands of gasoline with their brands of car. They want, in short, to be able to use today’s music the same ways they used yesterday’s: Any way they want.

    In fact, the industry’s been down this road before and hit a similar wall. In the first decades of the 20th century, the wax cylinders (and, later, 78rpm disks) on which music was recorded worked only with specific players. Industry attempts to monopolize the technology led only to poor sales.

  • Finally, Microsoft’s Steve Ballmer tells us that in 2007 the consumer will be “back in control”. It doesn’t mean much out of context, nor in the context he used it in fact, but it looks like Doublespeak is alive and well.
  • Read More

    Putfile system requires users to click-through 10 pages of ads

    We’ve discussed deliberately splitting up articles to increase page views before – inspired by Jason Kottke – with some very insightful comments, but the technique used by the free file-hosting site Putfile goes way beyond simply inconveniencing the user.

    Most free hosting sites require multiple clicks, or a minute’s wait before you can actually download the file you want, but Putfile requires you to click through 10 pages before actually reaching the link to the file (it’s not obvious how to hack it: the filenames change each time).

    What makes it rather odd is that the adverts displayed on each of the 10 pages are identical – the same text ads for the same things, in the same order. Am I really more likely to click on one after having looked at multiple instances of it? How positive an incentive is being frustrated?

    (It’s possible that the 10 page click-through might be intended to reduce bandwidth use somehow, as if a significant proportion of users will get bored and give up before actually downloading the file. But if users get that bored and antagonistic towards Putfile, they’ll be less likely to click on Putfile links in the future, which means less ad views.)

    Read More

    @danlockton

    Error: Twitter did not respond. Please wait a few minutes and refresh this page.

    Upcoming talks & events

    I'm speaking or running workshops at:

    Some of my previous presentations

    Comments & trackbacks

    Blog 2005-date