Advertising adds value to a product by changing our perception, rather than the product itself.
Rory Sutherland makes the daring assertion that a change in perceived value can be just as
satisfying as what we consider “real” value -- and his conclusion has interesting consequences for
how we look at life.
What is better?
How do we make a journey to Paris better?
Higher models and give out Champagne and people will want the trip to take longer.
Placebo
What is wrong with placebos?
Introduce Placebo Education
o Education doesn’t actually teach you anything,
o It actually gives you the impression that you’ve learned something, when you actually haven’t.
o Gives you self confidence, which…
o Makes you successful later in life.
How many problems can be solved with trying to change perception rather
than trying to change reality?
Fredrick the Great
2 crops – potato and wheat
Plan A: Tried to make it compulsory.
Plan B: Made it exclusive to the royal family, and made it off limits. However, didn’t enforce the
rules very well.
Maxim: If something is worth guarding, it is worth stealing.
 Before long, there was a massive underground potato growing operation.
 Re-branded the potato
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Mustafa Kemal Atatürk
 Mustafa Kemal Atatürk like French Nicholas Sarcosi wanted to discourage the
wearing of a veil.
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
Boring people would have banned the veil = Kick back and resistance
Atatürk was a lateral thinker. He made it compulsory for prostitutes to wear the
veil.
Aside: Environmental problem solved ~ All convicted child molesters have to drive a Porsche Cayenne, then
no one would drive Porsche Cayenne.
Realization:
1. All value is relative. All value is subjective
2. Persuasion is better than compulsion
i.
signs that show a smiley/frowny face = emotional trigger (cost 10% less, but prevent
twice as many accidents.
ii.
In Italy, penalty points go backwards (loss aversion is a more powerful influence on
people’s behaviour)
Tangible value replacing material value.
Prussians
 Encouraged to give in their jewelry and it was replaced by replica jewelry made of cast iron.
 Cast iron then became higher status.
Intrinsic value vs. Symbolic value.
1.Value: Ubiquitous, classless and minimalistic
 Shakerism
 18th century America: Prohibition against visible displays of wealth was so great…
2. Messaging value: high component of intrinsic value vs. intangible value.
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Denim / Coke /
President of United States can’t get a better coke than the bum on the street.
Monopoly supplier – Dependent Public
1.
2.
3.
4.
5.
6.
User generated content
Mash up – take someone else’s things and do something different with it.
Food 2.0 - Thing you produce with the purpose of sharing it with other people.
Mobile food
Contextual Communication – good within a context, but bad once it is taken out of that context.
Greatest Persuasive Technology – Mobile phone: location specific, contextual, timely and
immediate.
How can we use these tools more intelligently?
 Red button, saves $50 every time you press it.

Impulse buying vs. impulse saving…. Simple a matter of changing the interface.

Saving = consumerism needlessly postponed.
Canada (Shreddies)
 Adding intangible value without changing the product.
 Appreciate what is unfamiliar and appreciate what is already there.
Rory Sutherland stands at the center of an advertising revolution in brand identities,
designing cutting-edge, interactive campaigns that blur the line between ad and
entertainment.