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
Mustafa Kemal Atatürk
Mustafa Kemal Atatürk like French Nicholas Sarcosi wanted to discourage the
wearing of a veil.
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.
Denim / Coke /
President of United States can’t get a better coke than the bum on the street.
Monopoly supplier – Dependent Public
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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.
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