The IKEA Effect

How many of you have been very proud of something that you have worked really hard on?  You should be, right? Of course it is right. But IKEA has made a great business of this knowledge. It is known that when we put effort into something, we are more likely to like it....more likely to feel pride and to feel competence.

Simply put (I'm not trying to imply that the underlying effects are truly simple), we fall in love with things that we help to create. Yes, we also fall in love with things that our children create (see poorly constructed ceramic vase/ashtray/cereal bowl/whatchamacallit on your parents' buffet).....

IKEA (among others) have it figured out. They save on labor, can ship things in a very compact way, allow the consumer to take pride in construction and to ultimately love the product more than if it had been bought ready-made. Bonus.

Truth in Advertising

Courtney shared a graphic with me the other day that spoke to our topic discussed earlier in the semester of being misled by marketing. It is, no doubt, irritating to consumers to be shown one thing and to receive something that looks (a bit?) different.

What are your thoughts on the differences between what is pictured (advertised) and what is ultimately given to the consumer? Isn't it the marketers' responsibility to make their product(s) look as attractive as possible when promoting? Discuss.

Social Seating?

Do you want to know who you're about to sit next to on the airplane?  Would you go so far as to sign up for a "Seat and Meet" social networking site in order to pick who you'll be sitting next to?  Business contacts?  Potential dates?

That is what two airlines are proposing.  KLM Royal Dutch Airlines and Malaysia Airlines are allowing passengers to share their social profiles and photos prior to boarding, in order to have a greater probability of sitting next to someone that they share interests with/are attracted to.  At this point it is definitely an opt-in program and your profile gets deleted at the end of the flight.  Still....



What are your thoughts on this?

Digitally Amputating Limbs?

What are your thoughts on the ad from New York's health department's attempt to get people to eat less?  In an effort to get people to choose smaller portions, this ad was created. The man's leg was digitally amputated. 

Do you think the ad is impactful?  Will it have the intended effect?  Should the ad agency have found someone who actually suffered from diabetes and who actually had their leg amputated or does it not make a difference?

Message from Patagonia: Buy Less

Can a consumer goods company make a profit while making a difference?  We've been looking at that question all semester.  We have looked at many corporations that have an interest in social responsibility and "do good" for the community around them.  What we haven't seen yet (until now) is a company that actually tells you to buy less of their product.  Enter Patagonia. 

Patagonia is asking their customers to "Reduce What you Buy" and are "encouraging their customers to reduce, repair, reuse, and recycle their clothing and equipment." At first glance this might seem as though it would hurt their bottom line, but Patagonia is banking on it doing just the opposite.

They are partnering with eBay in this endeavor.  Yes, you need to read the linked articles to understand the business plan, but once you read it I have a couple questions for you:

What are your thoughts on this?  Can Patagonia make a go of this?  Could other companies do the same?   Does the company that tries this need to have a certain "mindset" before they could be successful at it?

Adieu Foie Gras

Foie gras will become illegal in California in July 2012, so eat up now....if you so choose.  Foie gras, a delicacy popularized in France but eaten by many who desire luxury in fine dining, is a dish made from the liver of ducks and geese that has been specially fattened.

The liver is made fatty by a forced feeding (gavage) of the ducks and geese in the last 12-15 days of their lives, by inserting a tube down their throat which forces the food (corn mash) directly into their stomach, thereby fattening up the liver. This tube is said to not hurt the animal. 

Foie gras has been banned in certain areas before, notably in 2006 in Chicago.  The ban there lasted two years before protestors had it brought back on the market.

Do you think the California ban of 2012 will stand?  Would you support the ban or are you against banning foie gras?  

Fat tax

"On Saturday, Denmark became the first country in the world to introduce a "fat tax," surcharge on unhealthy foods that are high in saturated fat in hopes of curbing bad eating habits."

Everything that contains more than 2.3% saturated fat (bacon, butter, pizza, oil, red meat, cheese, milk etc.) will have an extra $1.28 per pound ($2.87 per kilogram) of saturated fat added to the price.  They are doing this in order to fight the rate of obesity in their country and to encourage healthier eating.  The money that is raised by this additional tax will be used to educate consumers and other obesity-fighting measures.

What are your thoughts on this?  Is it right for the government to try to mandate healthier eating?  Is it fat that is the culprit?  What about taxing sugars and refined carbohydrates as well (or instead)?   Do you think that other countries will follow?

Economist Steve Sexton says that instead of taxing food that is fat, we should tax people who are fat.  He lays out a way for doctors to report to the government who is fat and who is not (allowing for genetic per-disposition) and then levying a tax on those individuals.  Thoughts on this?