Marketing in the News
Current Faculty Media Headlines
Excerpt from Financial Times -- "In New York, Sam Craig, professor of entrepreneurship and arts and media management at NYU Stern, highlights the power shifts in the industry. 'Control is passing from the firms to the consumer,' he says."
Excerpt from Forbes -- "Researchers Uma R. Karmarkar and Bryan Bollinger report their preliminary findings in their working paper BYOB: How Bringing Your Own Shopping Bags Leads to Treating Yourself, and the Environment."
Excerpt from PsychCentral -- "The researchers, Uma R. Karmarkar, Ph.D., assistant professor of business administration at HBS, and Bryan Bollinger, Ph.D., assistant professor of marketing at New York University’s Leonard N. Stern School of Business, were surprised to find that the influential effects linked to reusable bags were not causal, but seemed to worked in tandem, pushing shoppers in seemingly opposite directions at the same time."
Excerpt from The New Yorker -- "According to a great deal of research, positive fantasies may lessen your chances of succeeding. In one experiment, the social psychologists Gabriele Oettingen and Doris Mayer asked eighty-three German students to rate the extent to which they 'experienced positive thoughts, images, or fantasies on the subject of transition into work life, graduating from university, looking for and finding a job.' Two years later, they approached the same students and asked about their post-college job experiences. Those who harbored positive fantasies put in fewer job applications, received fewer job offers, and ultimately earned lower salaries."
Excerpt from The New York Times -- “'You can make the argument that this is the most powerful social media platform in the world right now,' said Scott Galloway, the founder of L2 and a professor of marketing at New York University’s Stern School of Business."
Excerpt from Poets & Quants -- "Anindya Ghose holds nine 'best paper' awards, the National Science Foundation’s CAREER Award, a Google Faculty Award, and more than a dozen grants from Microsoft, Google, and other corporations. His investigations into the economic consequences of social media, digital advertising, and mobile advertising are his claim to fame. He is an expert in quantifying the economic value of user-generated content on social media; examining the economics of search engine advertising; modeling consumer behavior on the mobile Internet; and measuring the welfare impact of the Internet. When he’s not teaching or producing award-winning academic work, Ghose keeps himself occupied as senior adviser to technology start-ups."
Excerpt from Bloomberg TV -- "It's more challenging for a company to try and express things visually versus text, but we've been listening to words for a few thousand years, reading words for a few hundred years. We've been interpreting images for thousands or even millions of years, whether it was writings on cave walls or looking at how high the sun was in the sky to figure out when we plant our crops, so visuals are really impactful...The rise of the visual web, it's here's and it's happening."
Excerpt from Business Insider -- "We already know that credit cards dull 'the pain of paying' compared to cash, according to a study from NYU’s Stern School of Business, so paying with someone else’s credit card is essentially pain free—and that’s why it’s so dangerous."
Excerpt from The Guardian -- "The key concept here, explored in depth by the psychologist Adam Alter, author of the book Drunk Tank Pink, is 'cognitive disfluency'. When information glides by too frictionlessly, we're liable to find it harder both to understand and to retain."
Excerpt from Canadian Lawyer Magazine -- "A mercurial economy and the many ups and downs of the legal profession are changing the game but law firms, particularly Canadian ones, are not the most agile and responsive. But New York University Stern School of Business professor Luke Williams told an audience at Legal Tech today that this is the type of environment that forces disruptive innovation."
Excerpt from Bloomberg -- "They're going to have to figure out a way to raise prices across a segment of consumers. They're going to start segmenting their high-end consumers and charging them more."
Excerpt from San Jose Mercury News -- "One expert isn't convinced Icahn has much of a chance. Shareholders, said Scott Galloway, professor of marketing at NYU Stern, don't revolt over 'financial engineering.' Apple reports earnings Monday and Cook may address Icahn's proposal."
Excerpt from Bloomberg TV -- "When I got out of business school, the majority of us did pretty well. We made good livings. And now I think the term is, 'it's never been easier to be a billionaire.' Someone in my class of 130 kids, either through alternative investments, or getting on the right technology train...there's a decent chance we'll have a billionaire in those 130 kids in the next ten years. I think also a third of them are going to end up living at home at some point. They're not going to get onto the right job path, not get the right skills, they're going to have student debt that's going to get in the way of them taking risks, and there's a good chance they're really going to struggle. So it's never been harder to be a millionaire in the US, but it's never been easier to be a billionaire. We have this bifurcation of unprecedented proportions."
Excerpt from BBC News -- "Detroit's ties to the auto industry have also lent it an appeal as the 'real man's city', says Scott Galloway, who teaches marketing at New York University's Stern Business School. Detroit 'reeks grit and toughness', he says, an association that is strongly male but can appeal to both sexes. 'Associating with a product that makes you feel manly or masculine is an incredible asset, and right now there is no more macho city than Detroit.'"
Excerpt from AP TV -- "'The Baby Boomer story is a simple story. They look back to their past with rose-tinted glasses. Everything that happened when they were young was wonderful,' said Priya Raghubir, professor of marketing at New York University."
Excerpt from Edge.org -- "The worship of parsimony is understandable in the natural sciences, where it sometimes does happen that a single law or principle, or a very simple theory, explains a vast and diverse set of observations. Newton's three laws really do explain the movements of all inanimate objects. Plate tectonics really does explain earthquakes, volcanoes, and the complementary coastlines of Africa and South America. Natural selection really does explain why plants, animals, and fungi look as they do. But in the social sciences, the overzealous pursuit of parsimony has been a disaster."
Excerpt from The Atlantic Cities -- "According to Scott Galloway, a marketing professor at the NYU Stern School of Business, naming rights for big city infrastructure is actually not a bad sell. It comes with the guarantee that millions of people will see the brand on a more permanent basis. Galloway says his gut is that a lot of companies might want to purchase naming rights for things like mass transit, they’re just not sure how much they're really worth."
In a recent article, NYU Stern Professor C. Samuel Craig explores how culture and cultural products – film, television, music, dance, opera, fashion and art – are created and consumed. Referencing more than 40 papers on the topic, he examines the role of cities, context and technology in fostering the creation of culture.
Excerpt from Forbes -- "Look now for Ahrendts to bring her tech-enhanced fashion acumen to Apple, which could mean an expansion of the brand to apparel and accessories such as handbags, jewelry and watches, said Scott Galloway, founder of digital think tank L2. It’s all part of Apple’s unstated bid to be the global prestige brand of record, Galloway told me in October."
Excerpt from The New Yorker -- "For each point of C.E.O. attractiveness on the ten-point scale, a company gained, on average, a one-percent boost to its stock price. This suggests that the benefits of attractiveness radiate far beyond a single individual. Research suggests not only that attractive people enjoy higher incomes but that the shareholders who invest in their companies profit as well."
Excerpt from The New Yorker -- "Easterners are puzzled by the Western preoccupation with the number 13, but many people in... East Asian countries similarly fear the number four. One analysis, to be published late next year, found that U.S. copper, cotton, and soybeans experience lower commodities-market returns on the fourth day of each month, when superstitious Chinese brokers prefer to postpone their trading decisions. Both Samsung and Nokia avoid cell phone-model numbers containing the digit four..."
Excerpt from iVillage -- "Anindya Ghose, an NYU professor who studies consumer reviews, said Vine members might review things more positively than people who had to pay for their stuff. 'As humans we are hard- wired to give in to this sort of enticement where if you continuously get things for free, then you're more likely to be biased positively than biased negatively,' he said."
Excerpt from Bloomberg TV -- "If you become more data-driven, you start thinking about a younger consumer, you understand emerging technologies and platforms...those kinds of skills lend themselves well to all kinds of things in addition to ecommerce. So what we're seeing is the firms that are really committing to strong digital have this sort of rising-tide effect across the entire enterprise and we're seeing it linked to greater shareholder returns. So digital is moving to the center and firms are really thinking about, 'How do we make this part of our culture?'"
Excerpt from Forbes India -- "China is the second-largest economy in the world. Chinese companies are becoming larger so it’s only natural that they would want to expand out of the country. It’s a process of evolution. But there is a major challenge in going from a domestic market to an international market. The domestic market has a lot of fixed variables such as government policies and economic policies for competition. But when you globalize, you have to get used to the dynamics of the global marketplace, a lot of moving parts, and it’s very hard to do that."
Excerpt from The Weather Channel -- "'Our research suggests to rely less on end-of-world scenarios and to emphasize instead the various ways in which our country – and our planet – has a rich and long history that deserves to be preserved,' said NYU Stern researcher Hal Hershfield, Ph.D., in a press release. 'By highlighting the shadow of the past, we may actually help illuminate the path to an environmentally sustainable future.'"
Excerpt from Bloomberg TV -- "The top 20% of income-earning households control 80% of the wealth. And, effectively, Apple controls those people from a technology standpoint. So while everyone's talking about Apple pricing too high and how Android has taken a ton of market share away, the reality is almost everyone that matters, at least economically, is carrying an Apple product. And also, moving to the tablet, three-quarters of the sales done off the iOS platform were done off of tablets, specifically Apple tablets."
Excerpt from The New Yorker -- "When you remind people that they’re deprived, they become drawn to whatever happens to be scarce nearby, as though possessing a scarce object corrects the imbalance. Of course, nature also plays a role in determining how people respond to scarcity, as do a number of other factors. Yet a lifetime of waiting also appears to teach you to snatch fleeting opportunities that other people might ignore."
Excerpt from The New York Times -- “'You can connect a brand to a product,' he said, 'but branding today is a lot more about emotional attachment.'”
Excerpt from NPR -- "Our thinking is that the countries who have a longer past are better able to see farther forward into the future and think about extending the time period that they've already been around into the distant future. And that might make them care a bit more about how environmental outcomes are going to play out down the line."
Excerpt from Marketplace -- “'Some of these products, DVD players for $9.99, certain video games and so forth, those attract the right kind of people, so that’s where the competition is,' says Vishal Singh, marketing professor at New York University’s Stern School of Business. Singh says shopper data show people pick up other things along with those video games, making up for the markdowns. Price combat takes a toll on companies. But there’s a key difference from real war. Civilian bystanders in price wars do well."
Excerpt from Mobile Commerce Daily -- "During the 'Mapping the mobile path-to-purchase' session, a professor from UNC Kenan-Flagler along with executives from Sequent Partners and Kantar Retail discussed how mobile impacts consumers’ daily lives and how retailers can integrate mobile into both in-store and online efforts."
Excerpt from Bloomberg TV -- "We talked about [Alan] Mulally being the favorite candidate [for CEO] because he's a turnaround guy. But the question here is, is Microsoft really a turnaround? They missed the three biggest innovations. They missed social, they missed mobile and they missed search. But meanwhile... revenue is up fourfold and profit's up double. Is this really a turnaround or is it a company that needs better vision and more innovation?"
Excerpt from Mobile Marketer -- “'Mobile ads often get a bad flack,' said Anindya Ghose, professor at NYU Stern School of Business, New York. 'Every now and then you’ll hear that mobile ads don’t work. 'Oftentimes we’re missing the fact that mobile ads can lead to clicks on mobile devices but the final conversion might happen on PC,' he said. 'There are these spillovers that are important for us to quantify. If you only look at attribution through one channel you don’t get the whole story.'"
Excerpt from Crain's New York -- "'[Hearst] is sort of the General Electric of the media business,' said Scott Galloway, a professor of marketing at the NYU Stern School of Business. 'They produce, recruit and support very competent managers.'"
Excerpt from The New Yorker -- "Why do investors, many of whom painstakingly dissect reams of data to understand companies’ finances, also base their decisions in part on a stock’s ticker symbol? The answer is that reading pronounceable ticker symbols is slightly less mentally taxing; people generally prefer objects and events that are more 'cognitively fluent,' or easier to process."
Excerpt from Forbes -- "Galloway, who is also clinical professor of marketing at the NYU Stern School of Business, where he teaches brand strategy and luxury marketing, said he expects Apple to expand into product categories such as apparel, handbags, jewelry, sunglasses, watches and even luggage."
Excerpt from Bloomberg TV -- "I think they could be profitable now. A lot of people have said this is a company losing a lot of money and they kind of slam their organization for it, but this is a great business model. You come up with great technology, and you get a sales force, and then you and me provide the content for free, so I think they could be doing 30 or 40% EBITDA right now, but they are plowing a ton of money back into the business to try and grow the same way LinkedIn was when it went public."
Excerpt from Big Think -- "If you look across the world, the color blue is the world's favorite color. And that's a very powerful thing to know if you're going to color products, and almost all products now have colors, that almost everywhere in the world, in extensive interviews, people prefer the color blue to other colors."
Excerpt from The Baltimore Sun -- "Luke Williams, executive director of the Berkley Center for Entrepreneurship & Innovation at New York University's Stern School of Business, figures a lot of people buy certain razors out of habit. He's used Gillette's Mach3 for a long time. But he said 'little tension points,' like customers annoyed about the price of something they use every day, can be fruitful for businesses to exploit. Established players ignore such competition at their own peril, he said. 'Every business is a Kodak, I like to say,' he said, referring to the film and camera pioneer that had to restructure itself in bankruptcy court after the digital revolution. 'And Gillette is no different.'"
Excerpt from Luxury Daily -- “'Apple is about to crash the party,' Mr. Galloway said. 'Why wouldn’t [Apple] migrate to [luxury]?...The move gives consumers a chance to express their affinity for Apple with something other than [technology],' he said."
On November 6-7, L2 and NYU Stern hosted the 5th annual Innovation Forum at the TimesCenter in New York City.
Excerpt from MIT Technology Review -- "Research shows that people weigh these disadvantages [of online shopping] against the benefits of buying online. Along with colleagues Chris Forman and Anindya Ghose, I examined what happened to Amazon’s book sales at 1,497 U.S. locations when a Walmart or Barnes & Noble opened nearby. We found that customers who lived near the newly opened stores bought many fewer best-sellers from Amazon."
Excerpt from WIRED Italy -- (Translated from Italian using Google Translate) "It's a process that starts with what I call disruptive hypothesis. Taking a question that nobody gets in your industry. Innovation is asking the right questions. If you ask an obvious question, you will have an obvious answer. Usually companies seek opportunities and only then formulate hypotheses about how to reach them... They need to reverse the process and start with a hypothesis that is unpredictable and then find the unexpected benefits that can bring. We must not think of solutions as predictable, but rather of unreasonable provocations."
Excerpt from Bloomberg TV -- "There's a group of salespeople calling on advertisers selling them ads on the Amazon platform and the Kindle platform. They also own IMDB and several other sites, so they're like Yahoo or AOL or Facebook. They're selling ads on their platforms."
Excerpt from NPR -- "Anindya Ghose, an NYU professor who studies consumer reviews, said Vine members might review things more positively than people who had to pay for their stuff. 'As humans we are hard-wired to give in to this sort of enticement where if you continuously get things for free, then you're more likely to be biased positively than biased negatively,' he said."
Excerpt from Psychology Today -- "There’s a fundamental asymmetry between the past and the future: the past represents a collection of definitive events, while the future is unpredictable, unknown, and not fixed. The authors reasoned that people who more actively seek out risk in their daily lives would also be more likely to want to travel to the 'less known and predictable future, relative to the more familiar and more predictable past.'”
Excerpt from Forbes -- "Adam Alter, assistant professor of marketing at New York University and co-author of the study, told me by email that 'people who were made to feel deprived, even briefly, were more likely to cheat for small sums of money.' This he says accounts for everyday crimes like workplace pilfering, whether it’s money from the cash drawer or pocketing office supplies."
Excerpt from Xinhua -- "'I think the overall idea is a good one that it would allow entrepreneurs to raise capital in a much broader way than previously possible by widely advertising their project,' said Anindya Ghose, a professor at New York University's Stern School of Business. 'In a sluggish economy, this makes a big difference. Direct solicitations through social media and internet definitely raise the scope and scale of crowdfunding,' said Ghose, who is also the co-director of the Center for Business Analytics at NYU Stern."
Excerpt from Vogue Italia -- (Translated from Italian using Google Translate) "A study conducted by Professor Hal E. Hershfield, of the New York University Stern School of Business, overturns the theory that the bad feelings would have deleterious effects."
Excerpt from Bloomberg TV -- "I don't think there's a lot more than meets the eye...I think they want to migrate people or incent them to go to Amazon Prime which has actually become pretty much a big hit for them, a big win... Supposedly about a third of their operating profit comes from Prime customers and it's taken off -- over ten million of them -- so I think they're trying to move them up to Amazon Prime."
Excerpt from Marketplace -- “'Effectively what’s going on here is Amazon is disrupting the entire retail industry,' Galloway says. According to Galloway, eBay is trying to compete with Amazon’s Prime service, which offers free two day shipping to its members. While Amazon is trying to sell more of its customers on Prime where for $79 a year, customers get free shipping. Galloway says Prime is a great deal, for Amazon. 'What Amazon prime really is, is an entry point or membership into the Amazon franchise.'”
Excerpt from Bloomberg TV -- "Apple had an opportunity to own this market. If they had reduced their margins, they could have made it almost impossible for anyone to come in here and instead they've created a ton of delicious margin that has attracted a ton of great competitors. I think that this was a huge error."
Excerpt from Forbes -- "What’s more, consumers are also more willing to spend lower-denomination bills than bills of higher denomination. That is, our brains find it easy to break $5s, $10s and even $20s but will balk at breaking a $50 or $100. This is because the smaller bills are a psychological equivalent of a petty cash account, and so spending them is much more justifiable."
Excerpt from The New Yorker -- What makes Banksy's subversive stunt so compelling is that it forces us to acknowledge how incoherently humans derive value. How can a person be willing to pay five hundred times more than another for the same art work born in the same artist’s studio?"
Excerpt from Bloomberg TV -- "The conjecture is that she's been offered the successor spot. I think it's actually bigger than that. I think what they've told her is that in the next few years, Apple is going to be the world's dominant luxury fashion brand and they want her to spearhead those efforts. I think this is a big signal of a pivot or a complement in Apple strategy."
In a new study, NYU Stern Professor Adam Alter and his co-authors, Stern alumnus Eesha Sharma (PhD '13) of Dartmouth College, Dan Ariely of Duke University and Nina Mazar of the University of Toronto, find that people believe financial constraints should not excuse immoral conduct. However, when people actually feel worse off financially, they loosen their own moral standards to redress the perceived unfairness of their situation.
Excerpt from Bloomberg TV -- "In developed markets, who drives luxury? Affluent people. In emerging markets, it's actually middle-class consumers. The average luxury consumer in the U.S. has $175,000 in income, she's 53 and it is a she. She spends $3,000 a year on handbags. The average luxury consumer in China makes $17,000, is 33 and spends $2,000 on handbags. The emerging middle class in these developing markets loves luxury."
Excerpt from The Wall Street Journal -- "Executives in the class will identify and challenge conceptual frameworks about products and pricing that have restricted their creativity and have kept them thinking about business the same way for years. For example, if a cellphone doesn't work, a traditional assumption would be that its battery needs to be recharged. Mr. Williams wants his students to reject traditional assumptions and think in terms of 'unreasonable provocation'—thoughts that will get creative juices flowing. A better question, he says, could be why a cellphone needs a battery at all."
Excerpt from Bloomberg TV -- "There's only really been one platform that I would argue has the most robust revenue model that's been able to charge their users, and that's LinkedIn. LinkedIn gets 53% of their revenue from the tools that recruiters use, 20% from people like you and me who want to InMail more people, and then 23% from advertising, so they're really the only platform that's been able to charge users."
Excerpt from Crain's New York -- "'It isn't possible to sustain the type of growth rate you see early on with startup companies, yet management grows up in an environment where they expect to,' said Jeffrey Carr, clinical professor of marketing and entrepreneurship at NYU Stern School of Business, noting that even big companies, such as Apple and Microsoft, can run into problems managing growth."
Excerpt from Bloomberg TV -- "I think these guys [at Twitter] have carved out a really nice niche for themselves, and again to go from 30 million to half a billion [in revenue] in three years? This is an impressive company. One of the things to mention: 2,000 employees. They've been hiring 50 people a month for the last three years."
Excerpt from The New York Times -- "The best science book I read was Adam Alter’s 'Drunk Tank Pink,' which is a really provocative look at how much our behavior is contextually determined."