Marketing 101:
http://www.time.com/time/magazine/article/0,9171,1653659,00.htmlWhy we buy
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Enter the world of marketing. The power of name recognition helps explain the multibillion-dollar business of plastering brand names on everything from ballpoint pens to NASCAR racers as well as the thriving cottage industry of reviving brands that have fallen out of mainstream use, like Ovaltine chocolate malt and Westinghouse televisions. "We tend to believe, If I've heard of before, it's probably because it's popular, and popular things are good," says Dan Goldstein, an assistant professor of marketing at London Business School.
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That's true even when the stakes are high. A study published last year looked at how we choose an airline. Researchers at Germany's University of Cologne asked participants to pick between two carriers--one familiar and one unknown. Predictably, an overwhelming number chose the airline they recognized. What was surprising was that many stuck with it even as the researchers gave negative cues about its safety. With three troubling bits of information--like past accidents--67% of study participants remained loyal to the airline they knew.
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When given otherwise identical samples, people say food in brand-name wrappers tastes better.
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