The Scarlet Letter, Part Deux

ThosStew@aol.com ThosStew@aol.com
Tue, 22 May 2001 08:34:38 EDT


In a message dated 5/21/2001 8:22:50 PM, deafbox@hotmail.com writes:

>Of course, this revenue gain is purely on the margin.
>There is no *real* gain, since all the competitors are
>warring with the same pixie dust. 


this is where your anaology breaks down. you are assuming there is NO product 
differentiation, and also assuming that consumers place no economic value on 
trust. Both assumptions are false for almost any product that is advertised. 

> what about the content free advertising that works on the principle that 
people
>memetically prefer products whose names they've seen or
>heard repeated, repetitively, again and again

"Mankind are more disposed to bear those ills they have, than fly to others 
that they know not of." Brand and customer loyalty are good things, creating 
desires and obligations on both sides (witness what happend to Coke when it 
fucked with its brand promise) in the pursuit of a deal: The consumer 
agrees--remember, it is his or her choice--to pay a premium for a product, 
including the cost of advertising, to reduct uncertainty. 


Tom