The Scarlet Letter, Part Deux
Tue, 22 May 2001 08:34:38 EDT
In a message dated 5/21/2001 8:22:50 PM, firstname.lastname@example.org 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
>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.