It used to be that if you were selling consumer goods your field of play was limited to the shelf space immediately to the right and left of your item. People could compare packaging, price and quantity to determine if your item was worth their money and attention. In Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information, Stanford professor Itamar Simonson and best-selling author and executive Emanuel Rosen discuss what is causing the shift from relative to absolute value and how your company can make an impact. This book is now available as a Soundview Executive Book Summary.
Simonson and Rosen do an excellent job of compressing and presenting a mountain of research into concepts executives can absorb in a timely manner. The pair begin by presenting the new patterns in consumer decision making. One particular point of interest is the authors’ suggestion that there is a decline in the belief that marketers can cause buyers to act in “irrational” ways. As the pair write, “The relevance of these influence tactics has diminished in a world where people can easily assess quality. On average, better decisions are being made based on the information that’s available.”
Absolute Value then takes readers into a new framework for influence. Executives will want to spend a portion of time considering the ideas presented in a section on the Influence Mix. Simonson and Rosen write that three sources can impact a person’s decision to buy: prior experiences, preferences and beliefs, other people/information, and marketers. One of the most beneficial sections in the book pertains to matching your communication method to the customer’s influence mix. In a book filled with forward-looking insights, the authors’ advice will help guide marketing professionals into the next shift in commerce.