Wednesday, August 16, 2006

Report: Google Coupons Threatens Newspapers

A NEW GOOGLE PROGRAM THAT allows merchants to create printable coupon pages linked to their Google Maps entry potentially threatens the $1.1 billion that coupon advertisers spend in newspapers, according to a report released Tuesday by Merrill Lynch. But the impact likely won't be felt in the short-term, because the early users of the service will probably be small self-service marketers, predicted the investment house. "We think the near term impact is minimal, but longer term we have some serious concern," stated the report.

Monday, August 14, 2006

Influence

By Robert B. Cialdini, Ph.D.

Introduction

Robert Cialdini is a Professor of Psychology at Arizona State University and has spent many years devoted to the scientific investigation and research of persuasion techniques. His book " Influence" has become a classic. Within his book Cialdini lists six basic social and psychological principles that form the foundation for successful strategies used to achieve influence.

Those six principles are:

Rule of Reciprocity

According to sociologists and anthropologists, one of the most widespread and basic norms of human culture is embodied in the rule of reciprocity. This rule requires that one person try to repay what another person has provided. By obligating the recipient to an act of repayment in the future--the rule for reciprocation allows one individual to give something to another with the confidence that it is not being lost.

This sense of future obligation according to the rule makes possible the development of various kinds of continuing relationships, transactions, and exchanges that are beneficial to society. Consequently, virtually all members of society are trained from childhood to abide by this rule or suffer serious social disapproval.

The decision to comply with someone's request is frequently based upon the Rule of Reciprocity. Again, a possible and profitable tactic to gain probable compliance would be to give something to someone before asking for a favor in return.

The opportunity to exploit this tactic is due to three characteristics of the Rule of Reciprocity:

The rule is extremely powerful, often overwhelming the influence of other factors that normally determine compliance with a request.
The rule applies even to uninvited first favors, which reduces our ability to decide whom we wish to owe and putting the choice in the hands of others
The rule can spur unequal exchanges. That is--to be rid of the uncomfortable feeling of indebtedness, an individual will often agree to a request for a substantially larger favor, than the one he or she first received.

Another way in which the Rule of Reciprocity can increase compliance involves a simple variation on the basic theme: instead of providing a favor first that stimulates a returned favor, an individual can make instead an initial concession--that stimulates a return concession.

One compliance procedure, called the "rejection-then-retreat technique", or door-in-the-face technique, relies heavily on the pressure to reciprocate concessions. By starting with an extreme request that is sure to be rejected, the requester can then profitably retreat to a smaller request--the one that was desired all along. This request is likely to now be accepted because it appears to be a concession. Research indicates, that aside from increasing the likelihood that a person will say yes to a request--the rejection-then-retreat technique also increases the likelihood that the person will carry out the request a will agree to future requests.

The best defense against manipulation by the use of the Rule of Reciprocity to gain compliance is not the total rejection of initial offers by others. But rather, accepting initial favors or concessions in good faith, while also remaining prepared to see through them as tricks--should they later be proven so. Once they are seen in this way, there is no longer a need to feel the necessity to respond with a favor or concession.

Commitment and Consistency

People have a desire to look consistent through their words, beliefs, attitudes and deeds and this tendency is supported or fed from three sources:

Good personal consistency is highly valued by society.
Consistent conduct provides a beneficial approach to daily life.
A consistent orientation affords a valuable shortcut through the complexity of modern existence. That is-- by being consistent with earlier decisions we can reduce the need to process all the relevant information in future similar situations. Instead, one merely needs to recall the earlier decision and respond consistently.

The key to using the principles of Commitment and Consistency to manipulate people is held within the initial commitment. That is--after making a commitment, taking a stand or position, people are more willing to agree to requests that are consistent with their prior commitment. Many compliance professionals will try to induce others to take an initial position that is consistent with a behavior they will later request.

Commitments are most effective when they are active, public, effortful, and viewed as internally motivated and not coerced. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand. The drive to be and look consistent constitutes a highly potent tool of social influence, often causing people to act in ways that are clearly contrary to their own best interests.

Commitment decisions, even erroneous ones, have a tendency to be self-perpetuating--they often "grow their own legs." That is--those involved may add new reasons and justifications to support the wisdom of commitments they have already made. As a consequence, some commitments remain in effect long after the conditions that spurred them have changed. This phenomenon explains the effectiveness of certain deceptive compliance practices.

To recognize and resist the undue influence of consistency pressures upon our compliance decisions--we can listen for signals coming from two places within us--our stomach or "gut reaction" and our heart.

A bad feeling in the pit of the stomach may appear when we realize that we are being pushed by commitment and consistency pressures to agree to requests we know we don't want to perform.

Our heart may bother us when it is not clear that an initial commitment was right.

At such points it is meaningful to ask a crucial question, "Knowing what I know now, if I could go back, would I have made the same commitment?"

Social Proof

One means used to determine what is correct is to find out what others believe is correct. People often view a behavior as more correct in a given situation--to the degree that we see others performing it.

This principle of Social Proof can be used to stimulate a person's compliance with a request by informing him or her that many other individuals, perhaps some that are role models, are or have observed this behavior. This tool of influence provides a shortcut for determining how to behave. But at the same time it can make those involved with using this social shortcut--vulnerable to the manipulations of others who seek to exploit such influence through such things as seminars, group introduction dinners, retreats etc. Group members may then provide the models for the behavior that each group plans to produce in its potential new members.

Social proof is most influential under two conditions:

Uncertainty--when people are unsure and the situation is ambiguous they are more likely to observe the behavior of others and to accept that behavior as correct
Similarity--people are more inclined to follow the lead of others who are similar.

Some recommendations on how to reduce susceptibility to contrived social proofs would include a greater sensitivity to clearly counterfeit evidence. That is--what others are doing and their behavior should not form a sole basis for decision-making.

Liking

People prefer to say yes to individuals they know and like. This simple rule helps to understand how Liking can create influence and how compliance professionals may emphasize certain factors and/or attributes to increase their overall attractiveness and subsequent effectiveness. Compliance practitioners may regularly use several factors.

Physical attractiveness--is one feature of a person that often may help to create some influence. Although it has long been suspected that physical beauty provides an advantage in social interaction, research indicates that this advantage may be greater than once supposed. Physical attractiveness seems to engender a "halo" effect that extends to favorable impressions of other traits such as talent, kindness, and intelligence. As a result, attractive people are more persuasive both in terms of getting what they request and in changing others' attitudes.

Similarity--is a second factor that influences both Liking and compliance. That is--we like people who are like us and are more willing to say yes to their requests, often without much critical consideration.

Praise--is another factor that produces Liking, though this can sometimes backfire when they are crudely transparent. But generally compliments most often enhance liking and can be used as a means to gain compliance.

Increased familiarity--through repeated contact with a person or thing is yet another factor that normally facilitates Liking. But this holds true principally when that contact takes place under positive rather than negative circumstances. One positive circumstance that may works well is mutual and successful cooperation.

A final factor linked to Liking is often association. By associating with products or positive things--those who seek influence frequently share in a halo effect by association. Other individuals as well appear to recognize the positive effect of simply associating themselves with favorable events and distancing themselves from unfavorable ones.

A potentially effective response that reduces vulnerability to the undue influence of Liking upon decision-making requires a recognition of how Liking and its attending factors may impact our impression of someone making requests and soliciting important decisions. That is-- recognizing how someone making requests may do inordinately well under certain circumstances--should cause us to step back from some social interaction and objectively separate the requester from his or her offer or request. We should make decisions, commitments and offer compliance based upon the actual merits of the offer or request.

Authority

In the seminal studies and research conducted by Milgram regarding obedience there is evidence of the strong pressure within our society for compliance when requested by an authority figure. The strength of this tendency to obey legitimate authorities is derived from the systematic socialization practices designed to instill in society the perception that such obedience constitutes correct conduct. Additionally, it is also frequently adaptive to obey the dictates of genuine authorities because such individuals usually possess high levels of knowledge, wisdom, and power. For these reasons, deference to authorities can occur in a mindless fashion as a kind of decision-making shortcut. When reacting to authority in an automatic fashion there is a tendency to often do so in response to the mere symbols of authority rather than to its substance.

Three types of symbols have been demonstrated through research as effective in this regard:

Titles
Clothing
Automobiles.

In separate studies investigating the influence of these symbols--individuals that possessed one or another of these symbols, even without other legitimizing credentials, were accorded more deference or obedience by those they encountered. Moreover, in each instance, those individuals who deferred and/or obeyed these individuals underestimated the effect of authority pressures upon their behavior.

Asking two questions can attain a meaningful defense against the detrimental effects of undue influence gained through authority.

Is this authority truly an expert?
How truthful can we expect this expert to be?

The first question directs our attention away from symbols and toward actual evidence for authority status. The second advises us to consider not just the expert's knowledge in the situation, but also his or her trustworthiness. With regard to this second consideration, we should be alert to the trust-enhancing tactic in which a communicator may first provide some mildly negative information about himself or herself. This can be seen as a strategy to create the perception of honesty--making subsequent information seem more credible to those listening.

Scarcity

According to the Principle of Scarcity--people assign more value to opportunities when they are less available. The use of this principle for profit can be seen in such high-pressure sales techniques as only a "limited number" now available and a "deadline" set for an offer. Such tactics attempt to persuade people that number and/or time restrict access to what is offered. The scarcity principle holds true for two reasons:

Things difficult to attain are typically more valuable. And the availability of an item or experience can serve as a shortcut clue or cue to its quality.
When something becomes less accessible, the freedom to have it may be lost.

According to psychological reactance theory, people respond to the loss of freedom by wanting to have it more. This includes the freedom to have certain goods and services. As a motivator, psychological reactance is present throughout the great majority of a person's life span. However, it is especially evident at a pair of ages: "the terrible twos" and the teenage years. Both of these periods are characterized by an emerging sense of individuality, which brings to prominence such issues as control, individual rights, and freedoms. People at these ages are especially sensitive to restrictions.

In addition to its effect on the valuation of commodities, the Principle of Scarcity also applies to the way that information is evaluated. Research indicates that the act of limiting access to a message may cause individuals to want it more and to become increasingly favorable to it. The latter of these findings, that limited information is more persuasive--seems the most interesting. In the case of censorship, this effect occurs even when the message has not been received. When a message has been received, it is more effective if it is perceived to consist of some type of exclusive information.

The scarcity principle is more likely to hold true under two optimizing conditions

Scarce items are heightened in value when they are newly scarce. That is things have higher value when they have become recently restricted--more than those than those things that were restricted all along have.
People are most attracted to scarce resources when they compete with others for them.

It is difficult to prepare ourselves cognitively against scarcity pressures because they have an emotional quality that makes thinking difficult. In defense, we might attempt to be alert regarding the sudden rush of emotions in situations involving scarcity. Perhaps this awareness may allow us to remain calm and take steps to assess the merits of an opportunity in terms of why we really want and objectively need.

This is based upon the summary notes within the book--
Influence. By Robert B. Cialdini, Ph.D. (Quill, NY, 1984 (Revised 1993)

Road Trip Reveals Increasingly Familiar Landscape

The New York Times
New York Times advertising columnist Stuart Elliott is back from a three-week, 16-state, 3,989-mile road trip, and reports the country is growing increasingly homogenized. But he found a few surprises. Trend #1: Higher-priced, better-quality products are becoming part of the mainstream. Starbucks is now as common at Interstate rest stops as the fast-food mainstays. Motel chains are stocking upscale toiletries. Billboards peddle high-end brands like Pom Wonderful pomegranate beverages and Rolex and Breitling watches. Trend #2: High tech is penetrating the heartland. Free high-speed Internet access, free wireless and Wi-Fi hot spots are available at lower-priced motel chains like Quality Inn and Super 8. Meanwhile, a paucity of ads for overpriced gasoline is counterbalanced by a considerable amount of marketing for religion. One billboard on I-75, south of Gainesville, Fla., read: "The narrow road leads to life eternal. The broad road to hell. Which road are you on?" - Read the whole story...

SideStep taps VFM Interactive for rich media content

August 14, 2006

SideStep announced today the addition of virtual tours, video and other rich media from VFM Interactive into its Hotels category.

The seamless integration of VFM's hotel content and rich media visuals within the hotel comparison shopping path allows consumers the opportunity to select and view more highly detailed visuals to learn more about the unique features of a specific hotel property.

"SideStep is continually focused on offering the best user experience, and the addition of VFM's high-quality portfolio of rich digital media content furthers the level of comfort for any consumer looking to book a hotel online," said Rob Solomon, CEO, SideStep, Inc. "We're thrilled to incorporate video content that ensures consumers can fully explore the options that best fit their individual preferences and budget."

"Rich media is a critical component of travel shopping since consumers want a tangible preview into their upcoming travel experience," said Paolo Boni, president and CEO of VFM Interactive. "We're delighted to work with SideStep as it's a terrific resource for those who book travel online. SideStep allows for easy comparisons of hotels - beyond just price and location - to find the perfect hotel with the range of services and amenities that will contribute to their overall travel experience."

VFM's library of hotel information and visuals is regularly updated by working directly with its 10,000 hospitality clients, representing the largest chains and independent properties, to ensure that the descriptions and visual marketing components, such as photographs, virtual tours and videos, are up-to-date and the most relevant for the consumer.

Friday, August 11, 2006

Wednesday, August 09, 2006

Online Travel Worldwide: A Mosaic of Separate Markets

Flight delays grow by the hour, ticket prices have soared (mostly due to increased fuel costs), and security issues remain at the forefront of the travel industry--and yet online travel consumers in the U.S. are poised to spend some $122 billion by 2009, according to a recent report from eMarketer.

The report, "Online Travel Worldwide: A Mosaic of Separate Markets," identifies the U.S. as the global leader in online travel expenditures. U.S. leisure and corporate travel consumers will spend $122.4 billion by 2009, up from $64.9 billion last year, while European travelers spent $35.5 billion online in 2005 . And, the Asia-Pacific region, now one-quarter the size of the U.S. market, reaped $15.9 billion in 2005, but is poised for growth in upcoming years.

The report's demographic studies of travelers in the U.S., Europe, and the Asia-Pacific region show the emergence of an older generation of travelers: baby boomers (ages 45 to 60), who are healthy, adventurous and affluent, as well as Internet-savvy. "Online travel distributors and marketers who pay attention to these customers and design travel offers matching their interests and needs will reap rewards," said Jeffrey Grau, eMarketer's senior analyst and author of the report, in a statement.

The U.S. represents the most mature travel market, but growth is slowing, while southern and eastern Europe have untapped potential. The four fastest-growing travel markets over the next four years are China, South Korea, India, and Japan, the report finds. China, with projected travel spending growth of 18.3 percent to 2010, will rise from seventh place to fourth place in personal and business travel spending among the world's 16 largest economies.

The report indicates that searching for flights and comparing fares is relatively easy on the Web, making online travel planning and buying a natural. The report also notes that 21 percent of respondents to a 2005 ACNielsen survey of over 21,000 Internet users in 38 countries worldwide reported that airline tickets were one of their last three online purchases. Tours and hotel reservations are less popular online purchases because customer service plays a larger role in consumers making these buying decision, according to the eMarketer report.

Online leisure/unmanaged business travel sales in the U.S. will total $77.7 billion in 2006, according to eMarketer estimates. If online corporate travel sales of $36.5 billion, estimated by PhoCusWright, are factored in, then total U.S. online travel sales will equal $114.2 billion in 2006. PhoCusWright also estimates that total U.S. travel sales (online and offline) will be $235.2 billion this year. This means that in 2006 online sales will account for about 49 percent of total travel sales.

Tuesday, August 08, 2006

Social-networking site satisfies travelers' wanderlust

Sam Rogoway and Emily Dahlberg were vacationing in the Caribbean surrounded by sandy beaches and sparkling blue oceans. Unfortunately, the locations their guidebook suggested weren't quite so picturesque.

When the book directed the couple to a far-from-hopping bar, it was the last straw. Irritated by the obsolete information of another out-of-touch guidebook, they set out to find a better way to travel.

And Tripmates was born.

The new beta Web site, which launched on Aug. 1, relies on the online social-networking model to connect travelers eager to swap information and even find travel buddies. Unlike MySpace or Facebook, which were created to connect people around a broader nexus of general networking, Tripmates is designed with a very specific demographic in mind.

Sam Rogoway and Emily Dahlberg

"We aren't trying to be the next MySpace, but we are trying to be the social network for everything travel-related," Rogoway said.

To create the site, the engaged couple abandoned their glamorous Hollywood jobs--Rogoway's as an entertainment attorney and Dahlberg's at a public-relations company--for the often unpredictable world of technology.

Tripmates currently has about 1,500 registered users from around the world.

While the site's travel focus is new to the Web 2.0 social-networking scene, according to Rogoway, many of its features are not. Tripmates allows users to create profiles, showcasing their personal details, which are dubbed "the essentials." This information includes name, age, relationship status, location and occupation. The "excess baggage" section reveals users' favorite and dream destinations, which vary from local states to foreign countries.

Other features of the site include trip blogs; reviews of restaurants and offbeat destinations; photo albums; and forums. Site members (joining is free) can also keep trip logs, share details of upcoming trips and even use a "trip tracks" section, which allows globetrotters to input their favorite travel songs. The Tripmates feature is the equivalent of having "friends" on another social-networking site, where you can view the profiles of other users and comment on their photos, profiles and blogs.

Members can even register to be a "trip guru" for a specific city, becoming the resident expert by fielding questions and making suggestions for hot spots.

Another aspect of the site is the Tripvite feature, "an Evite-type feature, but for travel," according to Rogoway. "We built a really simple, easy-to-use interface that allows you to share the details of a group trip with friends. Then you can keep track of who's coming, easily update the details of the trip, and all your friends are instantly notified."

Prior to embarking on their Tripmates odyssey, the pair had virtually no experience working with electronic media--"this was a first for both of us," said Dahlberg. But Rogoway ultimately sees that perspective as a plus. "It's really simple to use and nice to look at," he said. "Not coming from a tech background has made the site really user-friendly."

In an age of social-networking mania, Rogoway shares some insight into why he thinks Tripmates is different from the rest. "What really makes us special is the interactive capability and the ease to find people to either travel with or seek advice from," he said. "It would have been much easier traveling a couple years ago if we had a site like this."

Select Online Travel Agency Sites by Sponsored Ad Impressions April 06
Property	Sponsored Ad Impressions (000)	Sponsored Click- Through Rate	Sponsored Click-Throughs (000)	Percent of Total Click-Throughs from Sponsored Ads	Share of Search Ad Exposures
Expedia.com	80,462	4.9%	3,906	62.5%	33.5%
Orbitz.com	77,463	4.4%	3,423	72.1%	32.3%
CheapTickets.com	50,657	4.0%	2,004	71.7%	21.1%
Travelocity.com	31,374	6.5%	2,032	59.9%	13.1%
Total	239,956	4.7%	11,366	66.1%	100.0%
Source: comScore qSearch Competitive Search Marketer Report

Search Source of Traffic for Online Travel Agency Sites April 2006
Property	Percent of Sponsored Travel Ads	Percent of Sponsored Click-Throughs	Sponsored Percent of Total Click-Throughs
Yahoo! Web Search	43.6%	32%	59.4%
Google Web Search	26.0%	35%	59.1%
MSN Web Search	19.4%	22%	95.8%
AOL Search	7.0%	9%	73.2%
Source: comScore qSearch Competitive Search Marketer Report

Top Indexing Sites Among those Searching on Terms Referring Traffic to Online Travel Agency Sites April 06
Site	Index	Site	Index
BIZJOURNALS.COM	227	TRAVELNOW.COM	322
About Cities & Towns	222	HOTELS.COM	315
DOITYOURSELF.COM	214	TRIPADVISOR.COM	299
CITYSEARCH.COM	213	HOTWIRE.COM	292
MSN Local Search	213	ORBITZ.COM	286
EPINIONS.COM	210	SIDESTEP.COM	286
THEKNOT.COM	209	Travelocity All	280
WEDDINGCHANNEL.COM	209	Yahoo! U.S. Travel	279
About Food	209	TRAVELZOO.COM	278
SFGATE.COM	208	About Travel	277
Source: comScore qSearch Competitive Search Marketer Report

traveling online