Why We Like To Pay More for Beer, Art and Prostitutes

An interesting article in Psychology Today asks 'Is a $5,000.00 prostitute worth it? The answer - quite possibly. The article goes on to talk about price-placebo effect. In a nutshell the more we pay, the better we think it's going to be, and the more effectively we expect it to deliver. This could be why it's not unreasonable for Australian Medical Institute (AMI) to charge $4000.00+ for a nasal spray - they are hoping (I guess) that a placebo effect kicks in.

We are reassured by price especially for categories that are subjective and complex - art, wine, beer, fashion etc. Stella Artois built their entire global brand positioning around the price placebo - 'Reassuringly Expensive'. Greater understanding of the placebo effect, and better understanding of what drives quality in various categories may help people hold on to their money - and not just spend for that reassuring feeling.

Finally, I've always said it's always much easier to raise your prices than lower them. Raising the price of something communicates to consumers it's popular, improving, experiencing increased demand. Lowering the price is a one way street, and a quick way to kill it.

I am a sucker for price placebo's just about every day. You?

New York Post's Take on Johnny Depp's Cool Factor

The New York Post has written a comprehensive piece on Johnny Depp, how cool he is, and how cool you can be. The article features some of our learnings on cool. It is obviously written to partly promote his new feature film - and bless the Post for doing their bit to promote it.

If you're interested in Johnny Depp you'll be interested in the article - if you're not you wont. If you want to measure your own coolness use our Facebook App. In a world where everyone is getting their 15 minutes of fame it's interesting how people such as Depp can be enduring aspirational figures to so many. Understanding enduring popularity (through cool or otherwise) is something that most brand owners should be interested in, as it's what, in many cases they are trying to achieve.

Forensic Shopping: My Experience Getting Treatment for Erectile Dysfunction at Australian Medical Institute (AMI)

You may have heard of Australian Medical Institute (AMI), with the infamous 'Longer lasting sex' ads. They've also been the subject of a series of reports from Fairfax papers to do with their 'patented' technology, and disputes as to the effectiveness of their treatments. Intrigued, and with my manhood in tact under the guise of a Forensic Shopping Investigation I set off to find what really lay behind the controversy. The following is a personal account of what happens if you go to AMI.

I arrived the morning of my appointment feeling quite nervous and embarrassed. The clinics feel like they are completely demountable - very temporary, like they could just disappear one day and be gone with out a trace (but with a lot of money). There are five stages to a visit to AMI:

1. The Waiting room: With a sagging tree in the corner of the room acting as a metaphor for the patients problems and seating for 20 I waited for a few minutes before being ushered into the first of three rooms I would visit. Here I met Greg, the clinic nurse.

2. The Clinic Nurse: Greg is an older, overweight bearded 'nurse'. He asks me if I'm related to Noel Ferrier before hurriedly asking (and answering) a number of questions 'You get enough sleep do you? Good'. Before moving onto the next question. After a few minutes he's finished the preliminary questions and takes my blood pressure. He then explains it's fine as the "top number is bigger than the bottom number". Then we get to the real issue - clenching his right fist holding his bent arm upright in his left hand he says "When you are 20 you have the holy grail of erections - a 100% erection". He says this whilst repeatedly banging his right elbow into the cup of his left hand as if to really make the point that a 100% erection is like the fisted arm of an adult male pointing up to the ceiling. He then asks "If this is 100% what percent are your erections?". I answer, "Ummm about 50%". He probes if there are any other issues with my love life and I let him know that despite of my inability to get a firm erection I also prematurely ejaculate, lasting at best around 1 minute (as I was saying this it occurred to me that this condition must be medically impossible - but it didn't worry Greg). Greg hurriedly tells me AMI can help and I am now going to speak to the doctor.

Speaking to the doctor involved Greg picking up the cordless phone on his desk, dialing the number (he had to try 3 times) and handing me the phone. 'Don't forget to ask about side effects" Greg helpfully says, handing me the phone "...it's always good to ask about the side effects".

3. The Doctor's Phone Call: The doctor is on the line and says to me "Hi Adam I have discussed your case with the nurse (this couldn't be right as I've only just arrived and been with Greg the overweight bearded nurse the whole time). He says he has the perfect treatment - 'the nasal delivery spray". (the other options are lozenges, a needle, or a cream to rub into the penis). I asked about the side effects as recommended and he said "It can make the nose a bit numb for a while". I also asked how my treatment would change if I only had one issue (not two contradictory issues) - the Doctor didn't answer coherently. Instead he chose to focus on the fact that I was 'getting two treatments in one really'. The Doctor seemed to think I was a good candidate for the nasal spray and after a 60 second phone call hung up. I was then ushered by Greg to meet... the natropath.

4. The Natropath: The natropath, this time an older, dithery man, again asked if I was related to Noel Ferrier? then told me that I should exercise more and drink less. He also told me I will need "the vitamins", as they are natural and good for me. Unfortunately he was confused as to how the vitamins worked and kept getting the terms parasympathetic and sympathetic nervous system mixed up. Nor could he explain how the vitamins worked with the nasal spray. I doubt he had any qualifications - I was actually too embarrassed (for him) to ask. After 10 stilted minutes talking utter nonsense he then ushered me into the third room where I met the Clinic Head (although please don't think in any way this was a clinic).

5. The Clinic Head: From what I can gather this is the sales salesperson. Her name was Eve (no Noel Ferrier? this time, but a "You're Adam - guess what, my name is Eve!!") and her job was to not let me leave without signing up. This meeting was significantly longer - around 30 minutes, compared to the 20 minutes I had spent in total with the nurse (9 minutes), doctor (1 minute) and natropath (10 minutes). Eve tells me my life will be better, and I will be much happier with the treatment. She tells me that I am extremely lucky to have come in and that they have a special offer on. She tells me the vitamins are like "a gift really" (although I have to pay). After a while we get to price - it took some convincing but I asked her to write the costs down so I can compare. You can see the costs on the post-it note I've scanned in (below). The cost is an incredible $4,655.00 for an 18 month treatment (this includes the vitamins which as it turns out is a bottle of multi-vitamins and a bottle of anti-oxidants). Alternatively, without the vitamins it's $3,995.00. I say I need to talk it over with my wife, this upsets Eve. Further, she does not have any pamphlets or any information written down about the clinic so that I can talk it over with my wife. A check on the AMI website reveals nothing of substance either. Nothing written down. No sales material. Nothing but a post-it (it would be funny if it wasn't so serious).

Post-it note in hand I leave, promising to call back today. As I leave I pass half a dozen sheepish looking guys in the waiting room.

Whilst at AMI I was not offered any form of medical explanation for any of the treatments, nor was I provided with any evidence that the treatment would work. Further, it was my impression that they had only one form of treatment for any presenting problem (erectile dysfunction or premature ejaculation). Little consideration was given to lifestyle or psychological causation. I have no idea if the nasal delivery 'treatment' is effective, but I am guessing it's not. I will let the experience above speak for itself.

This business appears to target the vulnerable. It offers 'hope in a nasal spray' for people who have sexual health issues. Further, I believe it pathologises what in many cases are normal heath conditions. AMI highlights that when the psychological need is great, and there is a lack of education in the market, then people will be willing to believe anything (with absolutely no supporting evidence). The pseudo-scientific experience was aimed at getting people to emotionally commit to the sale before the price is ever mentioned. The sales process is intense and everything possible is done for an on the spot sale.

I strongly suggest that if you are suffering from any form of sexual dysfunction you visit your local GP, or psychologist as a first port of call.

This is the first in a series of Forensic Shopping Investigations.

Beer Advertising: Everything Old is New Again

Something interesting is happening in the world of beer advertising in Australia. It is acting as microcosm of the communications landscape. There are two schools of thought battling it out for supremacy, and the old guard appears to be making a comeback.

Creating Culture: Take a brand, understand your consumer and build an entertaining form of culture around something your consumer already loves. The idea builds and morphs as the campaign develops - growing as the community around it embraces the idea. Some obvious examples are Lion Nathan's. XXXX Gold's Beach Cricket, and Toohey's Extra Dry's 6 Degrees films around the world.

Creating Ads: Take a brand and create a 'big ad'. Spend loads of production, and talk about how much you've spent and how long the shoot was as a tease. Then boom launch the ad (with at least a 60) and wow the hell out people. Support the film with other media like a website, or some social media. Some examples are Fosters Carlton Draughts Big Ad series, and the soon to be released VB's multi million dollar ad.

It's interesting that even with so many brand building tools in the tool box it appears that people are still happy to reach for the trusty, bloody big hammer that has hammered the message home so effectively in the past. It will be fascinating watching how these brands battle it out for market share over the next few years.

Finally, as an aside I don't understand why a brand such as VB would give up their end iconic end line 'For a hard earned thirst'. It's a move that no doubt would have been sold as being 'brave', and 'progressive'. However, that line clearly articulated the brand promise, and role that brand played in peoples lives (whether it was literal or aspirational everyone from a tradey to an entrepreneur still wants to feel like they've put in a hard days effort if they are drinking the 'reward''). Were there not any other ways they could have moved the brand on without getting rid of this iconic statement? I'm intrigued to know what they've changed it to. Hope the decision was strategically led, and wish them luck. It's quite a challenge.

FBi Asked Richard at www.askrichard.com.au

Seen this campaign - http://www.askrichard.com.au/? It's a campaign developed by Naked to help save fbi, a station close to Naked's heart. The camaign asks you to ask Sir Richard Branson for $1,000,000.00 to save FBi radio station. The ways Richard has been asked are numerous and bazaar - well worth checking out.

This morning Richard Branson called in to fbi from Necker to announce his support (check it on fbi website http://www.fbi.org.au/ . Basically, his affiliated companies are donating loads of free stuff for fbi to raffle. No mill, but we're happy. He was particularly enamoured with one young lady who apparently swam to Necker to tell him about the competition! So it's over to you. The campaign has already been successful, with a good level of support and donations - but they still need more. Please head to the http://www.askrichard.com.au/ website and support them.

We wanted a campaign that would not only stand out, but one that motivated the creative spirit that exists in fbi's audience. The campaign allowed people to get involved with the station beyond just opening their wallets. To see more visit

If Love is Not The Answer Then What is?

Recently, I posted and commented that love was not the answer, and that a focus on love is killing brands, resulting in "Donut brands". What then is the answer? Here is an attempt:

1. Brand Opportunity

• Understand the market you are operating in, how it segments, and the driving dynamics of that market. Understand where the opportunity is for your brand.

2. Brand Construction

• Get the basics right: You must be different in a way that consumers care about, and find believable.
• Understand your brands purpose: Know exactly why your brand is here and where you want to go. What benefits does it offer consumers? (Virgin knows it's purpose well - to be the consumer champion wherever it goes'. Myer, as mentioned before, does not understand it's purpose at all.)
• Construct your values and personality: How do you behave and what do you value?

3. Brand Communications

• Your brand is a 'cluster of cultural ideas', (a concept borrowing heavily from John Grant.) Ensure you keep on launching ideas into culture that reinforce your brands purpose. Wayne Arnold talks about a similar concept called 'Brand Linking' - ensuring your brands has more links to consumers and culture than anyone else.
• People are your partners. People should be considered the departure point, not end point for any communications. Work with them, they are your friends not your target.

Note brand love, nor emotional advertising (nor rational advertising) comes into the discussion. I would appreciate any thoughts. What's missing? Anyone disagree?

Blood

Here is an interesting approach to get people more involved - it was a very small campaign developed by Naked to support World Blood Donor Day