OLSON: It is still true to a very large extent that as you get a little bit older, you kind of buy through habit, and I don't mean habit in a negative way. It's just — it's easier. You don't have to go through the whole process of making a decision, so you buy what's comfortable, you buy what you know, you buy what you can count on. However, again, with the internet and people being able to figure out what prices are — The other two things that are — or other two institutions that make a difference in this actually are Costco and Walmart.
Costco and Walmart have taught us how cheap things are and we go in and we buy 54 rolls of toilet paper for some ridiculously low price and we come to realize, wow, why does it cost so much more someplace else? So all of these things together have begun to sort of tackle people thinking about what price is.
Again, there are still some product categories where they just don't care. That's their special — They need sunglasses, or I know one of my own children, when he was a young teenager, it was sneakers. He didn't care what the price was, he had to have the right pair of sneakers. He's kind of outgrown that at this point in time. Shoes are still important but not to the same degree. So we're getting a little bit more knowledge about it, and I think some of it may go away but there will always be a few product categories where people just want the brand they want and they don't care what the price is.
MYRLAND: In the couple of minutes we have left, tell me, other than this almost peer-to-peer kind of thing going on where it's reinforced, how do new brands reinforce their image against brands that in some cases have been established for a hundred years in this culture?
I mean, imagine if you were a brand new cola trying to penetrate the market up against Coke and Pepsi. That's a pretty tough thing to do. But in some markets where there are multiple brands, some that have larger market shares, some that have slightly smaller market shares, there are some pretty creative ways to do it.
In fact, if many people knew exactly how some companies are using the internet and they're doing some really pretty creative viral marketing. We even have, for instance, students on campus, certain students get paid by a company to be a spokesperson.
And no one really knows that they're doing that and they just talk about a product. Then you also do things like you include products, you know, product placement has become a very big issue. You get someone in a television show, you get someone in a movie to use the product. That has gotten to be a lot more expensive than it used to be.
It used to be pretty inexpensive to do that but because they know that's a very powerful tool, if they see a television star or a movie star using a product just as if that's part of their normal way of living, that's a very — a very strong motivation to get people to pay attention to something new.
And it still has an effect even though they know it's…. It's very interesting. Starbucks is a company that has really not advertised very much at all. They have, early on, realized the power of product placement and they've — in some cases, they've just been incorporated into movies because Starbucks is such a part of life in America. Some places they've actually paid a lot of money and it has tremendous ability.
Even when they enter a new foreign market, people know about Starbucks before it's even gotten there because it's been in the movie. Lois Olson, thanks for joining us and, you know, I'll never look at a pair of sunglasses quite the same again. Lois Olson is a marketing professor at San Diego State. Search Query Show Search. But not everyone shares that passion for designer sunglasses.
Lois Bitner Olson, a marketing professor at San Diego State University, claims that all glasses can be manufactured cheaply and easily and brand labels are the primary reason customers pay more.
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