Stupid Consumers
A couple of conversations recently have highlighted just how stupid consumers often are.
Case in point, me.
I like to think I’m reasonably capable, astute, switched on, together. But that’s just what I like to think.
You see, I’ve been following this blog on investment (www.greatwealth.com/). To begin with I felt sort of obliged to stick with it, I’d said to someone that I would look at it. But it was a bit annoying.
The investment adviser there (Rod) seemed determined to spell out assumptions people have about investing with the implicit message that they didn’t stack up. Rod did say he would tell us why, but my resistance was, if anything, increasing as the days went on.
You see I know about investing. Well, when I say “I know” that’s not totally accurate. It would be more accurate to say that I have invested money in my time, like a lot of people.
My “knowledge” is really no such thing. It’s a market-driven, or rather marketing-driven, perspective of how investment works, derived almost entirely from what I see people doing.
If someone said you should do something just because it’s what everyone else does, you would give them that funny look you like to use just before you walk away dismissively. And yet we make tacit judgments all the time entirely on this basis.
And I should know.
My biggest professional challenge is pointing out to people that, despite the fact that billions of dollars are spent on it, consumer research doesn’t work. When it comes down to it, and given that even people who use research regularly find bits they disagree with and so could hardly be classed as true research theists, the main reason everyone does it is because everyone does it!
And as I’ve learned from Rod’s blog, it takes time to point out to someone if prevailing wisdom isn’t very wise. But most marketing happens in moments, not minutes, let alone hours. And that’s a big challenge.
Philip Graves
Bravo! I appreciate the honesty. You really hit the nail on the head with that one. People usually do what others do and it definately takes time to point out anything contrary to what we have been deeply conditioned to believe. We become that belief and as a result, blind to other possibilities.
Anthony
http://www.anthonylemme.com
The Most Powerful Personal Growth and Mind Develpment Tool on Earth
Ruthlessly honest post Anthony. This is awesome.
One thing I struggle with is taking my own advice. I find it really easy to be objective about other people’s businesses and really difficult to be objective about my own – because I have an ego and a delusional sense of self importance.
As we were sharing…
JJ Jalopy.
Coaching Mentoring Expert JJ Jalopy
How to become a coach with JJ Jalopy
Ahem… I meant Phil, obviously.
Good comment too though Anthony!!
It is so much easier to tell other people what to do. Much harder to listen to our own advice.
I am with you on Rod’s investment blog, I am learning how little I know.
Seize the Day,
Rob
Sales Expert For Small Business Owners
Personal Asset Protection For Small Business Owners
Great post. It is difficult for us to get past ourselves to see the truth about something when that truth may be different than what we’ve habitually believed about the thing…if that makes sense. Anyway, great post.
Health, Fitness — Darryl Pace
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Hi Phil,
As always you are spot on! Kevin was just sharing a study on investments where professionals and school students where asked to select a group of stocks and then predict what % they thought would be right…87% of the professionals said they would be right and 59% of the college students….the facts rolled around at the end of the study…..52% of the college students were correct (not bad!) and wait for it….40% of the professionals….hmmm makes you wonder doesn’t it!
Duane
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Spot on Phil. I was recently reading about how accurate economists are at predicting recessions. The assumption is that they are the experts, but they have been wrong historically 100% of the time.
The best advice is to trust your own experience and education and try to see what the agenda of the person telling you something is. Most of the time if their is money involved the advise is compromised.
Steve Chambers, The Sales Expert
The Sales Eagle Solution – 12 months to dominate your market
Opening our eyes and getting us to think, great job.
Bob Kaufer
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The problem with experts and really smart people is that they “know” they are right – and probably are given the information they have. But “knowing” they are right, often leads to a blindness of the facts and so they don’t keep looking for new info and get lazy. People who know they don’t know, tend to have a more open mind. Anyway, that’s my theory and I know I’m right.
Christian Haller
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Phil,
John Ho
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion (WordPress Blog)
Numerology Expert Daily Numeroscope (Vox Blog)
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion (Money Page)
Phil,
There’s always danger and blind spots when anyone insists that s/he is right.
At my last Tues FREE Intro on Pure Numerology, with the theme as Understanding Personality for Better Influence & Persuasion, I told the class that it’s up to them to judge to what extent I was spot on. That’s no point to say that I was perfect e.g. in my knowledge on the subject. They needed to verify for themselves. Don’t follow me (or anyone) blindly.
John Ho
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion (WordPress Blog)
Numerology Expert Daily Numeroscope (Vox Blog)
Numerology Expert Helps Understanding Personality for Better Influence & Persuasion (Money Page)
Phil,
What a refreshingly candid post. I know that Rod at Greatwealth.com will be greatly honored that you kept on faithfully reading his blog despite your initial misgivings. I imagine this exercise was even more challenging for someone like yourself who is an expert in consumer behaviour. It’s a testimony to your professionalism that you stuck with it.
Pam
Invest in Your Future
Educating them while agreeing with them long enough so they listen to you must be a significant part of your work, Phil.
Best regards,
April Braswell
Single Boomer Dating Expert, Relationship Success Coach
Widow Support and Bereavement Counseling Outreach Workshop Henderson, NV, Nevada, Las Vegas
Being completely in the dark about investing, I’ve enjoyed Rod’s posts as well, at least now I have a better understanding about how the puzzle fits together. Makes you wonder about the majority of the experts doesn’t it-if a great number of investment experts “follow the crowd”, would it not make sense that it would also happen in other fields as well?
JC
JCMACKENZIE.COM
Making money-reviews
Phil,
Like this post. It takes great insight and skill to know that you know the right thing to do.
Lynn Lane
Success Strategies For Life
Success Today
Very honest point. Just being an consumer behavior expert doesn’t make you any less human.
All the best,
Yann
Best Online Marketing & Business Strategies for Persistent Beginners – ProfitsTactics.com
i couldn’t agree more. Excellent job.
Don Shepherd
Central Oregon Camphiker
Love the title – Stupid consumers! hahahha I agree! (and I’m one of them!)
Lisa McLellan, Babysitting Services – Babysitters, Nannies, and Au-pairs