Understanding the Crowd 165
loss aversion is a powerful motivating force. Understanding the true
nature of consumer behavior would have been far more valuable
than whatever was wasted on market research.
23
By all means, if the subject of interest is what people talk
about when placed in a brightly lit room while being watched by
a hidden group of strangers, use a viewing facility. Otherwise,
using one is unlikely to be beneficial.
For the most part, the best way to consider groups is in terms
of the role that social influence has on consumer behavior. As I’ve
discussed in previous chapters, people are hugely susceptible to
priming and to social proof. The appeal of a product or new brand
name can be hugely influenced by who says it’s good or who is
seen to be using it, irrespective of its apparent merits when con-
sidered consciously.
The truth is that consumer behavior, just like all human
behavior, is very much a by-product of the wider social group.
Understanding how the right combination of context and group
influence can lead to commercial success (or the absence of it) is
perhaps as close to defining a magic formula for marketing new
products as it is possible to get. However, such studying of group
interactions has to take place unobtrusively in the native habitat of
the consumer, or else be considered in the broader context of the
way we behave in relation to one another. It can’t be recreated arti-
ficially in a couple of hours with a moderator in a strange room.
Going back to the example of New Coke that I discussed
previously, the group influence effect was another significant fac-
tor in Coca-Cola’s undoing. Inevitably, Coke’s customers didn’t
carry out an independent, balanced assessment of the new recipe’s
qualities as the research respondents had done: they heard the
media, friends, and colleagues talking about it. The sentiment
started to spread that the removal of the old recipe was somehow
undermining the essence of America; one newspaper columnist
compared changing the drink’s formulation to the removal of
President Roosevelt’s face from Mount Rushmore.
24
Demonstrating
admirable, if misguided, faith, Coke’s executives continued to take
comfort from the surveys they were conducting that told them peo-
ple liked the new flavor. Instead, people were leaning toward loss