The Rumor Mill’s Power to Help or Harm Your Institution

Monday, March 19, 2012 by Larry Rondeau

Whether good or bad, rumors can have a big effect on a college. Stories about your institution’s positive results can send its stock soaring with students and parents. Negative gossip can hinder yield programs and enrollment.
 
Rumors don’t have to be true to have impact. According to eminent social psychologist Elliot Aronson, PhD and colleague Anthony Pratkanis, PhD, in the 1980s the “Leaflet of Villejuif” began circulating in France. This plain typewritten pamphlet exhorted parents to boycott popular soft drink brands like Coca-Cola, Schweppes and Canada Dry, charging they contained dangerous chemicals that could harm children.
 
The power of rumor and innuendo
 
A survey of 150 French housewives found that 19% had stopped buying the brands mentioned. Another 69% said they intended to support the boycott. Elementary school teachers and physicians were surveyed; half of the doctors and nearly all the teachers agreed with the leaflet’s statements. Fewer than 10% of these educated professionals bothered to check the truthfulness of its claims. That’s sad, because virtually all of them were false. E330, the food additive claimed to be highly carcinogenic, was actually the European Union’s code for harmless citric acid, found in oranges and grapefruit.
 
Mark Twain wrote, “A lie can travel halfway around the world while the truth is putting on its shoes.” It can do a great deal of damage along the way. Because we hear rumors from people we know or learn about them through trusted media sources many don’t bother to check their validity. But they can have a big impact on reputations, applications and yield.
 
One study asked participants to rate political candidates after reading fabricated headlines. Some contained a direct accusation (“Bob Talbert Linked with Mafia”), a damning question (“Is Karen Downing Associated with a Fraudulent Charity?”), a denial of impropriety (“Andrew Winters Not Connected to Bank Embezzlement”) or a completely neutral statement (“George Armstrong Arrives in City”). Aronson and Pratkanis relate:

The results showed, not surprisingly, that candidates linked with a directly incriminating headline were perceived more negatively.  Strikingly, however, merely questioning whether a candidate had performed an undesirable behavior also resulted in negative perceptions of the candidate – just slightly more positive than those evoked by a direct incrimination…The source of the innuendo made little difference. The candidates were still rated negatively even if the source of the headline was a newspaper lacking in credibility (the National Enquirer or the Midnight Globe as opposed to the New York Times or the Washington Post).

 What can you do about rumors?
 
According to marketing professor Allan Kimmel, one key to rumor control is: “Talk!...For the most part, a refusal to talk, whether it be to journalists, [students and parents]…or other concerned parties conveys the message that the [institution] has something to hide and adds to uncertainty, or sometimes merely serves to confirm the fears underlying the requests for information.”
 
But, “In order to stand a chance of succeeding," say Drs. Aronson and Pratkanis, “such refutations should not overstate the case, should embed the rumor in a negative context (or damn it, refute it, then damn it again and replace it), and should not repeat verbatim particularly memorable rumors.” Quick action by high-ranking college officials can limit the damage false factoids may cause. Institutions with established records of integrity and community service will find it easier to protect or restore their reputations.

The Allied Group is an innovative, award-winning marketing communications company offering Search, Conversion, Stealth and Yield programs as well as full-service fulfillment to colleges and universities.
 

The Rumor Mill’s Power to Help or Harm Your Business

Monday, March 19, 2012 by Larry Rondeau

Whether good or bad, rumors can have a big effect on an organization. Stories about a company’s positive results can send its stock price soaring. Negative gossip about a firm can seriously hurt sales. 

Rumors don’t have to be true to have impact.  In the 1980s the “Leaflet of Villejuif” began circulating in France. This plain typewritten pamphlet exhorted parents to boycott popular soft drink brands like Coca-Cola, Schweppes and Canada Dry, charging they contained dangerous chemicals that could harm children. 

The power of rumor and innuendo

A survey of 150 French housewives found that 19% had stopped buying the brands mentioned. Another 69% said they intended to support the boycott.  Elementary school teachers and physicians were surveyed; half of the doctors and nearly all the teachers agreed with the leaflet’s statements. Fewer than 10% of these educated professionals bothered to check the truthfulness of its claims. That’s sad, because virtually all of them were false. Eminent social psychologist Elliot Aronson, PhD and colleague Anthony Pratkanis, PhD state in their account that E330, the food additive claimed to be highly carcinogenic, was actually the European Union’s code for harmless citric acid, found in oranges and grapefruit.

Mark Twain wrote, “A lie can travel halfway around the world while the truth is putting on its shoes.” It can do a great deal of damage in its travels. Because we hear rumors from people we know, or we learn about them through trusted media sources, we often don’t bother to check their validity. But they can have a big impact on both reputations and sales.

One study asked participants to rate political candidates after reading fabricated headlines.  Some contained a direct accusation (“Bob Talbert Linked with Mafia”), a damning question (“Is Karen Downing Associated with a Fraudulent Charity?”), a denial of impropriety (“Andrew Winters Not Connected to Bank Embezzlement”) or a completely neutral statement (“George Armstrong Arrives in City”).  Aronson and Pratkanis relate:

The results showed, not surprisingly, that candidates linked with a directly incriminating headline were perceived more negatively.  Strikingly, however, merely questioning whether a candidate had performed an undesirable behavior also resulted in negative perceptions of the candidate – just slightly more positive than those evoked by a direct incrimination…The source of the innuendo made little difference. The candidates were still rated negatively even if the source of the headline was a newspaper lacking in credibility (the National Enquirer or the Midnight Globe as opposed to the New York Times or the Washington Post).

What can you do about it?

According to marketing professor Allan Kimmel, one key to rumor control is: “Talk!...For the most part, a refusal to talk, whether it be to journalists, customers…or other concerned parties conveys the message that the company has something to hide and adds to uncertainty, or sometimes merely serves to confirm the fears underlying the requests for information.”

But, “In order to stand a chance of succeeding," say Aronson and Pratkanis, “such refutations should not overstate the case, should embed the rumor in a negative context (or damn it, refute it, then damn it again and replace it), and should not repeat verbatim particularly memorable rumors.” Quick action by high-ranking officials can limit the damage false "factoids" may cause. Organizations who have established a record of integrity will find it easier to protect and restore their reputations.

The Allied Group is a marketing communications company offering full service fulfillment programs ,innovative marketing communications strategies and marketing support services to insurance and financial services companies.

 

Free Speech – Will risking it really help smokers quit?

Monday, March 5, 2012 by Larry Rondeau

The Boston Globe reported last Wednesday that  a federal judge blocked the new FDA requirement that tobacco companies put graphic images on cigarette packaging. The article outlined the judge's ruling that requiring the images, which include "a sewn-up corpse of a smoker and a picture of diseased lungs, on cigarette packs violates the free speech amendment to the Constitution.”

This raises a serious issue, presenting all, including educators, with a dilemma. On the one hand, evidence that smoking kills is overwhelming.  I had to watch it destroy my mother’s favorite uncle. Efforts to help smokers stop and aid teenagers to avoid smoking are commendable. Clearly, we’d all be better off if smokers quit in droves.

Reducing smoking-related illnesses is a worthy goal.  But is it worth eroding the cherished freedom of speech on which all Americans, especially educators, depend? That’s a question for the Supreme Court. Despite the health issues, the specter of government edicts forcing organizations to publicly say negative things about their activities is not a pleasant one. So, we must ask – is the reward worth the risk?  Do graphic, fear-arousing images actually help people quit smoking?

What the research shows

There is no question that graphic images on Canadian and Australian cigarette packs have proven to make smokers think about health hazards and consider quitting. A WHO bulletin stated, “The research on pictorial warnings show that they are: (i) more likely to be noticed than text-only warning labels; (ii) more effective for educating smokers…and for increasing smokers’ thoughts about the health risks; and (iii) associated with increased motivation to quit smoking.”

But motivation doesn’t necessarily translate into action. Consider how noted social psychologist and textbook author Dr. David Myers summed up the research: “Many people who have been made to fear an early death from smoking continue to smoke. When the fear pertains to a pleasurable activity, notes Elliot Aronson (1997), the result is often not behavioral change but denial.”

In fact, the eminent Dr. Aronson states that studies show smokers who’ve tried to stop and failed are the group most likely to deny or minimize the hazards of smoking. They rationalize it away. Aronson and his coauthors cite research showing ways that frightening pictures can actually reduce smoking. Smokers shown graphic images of lung cancer and then given a pamphlet outlining ways to quit lowered their daily cigarettes by 77% (from 69 to 26). Those who saw disturbing photos without specific instructions smoked less for a time, but soon returned to smoking nearly as much as they had before (64 daily cigarettes merely dropped to 54). 

But even the group who substantially reduced their cigarette intake continued to smoke during the three month study. I could locate no data showing that graphic images on cigarette packaging really helps people quit. In fact, a Prevention First report states that fear tactics are ineffective in deterring young people from smoking. Is it worth eroding freedom of speech for a smoking cessation strategy not proven to help substantial numbers to stop? 

An alternative

Influence expert Robert Cialdini, PhD told me in personal correspondence that one way to reduce negative behavior is to link it to a disliked or disrespected outgroup. Nicotine is a highly addictive drug. Perhaps we need ads comparing tobacco companies to drug cartels and cigarette dealers to those who sell dangerous drugs in neighborhoods and schools. That exercise of free speech might get results!

The Allied Group offers innovative marketing communications strategies, Search, Stealth and Yield programs, marketing support and full service fulfillment.
 

 

Can Students Learn from Whitney Houston’s Death?

Thursday, February 16, 2012 by Larry Rondeau

Many were shocked and saddened by the sudden, unexpected demise of singer Whitney Houston. Most wonder about the cause of death. While answers will undoubtedly come from the toxicology report, the news media tells of the presence of strong prescription meds in her hotel room. Those at her last impromptu musical performance testify that she had been drinking and appeared under the influence. Some medications combined with alcohol can be deadly, especially for those bathing in a hot tub. The singer takes her place in a long line of talented people whose lives were cut short or ruined by drug and alcohol addiction.

Perhaps Houston’s death can provide the vivid example needed to make changes in the drinking habits of many college students. Admissions officers and college marketers do a great job in helping young people from a variety of backgrounds get an education that can enrich their future. But the unrestrained party atmosphere on some campuses can prove to be a trap leading to alcoholism, squandered opportunities and wasted lives. According to a Center for Science in the Public Interest report:

• Annually some 30,000 college students overdose on alcohol, requiring medical treatment.

• 44% of students attending 4-year colleges engage in binge drinking.

• 19% of college students ages 18–24 met the criteria for alcohol abuse or dependence.

• Every year, 599,000 students from 18-24 are unintentionally injured while intoxicated  More than 696,000 are assaulted by another student who has been drinking.

• 5% of female students reported that they were the victims of sexual assault, 75% of them raped while under the influence of alcohol.

And although a number of institutions have made efforts to curb binge drinking, it is still the norm at campuses across the nation. CSPI further reports, “Low price and very easy access to alcohol are strong correlates of binge drinking.” When discussing ways to get college seniors to attend a campus event, one official observed that offering cheap beer would guarantee a large crowd.

The result

Research shows the habits learned on campus can last a lifetime. The American Journal of Public Health reports that binge drinking rates of college students closely correlate with those of adults living in the same state. “The rate of binge drinking among college students was about 32 percent lower–36 percent compared to 53 percent–in the 10 states with the lowest rates of adult binge drinking compared to the ten states with the highest.”

This could mean that students are imitating behavior they’ve seen at home. But studies also show that many enduring adult attitudes and behaviors were formed in the college years. Regardless of where they learned to drink irresponsibly, many promising young people may well experience the truth of Mark Twain’s statement, exemplified by Lindsay Lohan, Amy Winehouse, Chris Farley and Whitney Houston: “It is easier to stay out than to get out.”

Possible solutions

Colleges already make commendable efforts to stop binge drinking. Can they do more? Raising liquor prices at campus pubs might be a good start. Also, making effective use of social psychology research can increase the impact of student information programs. Renowned communication psychology expert Dr. Robert Cialdini suggested to me in private correspondence that one tactic to lessen the allure of excessive alcohol consumption is to link it to “a disliked or disrespected outgroup.” He wrote, “One way to reduce binge drinking among college students might be to inform them that binging is the norm for high school students.”

The Allied Group is an innovative marketing communications company offering personalized direct marketing, Search, Conversion and Yield programs along with along with full-service fulfillment.
 

Why Do Companies Pay $3.5 million for Super Bowl Ads?

Monday, February 6, 2012 by Larry Rondeau
At an average cost of $3.5 million, Super Bowl commercials must accomplish a lot – increasing consumers’ awareness, liking and preference for the brand advertised. How do they do it? Consider a few examples:

1. Volkswagen’s “The Dog Strikes Back” – People like dogs, and most of us can relate to the overweight Golden Retriever. Like us when we pack on too many pounds, he gets off the couch, starts exercising, resists overeating and soon he’s lost the extra weight. He can now fit through the dog door and chase cars again, this time a new Volkswagen. We can’t help but like the Retriever, and the car looks pretty good, too. This is a good example of the principle of association – good or bad feelings tend to rub off on anything associated with them.

2. Doritos “Man’s Best Friend” – More power of emotional association with a little salesmanship mixed in. The good-looking Great Dane illustrates just how good Doritos are – tasty enough to enable the dog to bribe his male owner into overlooking his killing and burying the family cat.

3. Bridgestone’s “Performance Basketball” – This time, cute sleeping babies and NBA stars Tim Duncan and Steve Nash impart good feelings to Bridgestone tires. Duncan and Nash dribble a basketball made out of the same material as high-performance Bridgestone tires designed to eliminate road noise. Both tires and basketball pass “the sleeping baby test.” This commercial does two things: It imparts the good feelings generated by the babies and basketball stars to Bridgestone tires and demonstrates that this tire company is constantly finding new ways to make the best tires. This commercial distracts us from the sales pitch, avoiding viewer irritation.

4. Chevy’s “Happy Grad” – The parents of a new college graduate blindfold him and lead him outside to unveil his graduation gift, an apartment-size refrigerator. Unfortunately, it’s on the sidewalk in front of the neighbor’s brand new Chevy convertible. The grad, beside himself with joy, assumes the car is his gift. Soon his friends join him in rejoicing, including his girlfriend who offers to marry him, an offer he accepts. The grad proclaims, “This is the best day of my life.” The Chevrolet logo and “Chevy Runs Deep” appear briefly onscreen. Finally, the neighbor appears and drives off in his new car. The grad laments, “Mr. Johnson just stole my car!”

This amusing story cleverly hides the embedded sales pitch: ‘This Chevy is so great that obtaining one brings tremendous pleasure. Buying one could bring about the best day of your life.’ If GM actually said this, most viewers would reject the inflated message. Presenting it as the actual reaction of a new graduate who received such a gift would be greeted with skepticism. But staging it as a comical mistake gets our emotions involved. We’re amused and almost embarrassed by the reaction of the grad, his friends and girlfriend. We wonder what he’ll do when he learns the truth. What we don’t notice is that Chevrolet has implanted a pretty strong marketing message into the back of our minds. The feelings invoked by this commercial may well surface if we’re shopping for a car in the near future.

Building in psychological components is one of the marketing communication strategies that run deep in Super Bowl advertising. High cost demands strong results. Time will tell if this year’s ads increase sales. We at The Allied Group, a marketing communications and full service fulfillment company, will watch and report.

Can Ingenuity help Colleges Cut Costs and Expand Access?

Friday, February 3, 2012 by Larry Rondeau
The rising cost of living presents a dilemma for colleges. Higher education’s economic value to students is clear. At the same time, the cost of that vital training is rising beyond American families’ ability to pay. The President proposes rewarding institutions that cut costs and penalizing those that don’t. Can the ingenuity for which American colleges are famous come to the rescue, decreasing costs for students and expanding access – without cutting educational quality, jobs or compensation?

Technology provides an answer

Perhaps. Unfortunately, the mention of educational technology invokes images of standard online education. That’s not what I’m proposing here. While web-based classes can teach effectively with lower costs, they have clear limitations. They eliminate the greatest asset U.S. colleges have to offer – the excellent teaching of world-class faculty. Online courses are usually taught with a textbook and the instructor’s (preferably) short explanatory essays. The onus is on the student to master the required material.

While online education can be ideal for busy, highly motivated adults, how many 18-year-olds have the desire or the discipline to take a significant number of courses online? Many need more than textbook explanations. Most crave interaction with their peers. They depend on the structure of scheduled classes and activities to stay on track. Without these, it’s hard to imagine the majority graduating on time. Besides, courses with lab work require presence on campus. So, while online education can save tuition dollars, it’s not a useful option for most undergraduates.

A new option lets families tailor education outlays

New technology could offer the best of both worlds – teaching by excellent professors at the lower cost and expanded access of online education. That technology is the virtual classroom. Students see and hear the same lectures and rich media enjoyed by their on-campus classmates.  They just do it on the Internet. Instead of taking exams, they’d write papers to demonstrate mastery of required material. Studies find students can learn as well online as they do on-campus. Writing and applying new ideas rather than just memorizing test answers may be a major reason. Adding world-class lectures to the mix could further improve student success. Many courses, core curriculum and advanced, could be presented both virtually and in-person. In fact, virtual lectures featuring the institution’s best teachers could considerably increase program value and attractiveness.

Institutions that develop robust virtual classroom programs can substantially increase revenue and cut costs . First, freshman enrollment can significantly expand to include students who because of distance, costs or preference favor taking most or all of their courses in the virtual environment. Many full-paying international students not accepted to on-campus programs may choose this option.  Increased revenues from hundreds of additional undergraduates can enable tuition reductions that will bring rewards from Washington. 

Virtual classes could cut college costs, since one excellent professor can teach a great number of students simultaneously, with lesser-paid faculty members grading their papers. This can give accepted students the option of lowering their tuition by varying the mix of on-campus and virtual courses. Students can further reduce outlays by taking a “virtual semester” at home.

Virtual education may not be the answer. But clearly, the same ingenuity that helped colleges produce ideas that have transformed American lives must now transform higher education to the benefit of students, families and institutions.

The Allied Group is an innovative, award-winning marketing communications company offering Search, Conversion, Stealth and Yield programs as well as full-service fulfillment to colleges and universities.

Seven Ways to Get People to Listen - Part Two

Friday, January 27, 2012 by Larry Rondeau

The Magnetic Middle

How can you get people to listen to the facts?  What can move them to action?  Previous blog posts showed why some resist or ignore factual evidence that contradicts their viewpoint and gave some ways to combat that tendency.  Once you’ve opened the minds of colleagues, team members, customers and prospects, how can you best present the facts and gain their buy-in?  This has been the subject of considerable research and a number of effective methods have emerged.  One important communication strategy is:  recognize and make good use of the power of the “Magnetic Middle.”

When the Magnetic Middle works against you

The Sherif study at Columbia University found that when the facts were unclear and groups of people had to make a judgment call, they quickly arrived at a compromise position and then stuck to that opinion, even when asked individually a year later.  Participants actually substituted the group’s judgment for their own.  This and similar studies led researchers to coin the phrase, “the Magnetic Middle.”

This would be no problem if a board or committee was deciding where to go to lunch. We would hope when an important matter is on the table, people would study it carefully and form knowledgeable opinions.  Thankfully, that often occurs.  But studies cited by eminent social psychologist Dr. Elliot Aronson and others revealed that the more important the decision, the more likely we humans are to rely on the judgments of others

One researcher asked each member of a group to publicly state the answers to a series of questions. Several members of the group had secretly agreed beforehand to give the same wrong answers.  When the stakes were low actual subjects, who were not in on the subterfuge, agreed with the group’s incorrect responses to 35% of the questions.  When the stakes were high they substituted the crowd’s bad judgment for their own 51% of the time.

Thus, when presenting unfamiliar facts on an important issue to a board or committee, an executive will often find individual members eager to stick to their established beliefs (confirmation bias).  Additionally, the group opinion, once expressed, will be very hard to change.

Making the Magnetic Middle work for you

While people’s tendency to follow the group can go against you, it can work for you as well.  For instance, a VP of IT may find it easier to gain approval for a major software purchase if he/she points out, not only the reasons for selecting it, but a list of similar companies who have already done so. 

Rather than relying on an expert to convince staff members of the need and benefit of implementing a new procedure, communications psychology expert Robert Cialdini, PhD recommends that wise managers employ the strong influence of a coworker who has already used this method in another situation.  As their fellow worker and colleague, he or she can often sway their opinions in ways an outsider could not.

Showing affiliates, like independent insurance agents, that others just like them already participate in a new program can greatly increase their willingness to adopt it themselves.  One major pharmaceutical company’s head of training asked trainees to write down one thing they really liked about the workshop they attended.  He then printed many of these testimonials on large posters and asked new participants to review them to see what their colleagues had said about the program.  According to Dr. Cialdini and his coauthors, this trainer wrote:

I was a little skeptical at first about whether such a simple thing would work, but the impact was incredible…What was interesting was that this catalog of testimonials also helped me to influence senior managers to support future projects I was leading.

The urge to join our colleagues and friends in the Magnetic Middle can be powerful.  Wise executives and marketers can use it to great advantage in moving others to take needed action.

The Allied Group offers full service fulfillment programs as well as one to one communications and other marketing communications strategies and marketing support to the insurance, benefits and healthcare industries.

Help Those with Opposing Viewpoints Listen to the Facts

Friday, January 20, 2012 by Larry Rondeau


“Why Won’t People Listen to Good Ideas?” discussed research showing that those with strongly ingrained views won't mentally process sound evidence presented by the other side. Is there anything we can do to encourage parents, students, colleagues or faculty to consider solid facts we raise?

First, it’s important to understand why many won’t listen. One reason became apparent in a series of studies starting in 1959. Eminent social psychologist Dr. Elliot Aronson explains that research began in a southern town deeply divided over racial segregation. Most today clearly recognize the evils of apartheid, but in 1959 it was a burning issue, particularly in the South. Researchers selected people with strong feelings for or against segregation. Then they presented a series of arguments on both sides of the issue. Some were plausible, others were lame. A survey on the points each recalled was telling. People remembered the logical arguments supporting their position and the illogical arguments that backed the opposing view.

A number of follow up studies produced similar results. The answer was clear. People ignored or quickly forgot points that might prove their opinion wrong. They focused on the opposition’s lame arguments because these strengthened their position. This phenomenon is called Confirmation Bias. Finding the right answer took a back seat to proving they were right. The highly respected Dr. Aronson explains:

During the past half-century, social psychologists have discovered that one of the most powerful determinants of human behavior stems from our need to preserve a stable, positive self-image. Most of us want to believe that we are reasonable, decent folks who make wise decisions, do not behave immorally and have integrity.

Thus, when confronted with factual information that might show us mistaken or foolish, we automatically tend to ignore or dismiss it, focusing instead on any piece of data that might prove us right.

One study found smokers who tried but failed to quit were least likely to recognize the dangers of smoking. Clearly, dismissing inconvenient facts can prove destructive to individuals and businesses. It’s important, then, to recognize that while those on the opposite side of an issue may ignore sound evidence, we too are fully capable of making that mistake.

Removing the blinders

First, we must realize that every party in a discussion, including us, may display confirmation bias. How can we combat it? One way is to remind ourselves that our willingness to honestly consider all evidence takes moral courage and strength, highly admirable traits. That realization may help us past the tendency to protect our ego by defending a position. Researcher Dr. David Myers recommends that senior managers require their staff members who present arguments to give one good reason why they could be wrong.

To help others avoid ignoring valid evidence, we can try a psychological technique called “labeling.” We could begin a discussion by praising our associates for the open-mindedness and fairness they’ve previously shown. This technique was used to great advantage by former Egyptian President Anwar Sadat. Communications psychology expert Robert Cialdini, PhD relates,

Before international negotiations began, Sadat would assure his bargaining opponents that they and the citizens of their country were widely known for their cooperativeness and fairness.

Did his technique work? Despite the notoriously entrenched positions in the Middle East, Sadat and former hard-liner Menachem Begin negotiated the only modern peace treaty between an Arab nation and Israel.  I rest my case.

The Allied Group is a marketing communications company providing integrated marketing communications programs and full service fulfillment services including Search, Stealth and Yield programs as well as publication design, printing and distribution to colleges and universities.

Helping Those with Opposing Viewpoints Listen to the Facts

Friday, January 13, 2012 by Larry Rondeau

“Why Won’t People Listen to Good Ideas?” discussed research showing that those with strongly ingrained views won't mentally process sound evidence presented by the other side. Is there anything we can do to encourage our colleagues to consider solid facts we raise?

First, it’s important to understand why many won’t listen. One reason became apparent in a series of studies starting in 1959. Eminent social psychologist Dr. Elliot Aronson explains that research began in a southern town deeply divided over racial segregation. Most today clearly recognize the evils of apartheid, but in 1959 it was a burning issue, particularly in the South. Researchers selected people with strong feelings for or against segregation. Then they presented a series of arguments on both sides of the issue. Some were plausible, others were lame.  A survey on the points each recalled was telling. People remembered the logical arguments supporting their position and the illogical arguments that backed the opposing view. 

A number of follow up studies produced similar results. The answer was clear.  People ignored or quickly forgot points that might prove their opinion wrong. They focused on the opposition’s lame arguments because these strengthened their position.  This phenomenon is called Confirmation Bias. Seeking the right answer took a back seat to proving they were right. The highly respected Dr. Aronson explains:

During the past half-century, social psychologists have discovered that one of the most powerful determinants of human behavior stems from our need to preserve a stable, positive self-image.  Most of us want to believe that we are reasonable, decent folks who make wise decisions, do not behave immorally and have integrity. 

Thus, when confronted with factual information that might show us mistaken or foolish, we automatically tend to ignore or dismiss it, focusing instead on any piece of data that might prove us right. 

One study found smokers who tried but failed to quit were least likely to recognize the dangers of smoking. Clearly, dismissing inconvenient facts can prove destructive to individuals and businesses. It’s important, then, to recognize that while those on the opposite side of an issue may ignore sound evidence, we too are fully capable of making that mistake.

Removing the blinders

First, we must realize that every party in a discussion, including us, may display confirmation bias. How can we combat it? One way is to remind ourselves that our willingness to honestly consider all evidence takes moral courage and strength, highly admirable traits. That realization may help us past the tendency to protect our ego by defending a position. Researcher Dr. David Myers recommends that senior managers require their staff members who present arguments to give one good reason why they could be wrong.

To help others avoid ignoring valid evidence, we can try a psychological technique called “labeling.” We could begin a discussion by praising our associates for the open-mindedness and fairness they’ve previously shown. This technique was used to great advantage by former Egyptian President Anwar Sadat. Communications psychology expert Robert Cialdini, PhD relates,

Before international negotiations began, Sadat would assure his bargaining opponents that they and the citizens of their country were widely known for their cooperativeness and fairness.

Did his technique work? Despite the notoriously entrenched positions in the Middle East, Sadat and former hard-liner Menachem Begin negotiated the only modern peace treaty between an Arab nation and Israel.  I rest my case.

The Allied Group is a marketing communications company providing marketing, marketing support and full service fulfillment services to the insurance, benefits administration and financial services industries.

Why Won’t People Listen to Good Ideas?

Thursday, December 29, 2011 by Larry Rondeau

Executives frequently have to persuade others to agree and act on their point of view. At times that can prove extremely difficult. Senior managers may want to include an important new initiative in the organization’s priorities for the coming year. IT executives have to agree on the most efficient way to manage company data as well as evaluate, purchase, implement and customize software that will run day to day operations.  Senior marketers are required to come up with marketing strategies to achieve company goals and evaluate plans for individual campaigns. 

In each case, the key players involved must agree. But at times that can be extremely hard to achieve. Sometimes it seems that people just won’t listen to good ideas. Researchers have carefully studied this phenomenon using controlled scientific experiments. The results may surprise you.

Why can’t they see the point?

Social psychologist Lee Ross’ research led him to conclude that people often express what he calls “naive realism.” Each person assumes that they perceive events as they really are. Eminent social psychologist Dr. Elliot Aronson explains that since we are sure we recognize reality, our tendency is to assume that others who are reasonable should be able to see things our way. If they don’t, we assume that they aren’t reasonable. But are we ourselves always able to see the facts clearly?

NBC news reported on a study done on “seeing the facts” in the political arena. During the 2004 presidential race between George W. Bush and John Kerry, Drew Westen, Director of Clinical Psychology at Emory University conducted a study using functional MRI (fMRI) equipment. This machine allows researchers to monitor blood flow to different parts of the brain, revealing how people’s minds react to various situations.  One study found, for example, that the brain area normally involved in reading did not activate when those coping with dyslexia attempted to read. Another neural region tried to do the job for which it was not equipped (like star quarterbacks Tom Brady or Drew Brees playing nose tackle).

In Dr. Westen’s study, staunch Republicans and Democrats heard contradictory statements  released by Bush or Kerry on important issues while monitored by the fMRI equipment. When hearing their own candidate’s points, supporters’ brain regions involved in reasoning and emotion lit up. They paid close attention and liked what they heard. But when listening to the opposing candidate, the reaction was quite different. "We did not see any increased activation of the parts of the brain normally engaged during reasoning," the researcher reported. People paid little attention to a viewpoint that contradicted their own. According to NBC, “The test subjects on both sides of the political aisle reached totally biased conclusions by ignoring information that could not rationally be discounted, Westen and his colleagues say…The study points to a total lack of reason in political decision-making.”

That’s a scary finding. And if people whose minds are made up can discount or ignore inconvenient facts in a crucial matter like national leadership, what hope do we have of winning colleagues to our point of view on company initiatives, enterprise software or marketing strategies? Fortunately, research has not only revealed human biases, but some helpful approaches for overcoming them as well. Stay tuned.

The Allied Group is a full service fulfillment and marketing communications company that provides marketing and marketing support as well as transactional document programs to companies in the insurance, benefits administration and financial services sectors.

 

 


 


New Technology Applications Spur Marketing and Sales Results

Friday, December 9, 2011 by Larry Rondeau

As today’s slow economic recovery continues, insurers look for ways to increase sales. New technologies can be applied in creative ways to do just that.

Location-Based Marketing

One example can be found in location-based marketing. This type of campaign allow companies to present information that a consumer needs in just the right place, at just the right time. The growing number of those who have just purchased homes, for instance, will need to insure them. What better time could there be to offer new homebuyers a homeowners policy than when they’ve just made their purchase? Some insurers may have arranged compensation programs for real estate agents who refer business to them.

The problem has always been, once the new homeowner leaves the realtor’s presence, applying for a homeowners policy goes onto their mental “to do” list. When they finally get around to it, your company’s offer may have gone from option #1 to option #4. That could mean never even getting an opportunity, let alone the business.

How can insurers avoid this situation and “strike while the iron is hot?” By equipping cooperating real estate agents with printed insurance brochures containing a QR Code. If homebuyers use any one of the many free apps available for smartphones, they can just take a picture of the code with their phone and the app will automatically bring them to the appropriate website. That website can promote the carrier, take their application and prepare them for a call and quote from the company call center or a local agent. Research shows that the act of entering their information into a website can predispose prospects to buy.

NFC

Apple, Google and others are actively pursuing an even more exciting technology – Near Field Communication (NFC). This will allow consumers to buy goods or even make a payment just by tapping their smartphone onto a section of a “smart poster” with an NFC tag. NFC tags can communicate with any properly equipped device that comes within two to four inches of them. This technology is widely used in Europe. 

With NFC, those who buy a car can apply for auto coverage at the dealership when they sign the purchase agreement and, when approved, make their first payment with their smartphone when they take delivery. This would also work for those who purchase motorcycles or boats.

Can consumers freely access this technology?

iStockAnalyst reports, “According to Fitch Ratings' latest telecomm special report released today, postpaid smartphone penetration increased to 46.8% in third-quarter 2011.” It could hit 50% by the end of this month.  Soon the majority of consumers will be able to use QR Codes to access carrier’s microsites when they need to buy insurance. Widespread NFC adoption won’t lag far behind.

Other key applications not mentioned here could increase insurance sales and retention. Could this technology impact your company’s top and bottom lines in the future?

The Allied Group is a marketing communications company offering Location-Based Marketing and other marketing and sales support programs along with full service fulfillment to the insurance, financial services and benefits administration companies.


Promotional Calendars Will Help Your Company Gain Exposure Every Single Day of the Year

Thursday, December 1, 2011 by Betsy Kirby

Calendar
So you're searching for the promotional items that your customers are going to use very often? How about trying something that clients will use every day? That is what you can have with promotional calendars.

For Promotional Imprinted Products and Calendars - Click Here

With a whole assortment of customized calendars available in different styles and shapes, you can get people to lay eyes on your company logo on a daily basis. All you have to do is pick the right calendar for you, depending on the function that you want it to provide for your customers, and you have branding gold on your hands. Let's take a look at some of the best types of promotional calendars available so that you can select the ones which will generate the best exposure for your company. Keep in mind that the earlier in the year you order custom printed calendars the better, since every day that passes is a day less that people will use your calendar for that year. 

Ordering from The Allied Group in December can get your name in front of the client by January 2012!

Calendar 2To start, promotional wall calendars are probably the most popular type of calendar that you can use for your branding campaign. The calendar is perfect for any home refrigerator or office cubicle, and people tend to rely on them heavily while planning their monthly appointments. The wall calendars feature a large box for every day of the month where recipients can write in all of their important notes and reminders. They usually fold open into a spread which has the calendar month on one page, and a full-page image on the other. The images are tied in by a theme which may include anything from scenic views and animals, to automobiles or gardens or you can use custom photos with your product or a a specific theme.  One fantastic thing about these promotional wall calendars is the fact that your imprinted logo will appear at the bottom of every page, so people will see it every time they refer to it. Wall Calendar.

Calendar 3The next type of customized calendar that you can use to promote your brand is desk calendars. These are different than the wall calendar in the sense that they do not hang on a wall; they stand upright on a table or desk surface. They are a bit more professional-looking, and operate by flipping the pages over the top of a spiral binding. The promotional desk calendars are typically smaller than wall calendars, and do not have a box for each day of the month to write things in. These calendars still offer your company the same daily branding exposure; it just comes in a different style and function. Desk Calendar.


Calendar 5You might be thinking that plenty of other companies in your industry are using customized calendars to generate some good advertising. In this case, you can separate yourself from the competition by distributing some custom planners to your customers. These planners are different than promotional calendars in the sense that they give the recipient much more mobility and convenience in maintaining their daily appointments. The custom planners come in a checkbook-like style and can be easily carried in any pocket or purse. Each page breaks down the day into an hourly basis so people can get as specific as possible with their planning. None of the other customized calendars will allow you to do this. Planner calendar.


Need help distributing your calendars and marketing materials?  The Allied Group can help with our Fulfillment Services.

Is your business viewpoint up-to-date?

Friday, November 18, 2011 by Larry Rondeau

Technological advances are changing our lives at a dizzying pace. Things that did not exist a few years back now play significant roles. The Internet, invented in 1990, is now indispensable.  Google, an invaluable research tool, only came online in 1998. Facebook arrived on the scene less than eight years ago. It now has so many members (800 million) that if it were a nation, it would have the third largest population in the world.

Technological revolution calls for changes in thinking. Business strategies that were based on how people act in the real world must now be modified – people behave differently online. Executives must plan for the coming year knowing that they cannot accurately forecast part of their revenue stream. IT professionals constantly have to take people’s Internet behavior patterns into account. Marketers need to adapt their messages to a multitude of communications channels. Unfortunately, most people - including senior managers - find that changing thinking patterns is far from easy. 

Why it’s so hard to “teach an old dog new tricks”

This challenge is only made more difficult by the fact that, as research shows, a large percentage of senior managers’ foundation beliefs were established when they were in college or shortly after graduation – often a number of years ago. The familiar axiom about learning “new tricks” is backed by science. Respected social psychologist and textbook author Dr. David Myers writes, “The teens and early twenties are important formative years (Krosnick & Alwin, 1989). Attitudes are changeable during that time and the attitudes formed then tend to stabilize through middle adulthood.” Research beside that quoted here by Dr. Myers bears this out. For although some adults clearly change their opinions and beliefs, convictions formed during the college years have proved remarkably resilient.

Researcher James Davis (2004) combed through the National Opinion Research Center archives and found, for instance, that Americans who reached age 16 during the 1960s became more politically liberal than average and maintained that view for many years.

This validates a groundbreaking study conducted with students from Bennington College. During the 1930s and early 1940s, Bennington students were primarily women from wealthier, more conservative families. The young professors who taught them leaned toward leftist political views. Their influence was strong and its effects long-lasting. Bennington women back then became much more liberal than others from similar backgrounds. Some fifty years later, in the 1984 presidential election, while college-educated women in their 70s voted Republican by a 3 to 1 margin, 75% of Bennington alumnae of the same age voted Democratic. Dr. Myers noted, “Their views embraced at an impressionable time had survived a lifetime of wider experience.”

Should your convictions go on trial?

Decisions executives must make affect many – coworkers, stockholders and customers alike. It’s important to ask ourselves if a belief we’re sure of really is true – or carries more weight because we learned it at an impressionable age.  Sometimes it pays to question our convictions.  Many have enduring power that can stand up to testing. But others may no longer apply as they once did. We benefit from checking our opinions against objective research. As Matt Round, then a Director at Amazon.com put it, “Data trumps intuition.”

The Allied Group offers full service fulfillment programs as well as one to one communications and other marketing communications strategies and execution to the insurance, benefits and healthcare industries.


Put Some "Military" in Your Marketing

Thursday, November 10, 2011 by Steve Condon
soldiersI have never served in any of the armed forces but I have the utmost respect for those who do. It is their courage and bravery that allows the rest of us to pursue a life of complete freedom: where to live, what to wear, what we can say and what we do for work.  As we celebrate Veterans' Day, it is a chance to honor these folks and all qualities they represent.

When I think of the qualities of a soldier (or the military in general), I think about the precise training and procedures that go into their operation. A strong chain of command. A high level of strategic planning. A deep understanding of how their "business" works.

Wouldn't you love to see your own marketing strategy be so coordinated? The Allied Group sees the marketing communication strategies of many companies and we see everything -- from those clients with a detailed plan to those who "wing it" and hope for the best! As a top direct marketing agency, it is our mission to get you in the first group.

Companies struggle with marketing - period! Whether it be an issue with marketing and sales support or full service fulfillment, many companies are good at what their product is. They understand their product, know all the idiosyncrasies, and how to use the product. The part they struggle is how to let everyone know!
 
Very few companies have a "military-type" plan for getting their message out. For many companies, a "strategy" or "plan" is not a well-designed set of tactics with a specific goal in mind; rather, it is a relaxed approach with various ideas tossed "into the ring" and one idea is decided without a specific goal in mind.

How comfortable would you feel at night if our military planned like the latter?



Improving Productivity with Single-Source Outsourcing

Thursday, November 10, 2011 by Guest Blogger

The FDA has steadily increased its enforcement focus on supplier controls – a critical potential weak link in medical product manufacturing. Manufacturers can outsource goods and services but not regulatory responsibility or product liability.

Devices pose a unique set of challenges because of the exceptionally wide range of supplied products and services and a reliance on suppliers from other fields, who have limited knowledge of medical risk factors and regulatory requirements.

Another hot-button issue in all segments of the life sciences industry is full service fulfillment outsourcing. In the medical device sector, outsourcing initially took hold in the manufacturing phase, and companies raced across borders and oceans to capitalize on low-cost labor for potentially large profit gains.

Several trends are driving the need for single-source partners. Among these trends are rapid market growth and the emergence of new industry-spanning market segments. New markets, such as those for combination products and advanced drug delivery, are more complex than traditional markets.

Top business thinkers have known for some time that logistical success often equals business success. If you can find a better way to move goods in and out of your
organization and put the right things in the right people’s hands at the right time—your chances of success go up dramatically!

As the logistics outsourcing model continues to mature, companies are realizing that outsourcing key areas of sourcing, kitting and fulfillment can impart large productivity gains that translate into competitive advantages.

Medical device companies and medical marketing consultants, in turn, expanded their universe of external partners. But problems arise when too many outsourced firms are involved. Relying on a number of different suppliers to get a medical device to market can be inefficient and time-consuming. In response, medical device manufacturers have begun seeking partners that can provide full-service outsourcing and mail order fulfillment services.

Partnerships typically begin with a formal assessment process that helps evaluate the strategic elements of an organization’s outsourcing needs and short or longer-term “consult-to-action” retainer relationships often develop.

Programs for a formal logistics assessment look at an integrated supply-chain management approach to ensure more efficient movement of materials in and out of an organization including: procurement, warehousing, packaging, assembly, kitting, distribution, returns management, quality inspections and tracking with the ultimate goal of improving inventory visibility and velocity. 

By storing, assembling and distributing all manner of goods more efficiently, you will be able to positively impact your bottom-line. To learn more about how you can capitalize on low cost outsourcing, click here.



Jon Nugent | Director Client Services
Business Intelligence Solutions |
www.busintellsol.com


Global Regulatory Requirements for Medical Device Mfgs

Thursday, November 3, 2011 by Guest Blogger

A comprehensive global report on medical devices outsourcing titled “Medical Devices Outsourcing: A Global Strategic Business Report” projected the outsourcing market to reach $42.6 billion by the year 2015.

In today’s global marketplace, manufacturers are faced with intense competition, which is driving a demand for innovation, faster time-to market, and lower price premiums. Consequently, manufacturers must develop higher quality products faster and at a lower cost.

Primary drivers for medical device outsourcing include not only the growth pattern of overall medical device market, but also the extent to which device manufacturers choose to outsource their manufacturing, sourcing, kitting and assembly operations.

Medical device manufacturers face an even larger challenge by having to comply with strict regulatory requirements. Compliance requires that every decision and every step of the process be tracked and recorded, which adds a huge burden to medical device manufacturers trying to remain competitive.

When finished device manufacturers produce components specifically for use in medical devices they produce, whether in the same building or another location, such production of components is considered part of the device manufacturing operations, and the production should comply with the Quality System regulation.

The Quality System regulation is in Part 820 of Title 21 of the Code of Federal Regulations (CFR). This regulation covers quality management and organization, device design, buildings, equipment, purchase and handling of components, production and process controls, packaging and labeling control, device evaluation, distribution, installation, complaint handling, servicing, and records - full service fulfillment.

Companies that compete globally must assemble and label their medical device/diagnostic products to meet the specific regulatory requirements of the countries in which they are marketed. When you’re considering outsourcing, you need to address Quality System regulation regulations that pertain to the critical phases in the medical device development and production cycle.

Whether it is a few phases in the project cycle or the entire project, you need to work with a company that ensures the highest level of service and understands the regulatory requirements.

Growth in the market is especially driven by factors such as rising demand from device end market, an increased interest exhibited by OEMs on improving productivity and simplifying supplying chain network, emergence of one-stop shops, and ability of contract manufacturing to slash costs, an added impetus for adoption especially during tough economic and financial climate.

Concordia Medical, a medical device company that modernized their business practices, was driven by the need to remain competitive, and retain critical survival capabilities, agility and flexibility in a fast changing marketplace.


Jon Nugent | Director Client Services
Business Intelligence Solutions | www.busintellsol.com

 

 

Can Smaller Institutions Win when Recruiting against the Giants?

Friday, October 28, 2011 by Larry Rondeau

Research shows that time-pressed Millennial hs students prefer well-known brands. What chance do worthy but lesser-known colleges have to compete? Consider:
 
While researching ways to increase inquiries last spring, I found myself in a parking lot packed with hs students at the NACAC College Fair in Boston and decided to hold an impromptu focus group. To my amazement, the juniors I spoke with already had already put together their short lists and planned on talking with just 3-5 institutions at the Fair. I asked if there was anything a college that wasn’t on their list could do to gain consideration. They gave two answers: 

  • Give away free stuff (NACAC wouldn’t be thrilled with that!)
  • Make an impressive presentation

This experience reinforced two important points. First, it showed the wisdom of a recommendation made in a Search Expert presentation at NEACAC this year:  “Starting early is key.” As Strauss and Howe point out, Millennials are big brand shoppers. Research shows that people who are pressed for time look for shortcuts, and a strong brand provides an easy one. Therefore, it’s crucial that students learn about your institution very early in the process. And if your college is not in the news regularly, it’s clear that you’ll need to do some good PR work with freshmen and then search sophomores if you’re going to make many short lists.

Students may have learned this approach from their parents. Internationally respected research firm Global Reviews conducted a marketing study on people buying insurance on the Internet. It showed that, just like prospective freshmen, those who buy insurance online often start their search with a preferred list of providers in mind. But a full 35% of those who did ended up buying their insurance from a firm that was not on that list.

What made the difference? Global Reviews CEO Greg Muller stated our second key point: “Strong brand awareness can get people to your website, but a better customer experience from a lesser known brand can often win out.” College websites are often well-designed, but actual experience shows that sites that get the right kind of commitments from visitors generate more applications and higher yield rates.  In addition, one state institution broke the mold at the Boston NACAC College Fair, displaying videos in their double-size booth. Their VP of Enrollment reported that her inquiry level for that fair was the best yet.

When students approach your website or your booth, the better experience they have, the more likely they are to investigate further. And when they do, the enjoyable encounter they have may help your institution leapfrog the big brand universities and enroll students who had hardly heard of you when they began their college search.

The Allied Group is an award-winning marketing communications company offering personalized direct marketing, publications/web design and full service fulfillment to higher education institutions.



New Research shows Marketing, IT’s Importance when Competing with Giants

Wednesday, October 26, 2011 by Larry Rondeau

Insurance companies who must fight for market share with giants got some good news from a study published this spring. The report, from business researcher Global Reviews, highlights the critical roles IT and marketing professionals play in winning sales when prospects are searching online.

Marketing’s crucial role in creating demand

Marketing's role is especially important with the growing cadre of new customers who search the web. Internet marketing expert Dave Chaffey reports that research conducted on 10,000 households found that for some products, like airline tickets, the average prospect visited no more than two websites before making a purchase. This may be due, in part, to their preference for well-known brands. Global Reviews’ study on insurance buyers found that 36% already had a company in mind when they began their search.

This seems to give an advantage to well-known companies like Allstate, Aflac, State Farm, Prudential, Aetna, GEICO and Progressive. Worthy but less advertised carriers could win a place on insureds’ short lists by stepping up their integrated marketing communications programs. Studies have shown that pleasant familiarity alone can make a person or organization more attractive to consumers. Without the skilled efforts of insurance marketers using an array of media including broadcast, direct mail and the Internet, high quality companies or their agents may never get a chance to make their case. Effective Internet advertising can be crucial in attracting the 64% of insurance buyers in the study who began their web search without a particular company in mind.

IT’s work stimulates conversion

Global Review’s research showed the important part IT plays in actually converting the leads that good marketing drives to the company website. Their investigation revealed that even when prospects already had a company in mind, only 65% bought insurance from a firm on their short list. That means a full 35% got their coverage from a company from whom they hadn't planned to buy when they started. Some websites apparently did a poor job in conversion. According to CEO Greg Muller, their investigation showed that once prospects arrive at your site, “a better customer experience from a lesser known brand can often win out.” Well-designed sites can create that experience if they:

• provide easy access to information that insurance buyers want (in logical sequence)
• feature engaging graphics
• include high quality content
• encourage interaction
• entice visitors into making commitments, large or small

The first four points may seem obvious. The last is taken from years of research in social psychology. A multitude of studies reveals the power of the “foot-in-the-door technique,” under the right conditions, to turn small commitments into substantial agreements. The Allied Group, a marketing communications company that offers marketing, marketing support and full-service fulfillment programs to the insurance industry (and others) has achieved excellent conversion rates using this technique. How? Look for more in my next post.


Always Ask for a Raise over Lunch

Monday, October 3, 2011 by Larry Rondeau

Being in the right circumstances can make a big difference when asking your boss for a salary increase or presenting a case to a client. In “You’re Judged by the Company You Keep” we briefly discussed research that showed how a person’s positive or negative experience with one thing can rub off on anything associated with it. Thus, weathermen get blamed for storms that ruin vacations and customers condemn companies for mistakes made by their vendors. A New England insurer’s fulfillment partner averaged two client communications errors per week. One can only imagine how that made the company* look to their insureds.

Research used by colleges from Oxford University to the University of Utah shows that tasty food stimulates the brain’s pleasure center. We truly enjoy a good meal. Those good feelings can radiate to anyone or anything in close proximity. Since beauty produces a similar effect on the brain, we can easily understand why in one study outlined in the last post, men rated a new car more favorably when its advertising included a beautiful model. But most of us don’t have such a creature available to accompany us when meeting with a client or our boss. But we all have restaurants nearby. These can prove to be important allies in presenting our case.

Distinguished Columbia University psychologist Dr. Gregory Razran showed just how powerful good food can be in swaying opinions. In 1940, according to influence expert Robert Cialdini, PhD, Razran published research in which he asked people to indicate whether they approved or disapproved of certain political slogans. Then all were invited to a luncheon. At the luncheon the same statements were presented and then rated by the experiment’s subjects. Razran found that some slogans had increased their approval rating – those presented when people were eating.

This explains why, in the political arena, everyone from lobbyists to Presidents likes to present their case to legislators over a meal. Their arguments sound more logical and reasonable to congressman when the pleasure centers of their brains are stimulated by good food. So, if you have something to present to your boss or a client, why not gain the same advantage? And if the waitstaff is good-looking, your case will look even better.

* The insurer reduced errors by 99.2% after switching to The Allied Group, a full service fulfillment provider.

You're Judged by the Company You Keep

Tuesday, September 20, 2011 by Larry Rondeau

I first learned what “the company you keep” can do to a business from a phone call I received from my contact at a New England insurer. It was regarding a shipment of material we had printed and stored for them at The Allied Group, a full service fulfillment company that also provides marketing and sales support. Everything looked great. The shipment was delivered on time to the right location. But the common carrier truck driver had exchanged angry words in the parking lot with a company Vice President. “We know it’s not your fault,” my contact told me. “But if you ever send that trucker here again, I know there’s going to be trouble.” 

Because of the bad conduct of their driver, not only would the trucking company lose business, but I was scrambling to maintain my own good relationship with a major client. Even when people intellectually know a problem has nothing to do with you or your firm, the bad feelings generated by such a situation can stick to everyone connected to it. Organizations truly are judged by the company they keep.

Marketers and advertisers have long recognized the power of association to shape opinions. Communications psychology expert Robert Cialdini, PhD outlined a classic marketing study that compared men’s impressions of a new car based on two versions of a print ad. One ad showed a seductive model with the automobile, the other just displayed the vehicle. Men who viewed the ad with the beautiful woman rated the car as faster, more appealing, more expensive-looking and better designed than those who saw the ad without the model. When surveyed after the study, these men refused to believe that the woman’s presence had anything to do with their assessment. 

Other controlled research found that young adults seated in a room with a MasterCard insignia on display were willing to spend an average of 29% more to order items from a catalog than those who perused it in a room with no credit card logo. A comparable study showed that twenty-somethings were 260% more likely to contribute to a charity when in the presence of the MasterCard logo. But credit cards were not accepted in either case. Merely seeing their symbols encouraged people to spend more cash.

Similarly, clients and their employees can form positive or negative impressions that can affect your business based on their dealings with people just remotely connected to it. Executives, brokers and administrators are treated like the weatherman. Cialdini quotes Indianapolis TV meteorologist Bob Gregory: “I had one guy call and tell me that if it snowed over Christmas, I wouldn’t live to see New Year’s.”