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Contagious: Why Things Catch On Book Summary preview
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Synopsis

Over the years business leaders from all sectors have wondered why some products and services have become popular with consumers, while others seem to fade along the sidelines. Three important factors play a role in whether or not something stands the chance of "making it." They include price, availability, and quality. But while together, and sometimes even separately, those elements make a difference, the number one reason behind a successful campaign is something known as "Social Transmission." Experts agree that nothing can ever beat the tried and true success of a "word of mouth" campaign. Also, since the introduction of social media to the mix and the excitement of millions of people who cannot wait to "like and share," good news travels fast. Through Contagious: Why Things Catch On, the author shares his extensive research on the topic and teaches the reader how to launch their successful campaign.

Questions and answers

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Yes, there are several examples of companies that have successfully implemented Social Transmission in their marketing campaigns. One of the most notable examples is the "Share a Coke" campaign by Coca-Cola, which encouraged consumers to share a Coke with someone else, thereby creating a social experience. Another example is the ALS Ice Bucket Challenge, which went viral on social media and raised significant awareness and funds for the disease. These campaigns leveraged the power of social media and word-of-mouth to reach a wide audience and create a buzz around their products or cause.

Social Transmission, as explained in the book "Contagious: Why Things Catch On", refers to the process by which information, ideas, and behaviors spread through a network of people. It's essentially the modern term for "word of mouth". In the context of business and marketing, Social Transmission is the phenomenon that leads to certain products or services becoming popular, while others fade away. It's not just about the price, availability, or quality of a product, but how effectively the information about it is transmitted through social networks. This can be through traditional face-to-face interactions, or through digital means such as social media. The more a product or idea is shared or talked about, the more likely it is to be successful.

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Summary

Over the past few decades there have been plenty of examples of new products and movements that were created and introduced to the consumer with results that surpassed any predictions or expectations. Consider these examples:

  • Nonfat Greek Yogurt
  • Smoking Bans
  • Diet Fads, including Atkins, South Beach and the Low Carb ones
  • Rubik's Cube
  • Crowd sourcing
  • Six Sigma Management Strategies
  • Netflix

Moreover, it is not limited to just major products or movements that have gained worldwide attention. Consider what takes place on a smaller scale in a local community. A newspaper will run a feature article about a new gym that has just opened, or campaign to save a local nonprofit from closing their doors. Suddenly the gym becomes "the" place to work out, and donations start pouring in to keep the charity from going under. Those are great examples of social movements that quickly spread among a local community and population. Of course, it is easy to review examples of social campaigns that were successful. However, business leaders will no doubt agree that it is much harder to get something to start to "catch on." Sometimes it does not matter how much money managers spend on marketing and advertising; a campaign still might fail to gather interest and support from the consumer or community.

Questions and answers

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A small business can use the concept of "catching on" to grow their business by creating a product, service, or campaign that resonates with their target audience. This could be something that solves a problem, fulfills a need, or simply appeals to their interests. The key is to make it easy for people to share and talk about. This could be through word-of-mouth, social media, or other forms of communication. Once something starts to "catch on", it can quickly spread within a community or even on a larger scale, leading to increased awareness and growth for the business.

1. Social Currency: People love to share interesting, entertaining or useful information. Make your product or idea something that gives them social currency and they'll spread the word.

2. Triggers: Link your product or idea to something in the environment so people are reminded of it and talk about it more often.

3. Emotion: When we care, we share. Evoke strong emotions (positive or negative) to get people to share your message.

4. Public Visibility: Make your product or idea more public to get more people to follow suit.

5. Practical Value: People like to share useful or valuable information. Highlight the practical benefits of your product or idea.

6. Stories: People love stories. Embed your product or idea in a narrative that people will want to tell others.

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Why do some products, ideas, and behaviors succeed when others fail?

Quality

They are actually better. People tend to steer towards products, services, and movements that are easy to use, have great results and give them a good feeling. If a widget comes along that offers something better than what consumers were using in the past; people will be quick to switch and feel good about their decision. Consider the case of the old fashioned computer monitors and television sets. Remember how bulky and cumbersome they were? Once the newer flat screens were introduced, consumers realized just how easier (and lighter) they were, and they practically sold themselves.

Questions and answers

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The book 'Contagious: Why Things Catch On' presents several innovative ideas. One of the key concepts is the importance of social transmission or word-of-mouth in making things popular. The book suggests that people tend to gravitate towards products, services, and movements that are easy to use, yield great results, and evoke positive emotions. Another surprising idea is the power of practical value. If a product or service offers something better than what consumers were using in the past, people will be quick to switch and feel good about their decision. This is exemplified by the transition from bulky computer monitors and television sets to lighter, easier-to-use flat screens.

The 'feel good factor' in the context of the book 'Contagious: Why Things Catch On' refers to the positive emotional response consumers experience when using a product or service. This factor is crucial in making a product or service popular. When consumers find a product easy to use, effective, and it makes them feel good, they are more likely to switch to it from what they were using before. An example given in the book is the transition from bulky old-fashioned computer monitors and television sets to newer, lighter flat screens. The ease and convenience of the new technology gave consumers a 'feel good factor', making the product highly popular.

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Price

Pricing does matter. It is no big surprise that people would much rather pay a lower price than a higher one. So, in the case of two very similar products that offer the same benefits, odds are very good that the less expensive one will win out. Think about a supermarket that suddenly offers a major brand at half off. Those products quickly fly off the shelves.

Questions and answers

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The themes of "Contagious: Why Things Catch On" are highly relevant to contemporary issues and debates in business and marketing. The book explores why certain products and services become popular, which is a central question in today's competitive business environment. It discusses factors such as price, availability, and quality, which are key considerations in any marketing strategy. Furthermore, in the age of social media and digital marketing, understanding what makes something 'catch on' and become viral is more important than ever.

The pricing strategies discussed in "Contagious: Why Things Catch On" have significant potential for real-world implementation. The book emphasizes the importance of pricing in influencing consumer behavior. For instance, consumers are more likely to choose a less expensive product over a similar, more expensive one. This principle can be applied in various real-world scenarios, such as supermarkets offering discounts on major brands to increase sales. However, it's important to note that while pricing is a key factor, it's not the only one. Other factors like product quality, brand reputation, and customer service also play crucial roles in a product's success.

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Marketing

Advertising plays an important part. Research shows that the average consumer wants and needs to know about a product or service before they will spend their hard earned money to purchase it. However, many businesses think all they have to do is pour a boatload of money into an advertising campaign and it will be successful. Sometimes that is an uphill battle and does not work. For example, if you are trying to sell broccoli, don't just spend money advertising it. Instead, invest in a series of ads that will teach the consumer the benefits of eating more vegetables, and you stand a greater chance of success.

Questions and answers

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1. Understand the consumer: The book emphasizes the importance of understanding what the consumer wants and needs. This knowledge can guide the creation of effective advertising campaigns.

2. Value of word of mouth: The book highlights the power of word-of-mouth marketing. Encouraging customers to share their positive experiences can be more effective than traditional advertising.

3. Emotional engagement: The book suggests that creating emotional engagement with consumers can make a product or service more contagious. This can be achieved through storytelling in advertising.

4. Practical value: The book advises to focus on the practical value of the product or service. This can be communicated through advertising to make the product or service more appealing to consumers.

The advertising ideas in the book 'Contagious: Why Things Catch On' have significant potential for real-world implementation. The book emphasizes the importance of understanding consumer behavior and creating advertising strategies that resonate with consumers on a deeper level. For instance, instead of merely promoting a product, businesses should focus on educating consumers about the benefits of the product, thereby creating a more meaningful connection. This approach can be applied in various industries and has the potential to significantly improve advertising effectiveness.

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Case study: the $100 cheese steak

With lots of hospitality experience under his belt, when Howard Wein moved to Philadelphia in the spring of 2004, he had his own successful resume that was the envy of many people. With his MBA in hotel management, he had created a successful campaign for Starwood Hotels and their W brand. And as their Corporate Director of Food and Beverage, Howard had managed billions of dollars in revenue. However, while he had enjoyed that time of his life, he was ready to downsize and find something on a smaller scale that would work just as well. With that in mind, he moved to Philadelphia and helped design Barclay Prime, a new luxury boutique steakhouse.

Questions and answers

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Howard Wein's story reflects the themes discussed in the book 'Contagious: Why Things Catch On' in several ways. Firstly, his success with Starwood Hotels and their W brand demonstrates the power of creating a product or service that resonates with consumers, which is a key theme in the book. Secondly, his decision to downsize and create a new luxury boutique steakhouse, Barclay Prime, shows the importance of innovation and finding a unique market niche, another major theme in the book. Finally, his extensive experience in the hospitality industry and his ability to generate significant revenue highlight the role of expertise and effective management in making a product or service 'catch on'.

Entrepreneurs trying to replicate Howard Wein's success might face several obstacles. Firstly, they may lack the extensive hospitality experience and the specific skill set that Wein has. To overcome this, they could gain experience in the industry and seek relevant education. Secondly, they might not have the same network and reputation that Wein has built over the years. Building a strong network and reputation requires time, patience, and consistent high-quality work. Lastly, they may face financial constraints. To overcome this, they could seek investors or take out business loans.

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His idea was a simple one, and one that offered a unique dining experience for the customer. Wein set a goal of delivering the best steakhouse experience on the planet. Although the restaurant was in the smallest section of downtown Philadelphia, it did not take long before customers found it and were glad they did. When people entered the establishment, instead of the traditional tables and chairs, they found plush, comfortable sofas set around small marble tables. The menu included the finest Russian caviar, along with such delicacies like truffle-whipped potatoes and halibut that was shipped nightly from Alaska. But he also knew that just offering a different atmosphere and great food was not going to be enough to keep the business open and thriving. Wein knew that a quarter of new restaurants ended up closing their doors within a year of opening, and he did not want that to happen to him. While Philadelphia already had their share of fine-dining establishments and expensive steakhouses, he knew he had to do something different that would help him stand out from the crowd. Something that would be unique to his brand, something that would get people talking about it and help spread the word about their experience.

Questions and answers

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Wein's unique dining experience is characterized by several key elements. Firstly, the ambiance is different from traditional restaurants, with plush, comfortable sofas set around small marble tables instead of the usual tables and chairs. Secondly, the menu is exquisite, featuring the finest Russian caviar, truffle-whipped potatoes, and halibut shipped nightly from Alaska. Lastly, Wein's goal was to deliver the best steakhouse experience on the planet, which implies a focus on high-quality steaks. However, Wein understood that a unique atmosphere and great food alone wouldn't guarantee success, indicating that exceptional customer service and a well-run business were also key elements of his dining experience.

Wein's unique dining experience approach has significant potential for real-world implementation. The concept revolves around providing a unique and comfortable atmosphere, coupled with high-quality food. This approach can be adapted to various dining settings, not just steakhouses. However, it's important to note that success depends on several factors, including location, target audience, and the ability to maintain high standards of food and service. It's also crucial to understand the local market and customer preferences. While this approach may not work everywhere, it has the potential to thrive in areas where customers value unique dining experiences.

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That is when he created the $100 cheese steak.

In a city that was known for their Philly brand cheese steak that normally sold for anywhere from four to seven dollars, the thought of offering a sandwich at that price was absurd. After all, if dozens of sandwich shops, pizzerias and other restaurants sold cheese steaks at such low prices, how could he possibly expect anyone to want to plunk down one hundred dollars for the same sandwich?

Questions and answers

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Yes, the concept of selling a common product at a high price can work in today's business environment. This strategy is often referred to as "premium pricing" and is used to create a perception of exclusivity and high quality. However, for this strategy to be successful, the product or service must be able to deliver a level of value that justifies the higher price. This could be in the form of superior quality, unique features, exceptional service, or even the prestige associated with owning the product. It's also important to note that this strategy may not be suitable for all products or markets.

The theme of product popularity and pricing from the book "Contagious: Why Things Catch On" is highly relevant to contemporary business issues. In today's competitive market, understanding what makes a product or service popular is crucial for businesses. The book discusses factors like price, availability, and quality, which are still key determinants of a product's success. Moreover, the book's insights into how unconventional pricing strategies can create buzz and demand are particularly relevant in the era of viral marketing.

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The answer was simple: instead of offering the standard steak chopped on a griddle with cheese and onions smothered on top of it, create the buzz by offering a much better brand of thinly sliced Kobe beef and upgrade the "fixings" that would convince people they were getting something worthy of that hundred dollar price tag. So, instead of the standard hoagie roll, customers received a house made brioche role slightly brushed with a special homemade mustard. Instead of the standard friend onions, customers received caramelized onions. Add some triple-cream Taleggio cheese, thinly shaved heirloom tomatoes and top it off with shaved hand-harvested black truffles, and you have a winning combination that will get customers to sit and take notice. While that alone was worthy of being called "different and newsworthy," Wein also included a butter-poached Maine lobster tail and some chilled Veuve Clicquot champagne.

Questions and answers

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The ideas from "Contagious: Why Things Catch On" can be highly feasible in real-world scenarios, especially in the food and beverage industry. The book emphasizes the importance of creating a unique and high-quality product that stands out from the competition. This can be achieved by using premium ingredients, offering a unique dining experience, or creating a buzz around the product. For example, a restaurant could use high-quality Kobe beef instead of standard steak, or offer a unique dish like a lobster tail with champagne. By doing so, the restaurant creates a product that is not only superior in quality, but also newsworthy and worth talking about. This can help the product to "catch on" and become popular with consumers.

Yes, there are several companies that have successfully implemented the strategy of creating a buzz by offering superior quality products. One such example is Apple Inc. Their products, such as the iPhone and MacBook, are known for their high quality and innovative features, which has created a significant buzz and helped them to gain a large customer base. Another example is Tesla Inc. Their electric cars are known for their superior quality and innovative technology, which has created a buzz and made them a leader in the electric car industry. Lastly, Starbucks is another example. Their high-quality coffee and unique customer experience have created a buzz and made them a global leader in the coffee industry.

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The end result was astonishing. As soon as the first few dozen customers enjoyed their hundred dollar cheese steak, not only did they leave the restaurant with a full stomach and a smile on their face, they could not wait to tell their family and friends about the experience. That began the "buzz that changed the world" and put his hundred dollar cheese steak on the map. Wein had successfully taken a simple sandwich, added a few upgrades and made the dining experience a unique and different one. He did not just create another cheese steak. Instead, he created a conversation piece!

Questions and answers

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The buzz around Wein's hundred dollar cheese steak was primarily due to the unique and different dining experience he created. He took a simple sandwich, added a few upgrades, and transformed it into a conversation piece. The first few dozen customers who enjoyed their hundred dollar cheese steak not only left the restaurant satisfied, but they also couldn't wait to tell their family and friends about the experience. This word-of-mouth marketing helped put his hundred dollar cheese steak on the map.

Wein's success challenges traditional approaches to product development and marketing in several ways. Firstly, he took a simple product, a cheese steak, and transformed it into a unique dining experience by adding a few upgrades. This shows that innovation doesn't necessarily mean creating something entirely new, but can also mean enhancing an existing product in a unique way. Secondly, his approach to marketing was also unconventional. Instead of relying on traditional advertising methods, he relied on the 'buzz' created by the customers who enjoyed their hundred dollar cheese steak. This word-of-mouth marketing proved to be very effective, as it not only promoted the product but also created a conversation around it.

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The hundred dollar cheese steak suddenly was a newsworthy story. Media outlets, including USA Today, The Wall Street Journal and dozens of others published articles about the sandwich and the restaurant. Even television joined in the media frenzy when The Discovery Channel decided to film a segment for their Best Food Ever show. When celebrities visited Philadelphia, many insisted they visit the restaurant and learn what the excitement was all about. Even late night TV got in on the action when David Letterman invited Barclay's executive chef to come on the show and cook him one right on the air. Against all odds, Wein was able to successfully launch a new restaurant and a new sandwich that created such a buzz and excitement and is now listed among the best steakhouses in Philadelphia.

Questions and answers

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Small businesses can use Wein's strategy by creating a unique, high-value product or service that grabs attention and sparks curiosity. This could be something unusual, expensive, or exclusive. The key is to make it newsworthy, something that media outlets would want to cover. Once the media picks up the story, it can create a buzz and attract customers. Additionally, involving celebrities or influential people can further amplify the buzz. However, it's important to ensure that the product or service delivers value and meets customer expectations to sustain the buzz and build a positive reputation.

Wein might have faced challenges such as competition from established restaurants, attracting customers, and creating a unique selling proposition. He overcame these by creating a buzz around his restaurant through the introduction of a unique and expensive dish - the hundred dollar cheese steak. This caught the attention of media outlets and celebrities, which helped in promoting the restaurant and attracting customers.

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Conclusion

When thinking about launching a new product, service or movement, think carefully about what it will take to create the buzz. What will it take to create the "contagious" factor that can lead to success? What will it take to get people talking and want to help spread the word? With some careful planning and brainstorming, it can happen.

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A startup can use the key topics or framework covered in "Contagious: Why Things Catch On" to create a buzz and grow by focusing on the three main factors that determine whether a product or service becomes popular: price, availability, and quality. The startup should ensure that its product or service is priced competitively, readily available to consumers, and of high quality. Additionally, the startup should carefully plan and brainstorm strategies to create a "contagious" factor that will get people talking and wanting to spread the word about their product or service.

Yes, there are several examples of companies that have successfully implemented the practices of creating a contagious factor. One such example is Apple Inc. They have created a strong brand image and their product launches generate a lot of buzz, making their products highly desirable and contagious. Another example is the Ice Bucket Challenge by the ALS Association. The challenge went viral and raised a significant amount of money for ALS research, demonstrating the power of a contagious idea.

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