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33 Lessons in Neuromarketing



       Presented by: Jeph Maystruck
From these books
The physicist Niels Bohr once defined an
  expert as "a person who has made all the
  mistakes that can be made in a very narrow
  field." From the perspective of the brain,
  Bohr was absolutely right. Expertise is
  simply the wisdom that emerges from
  cellular error. Mistakes aren't things to be
  discouraged. On the contrary, they should be
  cultivated and carefully investigated.
                     -How We Decide by Jonah Lehrer
Baba Shiv, a neuroeconomist at Stanford,
  supplied a group of people with Sobe
  Adrenaline Rush, an "energy" drink that was
  supposed to make them feel more alert and
  energetic.
Shivfound that people who'd paid discounted
  prices consistently solved about 30 percent
  fewer puzzles than the people who'd paid full
  price for the drinks. The subjects were
  convinced that the stuff on sale was much
  less potent, even though all the drinks were
  identical. "We ran the study again and again,
  not sure if what we got had happened by
  chance or fluke," Shiv says. "But every time
  we ran it, we got the same results."
                       -How We Decide by Jonah Lehrer
Mark Jung-Beeman, the scientist who studies
 the neuroscience of insight, has shown that
 people in good moods are significantly better
 at solving hard problems that require insight
 than people who are cranky and depressed.
 (Happy people solve nearly 20 percent more
 word puzzles than unhappy people.)


                     -How We Decide by Jonah Lehrer
meet the
morgensons
17 microphones
 35 hidden cameras
15hidden crew members
―Whether it’s shoes, jewelry, barbecue
tools, or sports equipment, there’s
nothing quite as persuasive as observing
someone we respect or admire using a
brand or product.‖


-Martin Lindstrom
―The results proved beyond any doubt
whatsoever that marketers, advertisers,
and big business have nothing at all
compared to the influence weconsumers
have on one another.‖



-Martin Lindstrom
Joe Camel and Mickey Mouse
Nearly all America’s six-year-olds could
 identify Joe Camel, who was just as
           familiar to them as
             Mickey Mouse.


                -Brandwashed by Martin Lindstrom
―Recent studies have shown that by the time
 they are 36 months old, American children
 recognize an average of 100 brand logos.‖




                -Dr. Allen Kanner, child psychologist at the
                      Wright Institute in Berkley, California.
What’s one of the most powerful
  advertising tactics used?
Fear
1. Pinpoint a problem consumers
don’t know they have

 2. Create anxiety around the problem

 3. Sell the cure
Remember these commercials….
Thanks to fear-mongering,
alarm sales rose by an unprecedented
                  10%
 in a single year, a year during which
    crime rates actually decreased.


                -Brandwashed by Martin Lindstrom
What have marketers done to the
        supermarket?
For years now supermarkets have been sprinkling
  select vegetables with regular dew drops of
  water – a trend that came out of
  Denmark. Why? Like ice displays, those
  sprinkler-like drops serve as a symbolic, albeit a
  bogus one, of freshness and purity. (Ironically,
  that same dewy mist makes the vegetables rot
  more quickly than they would otherwise.)


                        -Brandwashedby Martin Lindstrom
Yup, they’ve tested to see what colour of
bananas we tend to buy more of.

                      -Brandwashed by Martin Lindstrom
Believe it or not, my research found that
while it may look fresh, the average apple
you see in the supermarket is actually
fourteen months old.

                     -Brandwashed by Martin Lindstrom
Does Music effect your shopping patterns?
In department stores ―Muzak‖ with a slow
  tempo makes shoppers shop for 18%
  longer and make 17% more purchases




              -Coercion: Why We Listen to What ―They‖ Say
                                     by Douglas Rushkoff
In grocery stores, shoppers make 38% more
  purchases while listening to slow tempo
  ―muzak‖

On the contrary, fast food restaurants play
 faster ―muzak‖ to encourage a faster rate
 of chewing.
               -Coercion: Why We Listen to What ―They‖ Say
                                      by Douglas Rushkoff
In one experiment, I asked two groups of
  consumers to try two different versions of
  the toothpaste (Aquafresh)-one regular
  version and one that had been dyed just one
  color. Sure enough, the group using the
  paste with three colors not only reported that
  the toothpaste worked 73 percent better, they
  even claimed they believed that their teeth
  looked whiter.
                         -Brainfluence by Roger Dooley
One Cornell study looked at several
 common restaurant price display
 techniques: $12.00 or 12 or twelve
 dollars. The researchers expected that the
 written/scripted prices would perform
 best, but they found that the guests with
 the simple numeral prices (those without
 dollar signs or decimals) spent
 significantly more than the other two
 groups did.             -Brainfluence by Roger Dooley
Scents can affect behavior and consumer
 perceptions. One experiment showed that
 nightclub patrons danced longer when the
 venue was scented with orange,
 peppermint, and seawater. When
 surveyed, the patrons of the scented
 clubs reported they had a better time and
 liked the music more.
                       -Brainfluence by Roger Dooley
A test in a casino found that people
  gambled 45 percent more money in a
  slot machine when a pleasant scent
  was introduced into the area.



                    -Brainfluence by Roger Dooley
Another test found that changing a
 shampoo’s fragrance but no other
 performance characteristics caused
 testers to find that it foamed better, rinsed
 out more easily, and left their hair
 glossier.

                          -Brainfluence by Roger Dooley
Sometimes, we process scents without conscious
  awareness. In one unique experiment, researchers
  asked female subjects to smell shirts worn by men
  who watched either an erotic movie or a neutral
  one. Virtually all of the women said they didn’t
  smell anything, but the functional magnetic
  resonance imaging (fMRI) scans of the brains of
  the women who smelled the shirts worn by the
  aroused guys lit up in a different way. (This is just
  one example of why surveys, questionnaires, and
  similar market research tools can yield unreliable
  results.)

                                 -Brainfluence by Roger Dooley
They chose a wineshop for this experiment, since
  wines have identifiable origins, and proceeded to
  play French and German background music on
  alternating days.
The results were startling:
the French and German wines each outsold the
  other by several multiples on the days the
  matching music was playing.


                            -Brainfluence by Roger Dooley
One of the most interesting findings was that the
  mere illusion of progress caused people to buy
  coffee more frequently. The experimenters
  issued two different cards: empty cards with 10
  spots to stamp and cards with 12 blanks of
  which two were prestamped. In both cases, 10
  stamps were required to earn the free coffee.
  Despite the identical number of stamps needed,
  the group that started with apparent progress on
  their card bought coffee more frequently than
  the empty-card group.
                           -Brainfluence by Roger Dooley
An experiment in Edinburgh began by planting
  hundreds of wallets on city streets. Almost half
  were mailed back to the ―owner.‖ Most wallets
  contained one of four possible photos: a smiling
  baby, a cute puppy, a happy family, or an elderly
  couple. Other wallets had no photo at all, and
  some had charity papers inside.3 The results
  were quite startling. Fully 88 percent of the
  wallets with the baby photo were returned. The
  next best rate was the puppy photo, at 53
  percent. A family photo netted a 48 percent return
  rate, while an elderly couple picture scored only
  28 percent. Just one out of seven of the no-photo
  wallets was returned. According to the principal
  researcher, Dr. Richard Wiseman, the high rate of
  return for the wallets that included a baby photo
  reflects an evolution-driven instinct to help
  vulnerable infants. Humans, in order to protect
  future generations, are wired to help babies, even
  the progeny of others.
An interesting study by German researcher Armin Falk showed
   that a bigger gift amplifies the reciprocity effect. Falk’s study
   involved mailing 10,000 requests for charitable donations,
   divided into three groups. One group received only the letter
   requesting the donation, one group received the letter plus a
   free postcard and envelope (the small gift), and the last
   group received a package containing four postcards and
   envelopes (the large gift). The idea that sending a gift along
   with a charitable donation request boosts response is well
   established, and the experiment bore this out: the small gift
   boosted donation totals by 17 percent. The recipients of the
   large gift, though, were even more generous: they donated 75
   percent more than the no-gift group. This experiment is
   significant in a couple of ways. First, it tested reciprocity in
   the real world, not in an academic setting with undergrads
   used as inexpensive lab rats. Second, it demonstrated that
   the reciprocity effect is proportional to the perceived size of
   the gift or favor, even when the variations are relatively
   minor.
If you want to convey a positive message,
   use real numbers, not percentages. If you
   are describing a benefit of your product or
   service, expressing it in terms of absolute
   numbers will maximize its impact.
Good: 90 percent of our customers rate our
   service as ―excellent‖
Better: 9 out of 10 customers rate our
   service as ―excellent‖

                         -Brainfluence by Roger Dooley
A Harris survey showed that 18 percent of
  those who posted a negative review of the
  merchant and received a reply ultimately
  became loyal customers and bought
  more.



                        -Brainfluence by Roger Dooley
Researchers at Carleton University were
 stunned to find that showing users an
 image of a website for a mere 50
 milliseconds—that’s just a twentieth of a
 second—was sufficient for them to decide
 how appealing a website was.



                       -Brainfluence by Roger Dooley
In addition, nearly 70 percent of those
  consumers receiving replies reversed the
  negative content either by deleting the
  bad review or posting a second positive
  one. Considering the power of word of
  mouth—in particular, negative word of
  mouth—that’s a stunning
  accomplishment.
                        -Brainfluence by Roger Dooley
John Bargh of Yale University, found that the
  temperature of a beverage makes a
  difference in how one person judges
  another person. An experiment gave
  subjects cups of either iced or hot coffee
  and then told them to rate someone else’s
  personality solely from a file of information
  about that person. Which group do you
  think scored the person higher for
  ―warmth‖? The hot coffee group, of course!
                        -Brainfluence by Roger Dooley
Researchers found that placing the
 following statement at the end of an ad for
 an auto service firm caused their trust
 scores to jump as much as 33 percent!
             ―You can trust us
          to do the job for you.‖


                       -Brainfluence by Roger Dooley
One small but interesting study measured
 sales of a liquor product in a bar. Patrons
 who had the aroma of that beverage
 pumped into the surrounding air while a
 visual ad could be seen purchased nearly
 twice as much of the product as those
 who saw the ad alone.

                        -Brainfluence by Roger Dooley
Tobacco warning labels were found to
  stimulate craving for tobacco when smokers
  were observed using fMRI brain scans. The
  very labels intended to frighten smokers
  became, after repeated exposure, a cue to
  smoke. By their presence on every pack of
  cigarettes, the warning labels became
  associated with the pleasurable aspect of
  satisfying a tobacco craving.


                       -Buy-ology by Martin Lindstrom
A Princeton study compared student
  retention of course material presented in
  both simple fonts and more complex fonts
  and found that retention was significantly
  better for the complex font.



                      -Brainfluence by Roger Dooley
What do companies know about you
    based on yourcredit card?
In 2002 a Canadian Tire executive analyzed credit card
data from the previous year and found out that;
―people who bought carbon monoxide monitors
practically never missed payments, and neither did
people who bought those little soft pads that keep
furniture legs from scratching up your floor.
But….
―if a person bought a chrome-skull car
accessory, he was pretty likely to miss his
bill eventually.‖
Colin Powell made a number of mistakes in
 the run-up to the Iraq war, but his advice
 to his intelligence officers was
 psychologically astute: "Tell me what you
 know," he told his advisers. "Then tell me
 what you don't know, and only then can
 you tell me what you think. Always keep
 those three separated."
                     -How We Decide by Jonah Lehrer
Tweet Me:
    @JephMaystruck
JephMaystruck@gmail.com
   www.strategylab.ca

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33 Lessons in Neuromarketing

  • 1. 33 Lessons in Neuromarketing Presented by: Jeph Maystruck
  • 3. The physicist Niels Bohr once defined an expert as "a person who has made all the mistakes that can be made in a very narrow field." From the perspective of the brain, Bohr was absolutely right. Expertise is simply the wisdom that emerges from cellular error. Mistakes aren't things to be discouraged. On the contrary, they should be cultivated and carefully investigated. -How We Decide by Jonah Lehrer
  • 4. Baba Shiv, a neuroeconomist at Stanford, supplied a group of people with Sobe Adrenaline Rush, an "energy" drink that was supposed to make them feel more alert and energetic. Shivfound that people who'd paid discounted prices consistently solved about 30 percent fewer puzzles than the people who'd paid full price for the drinks. The subjects were convinced that the stuff on sale was much less potent, even though all the drinks were identical. "We ran the study again and again, not sure if what we got had happened by chance or fluke," Shiv says. "But every time we ran it, we got the same results." -How We Decide by Jonah Lehrer
  • 5. Mark Jung-Beeman, the scientist who studies the neuroscience of insight, has shown that people in good moods are significantly better at solving hard problems that require insight than people who are cranky and depressed. (Happy people solve nearly 20 percent more word puzzles than unhappy people.) -How We Decide by Jonah Lehrer
  • 7.
  • 8. 17 microphones 35 hidden cameras 15hidden crew members
  • 9. ―Whether it’s shoes, jewelry, barbecue tools, or sports equipment, there’s nothing quite as persuasive as observing someone we respect or admire using a brand or product.‖ -Martin Lindstrom
  • 10. ―The results proved beyond any doubt whatsoever that marketers, advertisers, and big business have nothing at all compared to the influence weconsumers have on one another.‖ -Martin Lindstrom
  • 11. Joe Camel and Mickey Mouse
  • 12. Nearly all America’s six-year-olds could identify Joe Camel, who was just as familiar to them as Mickey Mouse. -Brandwashed by Martin Lindstrom
  • 13. ―Recent studies have shown that by the time they are 36 months old, American children recognize an average of 100 brand logos.‖ -Dr. Allen Kanner, child psychologist at the Wright Institute in Berkley, California.
  • 14. What’s one of the most powerful advertising tactics used?
  • 15. Fear
  • 16. 1. Pinpoint a problem consumers don’t know they have 2. Create anxiety around the problem 3. Sell the cure
  • 18.
  • 19. Thanks to fear-mongering, alarm sales rose by an unprecedented 10% in a single year, a year during which crime rates actually decreased. -Brandwashed by Martin Lindstrom
  • 20. What have marketers done to the supermarket?
  • 21.
  • 22. For years now supermarkets have been sprinkling select vegetables with regular dew drops of water – a trend that came out of Denmark. Why? Like ice displays, those sprinkler-like drops serve as a symbolic, albeit a bogus one, of freshness and purity. (Ironically, that same dewy mist makes the vegetables rot more quickly than they would otherwise.) -Brandwashedby Martin Lindstrom
  • 23. Yup, they’ve tested to see what colour of bananas we tend to buy more of. -Brandwashed by Martin Lindstrom
  • 24. Believe it or not, my research found that while it may look fresh, the average apple you see in the supermarket is actually fourteen months old. -Brandwashed by Martin Lindstrom
  • 25. Does Music effect your shopping patterns?
  • 26. In department stores ―Muzak‖ with a slow tempo makes shoppers shop for 18% longer and make 17% more purchases -Coercion: Why We Listen to What ―They‖ Say by Douglas Rushkoff
  • 27. In grocery stores, shoppers make 38% more purchases while listening to slow tempo ―muzak‖ On the contrary, fast food restaurants play faster ―muzak‖ to encourage a faster rate of chewing. -Coercion: Why We Listen to What ―They‖ Say by Douglas Rushkoff
  • 28. In one experiment, I asked two groups of consumers to try two different versions of the toothpaste (Aquafresh)-one regular version and one that had been dyed just one color. Sure enough, the group using the paste with three colors not only reported that the toothpaste worked 73 percent better, they even claimed they believed that their teeth looked whiter. -Brainfluence by Roger Dooley
  • 29. One Cornell study looked at several common restaurant price display techniques: $12.00 or 12 or twelve dollars. The researchers expected that the written/scripted prices would perform best, but they found that the guests with the simple numeral prices (those without dollar signs or decimals) spent significantly more than the other two groups did. -Brainfluence by Roger Dooley
  • 30. Scents can affect behavior and consumer perceptions. One experiment showed that nightclub patrons danced longer when the venue was scented with orange, peppermint, and seawater. When surveyed, the patrons of the scented clubs reported they had a better time and liked the music more. -Brainfluence by Roger Dooley
  • 31. A test in a casino found that people gambled 45 percent more money in a slot machine when a pleasant scent was introduced into the area. -Brainfluence by Roger Dooley
  • 32. Another test found that changing a shampoo’s fragrance but no other performance characteristics caused testers to find that it foamed better, rinsed out more easily, and left their hair glossier. -Brainfluence by Roger Dooley
  • 33. Sometimes, we process scents without conscious awareness. In one unique experiment, researchers asked female subjects to smell shirts worn by men who watched either an erotic movie or a neutral one. Virtually all of the women said they didn’t smell anything, but the functional magnetic resonance imaging (fMRI) scans of the brains of the women who smelled the shirts worn by the aroused guys lit up in a different way. (This is just one example of why surveys, questionnaires, and similar market research tools can yield unreliable results.) -Brainfluence by Roger Dooley
  • 34. They chose a wineshop for this experiment, since wines have identifiable origins, and proceeded to play French and German background music on alternating days. The results were startling: the French and German wines each outsold the other by several multiples on the days the matching music was playing. -Brainfluence by Roger Dooley
  • 35. One of the most interesting findings was that the mere illusion of progress caused people to buy coffee more frequently. The experimenters issued two different cards: empty cards with 10 spots to stamp and cards with 12 blanks of which two were prestamped. In both cases, 10 stamps were required to earn the free coffee. Despite the identical number of stamps needed, the group that started with apparent progress on their card bought coffee more frequently than the empty-card group. -Brainfluence by Roger Dooley
  • 36. An experiment in Edinburgh began by planting hundreds of wallets on city streets. Almost half were mailed back to the ―owner.‖ Most wallets contained one of four possible photos: a smiling baby, a cute puppy, a happy family, or an elderly couple. Other wallets had no photo at all, and some had charity papers inside.3 The results were quite startling. Fully 88 percent of the wallets with the baby photo were returned. The next best rate was the puppy photo, at 53 percent. A family photo netted a 48 percent return rate, while an elderly couple picture scored only 28 percent. Just one out of seven of the no-photo wallets was returned. According to the principal researcher, Dr. Richard Wiseman, the high rate of return for the wallets that included a baby photo reflects an evolution-driven instinct to help vulnerable infants. Humans, in order to protect future generations, are wired to help babies, even the progeny of others.
  • 37. An interesting study by German researcher Armin Falk showed that a bigger gift amplifies the reciprocity effect. Falk’s study involved mailing 10,000 requests for charitable donations, divided into three groups. One group received only the letter requesting the donation, one group received the letter plus a free postcard and envelope (the small gift), and the last group received a package containing four postcards and envelopes (the large gift). The idea that sending a gift along with a charitable donation request boosts response is well established, and the experiment bore this out: the small gift boosted donation totals by 17 percent. The recipients of the large gift, though, were even more generous: they donated 75 percent more than the no-gift group. This experiment is significant in a couple of ways. First, it tested reciprocity in the real world, not in an academic setting with undergrads used as inexpensive lab rats. Second, it demonstrated that the reciprocity effect is proportional to the perceived size of the gift or favor, even when the variations are relatively minor.
  • 38. If you want to convey a positive message, use real numbers, not percentages. If you are describing a benefit of your product or service, expressing it in terms of absolute numbers will maximize its impact. Good: 90 percent of our customers rate our service as ―excellent‖ Better: 9 out of 10 customers rate our service as ―excellent‖ -Brainfluence by Roger Dooley
  • 39. A Harris survey showed that 18 percent of those who posted a negative review of the merchant and received a reply ultimately became loyal customers and bought more. -Brainfluence by Roger Dooley
  • 40. Researchers at Carleton University were stunned to find that showing users an image of a website for a mere 50 milliseconds—that’s just a twentieth of a second—was sufficient for them to decide how appealing a website was. -Brainfluence by Roger Dooley
  • 41. In addition, nearly 70 percent of those consumers receiving replies reversed the negative content either by deleting the bad review or posting a second positive one. Considering the power of word of mouth—in particular, negative word of mouth—that’s a stunning accomplishment. -Brainfluence by Roger Dooley
  • 42. John Bargh of Yale University, found that the temperature of a beverage makes a difference in how one person judges another person. An experiment gave subjects cups of either iced or hot coffee and then told them to rate someone else’s personality solely from a file of information about that person. Which group do you think scored the person higher for ―warmth‖? The hot coffee group, of course! -Brainfluence by Roger Dooley
  • 43. Researchers found that placing the following statement at the end of an ad for an auto service firm caused their trust scores to jump as much as 33 percent! ―You can trust us to do the job for you.‖ -Brainfluence by Roger Dooley
  • 44. One small but interesting study measured sales of a liquor product in a bar. Patrons who had the aroma of that beverage pumped into the surrounding air while a visual ad could be seen purchased nearly twice as much of the product as those who saw the ad alone. -Brainfluence by Roger Dooley
  • 45. Tobacco warning labels were found to stimulate craving for tobacco when smokers were observed using fMRI brain scans. The very labels intended to frighten smokers became, after repeated exposure, a cue to smoke. By their presence on every pack of cigarettes, the warning labels became associated with the pleasurable aspect of satisfying a tobacco craving. -Buy-ology by Martin Lindstrom
  • 46. A Princeton study compared student retention of course material presented in both simple fonts and more complex fonts and found that retention was significantly better for the complex font. -Brainfluence by Roger Dooley
  • 47. What do companies know about you based on yourcredit card?
  • 48. In 2002 a Canadian Tire executive analyzed credit card data from the previous year and found out that; ―people who bought carbon monoxide monitors practically never missed payments, and neither did people who bought those little soft pads that keep furniture legs from scratching up your floor.
  • 49. But…. ―if a person bought a chrome-skull car accessory, he was pretty likely to miss his bill eventually.‖
  • 50. Colin Powell made a number of mistakes in the run-up to the Iraq war, but his advice to his intelligence officers was psychologically astute: "Tell me what you know," he told his advisers. "Then tell me what you don't know, and only then can you tell me what you think. Always keep those three separated." -How We Decide by Jonah Lehrer
  • 51. Tweet Me: @JephMaystruck JephMaystruck@gmail.com www.strategylab.ca

Notas do Editor

  1. “nearly all America’s six-year-olds could identify Joe Camel, who was just as familiar to them as Mickey Mouse.”
  2. a) pinpoint a problem, perhaps one consumers didn’t even know they had; b) exacerbate anxiety around the problem; c) sell the cure.” 
  3. For years now supermarkets have been sprinkling select vegetables with regular dew drops of water – a trend that came out of Denmark.  Why?  Like ice displays, those sprinkler-like drops serve as a symbolic, albeit a bogus one, of freshness and purity. (Ironically, that same dewy mist makes the vegetables rot more quickly than they would otherwise.)
  4. “According to Douglas Rushkoff, author of Coercion: Why We Listen to What “They” Say, in U.S. department stores, customers exposed to Muzak with a slow tempo shop 18 percent longer and make 17 percent more purchases, and in grocery stores, shoppers make a whopping 38 percent more purchases when slow Muzak is overhead.  On the Other hand, says Rushkoff, fast-food restaurants play Muzak with more beats per minute “to increase the rate at which a person chews.” Thus, they get us out of there sooner and can serve more customers and earn money.”
  5. “According to Douglas Rushkoff, author of Coercion: Why We Listen to What “They” Say, in U.S. department stores, customers exposed to Muzak with a slow tempo shop 18 percent longer and make 17 percent more purchases, and in grocery stores, shoppers make a whopping 38 percent more purchases when slow Muzak is overhead.  On the Other hand, says Rushkoff, fast-food restaurants play Muzak with more beats per minute “to increase the rate at which a person chews.” Thus, they get us out of there sooner and can serve more customers and earn money.”
  6. “According to Douglas Rushkoff, author of Coercion: Why We Listen to What “They” Say, in U.S. department stores, customers exposed to Muzak with a slow tempo shop 18 percent longer and make 17 percent more purchases, and in grocery stores, shoppers make a whopping 38 percent more purchases when slow Muzak is overhead.  On the Other hand, says Rushkoff, fast-food restaurants play Muzak with more beats per minute “to increase the rate at which a person chews.” Thus, they get us out of there sooner and can serve more customers and earn money.”
  7. In one experiment, I asked two groups of consumers to try two different versions of the toothpaste (Aquafresh)-one regular version and one that had been dyed just one color. Sure enough, the group using the paste with three colors not only reported that the toothpaste worked 73 percent better, they even claimed they believed that their teeth looked whiter.
  8. In 2002 a Canadian Tire executive analyzed credit card data from the previous year and found out that;“people who bought carbon monoxide monitors practically never missed payments, and neither did people who bought those little soft pads that keep furniture legs from scratching up your floor.  They also found that people who bought cheap, no-name automotive oil were much more likely to miss a credit card payment than people who got the expensive, brand-name stuff, and that if a person bought a chrome-skull car accessory, he was pretty likely to miss his bill eventually.”
  9. 2