Friday, January 6, 2012

Quotes Related to Valuation


But these surveys were ultimately slapdash and speculative. Businesses were recognising the limits of quantitative studies (dismissively described as “nose counting”), which offered little genuine insight into how customers behaved. Asking shoppers why they bought particular products was like “asking people why they thought they were neurotic,” quipped Dichter.
The Economist.  Retail Therapy: How Ernest Dichtre, an acolyte of Sigmund Freud, revolutionised marketing.  December 17, 2011.  Begins page 119.

In fact, he believed, most people have no idea why they buy things. They might answer questions in an effort to be helpful (particularly in the early 20th century, when consumers were chuffed to be asked to share their thoughts). But these were attempts to make sense of decisions retrospectively. To understand what truly motivated people, Dichter said, it was necessary to get them to talk at length about their everyday habits. Instead of subjecting many people to quick questionnaires, he preferred a deep, psychoanalytical approach with fewer participants: “If you let somebody talk long enough, you can read between the lines to find out what he really means.”
The Economist.  Retail Therapy: How Ernest Dichtre, an acolyte of Sigmund Freud, revolutionised marketing.  December 17, 2011.  Begins page 119.