Touch it and buy
A new study suggests that the mere act of touching an item makes it more desirable to consumers. According to a report at livescience.com, people who held a mug for 30 seconds were willing to pay more in an auction than those who held the mug for just 10 seconds.
Previous studies have shown that many people begin to feel ownership of an item — that it “is theirs” — before they even buy it. But this study, conducted by researchers at Ohio State University, is the first to show “mine, mine, mine” feelings can begin in as little as 30 seconds after first touching an object.
“The amazing part of this study is that people can become almost immediately attached to something as insignificant as a mug,” said study leader James Wolf, who began the work while he was a graduate student at Ohio State. “By simply touching the mug and feeling it in their hands, many people begin to feel like the mug is, in fact, their mug. Once they begin to feel it is theirs, they are willing to go to greater lengths to keep it.”
The study lends confirms the value of practices used by many retailers for years. Test drives of vehicles and the freedom to play with toys in a story lead to higher sales. It’s also more ammunition for consumers to know when they may be subject to manipulation.
Don Mecoy
Business Writer
Starbucks battles rumors
Starbucks has reacted to rumors that the company has funneled profits to Israel. The company responded on its Web site, declaring that the rumors had no basis in fact. A widely circulated letter, purportedly from Starbucks CEO Howard Schultz, has been shown to be a fake (and was never intended to be taken seriously). The myth gained some traction when Starbucks shut down its Isreal stores, but the company says that was strictly a business decision.
For consumers, Starbucks is striving to demonstrate that buying the company’s delicious, frothy products is not a political act. It’s just a cup of joe.
From Starbucks:
Has Starbucks ever sent any of its profits to the Israeli government and/or Israeli army?
No. This is absolutely untrue.Is it true that Starbucks is teaming with other American corporations to send their last several weeks of profits to the Israeli government and/or the Israeli Army?
No. This is absolutely untrue.Is it true that Starbucks closed its stores in for political reasons?
No. We do not make business decisions based on political issues. We decided to dissolve our partnership in Israel in 2003 due to the on-going operational challenges that we experienced in that market. After many months of discussion with our partner we came to this amicable decision. While this was a difficult decision for both companies, we believe it remains the right decision for our businesses.
Don Mecoy
Business Writer
Financial literacy report suggests changes
The President’s Advisory Council on Financial Literacy has produced a report (.pdf file) listing the group’s accomplishments and a laundry list of recommendations. I’m all for financial literacy. A lack of basic financial knowledge leaves consumers vulnerable to bad loans, scams and just plain bad spending habits. But I found a few of these recommendations to be eye-openers.
Here’s a sample:
The President should direct the United States Department of the Treasury and the United States Department of Education to take the necessary steps to require college students to take a more comprehensive course in financial literacy (or pass a competency test) than the present entrance and exit counseling requirements, as a condition of receiving Federally funded or Federally guaranteed student loans.
The United States Congress should require financial institutions to provide every adult American with access to an electronic, debit card-accessible depository account protected by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
The United States Congress should provide Federal funding for any non-profit organizations working on community-based financial literacy programs and for state and local governments demonstrating leadership in financial education for their residents.
Don Mecoy
Business Writer
Printing money
Who couldn’t use a little more cash? Now there’s a convenient site on the Internet where you can print your own.
Don Mecoy
Business Writer
Flying safest way to travel
In the aftermath of Thursday’s water landing of a U.S. Airways jet in the Hudson River, the Insurance Information Institute provides these reassuring statistics for those who travel via commercial flights.
The number of commercial aviation accidents on scheduled flights with 10 or more seats, stood at less than one per 100,000 flight hours, the NTSB reported at year-end 2007. Moreover, in that same year, even though there were 24 accidents on scheduled, commercial flights, not one of them involved a fatality.
In addition, the odds of dying in an aircraft accident in 2005 were about one in 502,554, the 2009 I.I.I. Insurance Fact Book reports. Motor vehicle crashes are by far the leading cause of accidental deaths in the United States, followed, in order, by assault by firearm, motorcycle riding, exposure to smoke, fire and flames, and falling on or from stairs and steps. Air and space transport accidents placed sixth on that list.
And information on bird strikes from the Oklahoma Agriculture Department:
· Over 219 people have been killed world-wide as a result of bird strikes since 1988.
· Bird and other wildlife strikes cost USA civil aviation over $620 million/year, 1990-2007.
· Over 5,000 bird strikes were reported by the U.S. Air Force in 2007.
· Over 7,600 bird and other wildlife strikes were reported for USA civil aircraft in 2007.
· Studies indicate only about 20% of bird strikes to civil aircraft at Part 139-certificated (passenger service) airports in USA are reported. Less than 5% of bird strikes at General Aviation airports are reported.
· From 1990-2004, USA airlines reported 31 incidents in which pilots had to dump fuel to lighten load during a precautionary or emergency landing after striking birds on takeoff or climb. An average of 11,600 gallons of jet fuel was released in each of these dumps.
· Waterfowl (31%), gulls (26%), and raptors (18%) represented 75% of the reported bird strikes causing damage to USA civil aircraft, 1990-2007.
· Over 760 civil aircraft collisions with deer and 250 collisions with coyotes were reported in the USA, 1990-2007.
· In 1890, about 60 European starlings were released in Central Park, New York City. Starlings are now the second most abundant bird in North America with a late-summer population of over 150 million birds. Starlings are “feathered bullets”, having a body density 27% higher than herring gulls.
· The North American non-migratory Canada goose population increased 3.6 fold from 1 million birds in 1990 to over 3.5 million in 2007. Over 1,400 Canada geese strikes with civil aircraft have been reported in USA, 1990-2007. Over 40% of these strike events involved multiple birds.
· The North American population of greater snow geese increased from about 50,000 birds in 1966 to over 1,000,000 birds in 2007.
· The nesting population of bald eagles in the contiguous USA increased from fewer than 400 pairs in 1970 (2 years before DDT and similar chlorinated-hydrocarbon insecticides were banned) to over 11,000 pairs in 2007. Over 100 bald eagle strikes with civil aircraft have been reported in USA, 1990-2007. Mean body mass of bald eagles = 9.1 lbs (male); 11.8 lbs (female).
· The Great Lakes cormorant population increased from only about 200 nesting adults in 1970 to over 260,000 nesting adults in 2006, a 1,000+-fold increase.
· The North American white and brown pelican populations grew at average annual rates of 2.3% and 1.9%, respectively, 1966-2007.
· At least 15,000 gulls were counted nesting on roofs in USA cities on the Great Lakes during a survey in 1994.
· About 90% of all bird strikes in the U.S. are by species federally protected under the Migratory Bird Treaty Act.
Don Mecoy
Business Writer
Goodbye Google catalogs
Google does a lot of cool things. But the company is pulling the plug on several ventures, including one that I used to really like. Google Catalogs allows you search through scores of catalogs that the company scanned and indexed. Type in “whoopie cushion” and do some comparison shopping without leaving your couch. I haven’t visited the site in a couple of years because the catalogs had gotten out of date. It also turns out that many companies that once published paper catalogs now deal exclusively over the Internet.
It was a great experiment. Nonetheless, in recent years, Catalog Search hasn’t been as popular as some of our other products. So tomorrow, we’re bidding it a fond farewell and focusing our efforts to bring more and more types of offline information such as magazines, newspapers and of course, books, online.
Google also is shutting down video uploads at Google Video (in favor of YouTube), ceasing development of Google Notebook and ending other services. Hopefully, it will mean the development of other cool things.
Don Mecoy
Business Writer
Grill of my dreams
Chuck Frantz, founder of Weatherford-based Party King Grills, called to tell me that one of his company’s products will be given away today on “The Price is Right.” He was contacted by a CBS official, who told him the grill was won in a show taped in December that will air today. Chuck said the company had nothing to do with the giveaway. Apparently a California-based vendor arranged for the grill to be featured as a prize.
Chuck says the company’s products are sold mainly on the Internet. If you’re wondering — or need to make a bid — the Swing’n Smoke MVP-8600 Swing-Out Grill retails for $525.99.
Just for fun, here’s a contestant who seems to be unable to understand Bob Barker’s fairly simple instructions … and wins anyway.
Don Mecoy
Business Writer
Bank nationalization would “surprise” FDIC head
There have been a lot of shocking, never-before-seen events since the economy ran aground several months ago. On Thursday, there was another — the head of the FDIC responding seriously to a question about the potential for nationalizing banks.
Federal Deposit Insurance Corp. Chairman Sheila Bair said today said she would be “very surprised” if the government took over any large U.S. banks.
“I’d be very surprised if that happened,” Bair told reporters in New York, responding to a question about whether the agency would have to nationalize any large banks.
Wow.
Don Mecoy
Business Writer
Mortgage money available
Steven Plaisance, president of the Oklahoma Mortgage Bankers Association, says Oklahoma’s mortgage market is in much better shape than the nation’s and particularly those areas where home values have plummeted. Plaisance, executive vice president of Arvest Mortgage Co., says his company has received a record number of mortgage applications in recent days.
For the sixth consecutive year, Arvest Bank in 2008 made more than $1 billion in mortgage loans, Plaisance said. Consumers need not have perfect credit to get favorable rates, he said.
Don Mecoy
Business Writer
Fed phishing
The FDIC has issued a warning about a scam email that claims to be from the Federal Reserve Bank. Don’t fall for it. If you get the email, don’t click on the links contained within. This is what it may look like:
FEDERAL RESERVE BANK
Important:
You’re getting this letter in connection with new directives issued by U.S. Treasury Department. The directives concern U.S. Federal Wire online payments.
On On January 1, 2009 a large-scaled phishing attack started and has been still lasting. A great number of banks and credit unions is affected by this attack and quantity of illegal wire transfers has reached an extremely high level.
U.S. Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) in common worked out a complex of immediate actions for the highest possible reduction of fraudulent operations. We regret to inform you that definite restrictions will be applied to all Federal Wire transfers from January 6 till January 16.
Here you can get more detailed information regarding the affected banks and U.S. Treasury Department restrictions:
The FDIC says the message contains links to two Web pages that attempt to load malicious Trojan horse programs onto users’ computers.
The FDIC further advises consumers, businesses and financial institutions to be aware that Fedwire operations are not restricted and are operating as normal, and to take the following precautions:
- If an end user received the e-mail and clicked on any of the links, fully scan the computer using updated anti-virus software. If malicious code is detected on the computer, consult with a computer security or anti-virus specialist to remove the malicious code or re-install a clean image of the computer system.
- Be aware that phishing e-mails frequently have links to Web pages that host malicious code and software. Do not follow Web links in unsolicited e-mails from apparent federal banking agencies. Instead, bookmark or type the agency’s Web address.
- Always use anti-virus software and ensure that the virus signatures are automatically updated. Ensure that the computer operating systems and common software applications security patches are installed.
- Do not open unsolicited or unexpected e-mail attachments because of the risk of malicious code or software in the attachments. Instead, call the agency using a known and appropriate telephone number to verify the legitimacy of the message and attached file.
- Be alert to different variations of the fraudulent e-mails.
Don Mecoy
Business Writer
