Controlling other people's behavior is surprisingly easy. For example ...
Hello, this is Kusuyama.
I came across an article saying that “Apple-related stocks” are gaining momentum.
It mentioned Murata Manufacturing, TDK
as Apple-related stocks, such as
Taiyo Yuden and Alps Alpine.
Apple recently released
the iPhone, and its sales seem to be strong, but
why is the iPhone doing well?
The iPhone 11 is not fundamentally a different device
compared to older models such as the iPhone 6S.
Is that really the case?
There is a clear difference in that the camera has become triple,
but otherwise there isn’t a huge functional difference.
For example, even a friend who uses
iPhone 6, iPhone 8, and iPhone XR
says, “Even using old and new iPhones, I don’t really feel a big difference.”
However, iPhone 11 is actually selling well.
In the past, every release has been talked about,
and it has continued to sell well anyway.
Why does the iPhone have no major functional changes
yet every new model attracts consumers?
One reason cited in articles is that
“global smartphone sales are entering a replacement-demand phase.”
(Nikkei, 2019/10/7 2:00, Electronics Edition)
https://www.nikkei.com/article/DGXMZO50613950U9A001C1000000/)
.
Timing-wise, it seems like a good period for replacement demand to rise.
However, I feel there is an even bigger factor behind it.
One of those factors is “how products are presented.”
Below is the description of iPhone 11 from Apple’s site.
“A triple camera system that adds far more features without making operations complicated,
unprecedented battery life. A remarkably capable chip that enhances machine-learning accuracy
and expands what a smartphone can do. A powerful first iPhone worthy of the Pro name.”
(Quoted from https://www.apple.com/jp/iphone-11-pro/)
It’s a copy that appeals to human emotions, a model example, isn’t it?
In particular, the words “innovative,” “unprecedented,”
“improved,” “amazing,” “first ever,”
these words are
powerful.
Including words that emphasize novelty or progression is
the advertising rule.
↓
“In advertising,
if it contains “new,” “fast,” “easy,” “improved,” “now,” “suddenly,”
“amazing,” or “announce,”
your product sells well.”
Plutocanis, Alanson
‘Propaganda Advertising and the Mechanics of Political Persuasion’
Socio-Behavioral Research Association, Oct 30, 1998, 1st Edition
P.29
In the above iPhone 11 copy,
the elements of “new,” “improved,” and “amazing”
are clearly included, aren’t they?
Even just including these few words can cause consumers to
be unconsciously influenced to buy.
Of course, regardless of advertising, there are many Apple fans who will buy
every new product released by Apple,
but even for non-fans, there are tactics designed to stimulate purchase intent
sprinkled throughout.
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People live to suit someone else’s convenience
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Through the story of iPhone I want to convey that
“People are unconsciously made to act according to someone else’s convenience.”
.
You may think, “No, I act on my own will.”
But those who think so tend to be influenced without realizing it.
For example, if you are walking down the street and a stranger says,
“Could you spare 20 yen?”
you would likely ignore and pass by.
But what if the person said,
“Could you spare 23 yen?”
Would more people stop then?
In fact, there are studies showing
that when asked to donate 17 yen or 37 yen explicitly, people donate more than when asked for 100 yen in coins or loose change.
Plutocanis, Alanson
‘Propaganda Advertising and the Mechanics of Political Persuasion’
Socio-Behavioral Research Association, Oct 30, 1998, 1st Edition
P.31
Rather than amounts like 100 yen coins, asking for a mid-range amount can double the donations.
Even with a slight change in amount, people’s behavior can change dramatically.
The reason is that people naturally infer meaning from such amounts,
, and assign meaning to the amount themselves.like wondering, “Why 23 yen? Is the train fare short by 23 yen?”
This is instinctive human behavior.
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It is impossible to resist instinct
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There are many such human tendencies as I’ve described.
And the tendency that
“if you phrase it this way, people will act this way”
is studied around the world day and night,
and companies and media that know this apply the rules
to make you open your wallet wide.
Even when walking the street, riding trains or taxis,
watching YouTube, people are highly susceptible to information.
It is now impossible not to be influenced by that information.
However...
if you want to win as a trader,
that is not acceptable.
As long as media operated by companies
continues to be swayed by someone’s opinions or information,
there is no way to consistently win.
That said, with information so abundant
it is very difficult to avoid their influence.
Economic news, too, will reach your ears inevitably.
So what should you do?
One suggestion is
“Stop trading based on information as evidence.”
This means
to stop trading based on expectations like, “the stock price will go up.”
For example, instead of relying on information,
learn to ensure profits whether prices go up or down.
Focusing on how to trade to guarantee profits regardless of direction.
To summarize today's talk once more.
First, be aware that you are constantly influenced by various information,
unconsciously.
“I live 100% by my own will”
is an arrogant notion,
which you should discard quickly.
Just as hands instinctively pull away from hot water,
it is impossible to suppress instinctive behavior.
That is why trading without relying on information is crucial.
What you choose to believe is up to you, but
if you trade based on that belief,
you have consistently generated ample profits year after year.
Thank you for watching until the end today as well.
Keizo Shimoyama
