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thing to watch, by the time you find it, the show will be over. Division is a process that is unstoppable. If you have any doubts, consider the information on the explosion of choice in Table 2.1.
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All this has led to the emergence of an entire industry dedicated to helping people with their choices. We ve already talked about the health-care report cards. Everywhere you turn, someone is offering advice on things like which of the 8,000 mutual funds to buy. Or how to find the right dentist in St. Louis. Or the right MBA program from among hundreds of business schools. (Which one will help me get a Wall Street job ) The Internet is filled with dot-coms that can help you find and select anything you can imagine, all promised at rock-bottom prices. Magazines like Consumer Reports and Consumers Digest deal with the onslaught of products and choices by rotating the categories on which they report. The only problem is that they go into so much detail that you re more confused than you were when you started. Consumer psychologists say that this sea of choices is driving us bonkers. Consider what Carol Moog, Ph.D.,
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has to say on the subject: Too many choices, all of which can be fulfilled instantly, indulged immediately, keeps children and adults infantile. From a marketing perspective, people stop caring, get as fat and fatigued as geese destined for foie gras, and lose their decision-making capabilities. They withdraw and protect against the overstimulation; they get bored.
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The typical argument is that extensive choice is appealing. But as Dr. Moog suggests, it can actually be a turnoff. Choice can hinder the motivation to buy. Consider the research done on 401(k) plans and the employees who sign up for them. Researchers studied data on 800,000 employees in 647 plans in 69 industries. What happened As the number of fund options increased, employee participation rates dropped. Too many choices spelled confusion. And confusion led to, No thanks. Swarthmore College sociology professor Barry Schwartz wrote a book about these turnoffs. He called it The Paradox of Choice. Speaking at an industry forum in 2006, he said:
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People are so overwhelmed with choice that it tends to paralyze them. Too much choice makes people more likely to defer decisions. It raises expectations and makes people
THE RISE OF THE COMPETITION
blame themselves for choosing poorly. You don t expect much if there are only two pairs of jeans to choose from. If there are hundreds, you expect one to be perfect.*
You Have to Be Careful
If you ignore your uniqueness and try to be everything for everybody, you quickly undermine what makes you different. Consider Chevrolet. Once the dominant good-value family car, Chevrolet tried to add expensive, sporty, small, and truck to its identity. Its differentness melted away, as did its business. If you ignore changes in the market, your difference can become less important. Consider Digital Equipment Corporation (DEC). Once the premier U.S. minicomputer manufacturer, it ignored the changing technology that was making desktop computing the driving force in the office. Its differentness became less apparent. DEC is now deceased, having been absorbed by Compaq, which in turn was absorbed by Hewlett-Packard. If you stay in the shadow of your larger competitors and never establish your differentness, you will always be weak. Consider Westinghouse. It never emerged from the shadow of General Electric. Today, Westinghouse is
* Jack Trout, Differentiate or Die (Hoboken, N.J.: John Wiley & Sons, Inc., 2008).
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no longer with us. Or consider Goodrich. Over the years, Goodrich could reinvent the wheel and Goodyear would get all the credit for it. Because of the name confusion with its larger competitor, it was all but impossible for Goodrich to separate itself in the minds of its prospects. No one ever says, Let s get Goodrich tires. It s an unforgiving world out there, and things will only get worse. This is why you must learn the art of repositioning as a way to deal with your competitors.
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