Soren Anderson, Ryan Kellogg, James Sallee & Ashley Langer:
We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. In our preferred estimates, children are 46% more likely to choose an automobile brand if their parents also chose that brand. Correlation in intrafamily brand choice could represent a causal trans- mission of brand preference, or it could be due to correlated family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the causal interpretation. We then discuss implications of intergenerational brand pref- erence transmission for automakers and market outcomes, focusing on a model of Bertrand competition in the presence of brand loyalty that is transmitted across generations. We find that intergenerational transmission of brand preferences should lower equilibrium prices for vehicles targeted at parents and raise equilibrium prices for vehicles targeted at children. We further show that firms have a unilateral incentive to instill a sense of brand loyalty in their consumers, even though equilibrium profits may decrease when all firms do so.
Mary Reid, Kohler’s VP Industrial Design gave a worthwhile presentation on “Design Thinking” this evening at Monona Terrace.
This image was taken with my iPhone 5s in relatively low light. Rather impressive.
Mary’s presentation included a brief discussion on technology & plumbing, including wifi and bluetooth equipped toilets along with a shower head that includes a bluetooth speaker.
Somewhat related: Consumer DSLRs “dead in 5 years” and my comments on the rapidly expanding world of iPhone photography.
Human interaction is one of the many gifts that travel bestows. Random, unplanned conversations are truly a blessing with wisdom as a dessert.
And so it was while changing planes recently, that I happened upon a 60+ year young shoeshine expert. This man had been through a difficult job change and recently returned to work shining shoes.
Beginning to work on my 24 year old Allen Edmonds wing tips (great value), he looked up and asked how I became “successful”? I could only reply that God has blessed me with abundance. I have been given a fabulous family, health and wonderful smart colleagues.
Continuing to work diligently on my shoes, he added “most people say that they are lucky.”
“But, I know, that God gives it all to us. We may not always understand why, but “every good and perfect thing comes from above“.”
He continued that after this unplanned job change, he went back to several former shoe shine customers who gladly gave him their business again.
I had a similar conversation with a shoeshine family several years ago. They were some of the most friendly and generous people I’ve encountered while on travel.
This brief conversation came streaming back into my mind after chatting with a friend who is fully recovered from heart difficulties. I replied to this good news with a “Thank God”. My friend thanked medicine. To me, it all originates with God’s grace.
What a blessing it is to travel.
Online ads have, perhaps, peaked.
Claire Cain Miller:
Google’s search engine was once characterized by its simplicity — both its search results and ads were blue links against a white background. No longer.
On Wednesday, Google confirmed that it was testing banner ads atop search results, a major departure from its earlier advertising and from its past promises to users.
The banner ads are part of an experiment involving several advertisers, including Southwest Airlines, that has been running on desktop computers in the United States for about a week, according to a person with knowledge of the ads. They come as Google battles a slowing desktop search business and falling ad prices.
Google: 2005 vs 2013.