Word: production
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...market. "The problem is that CDOs were untested. There was not much history to suggest CDOs would behave the same way as AAA corporate bonds," says Richard Bookstaber, a hedge-fund manager and author of A Demon of Our Own Design, who views market palpitations as a predictable by-product of complex financial products like CDOs. (For the author's take on the subprime disaster, go to time.com/bookstaber....
...course, in an era of rampant product placement, there are worse things than persuading viewers to buy a less wasteful lightbulb by hanging one over Jack Bauer as he tortures a terrorist. The greatest challenge--for viewers as well as programmers--is not letting entertainment become a substitute for action; making and watching right-minded shows isn't enough in itself. The 2007 Emmy Awards, for a start, aims to be carbon neutral: solar power, biodiesel generators, hybrids for the stars, bikes for production assistants--though the Academy nixed Fox's idea to change the red carpet, no kidding...
...didn't know anything about marketing, you might think it was important to advertise what a new product does. The makers of HeadOn aren't so naive. Their commercials have an actor repeating "HeadOn. Apply directly to the forehead" while another presses what appears to be a glue stick to her brow. No one mentions that the substance is supposed to cure headaches homeopathically. Early ads did, but focus groups showed that the superrepetitive version made people remember the name the most...
...multibillion-dollar business of plastering brand names on everything from ballpoint pens to NASCAR racers as well as the thriving cottage industry of reviving brands that have fallen out of mainstream use, like Ovaltine chocolate malt and Westinghouse televisions. "We tend to believe, If I've heard of [a product] before, it's probably because it's popular, and popular things are good," says Dan Goldstein, an assistant professor of marketing at London Business School...
...name-brand label on it. In another study, published this month by researchers at Stanford University, children given the same French fries and chicken nuggets in different packaging preferred the taste of the food delivered in McDonald's wrappers. "Ideally, a manufacturer increases the quality of a product, and that in turn increases word of mouth and media coverage," says Gigerenzer. "But advertising shortcuts this process. There's no longer a connection to quality...