ImportanceofEducation

Howshopscanexploitpeople'sherdmentalitytoincreasesales

1.ATRIPtothesupermarketmaynotseemlikeanexerciseinpsychologicalwarfare—butitis.Shopkeepersknowthatfillingastorewiththearomaoffreshlybakedbreadmakespeoplefeelhungryandpersuadesthemtobuymorefoodthantheyhadintended.Stockingthemostexpensiveproductsateyelevelmakesthemsellfasterthancheaperbutlessvisiblecompetitors.Nowresearchersareinvestigatinghow“swarmintelligence”(thatis，howants，beesoranysocialanimal，includinghumans，behaveinacrowd)canbeusedtoinfluencewhatpeoplebuy.

2.AtarecentconferenceonthesimulationofadaptivebehaviourinRome，Zeeshan-ul-hassanUsmani，acomputerscientistfromtheFloridaInstituteofTechnology，describedanewwaytoincreaseimpulsebuyingusingthisphenomenon.Supermarketsalreadyencourageshopperstobuythingstheydidnotrealisetheywanted:forinstance，byplacingeverydayitemssuchasmilkandeggsatthebackofthestore，forcingshopperstowalkpastothertemptinggoodstoreachthem.MrUsmaniandRonaldoMenezes，alsooftheFloridaInstituteofTechnology，setouttoenhancethistendencytobuymorebyplayingontheherdinstinct.Theideaisthat，ifacertainproductisseentobepopular，shoppersarelikelytochooseittoo.Thechallengeistokeepcustomersinformedaboutwhatothersarebuying.

3.Entersmart-carttechnology.InMrUsmani'ssupermarketeveryproducthasaradiofrequencyidentificationtag，asortofbarcodethatusesradiowavestotransmitinformation，andeverytrolleyhasascannerthatreadsthisinformationandrelaysittoacentralcomputer.Asacustomerwalkspastashelfofgoods，ascreenontheshelftellshimhowmanypeoplecurrentlyintheshophavechosenthatparticularproduct.Ifthenumberishigh，heismorelikelytoselectittoo.

4.MrUsmani's“swarm-moves”modelappealstosupermarketsbecauseitincreasessaleswithouttheneedtogivepeoplediscounts.Anditgivesshoppersthesatisfactionofknowingthattheyboughtthe“right”product—thatis，theoneeveryoneelsebought.Themodelhasnotyetbeentestedwidelyintherealworld，mainlybecauseradiofrequencyidentificationtechnologyisnewandhasonlybeeninstalledexperimentallyinsomesupermarkets.ButMrUsmanisaysthatbothWal-MartinAmericaandTescoinBritainareinterestedinhiswork，andtestingwillgetunderwayinthespring.

5.Anotherrecentstudyonthepowerofsocialinfluenceindicatesthatsalescould，indeed，beboostedinthisway.MatthewSalganikofColumbiaUniversityinNewYorkandhiscolleagueshavedescribedcreatinganartificialmusicmarketinwhichsome14,000peopledownloadedpreviouslyunknownsongs.Theresearchersfoundthatwhenpeoplecouldseethesongsrankedbyhowmanytimestheyhadbeendownloaded，theyfollowedthecrowd.Whenthesongswerenotorderedbyrank，butthenumberoftimestheyhadbeendownloadedwasdisplayed，theeffectofsocialinfluencewasstilltherebutwaslesspronounced.Peoplethusfollowtheherdwhenitiseasyforthemtodoso.

6.InJapanachainofconvenienceshopscalledRanKingRanQueenhasbeenorderingitsproductsaccordingtosalesdatafromdepartmentstoresandresearchcompanies.Theshopssellonlythemostpopularitemsineachproductcategory，andtherankingsareupdatedweekly.Icosystem，acompanyinCambridge，Massachusetts，alsoaimstoexploitknowledgeofsocialnetworkingtoimprovesales.

7.Andthepsychologythatworksinphysicalstoresisjustaspotentontheinternet.OnlineretailerssuchasAmazonareadeptattellingshopperswhichproductsarepopularwithlike-mindedconsumers.Evenintheprivacyofyourhome，youcanstillbepartoftheswarm.

Questions1-6

Completethesentencesbelowwithwordstakenfromthereadingpassage.UseNOMORETHANTHREEWORDSforeachanswer.

1.Shopownersrealizethatthesmellof_______________canincreasesalesoffoodproducts.

2.Inshops，productsshelvedatamorevisiblelevelsellbettereveniftheyaremore_______________.

3.AccordingtoMr.Usmani，withtheuseof“swarmintelligence”phenomenon，anewmethodcanbeappliedtoencourage_______________.

4.Onthewaytoeverydayitemsatthebackofthestore，shoppersmightbetemptedtobuy_______________.

5.Ifthenumberofbuyersshownonthe_______________ishigh，othercustomerstendtofollowthem.

6.Usingthe“swarm-moves”model，shopownersdonothavetogivecustomers_______________toincreasesales.

MRKConsultingLtdhasbeenoperatingintheglobalmarketsince1988.WehavesuccessfullyplacedhundredsofIT&BankingprofessionalsinleadingcompaniesintheFinance,BankingandITindustries.

Weacknowledgedthereceiptofyourletterdated26thSeptember_____connection______theabovesubject.

Ioftenthoughtofmychildhood,____Ilivedonafarm.