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Review of Tap: Unlocking the Mobile Economy

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Title: Tap: Unlocking the Mobile Economy

Author: Anindya Ghose

Publisher: MIT Press

Copyright: 2017

ISBN13: 978-0-262-03627-6

Length: 240

Price: $29.95

Rating: 100%

I purchased a copy of this book for personal use.

I’m not a reviewer who gives out perfect scores like candy. In fact, I chose to use a 0-to-100% scale so I could provide nuanced ratings. I happily gave Malka Older’s debut novel Infomocracy a 98% because it was outstanding work but, for whatever reason, didn’t ring the bell for 100%. I believe I’ve given one other book, Intellectual Property Strategy (from the MIT Press Essential Knowledge series) a maximum rating. Tap, by Anindya Ghose and also from MIT Press, is the second.

The Mobile Landscape

Mobile devices are everywhere, with their spread continuing to gather pace as the prices of the devices and supporting services come down. Originally limited to voice and Short Message Service (SMS) communication due to a lack of bandwidth, smartphones now enable subscribers to make voice and video calls, search the web, and, of critical importance to marketers, engage in commerce. In Tap, Anindya Ghose of the Stern School of Business at New York University relates the results and implications of numerous academic studies of mobile commerce. The results provide a robust framework for marketers working in the mobile arena.

In his introduction, Ghose identifies four contradictions in what consumers want from mobile marketing and how we behave:

  1. People seek spontaneity, but they are predictable and they value certainty.
  2. People find advertising annoying, but they fear missing out.
  3. People want choice and freedom, but they get overwhelmed.
  4. People protect their privacy, but they increasingly use their personal data as currency. (p. 9)

Success in the mobile arena requires marketers to strike the proper balance among these four tensions.

Studies and References

After reading the first few chapters of Tap, I realized how many studies of mobile commerce have been conducted over the past ten years. As the author points out, tracking user movement and behavior, combined with the ability to test various forms of advertisements depending on context, provides a target-rich environment for academics and industry marketers to experiment. Ghose, who is a lead or co-author on many of the studies he cites, provides useful background on mobile commerce before dividing his coverage of the major forces of mobile marketing into nine chapters:

  • Context
  • Location
  • Time
  • Saliency
  • Crowdedness
  • Trajectory
  • Social Dynamics
  • Weather
  • Tech Mix

Each chapter reviews the literature relating to its force and offers insights into how marketers can use those results to the benefit of their clients and consumers. It’s impossible to cover all of the forces in any detail, but I found the discussion of crowdedness and trajectory particularly interesting. Crowdedness, as the word implies, refers to crowded conditions typically found while commuting. On a subway or bus, commuters typically pay attention to their mobile devices, ear buds in, and tune out their surroundings. Advertisers can take advantage of this focused attention by distributing relevant and interesting advertisements (and advertorials) during those periods.

Trajectory refers to a consumer’s path, either as movement between two major objectives (home and office) or within a larger location (movement within a store). When outside, mobile phones can track user movements based on GPS and accelerometer readings. When inside, the same tracking can be done using wi-fi signals. Each individual’s tendency for future movement based on their current vector can be exploited by marketers to make attractive offers.

The other seven chapters provide similar coverage. In addition to crowdedness and trajectory, I found the chapter on location (Chapter 5) to be particularly interesting.

Conclusions

Marketing is not a one-way street. Consumers are bombarded with ads and advertorial content, raising the mental cost of search and time (and data) spent waiting for ads to load on small-screen mobile devices. Many users employ ad blockers to reduced as much of the clutter as they can, greatly speeding up their usage experience but depriving them of potentially useful information. Also, as Ghose points out in the fourth contradiction listed above, consumers increasingly use their personal data as currency and don’t hesitate to refuse a trade if they feel they’re not receiving sufficient value in return.

Ghose is a leading expert on mobile marketing. His new book Tap summarizes the field’s most important research in a compact, readable package that I believe is indispensable for anyone interested in the subject.

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Management and Motivation

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I’ve recently investigated online courses at the MBA level, including taking a managerial accounting course through the University of Illinois. My work and other obligations piled up after I took that course, so I’ve held off taking further for-credit classes until at least January.

To supplement my work through Illinois, I bought a DVD series from The Great Courses entitled Critical Business Skills for Success. The series combines 12-lecture segments on operations, marketing, strategy, organizational behavior, and finance and accounting. The material is presented as an overview of each broad subject, with specific lectures focusing on topics such as the time value of money, rightsizing inventory, and evaluating mergers and acquisitions. There’s very little math and no homework, so the lessons are nowhere near as rigorous as the managerial accounting course, but it’s a great introduction to material I’ll study in depth later.

I’m watching the organizational behavior section now, presented by Clinton O. Longenecker of the University of Toledo. In his lecture “The Motivation-Performance Connection”, he offers some surprising results from a survey of corporate managers. His research found:

  • 85% of managers believe an employee’s motivation has a significant impact on performance
  • 79% believe that motivating employees is one of the most important leadership functions
  • 94% believe workforce motivation is important for overall operational success
  • 82% believe management behavior has a significant impact on employee motivation
  • 68% believe it is getting tougher to motivate employees

The numbers seem reasonable enough, so where’s the surprise? The surprise is that the first four items aren’t 100% (OK, 98% to account for the 2% lunatic fringe). It’s especially troubling to see the 9% gap between responses indicating belief that motivation impacts individual performance and that overall motivation is necessary for operational success.

I suspect there is a connection between those results and the final figure, that 68% of managers believe it is getting tougher to motivate employees. The economic downturn in 2008 led to significant layoffs and delayed retirements, which artificially flooded the job market with experienced workers who where either seeking employment or couldn’t afford to retire. Now that employment levels have returned to pre-2008 levels and the stock market has restored portfolio values, the labor market has started to tighten considerably, especially for highly skilled workers. When you add easy online communication about employment practices, increased expectations for good treatment, and labor mobility you have an environment where the privilege of coming to work tomorrow morning is no longer sufficient motivation for your employees.

Lessons Learned from the Wharton MOOCs

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I recently completed a four-course sequence from the University of Pennsylvania’s Wharton School that included courses on operations management, marketing, financial accounting, and corporate finance. I’m happy to say the courses were fulfilling and have provided substantial support to my professional career.

What did I take away from my four Wharton MOOCs? The courses certainly reinforced that I have strong and weak areas. I’m most effective at managing what I call “semi-formal” systems, where analytical techniques and practical applications overlap. I thought Professor Terwiesch’s operations management course hit that sweet spot nicely—it wasn’t as theoretical as some operations research courses I’d taken and not as practical as on-site management training.

I’ve also thought a bit about the rhetoric of the courses and how their presentation argues for or against on-campus programs, reflect on Wharton as an institution, and my personal growth as a result of my studies.

Do the Wharton MOOCs argue for or against attending the on-campus program?

MOOC critics often raise the concern than providing even part of a curriculum for free reduces the likelihood that students will choose to pay for the on-campus version of the program. I don’t believe this critique holds for the Wharton School or graduate-level programs from institutions such as MIT, Stanford, or the University of Michigan. Anyone who has completed undergraduate training in a field knows who the heavy hitters are at the next level, and Wharton is easily in that group for MBA candidates.

Business careers are built on relationships. Corporate finance, especially, is an unforgiving arena where years of exemplary performance can be undone by a momentary lapse of reason that costs millions of dollars. Sharing knowledge gleaned from one’s successes and failures, not to mention acquiring new jobs after the latter, helps analysts solidify their status within the industry and find new jobs when necessary.

These relationships blossom in business school cohorts. Learners who wonder whether they can handle material at the Wharton MBA level can try the MOOCs on their own and, if reassured, apply to the program. Once at Wharton, earning an MBA becomes a team sport. This approach starts with team-oriented development of marketing programs and continues through self-selected study groups.

I suspect, but might be wrong in stating, that the team-oriented approach of a Wharton education and business analysis conflicts with the sort of independent learner who is attracted to MOOCs. I personally prefer to work alone when I can, both so I can gain full understanding of the material and to avoid the “free rider” problem where one group member avoids their responsibilities but earns a good grade because other team members pick up the slack. (I still remember you from 1992, Mark L. at George Mason University.)

Going it alone through the Wharton gauntlet seems a daunting proposition. Some classes don’t allow it and others are made easier through cooperative study and the relationships built up in those sessions. The sort of individual who might complete a MOOC, or a series of MOOCs, on their own might not be drawn to the program, but someone who examines the lecture videos and assignments as a way of testing the waters might be more likely to apply. The program cost and opportunity cost of lost earnings while at school are considerable, so potential applicants could test their mettle in a low-stakes environment before making their decision.

In the end, I believe that individuals who understand the context of MOOCs as compared to that of on-campus learning will be more likely to apply to (and accept offers from) the Wharton School than to competing programs that don’t make their offerings accessible through MOOCs. The difference is slight, but at over $250,000 in tuition and fees per student, you can afford to take a risk to improve the quality of your applicant pool.

How do the course presentations and material affect Wharton’s message?

MOOCs don’t generate revenue, except in a limited sense for Coursera or edX when they can sell a verified certificate, so free courses are promotional ventures for the participating institutions. As with all marketing, one must have a message so the offerings can be “on message.”

Each of the four Wharton MOOCs (operations management, marketing, accounting, and corporate finance) adopted different presentational styles. The marketing course was the most accessible in that the quizzes and exam asked students to recall material presented in lectures and readings. Operations management required us to apply concepts from the lectures and practice problems to the homework, which required a bit more practical application than the marketing course.

The financial accounting class required significantly more advanced applications of abstract concepts to practical problems, but the instructor enthusiastically communicated what could have been dry material in an entertaining manner. Professor Bushee said he walked us through about 80% of the material he teaches in his on-campus class, so I feel I received very good value for my time.

I’ve left Professor Allen’s course An Introduction to Corporate Finance for last for good reason: his MOOC was closest to Wharton students’ classroom experience. The lecture videos documented actual classroom presentations, but unless we formed our own study groups we forged our way through the practice problems and assignments alone.

I appreciated Professor Allen’s approach because it demanded we overcome some of the challenges facing his on-campus students. In essence, he said: “You want to be a Wharton MBA student? Right. Here it is, then.” The concordance broke down when we were given multiple attempts at each assignment and didn’t have to use calculators for the exam, of course, but we were asked to receive the material as presented.

To me, this difference doesn’t need to be addressed. Teaching styles differ and, because the finance course isn’t part of the fixed core, students can avoid it if desired. The course’s rigorous requirements alert students to the nature of the challenge they face but shouldn’t dissuade serious candidates from considering the program. Do you really want a Wharton MBA who backs away from difficult situations?

How did I benefit from taking these courses?

At the most prosaic level, I discovered (again) that I should ask for help when I need it. Completing many assignments in the accounting and finance classes would have been easier if I’d been willing to turn to the forums for help. Call it a character flaw.

I plan to use the knowledge I gained from these four MOOCs in my own online courses. I’ll adapt some of the analytical techniques from operations management and corporate finance for use in future projects, with the caveat that I’ll only teach what I truly understand and can apply to examples I create independently. The course examples are the instructors’ intellectual property and, though the underlying recipes and algorithms are up for grabs, their illustrations are not.

I’m overjoyed the Wharton School made these courses available, but I’m fully aware that I didn’t receive the equivalent of a Wharton MBA education. The online versions of the classes lacked the rigor of their live counterparts, but I’m now aware of the Wharton School’s offerings and would set my sights on its program if I wanted to pursue an elite MBA degree.

MOOC Review: Wharton’s An Introduction to Marketing

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I recently completed a four-course sequence from the University of Pennsylvania’s Wharton School which included courses on operations management, marketing, financial accounting, and corporate finance. I’m happy to say the courses were fulfilling and have provided substantial support to my professional career. In this post, I’ll look at the Warton School’s course on marketing.

Course Overview

Businesses can’t survive without marketing, which means companies must establish a strong brand, discover and focus on customer needs, and develop interaction strategies to aid product and brand growth. In their course An Introduction to Marketing, professors Barbara E. Kahn, Peter Fader, and David Bell presented three-week mini-sessions on those broad topics.

Branding

Professor Kahn started with an analysis of branding, from both the perspective of the company and the consumer. I took particular note of her strategies for brand leadership, which measure a brand’s positioning along three axes: product differentiation, operational competence, and customer responsiveness. The goal, she said, is to lead on one axis and offer fair value on the other two. Of course, companies work to mitigate other firms’ advantages, so what represents fair value changes over time.

The remainder of the first unit examined the customer decision-making process, noting in part that too many choices can lead to customer indecision and inaction (a result that also received significant attention in Dan Ariely’s course A Beginner’s Guide to Irrational Behavior). This sequence also addressed effective brand communication and repositioning strategies. Professor Kahn’s take on familiar topics such as the brand mantra and elevator speech provided insights well beyond those in the seemingly infinite paraphrases of the same five talking points found online, making Week 3’s hour of video worthwhile within five minutes.

Customer Centricity

Professor Fader’s section addressed customer centricity, which shifts the focus from the firm’s products to customer needs. It’s a subtle shift, but changing to a customer-centric orientation opens firms to meeting and, in many cases, anticipating customer wants and needs. By listening to and observing customers before and during product development, companies can better understand customer motivation and combine their product and market insights with their customers’ insights to create better products.

I also appreciated Professor Fader’s note that you should focus on the lifetime value of your customers rather than just the current sale. If you sell suits and offer discounts to frequent customers, it makes sense to allow customers who are away at an elite MBA program or working abroad to retain their preferred status until they return because of the long-term benefits from their patronage. It also means some clients aren’t worth your time and should be fired.

Go to Market Strategies

The final segment, Go to Market Strategies, examines the process of introducing a product to the public. Professor Bell discusses the role of offline and online interaction, identifying lead users, encouraging the spread of a product or service (“virality”), and targeting one’s message. I thought this part of the course introduced the concepts well, but suffered the most from the time and scope limitations imposed by the MOOC format.

Companies try to establish network effects, by which the value of their product increases as more people adopt it. Facebook would be worthless if the majority of its users stopped sharing information on the site, as has occurred with MySpace. Bell offered excellent background information on finding influential users, targeting messages, and establishing prices, but this general information begged for statistical analysis of social media and other data.

Production Notes

The three professors adopted different presentation modes, which added excellent variety to the course. Professor Kahn presented as if standing at the front of a classroom, but without a podium. With her slides projected behind her on a green screen (or, when appropriate, taking up the full screen), her presentations had a more intimate, seminar-like quality.

Professor Fader appeared in several locations, including a company’s distribution center and a Philadelphia street corner. The editors had B-roll sequences of car and pedestrian traffic to break up the shots, but they re-used the same clips numerous times. After a while I had a side game of counting how many times I’d seen the same guy turn to look at the camera as he walked by.

The final section showed Professor Bell in the classic “talking head” mode, where his upper body or slides filled the screen as appropriate. Bell is a solid presenter, as were his colleagues, so I had no trouble maintaining interest in his material.

Final Thoughts

Every institution balances the desire to share knowledge through MOOCs with the need to preserve the value of their on-campus students’ investment. While I enjoyed An Introduction to Marketing and gained substantial value from the professors’ presentations, I’m left with the feeling that there’s a lot more out there. The good news is that I can apply social network analysis skills I learned from Lada Adamic’s Coursera MOOC of the same name to Facebook and Twitter data. Also, if I look a bit further, I can surely find a textbook on marketing data analysis to further my understanding of that topic.

The Wharton School’s An Introduction to Marketing provides a solid conceptual framework for marketing in the connected economy. I found this course to be the easiest of the four Wharton offerings through Coursera, mainly because the quizzes called for students to recall main points from the lectures and readings rather than perform difficult analysis. Even so, I got a lot out of the course and recommend it without reservation.