CNN.com – Study: Ads boost drinking among young – Jan 2, 2006
A survey of young people aged 15 to 26 found that for each additional alcohol advertisement viewed per month, there followed a 1 percent rise in the average number of drinks consumed, said study author Leslie Snyder of the University of Connecticut in Storrs.
This should come as no surprise. I have found that, in all cases where there are businesses and money involved, that the businesses have correctly figured out the finances. You do not need to conduct a study to determine whether the advertising departments of the large liquor manufacturers and distributors are wisely spending their budgets.
Similarly, you do not need to study extended warranties very hard to determine whether or not they are a good buy. Would a store, which sells repair services, rather sell you one contract or sell you one-off repairs whenever your new item breaks? Obviously they would rather sell you the contract. They have very carefully studied the issue and determined that they make more profit on the service contracts than otherwise.
You can often piggy-back your own decision process on the research of businesses. First, remember that all businesses exist for one primary reason: making money. Second, look for the businesses which are involved in the field you are considering. Last, determine what they do and where they invest their dollars. Every business which is reasonably well-run will invest in activities which have a high probability of success.
Here are two examples of how you can use this technique. Imagine that Wal-Mart wants to build a new store in your town because it will be good for the community. Remember that Wal-Mart’s primary motive is profit, i.e., taking money out of your community and distributing the money to its shareholders (in cash and stock value). The store may also be good for the community but remember in which direction the cash will flow once the store is built.
Now consider a real estate developer with big plans for a project in your county. Since he is in the business of making money, not benefiting the community, remember that his primary purpose is to turn a small investment into a larger return. The project may also be good for the county but remember where the money is expected to go.
Finally, reputation and repeat business flavor the business’ actions, so try to avoid being too cynical. So says a guy who writes under the tagline of “curmudgeon.”
