4min chapter

The Knowledge Project with Shane Parrish cover image

#19 Rory Sutherland: The Psychology of Advertising

The Knowledge Project with Shane Parrish

CHAPTER

The Randomize Control Trial

In the 19 twenties, an advertising company sent out 50 thousand letters with a phone number and a coupon. The response rates were around two point five per cent for both methods. But when you think about economic something very weird is going on here - that regardless of what the product is or how much it costs, who can order it? So i thought we ought to ordert, we ought to offer a fact number, so that an additional nort point four % will order the product by facts. Andta, when you thinkabout it, is very, very strange. It's not quite a thought experiment because you did actually ask people if they wanted this drink at all. You know, i

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