GO
Loading...

Tech Talk with David Pogue

  Wednesday, 12 Oct 2011 | 11:37 AM ET

New iPhone Conceals Sheer Magic

Posted By: David Pogue
What’s in a name? A lot, apparently.Apple’s new iPhone is called the iPhone 4S. But what people really wanted was the iPhone 5.  CNBC Contributor David Pogue explains. »Read more
  Thursday, 6 Oct 2011 | 1:29 PM ET

Steve Jobs: Imitated, Never Duplicated

Posted By: David Pogue
The story of Steve Jobs boils down to this: Don’t go with the flow, says NYT's David Pogue. »Read more
  Thursday, 28 Jul 2011 | 12:12 PM ET

Online Music, Unshackled

Posted By: David Pogue
Well, the recording executives may, in fact, be big, greedy dunderheads. But over the years, little by little, they’ve tried to make online music sales fairer and more convenient. CNBC Contributor David Pogue reports on technology. »Read more
  Thursday, 21 Jul 2011 | 10:38 AM ET

Upgrading to Lion Means Embracing the iPad

Posted By: David Pogue
It must be excruciating to design a new version of an already mature operating system. How do you add enough new stuff to attract upgrade customers — without junking up the works? And how do you revamp enough things to make the upgrade exciting — without alienating people who don’t like change? CNBC Contributor David Pogue on technology. »Read more
  Thursday, 14 Jul 2011 | 2:40 PM ET

Google Plus Gets a Leg Up on Facebook

Posted By: David Pogue
Google, the most popular Web site on earth, is worried about the second-most popular site. That, of course, would be Facebook. CNBC Contributor David Pogue reports. »Read more
  Thursday, 19 May 2011 | 11:25 AM ET

Ins and Outs of Using Gadgetry

Posted By: David Pogue
CNBC Contributor David Pogue presents his first installment of what should be called the "Big Book of Basic Technology Knowledge." »Read more
  Tuesday, 17 May 2011 | 2:30 PM ET

The Future of Skype

Posted By: David Pogue
Every time some big clumsy corporate behemoth buys a popular consumer-tech product, David Pogue cringes. It almost never works out. »Read more
  Thursday, 3 Mar 2011 | 1:47 PM ET

Cable TV In Pursuit Of Mobility

Posted By: David Pogue

FOR INTERNAL COMCAST USE ONLY. DO NOT LEAK.

Destroy this top-secret strategy document after reading. It could be devastating to our business interests if it fell into the wrong hands — like The New York Times or something.

Fellow Comcastians, this is a difficult time for the cable TV business. We’ve been losing subscribers. These young people today, with their loud hair and long music! They don’t watch TV on TV sets anymore. They watch it online! Free episodes on Hulu.com . Ad-free episodes from iTunes. Unlimited past seasons on Netflix.

These people are actually proud to cancel their cable TV service. Not a healthy trend.

»Read more
  Thursday, 24 Feb 2011 | 2:44 PM ET

Before Rush, One Tablet Stands Out

Posted By: David Pogue

It’s an old pattern by now. Phase 1: Apple introduces some new gadget. The bloggers and the industry tell us why it’ll fail. Phase 2: It goes on sale. The public goes nuts for it. Phase 3: Every company and its brother gets to work on a copycat.

»Read more
  Thursday, 10 Feb 2011 | 2:01 PM ET

Psyched to Buy, in Groups

Posted By: David Pogue
Groupon
Getty Images
Groupon

You might think that this column is about Groupon.com , the white-hot Web site whose coupons save you 50 to 90 percent at local businesses. But it’s not. It’s about psychology.

Each day, Groupon offers for sale a deep-discount coupon from a business in your town. It might be a $25 coupon that buys you a $50 bike tune-up, or a $40 coupon for a $90 massage, or $25 for $100 worth of fitness classes. The coupons aren’t actually distributed until a critical mass of people (50, for example) have clicked “Buy.” After all, shopkeepers can’t afford discounts that steep unless there’s something in it for them.

If not enough people express interest, the deal dies. No coupons are issued, and nobody’s out a cent.

Groupon is, therefore, a huge win-win-win. You save eyebrow-raising amounts of money. Local businesses pick up a landslide of new customers overnight without doing a lick of marketing on their own (a Phoenix aquarium, for example, sold 10,000 tickets in 24 hours). And Groupon collects half the money from those coupons. No wonder it became profitable after only seven months.

Now, this concept — Internet-organized group buying — has been tried many times before. Remember MobShop? Mercato? LetsBuyIt? They all worked, in principle, the same way.

But Groupon is suddenly everywhere you look — in the headlines, on Facebook, in dinnertime conversations. The company says that it operates in 175 North American cities and 500 overseas, has 54 million members and has saved them $1.6 billion so far. In fact, Groupon is the fastest-growing Web company in history, having attained a $1.5 billion value in only 18 months.

(On the other hand, not all of the dinnertime conversation about Groupon is positive. The company’s SuperBowl TV ads last weekend backfired. One seemed to belittle the oppression of Tibetans under Chinese rule — “The people of Tibet are in trouble. Their very culture is in jeopardy. But they still whip up an amazing fish curry!”— and struck many viewers as juvenile and insensitive.)

Frankly, I couldn’t understand the big deal about Groupon. Why is it such a superstar when so many competitors labor in obscurity?

The answer: clever psychology.

First of all, Groupon’s sales staff tries to cultivate deals that suit the audience in each city. If you’re in San Francisco, you get offers for Segway tours of vineyards, flying lessons and skateboarding gear. In New York City, you’re more likely to see huge discounts on music lessons, theater tickets and interesting restaurants. In most cities, you’re likely to spot lots of deals for spas and cosmetic surgery, which hints at the upscale female customers who constitute Groupon’s biggest buyers.

In suburban Connecticut, where I live, I saw offers like “$10 for $20 worth” of Italian food at a restaurant nearby, “$15 for $30 worth of dry cleaning,” and “$10 for $20 worth” of goods at Barnes & Noble . Since that’s all stuff I’d buy anyway, I took the plunge. I bought the Barnes & Noble coupon and the restaurant coupon.

A few hours later, I received my coupons by e-mail. They pointed out that I could avoid printing the coupons if I used the free Groupon app for iPhone or Android phones.

At the bookstore, I picked out a couple of books totaling $23. I showed my phone to the cashier, who had been trained to enter the Groupon codes. I was the ninth person that day to cash in.

I paid the $3 overage, and that was it. I loved it. I’d just gotten $10 worth of books free. It almost felt as if I’d shoplifted.

More psychology, of course. It’s absurd that I should have felt so giddy. I mean, is saving $10 such a landmark event? The last time you bought a house, a car or even a night at a hotel, did you haggle for another $10 off? You probably could have gotten it. But you didn’t.

Somehow, though, in the Groupon context, it feels like a steal. There’s something about the simple phrase, “$10 for $20 worth of stuff” that gets you.

Furthermore, your coupon is good for anything in the store. It’s not the same as a Half-Off Sale, where the store chooses what goods to discount.

That “tipping point” business — the minimum number of takers an offer has to have before it becomes valid — is part of the psychology, too. Sure, this element was created to protect the merchant’s interests. But let’s face it, the tipping-point requirement adds a certain thrill to the proceedings. You’re invested in the outcome.

Even the scarcity of deals — one each day — plays on your feelings. It adds to that sense of exclusivity and of serendipity.

»Read more