In recent weeks there has been a new ad on television that markets HTC’s new phone. The HTC One M8 is introduced in a commercial that stars Gary Oldman, but it offers a very unique situation. Instead of the commercial referencing the phone in design, capabilities, and uses of the phone in the commercial. Oldman repeats the saying ‘blah blah blah’ and tells the viewer to go to the internet to find information about the phone and create a opinion based off of peer review in a sense. HTC realized that it cannot directly compete with larger firms such as apple and Samsung, who can put billions of dollars into advertising their devices.
HTC has opted to use a informational cascade strategy in marketing their device to the public. When the company refers the viewer to ‘ask the internet’ they are relying on positive reviews on the device. The positive reviews of the device will influence the decisions of others because they are connected by a network, the internet. A simple herding experiment can then be drawn from this situation. If the first reviewer of the new phone has a positive review then the second reviewer may be affected by the first reviewers decision. The second reviewer has their own private information, but will also have the review of the other reviewer as a reference. This strategy of reliance on the internet as a network and using a model of cascades for advertising may in the future be a key tool for smaller firms to compete with larger firms in the marketing category.