The Significant Objects Project
Would you pay $76 for a shot glass? What about $52 for an oven mitt? And $50 for a jar of marbles?
You may shake your head and say no way, but in a recent series of eBay auctions, the consumers did just that: they shelled out considerable cash for objects that to all appearances should never have fetched more than a couple bucks.
So what made the difference? Each item came with a unique tale.
The auctions were part of the Significant Objects Project, an experiment designed to test the hypothesis that “narrative transforms the insignificant into the significant.” Or, put differently, the goal was to determine whether you could take an object worth very little and make it worth much more by giving it a story, by endowing it with meaning.
To that end, the project’s originators – NY Times columnist Rob Walker and author Josh Glenn – bought up 100 unremarkable garage sale knickknacks for no more than a few dollars each, and then had volunteer writers whip up fictional back stories for them. This, they thought, would up the trinkets’ objective value.
They were right. Whereas the objects had cost Walker and Glenn a total of $128.74 to buy, the same trinkets netted a whopping $3,612.51 on eBay when paired with stories. This Russian figurine, for example, came with the original price tag of $3 but sold for $193.50. And this kitschy toy horse made the leap from $1 to $104.50. (See also:$76 shot glass, $52 oven mitt, $50 jar of marbles)
The results may seem surprising, but this is actually something we see all the time. It’s the basic idea behind the endowment effect, the theory that once we own something, its value increases in our eyes. (In one study, Kahneman, Knetsch and Thaler (1990) randomly divvyed up participants into mug owners and buyers, and found that whereas owners requested around $7 for their mugs, the buyers would only pay an average of $3.)
But ownership isn’t the only way to endow an object or service with meaning. You can also create value by investing time and effort into something (hence why we cherish those scraggly scarves we knit ourselves) or by knowing that someone else has (gifts fall under this category).
And then there’s the power of stories: spend a fantastic weekend somewhere, and no matter what you bring back – whether it’s an upper-case souvenir or a shell off the beach – you’ll value it immensely, simply because of its associations. This explains the findings of the Significant Objects Project, and also how other things like branding works
Irrationally yours
Dan
My latest book, The Upside of Irrationality, explores some positive and some negative ways that irrationality plays out in our lives.
I just read a blog post about how you’re more likely to get your camera returned if you’ve left messages, in the form of photos, saved on the camera! The photos explain why the camera is important to you, plus your contact information. It plays on the same idea of attaching significance to what could otherwise be a mundane object.
http://lifehacker.com/5433329/get-your-camera-returned-with-a-great-photo-message
This reminds me of Tom Wolfe’s book, The Painted Word. Wikipedia says “Wolfe’s thesis in The Painted Word was that by the 1970s modern art had moved away from being a visual experience, and more often was an illustration of art critics’ theories. ” I think these theories are just the sort of “unique tales” used in the experiment described above.
Very interesting Story! Did this only work in the US or did they sell significant objects in other countries as well? And has there been any further advertising for the mentioned objects or did they solely set up the auction and everything from then on happened by itself?
BR
Does this strike no one else as (pseudo)-science that violates the basic protocols of human research? Or, you know, as fraud?
I see that those conducting the “study” made an effort not to imply the stories were true, but I doubt they made it clear that they weren’t. While their stated intent may not be to hoax people, the disparity between investment and payoff seems to imply that the practical effect has been the opposite.
Also, even allowing that this might qualify as science and not criminal activity, I don’t see any connection to the mug buying and selling study (though more explanation might convince me otherwise). Obviously sellers ask higher rates than buyers are willing to pay – their goal is to make money and acquire goods at the lowest cost, respectively, which doesn’t necessarily reflect their actual valuation of the mugs.
This is the marketing strategy that was used by the J. Peterman company. They had a catalog of items, one per page, with a fictional narrative for each item.
i don’t see much irrationality here: 1) there’s potential resale value of these items in the future, on par with their purchase price 2) you are supporting a future generation of writers.
people here did not just buy the pink horse… there was a value-add: somebody took the effort to have professional writers make up a story for each. the whole project is cataloged on a site. the proceedings go to a non-profit assisting students…
(btw, i also share the view that in most contemporary art the narrative is of more importance than the objects themselves – but )
This phenomena is used time and again in retail marketing, with sales draws. I personally witnessed it over the post 25th markdown sales, where a national brand retailer had large signs out front stating: “Take an extra 50% off – all sale”
My daughter then invested 90 minutes of time (with me waiting) and selected 9 items of $300 (for which I had expected to pay $150). At the counter, as the items rung up – no discount was shown – and I asked if the discount would be applied at the end of the tally. The answer was that none of the items selected were actually for sale – only those marked with a red label or sticker in a particular shelf (note – this place had 2 floors and perhaps 3-4 dozen displays, racks and sections).
End results – despite being offered, by the sales lady, to remove items off the ticket, I went ahead and purchased all 9 items for the full $300. They had already become significant objects for both my daughter and myself – and a doubling of expected price was not significant in the face of that.
Of course, I object to this misleading “hook” intensively, and am in the process of taking this up with senior management of the firm… Updates if anyone interested.
It is an old scenario………wat do u say guys?“
Hi,
A few weeks back I saw this video that demonstrates what Dan is talking about. A couple of guys buy a bmx bike from ebay and add a story to it and sell it again with great profit.
Regards
I had the idea to sell the Ron Artest cup from the Palace Brawl on ebay and my friend posted it on his profile. Bidding went over $999 million and notoriety ensued. Ebay asked if we wanted to end the auction and we did.
But we recognized a real opportunity. We reposted the cup as the cup that started the ebay Ron Artest cup phenomenon. $72 (I think) for a plastic beer cup is a pretty good take.
@Carl, The significant objects organizers make it perfectly clear that the stories weren’t true…in fact if you read some of the stories you would know they couldn’t possibly be true. The point is to see whether narrative (fictional or not) can add significance to an object, meaning is it significant to you because you know it was significant to someonelse…someone fictional. Also its not fraud as they are not keeping the money, the money goes to the authors of the stories.
About the mug buying and selling study I think the point is that the sellers aren’t selling for money or profit they are asking more than buyers are willing to give because they see a value in the mugs that the buyers don’t since they have owned the mugs and feel some sort of connection to it. So I think its related because its just another way of seeing how objects become significant to us.
Ariely’s post about power of story has inspired to share my story about storytelling. Please read bellow, or visit my blog for full story: http://macikanas.blogspot.com
THE POWER OF STORY
I have always believed in a power of story.
Once, when I was a little kid, I have been selling sprouts in a bazaar. There were early summer Saturday mornings in the mid 90′s. Lots of rushing people around, lots of competition for better price & better product. But I used to manage to make a good profit everytime. There was one little trick I had to differentiate myself from other dosens of sprout sellers – I was a little boy telling big stories about his product… for more check out my blog, because i did want to overload Ariely’s site:)
bg — You’ll be happy to know Peterman is still at it, stories and all. http://www.jpeterman.com/
Thanks for your sharing.so wonderful!wish you have a lovely day and Happy New Year.
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This reminds me very much of an old Phil Hartman sketch on Saturday Night live where he played a pawnshop owner that paid out on the basis Full Sentimental Value.
“Пост хорош”
Have not had the time to check if it’s already been done, however, I’ve got to ask. After reading ‘Predictably Irrational’ I have a new insight in to why I always get my bank account cleaned out whenever I visit one of those Gatineau, Quebec Stripper Clubs on Greber Ave. If you ever decide to run experiments there let me know!? I’m In!!! Yuk Yuk
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The true value of an object is often in the eye of the beholder. If you want something, then it doesn’t matter what its really worth I guess.
This Significant Objects theory is clearly an emotional attachment to things. I had a relative who when she went anywhere with her husband brought back an object to remember the time they had together. But when he died she would bring things back that we not ‘souvenirs’ in the usual sense, as the items could be anything at all, the centre of a toilet roll or a napkin from a cafe. She would write on the object when and where it came from. Clearly disorded and part of her grief process that went on for 20 years as her house was full literally from floor to ceiling with items such as this!
I always think people are so interesting!
Darren
So in essence, the two writers hired others to defraud people into paying far more for the items based on fictional stories? Call me funny, but isn’t fraud illegal in NY (Sect. 349, Business Law Statute)? Great to see that NY Times writers are above the law…
Selective and unique objects do cash. Nice initiative from ebay.
Hey, very informative blog post! Pleasee continue this awesome work.
I’m surprised Ariely is surprised. Have you never heard of con artists? The entire point of con artistry is to gain confidence and that’s done via a spiel, commonly known as a story, also known as a big fat lie.
I have just completed the photography on 160 people who participated in my “Precious Objects” project – Things they have had a long time, that have special meaning and they would not or could not replace if they lost them. I asked each person to write two or three sentences about their choice that becomes part of the work. This is a very different approach to the stories that link people to these objects than yours. But, it shows how these things seed our memories and, in a way, contribute to our ability to maintain personal attachments to family and friends over time.
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