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Brands in a World of Costless Interaction by Noah Brier

In a non-digital world, interaction costs were high: You had to purchase products. In the digital world, they're unbelievably low. Nothing is ever more than a click away online. In the offline world you had to get over high interaction costs by creating needs/expectations and you did that mostly with advertising/communications.

That's not really necessary anymore, though. If a friend sends me a link I usually click on it. It's easy, it's cheap and worst case scenario, I can just close the tab if I don't dig it. If a friend recommends a product, on the other hand, it requires a bit more thought and often a trip to the store (another major barrier to entry). In fact, it's funny, thanks to Amazon.com books have moved to little-to-no interaction cost. If someone recommends a book online I usually just go and add it to my wish list and then purchase it next time I want something. They've cut down almost all the barriers: Wish list helps me remember everything, free shipping on orders over $25 means I'm more likely to order an extra book off the list and stored credit card/address means I don't even need to enter any info other than password. read on


(Excerpt taken from: http://www.noahbrier.com/archives/2008/02/brands_in_a_world_of_costless_interaction.php)

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