A couple of contrasting stories in the news this week bring
up the question once again about whether Americans are thinking and deciding
for themselves or letting someone else pull all the strings.
Since the US Women’s National Team won the World Cup, some
of the players may be able to look forward to lucrative endorsement deals. This media reports that they need these deals
to make a living in the sport, because normally players make “anywhere from
just $6,800 to $37,800.”
Winning the tournament was a boon to a few; still there is
considerable consternation among the press that women athletes are still paid
so much less than men. The final game
was the most-watched soccer game in history, but the prize money to the teams
and the revenue to Fox for airing it was miniscule in comparison to the men’s
World Cup or to other men’s professional sports. Instead of explaining the economics, most
reporters prefer to stir up controversy by blaming sexist attitudes.
The reality is no one anticipated the viewership and
sponsors “remain skittish to spend money on a sport without the
proven returns of a bigger spectacle, like professional football, or the
market power other sports can command on shelves.” It’s not about sexist attitudes; it’s about
market power. Market power is not about
the owners or the networks or the sponsors.
Market power is about us, anticipating our willingness to watch or
willingness to spend on endorsed products!
In contrast, the news told us that federal authorities
raided the Indiana home of Jared Fogle, the Subway spokesperson. Thus far no charges have been filed, but
Subway immediately distanced their brand from the relationship. Analysts called it a good move. Loyalty has no value in business. It is again about market power, the market
power of Jared, which turned negative as the news broke. The fear of losing customers drove the
decision, although the sandwiches won’t taste any different.
These decisions and reactions by corporations should make us
curious. Why are we so influenced by
advertising? Does the fact that some
formerly unknown guy ate at Subway and lost a lot of weight cause us to want to
eat there too, but only until that same now-famous guy gets raided by the Feds?
Can some formerly little-known young lady who
kicks a ball very well, cause us to prefer a certain brand over the our current
favorite or to buy some product we never would have considered in the
past? Do we make our own shopping
decisions or leave that up to the likes of Peyton Manning reading from a script
written by some advertising firm? Does
our economy and its value decisions, such as how much to pay certain athletes,
depend on adults reacting like a bunch of seven-year-olds who see the latest
Disney movie and demand the branded toys and clothing? Apparently it does.
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