Dieting Secret: Lost a few more ounces of fat today. Perhaps I should consider writing a how-to diet book. My first bit of advice—start with a high metabolism rate!
Pit Stop: Fareed Zakaria, the renowned foreign affairs journalist, recently made news himself by violating professional standards (http://www.nytimes.com/2012/08/20/business/media/scandal-threatens-fareed-zakarias-image-as-media-star.html?adxnnl=1&pagewanted=all&adxnnlx=1345474868-A8fm9PZAQn2i/+0DuUu7Sg), but I will always link him to an action I never witnessed by any public speaker in four decades of reporting.
About six years ago Zakaria was featured at the Retail Industry Leaders Association (RILA) annual conference. To the Grand Poobahs of retailing he pontificated on the state of the world and America’s standing within it. After a speech of about 40 minutes, the audience expected a question and answer period. But before the first query could be launched, Zakaria requested their indulgence. He asked for a momentary delay. He had to run off-stage to the bathroom. An embarrassed giggle rippled through the audience. Several minutes later he returned to applause, having proven beyond a doubt that those we see on TV and read in print have no fewer human needs than the rest of us.
Fear of Fractions: Some years ago the Securities and Exchange Commission made the stock market shift the share valuation model to dollars and cents from listings based on numbers and fractions. It made it easier for the Average Joe and Jane to figure out what a stock bought and sold for. Of course, most stocks are traded these days by computers for large institutions. No matter. The new system makes it easier to understand when Brian Williams and other talking heads report the day’s activity.
Now, a new study in the July Journal of Commerce by faculty at the Carlson School of Management, first brought to my attention by The Lempert Report, indicates our collective fear of fractions and our inability to process changes in percentages may be costing consumers money during their trips to retail stores. Faced with two different sales promotions—percentage off or a bonus pack buy—consumers will more frequently choose getting more of a product over paying less for a standard size of a product. This could lead retailers and consumer package goods (CPG) companies to camouflage price increases.
As Phil Lempert reported, “Retailers and CPG continue to mask everyday price increases with smaller package sizes, fractional ounce content and uneven dollar amounts that shoppers find hard to compute. While everyday prices rise—and they will again due to the Midwest drought and other weather challenges—stores and brands push more promotions to convey value and retain shopper trips. When they price promote, they find that distraction works to their benefit because, frankly, shoppers aren't great at math,” specifically knowing how to calculate percentage changes.
Bottom line: Before you go supermarket shopping, you might want to brush up on your math skills.
The antipathy toward percentages might also explain why Mitt Romney has difficulty selling the public on his effective tax rate. Instead of emphasizing his rate, a comparatively low 13.9% vs. a higher rate most middle income households pay, Romney might want to stress his actual tax payment. Sure, it will imply he makes tons of money, but most people already know that. It’s the percentage he pays that is getting him in trouble.
An Honest Face: I just found out I’m more honest than the average bald man. According to a study by Honest Tea, bearded fellows can be trusted 96% of the time compared to just 85% of bald men.
This finding comes from one of the more unusual field studies. As noted on its study Web site, “This summer, Honest Tea conducted experiments in 30 cities to test people's honesty. We set up unmanned pop-up stores and asked people to pay $1 per bottle on the honor system. Data was collected and we compiled our findings into the National Honesty Index (http://thenationalhonestyindex.com/).
I’m not really a beachgoer, so it was comforting to know they’re only honest 91% of the time. I’m no longer a biker (pedal powered or motorized), so I was glad to see they didn’t cheat just 92% of the time. But I was troubled that suburbanites and those who wear hats, both categories of which I include myself in, both registered meager 90% honesty rates. And I was particularly depressed to see Brooklyn, the borough of my youth, now home to our daughter and soon-to-be son-in-law, recorded a dismal 61% honesty rating.
