In case you missed it, here's a very intriguing article from the New York Times Magazine April 15 about the results of research on market popularity and hit predictors. Why is it, they wondered, that it is so difficult for companies to predict the Next Big Thing?
Conventional marketing wisdom holds that predicting success in cultural markets is mostly a matter of anticipating the preferences of the millions of individual people who participate in them...That they fail so frequently implies either that they aren’t studying their own successes carefully enough or that they are not paying sufficiently close attention to the changing preferences of their audience.
The common-sense view, however, makes a big assumption: that when people make decisions about what they like, they do so independently of one another. But people almost never make decisions independently — in part because the world abounds with so many choices that we have little hope of ever finding what we want on our own; in part because we are never really sure what we want anyway; and in part because what we often want is not so much to experience the “best” of everything as it is to experience the same things as other people and thereby also experience the benefits of sharing.
In other words, we are social creatures and we rely on a host of indicators -- friends, family, reviews, etc -- to help us make up our own minds. The sociology researchers at Columbia University devised an
online experiment where participants were divided into eight different groups and given a collection of songs to listen to and download, a mix of popular and unknown artists. Participants were divided into two groups -- those who could see what other people downloaded, and those who couldn't. The first group, the ones who could see what other participants downloaded, was further divided into eight separate subgroups, and their downloading habits analyzed.
While it's always good to be skeptical of studies which prove what the researchers set out to verify, this particular study seems too important to dismiss:
First, if people know what they like regardless of what they think other people like, the most successful songs should draw about the same amount of the total market share in both the independent and social-influence conditions — that is, hits shouldn’t be any bigger just because the people downloading them know what other people downloaded. And second, the very same songs — the “best” ones — should become hits in all social-influence worlds.
What we found, however, was exactly the opposite. In all the social-influence worlds, the most popular songs were much more popular (and the least popular songs were less popular) than in the independent condition. At the same time, however, the particular songs that became hits were different in different worlds, just as cumulative-advantage theory would predict. Introducing social influence into human decision making, in other words, didn’t just make the hits bigger; it also made them more unpredictable.
Excerpting bits of this study doesn't do it justice; I strongly recommend you read the article yourself to grasp the nuances.
The takeaway, though, is immense. With the rise of markets online, will there be a corresponding rise in the "cumulative advantage effect", where the first arrivers start the ball rolling and help determine its ultimate outcome? Does it make sense for a company to reveal the number of overall downloads, knowing that it will influence audience behavior? Could you seed a new site with corporate shills gaming the system? And what does this study say for those who correlate popularity with quality? The wisdom of the crowd seems to be a moving target.