Matthew Effect
Matthew effect refers to a phenomenon that the better the worse, the more and the less. That is polarization. From the bible, the new testament? The fable in Matthew.
1968, Robert, an American researcher in the history of science? Robert king merton put forward this term to summarize a social psychological phenomenon: "Compared with unknown researchers, famous scientists usually gain more prestige, even if their achievements are similar. Similarly, on the same project, fame usually goes to researchers who are already famous. For example, an award is almost always awarded to the most senior researcher, even if all the work is done by a graduate student. "
This word was later borrowed by economists, reflecting the phenomenon of unfair income distribution in economics that the poor are getting poorer and poorer, the rich are getting richer and richer, and the winner takes all.
Fables in Matthew
The fable in Matthew 25 of the New Testament:
The kingdom of heaven is like a man who wants to go abroad, so he calls his servants and gives them his possessions. Give everyone money according to their ability. One gave 5,000, one gave 2,000 and one gave 1,000. Then I went abroad. He who received five thousand immediately went into business and earned another five thousand. In the same way, he who received two thousand earned another two thousand. He who received a thousand dollars went to dig up the ground and buried his master's money.
After a long time, the masters of those servants came and settled accounts with them.
The one who received the five thousand dollars came with the other five dollars and said, Lord, you gave me five thousand dollars, and behold, I made five more. The master said, well, you good and faithful servant. You are loyal to a few things, and I put many things in your charge. You can come in and enjoy your master's happiness.
And he who received the two talents came and said, Lord, you gave me two talents, and behold, I have earned another two talents. The master said, well, you good and faithful servant. You are loyal to a few things, and I put many things in your charge. You can come in and enjoy your master's happiness.
And the one who received the thousand also came and said, Lord, I know that you are a man with a will to reap where you did not sow and gather where you did not scatter. I'm scared. Go and bury your 1000 silver in the ground. Look, your old silverware is here. The master replied, you wicked and lazy servant, you know that I reap where I didn't sow and gather where I didn't scatter. Just give my money to the money changer, and I can get it back with interest when I come. Take a thousand from him and give them two thousand and five thousand. They produce more, and if they don't produce, they take it away.
For whatever he has, he will be given more, so that he may have more. If you don't have it, you have to take it from him.
Another version:
New testament? There is such a story in Matthew. Before a king left for a long trip, he gave three servants a dollar each and told them, "Go into business and come and see me when I come back." When the king came back, the first servant said, "Master, I have earned the 10 silver you gave me." So the king gave him 10 city. The second servant reported, "Master, I earned the five dollars you gave me." So the king rewarded him with five cities. The third servant reported, "Master, I have been wrapping the silver ingot you gave me in a towel, and I dare not take it out for fear of losing it." So the king ordered the third servant's silver ingot to be given to the first servant, and said, "What is missing, even what he has, should be taken away." If you have more, give it to him and tell him the more, the better. "
The poorer the poor, the richer the rich.
Take the lead and step by step;
Social phenomenon of Matthew effect
Matthew effect exists widely in society. Taking [economic field] as an example, there are two different views on the development trend between regions in the world: one is the "convergence hypothesis" of Solow's growth model. This hypothesis holds that due to the law of diminishing returns of capital, when there is diminishing returns of capital in developed areas, capital will flow to underdeveloped areas where there is no diminishing returns. In this way, the growth rate of developed regions will slow down, while the growth rate of underdeveloped regions will accelerate, which will eventually lead to the convergence of the two types of regions. Another view is that when the system, human resources and other factors are taken into account at the same time, there will often be another result, that is, the "Matthew effect" of the "development difference" between developed and underdeveloped regions. For another example, the talent crisis will be a world phenomenon, and the "Matthew effect" in talent possession will be more obvious: the more talents there are, the more attractive they are; On the contrary, the more recognized talents are, the scarcer they are. In addition, there is a Matthew effect in [scientific and academic] research. The more research results, the more celebrities, the more achievements of celebrities, and finally the academic authority.
Matthew effect in stock market
The fluctuation of stock price level is positively related to the amount of incremental funds (newly listed or delisted) and the turnover rate of existing funds, and negatively related to the amount of incremental stocks (newly listed or delisted) and the turnover rate of existing funds. The increase of market capital and the acceleration of turnover speed are manifested in the expansion of demand, while the increase of market inventory and the acceleration of turnover speed are manifested in the expansion of supply.
Like the ordinary commodity market, the demand and supply of the stock market change reversely or asymmetrically under the adjustment of the same price change. Contrary to the ordinary commodity market, the price mechanism of the stock market has a positive feedback incentive function for both demand and supply. This price positive feedback mechanism always strengthens the reverse trend of supply and demand, thus expanding or maintaining the imbalance between supply and demand. Therefore, in the stock market, rising prices will push up prices; On the contrary, price decline will lead to further price decline. In other words, the internal mechanism of the stock market is manifested in the special way of Matthew effect, which directly leads to the stock price deviating from the basic value and rising, falling and plunging.
Because Matthew effect and the extraordinary rise and fall of stock price are the result of the internal operation law of the stock market, it has become an inevitable and conventional operation form of the stock market. There is bound to be speculation and extraordinary turmoil in the stock market, so the stock market will always be the place to get the price difference.
After a strong or weak Matthew imbalance cycle, the stock market may enter another reverse Matthew cycle process or enter a temporary equilibrium state. The reason for the suspension of a Matthew cycle, if it is the suspension of price increase, is usually due to the exhaustion of follow-up funds, high market risk caused by high prices, sudden bad news stimulation, and excessive accumulated profit chips. If the price drop stops, it is mostly because the price has entered the investment value zone, and the sudden bullish news has stimulated the accumulation of too many stuck chips.
Matthew effect of brand capital
1. What is the Matthew effect of brand capital?
Matthew effect of brand capital means that the greater the brand awareness and brand value of products or services of an industry or industry, the more loyal consumers and the greater the market share. On the other hand, the lower the brand awareness and brand value of products or services in an industry, the less loyal consumers there are, which will inevitably lead to a smaller market share, which will lead to a decrease in profits and be eliminated by the market. The market that gives way will be replaced by products or services with high brand awareness.
Matthew effect is a common market phenomenon in the field of brand capital: the strong is always the strong, the weak is always the weak, or the winner takes all.
2. Successful cases of Matthew effect practice of brand capital
The core value of brand capital is standard and technology, and the derivative value is consumers' recognition of brand and the construction of brand marketing system.
The highest form of capital is enterprise brand value; Intangible capital is the value of intellectual property rights of enterprises; The solidified capital is the machinery, equipment and real estate of the enterprise. For enterprises, first-class enterprises set standards, second-rate enterprises set technology, third-rate enterprises set products, and fourth-rate enterprises set benefits.
Only with the help of "brand capital" like an aircraft carrier can enterprises set standards in the industry, shape brand image and be invincible.
Especially in key fields such as software technology and electronic technology, core technology is the lifeblood of enterprise's survival and development. Until now, some developed countries and multinational companies still control industrial structure by controlling technical standards in many fields. Therefore, only by making great efforts to innovate, participating in the formulation of standards with independent intellectual property rights and occupying brand capital can enterprises occupy the commanding heights of technology in their own fields and gain market competitive advantages.
Qualcomm, Microsoft and the Japanese 6C Alliance are all typical examples of winning the China market by virtue of standards. CDMA related technologies have become patents and international standards under the operation of Qualcomm. All enterprises that produce CDMA-related communication products have to pay the entrance fee and usage fee of CDMA to Qualcomm, so Qualcomm has become a multinational enterprise with standards and more and more money.
The Matthew effect of Starbucks brand capital has created a miracle of success. On Wall Street, Starbucks has long been a safe haven for investors. In the past decade, its share price has climbed 22 times after four spin-offs, and its income has surpassed that of big companies such as General Electric, Pepsi, Coca-Cola, Microsoft and IBM. What created the Starbucks miracle? Schultz, who mentioned Starbucks, replied: "Our greatest advantage is mutual trust with our partners. The key issue is how to maintain the consistency of corporate values and guiding principles in rapid development. "
3. Enlightenment of Matthew effect of brand capital on marketing innovation
With the economic globalization and China's entry into WTO, the brand capital construction of domestic enterprises has become increasingly urgent. Enterprises will accumulate brand capital with absolute advantages, create sustainable value, promote the integration of market resources, form huge tangible and intangible wealth effects, and be invincible in the increasingly fierce market competition.
Accumulating brand capital is in line with the realistic demand of enterprises occupying the commanding heights of the market. Brand capital is the source power of the current global market consumption revolution, which involves not only the life field, but also the economic and financial fields. While people are pursuing the brand of life, they must also have brand requirements for finance. If domestic enterprises do not cultivate their own brands, it will be difficult to meet these increasingly high-tech needs in the future.
Accumulating brand capital is the core requirement of continuously creating value. A worthless brand is water without a source, a tree without a root. Only when a brand has the characteristics of setting standards and possessing intangible assets such as core technology can it be transformed into tangible assets. Only when it is organically connected with capital to form an absolute brand capital advantage can it provide a steady stream of wealth for enterprises.
Accumulating brand capital is the only way for integrated marketing to create wealth. Brands need marketing, and marketing can enhance brand awareness. The formation and establishment of brand is a process from cognition to recognition, and finally achieves the purpose of recognition. Integrating market resources can market brands in a wider range and enhance their popularity. The external expression of brand capital is quantifiable value, and the internal expression of brand capital is the acceptance and judgment standard in consumers' minds.
Matthew effect expansion
1968, Robert, an American researcher in the history of science? Robert king merton put forward this term to summarize a social psychological phenomenon: "Compared with those unknown researchers, famous scientists usually gain more prestige, even if their achievements are similar. Similarly, on the same project, fame usually goes to researchers who are already famous. As a result, the more research results, the more nicknames people often have, the more celebrities there are, and finally academic authority is produced. " This word was later borrowed by economists, reflecting the economic phenomenon that the poorer the poor, the richer the rich, and the winner takes all. Matthew effect is a common phenomenon in society, especially in the economic field: the strong are always the strong, and the weak are always the weak, or, the winner takes all. 1968, Robert, an American researcher in the history of science? Robert king merton first used Matthew effect to describe this social psychological phenomenon. Merton first summed up a social psychological effect with this sentence, "More and more honors are awarded to the contributions made by scientists with considerable reputation, while those scientists who have not yet become famous refuse to recognize their achievements." This is the Matthew effect.
Social psychologists believe that "Matthew effect" is a social psychological phenomenon, which has both negative and positive effects. The negative effects are as follows: celebrities and unknown people have achieved the same results. The former is often praised by superiors, interviewed by reporters, consulted and visited, and all kinds of laurels float in succession. As a result, some of them often take credit for their lack of sober self-awareness and rational attitude, and stumble on the road of life; The latter is ignored and even criticized and envied. Its positive effects are as follows: first, it can prevent society from prematurely recognizing those immature achievements or accepting seemingly correct achievements; Secondly, the phenomenon of "additional honor" and "lifelong honor" produced by "Matthew effect" has great attraction to anonymous people, prompting them to struggle, and this kind of struggle must obviously surpass the past achievements of celebrities in order to obtain the desired honor.
Matthew effect exists widely in society. Taking the economic field as an example, there are two different views on the development trend between regions in the world:
One is the convergence hypothesis of Solow's growth model. This hypothesis holds that due to the law of diminishing returns of capital, when there is diminishing returns of capital in developed areas, capital will flow to underdeveloped areas where there is no diminishing returns. In this way, the growth rate of developed regions will slow down, while the growth rate of underdeveloped regions will accelerate, which will eventually lead to the convergence of the two types of regions.
Another view is that when the factors such as system and human resources are considered at the same time, another result will often appear, that is, the development between developed and underdeveloped areas will often show the "Matthew effect" of "development deviation". Talents from backward areas will flow to developed areas, and resources from backward areas will flow to developed areas at a low price, while the system in backward areas is usually not as reasonable as that in developed areas, and so on, the regional differences will become bigger and bigger.
The gap between the rich and the poor in society will also produce the "Matthew effect". In the frenzy of the stock market and property market, it is always the bookmakers who earn the most and the retail investors who lose the most. Therefore, if it is not regulated, the money of the general public will be gathered in the hands of a few people through this form, further aggravating the polarization between the rich and the poor. In addition, because the rich usually enjoy better education and development opportunities, the poor will lack development opportunities than the rich for economic reasons, which will also lead to the "Matthew effect" in which the rich get richer and the poor get poorer.
For the government, how to avoid the Matthew effect of widening the gap between the rich and the poor in economic development is a very important political issue.
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1. management knowledge: what is the hello effect?
2. Management knowledge: What is the soapy water effect?
3. Management knowledge: What is the feedback effect?
4. Management knowledge: What is the entrance effect?
5. Management knowledge: What is the complaint effect? What are the implications for management?