Spaghetti Dispute In Malcolm Gladwell's Ted Talk
Ted Talks by Malcolm Gladwell on Spaghetti Sauce in term of Economic perspective
Gladwell talks about Howard Moskowitz, who was the food industry guru and most famous for re-inventing spaghetti sauce. The key point in this story is basically the destruction of the Platonic Ideal. Prego has hired him to find the perfect spaghetti sauce so as to compete with Ragu. Moskowitz created dozens of prototype sauces testing each variety with different American people. Moskowitz concluded that there is no single perfect spaghetti sauce, but there are three basic types that people responded to: plain, spicy and extra chunky. At first, there was no chunky type in the supermarket, so when Prego launched it, it was very successful. He changed the way food …show more content…
Moreover, many companies follow after learning Howard’s successful ways of testing varieties of spaghetti sauce. As a result, this leads to the paradox of choice.
In this case, the consumers get benefit with higher utility or more preferences, as a taste for variety model, since there are many choices of products chosen to consume. More choices mean more freedom; more freedom means more welfare. Therefore, more choice means more welfare. What Pregu did linked to Strategic behavior through brand preemption which incumbent introduces brands prior to an entrant and makes it difficult for the profitable entry. Thus, Prego raises it sales whereas Ragu could lose. These bring to socially desirable outcome.
TedTalks is a nonprofit devoted to ideas worth spreading and bringing together people from Technology, Entertainment and Design. Malcolm Gladwell is a writer for the New Yorker and best-selling author based in New York City. His occupation is identified as anon-fiction writer and a journalist .Others have called him a pop-sociologist of sorts. His famous books are The Tipping Point, Blink, Outliers, and What the Dog Saw: And Other
Gladwell talks about Howard Moskowitz, who was the food industry guru and most famous for re-inventing spaghetti sauce. The key point in this story is basically the destruction of the Platonic Ideal. Prego has hired him to find the perfect spaghetti sauce so as to compete with Ragu. Moskowitz created dozens of prototype sauces testing each variety with different American people. Moskowitz concluded that there is no single perfect spaghetti sauce, but there are three basic types that people responded to: plain, spicy and extra chunky. At first, there was no chunky type in the supermarket, so when Prego launched it, it was very successful. He changed the way food …show more content…
Moreover, many companies follow after learning Howard’s successful ways of testing varieties of spaghetti sauce. As a result, this leads to the paradox of choice.
In this case, the consumers get benefit with higher utility or more preferences, as a taste for variety model, since there are many choices of products chosen to consume. More choices mean more freedom; more freedom means more welfare. Therefore, more choice means more welfare. What Pregu did linked to Strategic behavior through brand preemption which incumbent introduces brands prior to an entrant and makes it difficult for the profitable entry. Thus, Prego raises it sales whereas Ragu could lose. These bring to socially desirable outcome.
TedTalks is a nonprofit devoted to ideas worth spreading and bringing together people from Technology, Entertainment and Design. Malcolm Gladwell is a writer for the New Yorker and best-selling author based in New York City. His occupation is identified as anon-fiction writer and a journalist .Others have called him a pop-sociologist of sorts. His famous books are The Tipping Point, Blink, Outliers, and What the Dog Saw: And Other