The Tipping Point and its Characteristics
The stage of drastic increase or decline of a phenomenon can be described as its tipping point. The idea of Tipping point is applied to understand various trends such as increase in sales of commodities, decline in urban crime rates, disease outbreaks, among other cases. To attain a tipping point, the factors that bring about variations in a phenomenon exhibit three characteristics that are similar to those of epidemics. The first feature is contagiousness which is the ability of a given factor to spread from one point to another thus causing a largescale change. Secondly, little changes result in big effects thus a small variation in a system can bring about a large shift. Finally, the changes that lead to tipping do not occur gradually but drastically.
The Three Principles of Tipping Point
This drastic change in phenomena is underpinned by three principles. First is the law of few, which states that a small group of individuals can spread an effect by the word of mouth or through their actions. The law of stickiness implies that the way in which a given idea is presented determines whether it sticks on the minds of the audience or not. For instance, an advert displayed skillfully can be easily grasped and transmitted by viewers, while a poor advert attracts little or no attention. The final tenet is the power of context which considers the effects of environment on sudden changes. Some shifts are catalyzed by attributes of the surrounding, for instance, the sales of a given commodity might increase in a given locality because the inhabitants of that area have a special interest in the product.
Application of Tipping Point in Economics
This book relates to the study of economics because it applies the principles of tipping point to explain various economic phenomena. Among the economic cases described in the writing is the increased sales of Hush Puppy shoes at the point when the brand was facing extinction. Using the law of few, the author attributes the rise in sales to a small group of party-loving teenagers who promoted the product by wearing it. Economists alternatively refer to this law as the 80/20 principle, which implies that 80 percent of work can be done by 20 percent of the participants. A small group of young people influenced a larger population to buy Hush Puppy shoes thus promoting sales of the product. The law of contagiousness also fit well for this occurrence since the sales began in a small population but later spread to other regions.
Additionally, Malcolm Gladwell relates the principle of stickiness to economics in his example of Winston Filter-tip cigarettes. The cigarette company advertised its product using controversial grammar. The advert read, “Winston tastes good like a cigarette should” instead of “Winston tastes good as a cigarette should”. The disputed language attracted the attention of a large audience and made the advert to stick in their minds. Due to the stickiness factor, the company sales reached a tipping point when it sold the highest quantity of cigarette and made a good profit. It is therefore essential to note that there are specific ways of making a message memorable. How the information is structured and presented makes a big difference in the impact it makes.
Finally, the book explains how the principle of context applies to economics. This law has been used to explain the explosive sale of Rebecca Wells’ book, Devine secrets of the ya-ya sisterhood, which contain readings about relationships between mothers and daughters. The first successful sales took place in Northern California, a region that was considered the home of book-group cultures. Several reading groups existed in the area, and a bigger percentage of Rebecca’s audience were women. The tipping of book sales in Northern California can be attached to the principle of context. The presence of book-groups in the region provided a rich market environment hence more sales were realized.
Social Connectivity and Economic Success
Besides the principles of tipping point, the book also discusses social connectivity as a factor of success in commerce. Roger Howchov is a successful businessman in Dallas. The tipping of his business career comes as a result of his talent of interacting effectively with people. He knows how to approach and talk to people, not only friends and family but also strangers. This feature makes him a good connector hence promoting his success in business.
Summary
In summary, Malcolm Gladwell’s book relates to economics by discussing the factors that comprise effective marketing and product promotion thus leading to success in commerce. He describes the principle of contagiousness, the law of few, context, and stickiness factor as the significant aspects that determine the effectiveness of product promotions. Social Connectivity is also highlighted as a function of economic success. Maintaining good relationships with people and reaching out to others facilitates the acquisition of new ideas and friends, who can be potential business partners.
Work Cited
Malcolm, Gladwell. "The tipping point." Little Brown, New York (2000).
