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Conventional wisdom holds that the Internet makes the world flat and reduces friction by erasing the impact of the physical world on our buying habits.
But Wharton professor and marketing expert David R. Bell argues that the way we use the Internet is still largely shaped by the physical world we inhabit.
Anyone can go online and buy a pair of jeans—but the likelihood that we will do so depends to a significant degree on where we live. The presence of stores nearby, trendy and friendly neighbors, and local sales taxes, among other factors, play a critical role in our decision making when it comes to buying online. Our willingness to search for and consume information also depends on where we live and whom we live next to.
In Location Is (Still) Everything, Bell offers a fascinating, in-depth look at online commerce and retailing through his years of research, investing, and advising experience. His unique GRAVITY framework is a powerful and practical tool that uses fundamental human behaviors and location-based conditions to explain how the real and virtual worlds intersect — and what Internet sellers must do in order to succeed. Entrepreneurs, managers, students, and investors will all benefit from understanding how and why we use the Internet to search, shop, and sell.
- Sales Rank: #668453 in Books
- Published on: 2014-07-15
- Released on: 2014-07-15
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x .95" w x 6.00" l, 1.00 pounds
- Binding: Hardcover
- 240 pages
Review
“A powerful rejoinder to anyone who predicted the irrelevancy of the three most important factors in retail: location, location and location. It’s a must read for anyone who runs an Internet business.” —BRAD STONE, author of The Everything Store: Jeff Bezos and the Age of Amazon
“David Bell has written a playbook about how to win the internet. By illuminating the connections between our physical and virtual lives, he’s paved the way for smarter shopping, selling, sharing and living.” —NEIL BLUMENTHAL and DAVE GILBOA, co-CEOs and co-founders of Warby Parker
“Thoroughly researched and elegantly written, this book offers a provocative insight—our online behavior depends a lot on where we live and this relationship is quite stable and predictable. Anyone interested in understanding online behavior of consumers would benefit tremendously from reading this book.” —SUNIL GUPTA, the Edward W. Carter Professor of Business Administration at Harvard Business School
“The Internet has had a powerful impact on business. But the real world and the virtual one are more connected than you might think. Location Is (Still) Everything shows you what’s new, what’s the same, and what you should be doing about it.” —JONAH BERGER, author of Contagious: Why Things Catch On
“Wharton professor David Bell reveals how location still matters in surprising ways, even in the supposedly 'flat' world of e-commerce.” —INC.com
“Wharton marketing professor David Bell trots out a laundry list of convincing evidence that today, despite all the world-is-flat hype, where we live still dictates our buying patterns. It’s a welcome addition to a conversation that seems to ignore the fact that even in today’s hyper-connected age, only a projected 9% of retail transactions will happen online by the end of 2014, according to Forrester Research—and even those purchases are shaped by the physical world around them.” —Fortune.com
“The bursting of the Internet bubble in 2000 has often been blamed on what then Fed chairman Alan Greenspan described as 'irrational exuberance,' but that’s only one part of the story. In [Location is (Still) Everything], David R. Bell, the Xinmei Zhang and Yongge Dai Professor at the Wharton School of the University of Pennsylvania, suggests other reasons for the bust, reasons that should concern anyone with an interest in online commerce. The book doesn’t address the bubble directly, but it does deflate the idea that underpinned much of the exuberance in the second half of 1990s—that the Internet is always a flat, friction-less marketplace.” —Strategy + Business
About the Author
David R. Bell is the Xinmei Zhang and Yongge Dai Professor at the Wharton School of the University of Pennsylvania, where he studies how we use the Internet and related technologies to search, shop, and sell. David developed Wharton’s first course on digital marketing and e-commerce, and he is an active angel investor in, and adviser to, a variety of successful Internet startups. David is a New Zealand citizen and received his PhD from Stanford University’s Graduate School of Business. He divides his time between Philadelphia and San Francisco, and searches and shops online from both places.
Most helpful customer reviews
10 of 11 people found the following review helpful.
Great read for the curious business mind or the aspiring entrepreneur
By Steven Hong
I read a ton of business, economic, and psychology books. I’m a huge fan of Malcolm Gladwell, Clayton Christensen, and authors of that genre. I loved this book. In these days of e-commerce, we often discard location as ball and chain that we’ve been released from. But what this book reveals is how our physical location is still such a strong force in determining how we behave.
I don’t want to spoil this book for anyone, but David introduces this idea of homophily as part of his framework, GRAVITY, and brilliantly reveals how and why birds of a feather really do flock together.
I actually work for a hyperlocal digital advertising technology company that runs ad campaigns based on where people live and their proximity to retail stores. This book has provided incredible insights that both explained the phenomenon that we’ve seen and predicted others we haven’t.
I highly recommend this book for anyone that is either working in digital or starting up a tech venture. This will no doubt inform any strategy that you are considering that involves geographic expansion.
6 of 6 people found the following review helpful.
Does a good job "proving" what is already obvious
By Reid Wegner
Had high hopes for this one, but was quite let down. Every demonstration inside this book is completely intuitive and obvious. If you need a Wharton professor to explain to you that people's degree of offline access to goods effects their likelihood of buying online, or that people's buying behavior is influenced by the people around them, or that generating brand awareness through offline retail locations can drive online sales from people in those locations, etc, this book is for you. If "findings" like those sound like common sense, don't bother.
3 of 3 people found the following review helpful.
The power and perils of becoming actively engaged with the GRAVITY framework
By Robert Morris
Many years ago while completing several assignments for American Airlines, I had the opportunity to spend some time at its training center and was intrigued by the flight simulator. Of course, the design and capabilities must be based on the real-world experiences it replicates. I recalled that visit as I began to read this book.
According to David Bell, the relationships that exist between our physical-world locations and our virtual-world behaviors can be - and usually are -- robust. "They'll be pretty stable and quite predictable. Indeed, the very idea that your experiences in the physical world shape your behavior in the virtual world may seem rather obvious after you've seen the reasons why. (Good and lasting ideas always seem intuitive once you have the means to appreciate them.)" Quite true.
Bell suggests that gravitational pull is the reason he'd be better off taking the elevator in his apartment building rather than a "shortcut" to the street by jumping from the window. Yes, that is a simple example but its implications are anything but simple. The characters played by George Clooney and Sandra Bullock in the film Gravity can flow in space but not when approaching the space shuttle before the next flight. They and we live in two worlds: where we are located physically when purchasing a copy of Bell's book, and, where information as well as our thoughts and feelings about it exist. We have a physical location when using the Internet to complete the purchase but it makes no difference where and when we do so.
These are among the dozens of passages of greatest interest and value to me, also listed to suggest the scope of Bell's coverage:
o The Real World and the Virtual World (Pages 3-5)
o Adventures in the Real and Virtual World (9-13)
o GRAVITY: How the Real World Influences the Virtual One (16-17)
o The Force of Location On Offline Behavior (29-36)
o Real-World Frictions, and, More Frictions: The Tyranny of Geography (51-55)
o Gravity and "Cross-Border" Trade in Goods and Information (65-72)
o Communication Among Adjacent Individuals (75-83)
o Observation Among Adjacent Individuals (84-86)
o The Mechanics of Adjacency (86-91)
o Ties That Bind: Physical Distance, Social Distance, and the Spatial Long Tail (105-117)
o Drivers and Elements of Preference Isolation (132-143)
o People Populating the Real-World/Virtual World Landscape (154-161)
o Information the Real-World/Virtual World Landscape (167-176)
o Product in the Real-World/Virtual World Landscape (176-183)
o A Story of Friendship and Vision -- in the Real and virtual Worlds (187-195)
o Ahead to the Future (196-197)
Readers will greatly appreciate the skillful way that Bell reconnects the most important "dots" when explaining how and why location is (still) everything. He reviews the separate but interdependent components of the GRAVITY Framework: geography, resistance, adjacency, vicinity, isolation, and topography. He reiterates three key ideas:
1. "Always keep in mind that the benefits of shopping, selling, and searching online cannot be separated from the4 locations where customers in the real world."
2. "Your virtual-world business, whether selling goods, services, or information, must quickly create a [begin italics] sufficient density [end italics] -- often by connecting and aggregating individuals from disparate locations."
3. Finally, "Remember that the [begin italics] tactics and strategies [end italics] required for gaining followers, disseminating content, or selling products online need to be customized for different locations."
Those who read this book will be well-prepared to challenge all of their previous assumptions about what the success of their business initiatives require of them, especially now when the global marketplace changes faster and with greater frequency that at any prior time that I can recall. Better yet, David Bell will help them to formulate strategies and tactics as well as a game plan to achieve and then sustain an appropriate (that's a key word) balance of doing business in two worlds. The challenge is to use the GRAVITY framework to pull some customers to a physical location, pull others to a website, and pull still others to both. How? Read and then re-read this book.
See all 35 customer reviews...
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