...In the initial immersion week of classes, a Luke Froeb-led lecture and discussion touched on a project at work and changed his decision making process. When he returned to the office, he changed course on how he was putting a bid proposal together. The revised bid added $400,000 to the bottom line, far more than the investment Vulcan was making in his Executive MBA degree. ... After just one class, Vulcan’s MBA investment was in the black,” he recalls with a chuckle. (link)
Consumer testimonials that mention a number are one of the most effective forms of advertising for two reasons:
- People read the testimonial and think that they can do better than whoever gave the testimonial, a form of "availability bias";
- People do not understand that testimonials are drawn from a selected sample.
These ads are so powerful and effective that the FTC suggests a disclaimer to accompany them. So here it is:
“... testimonials are based on the experiences of a few people and you are not likely to have similar results."
I hope this disclaimer can undo the misperceptions may have been given to potential consumers of a Vanderbilt education.
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