Why do we value authenticity?

George NewmanYale University

What explains this phenomenon?

What explains this phenomenon?

• When you ask people, they give highly circular responses

What explains this phenomenon?

• When you ask people, they give highly circular responses

• Authentic in relation to some characteristic or standard

• Authenticity depends on who is evaluating it, and how they define it

What explains this phenomenon?

• When you ask people, they give highly circular responses

• Authentic in relation to some characteristic or standard

• Authenticity depends on who is evaluating it, and how they define it

• Used to describe a vast array of goods and experiences (e.g. authentic Mexican food, moon rock, diamond, Rolex, Vermeer, etc.)

What explains this phenomenon?

• When you ask people, they give highly circular responses

• Authentic in relation to some characteristic or standard

• Authenticity depends on who is evaluating it, and how they define it

• Used to describe a vast array of goods and experiences (e.g. authentic Mexican food, moon rock, diamond, Rolex, Vermeer, etc.)

• Can anything systematic be said?

“Scholars should abandon the concept and the term because there is no common ground as to their existence, meaning, or

importance”

(Reisinger and Steiner, 2006)

The Current Approach

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

• Confounded with lots of other attributes: deception, quality, market value, etc.

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

• Confounded with lots of other attributes: deception, quality, market value, etc.

• Instead, focus on objects that are all in some way “genuine,” but look for systematic differences

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

• Confounded with lots of other attributes: deception, quality, market value, etc.

• Instead, focus on objects that are all in some way “genuine,” but look for systematic differences

The Current Approach• Authenticity is usually discussed as the difference

between real vs. fake

• Confounded with lots of other attributes: deception, quality, market value, etc.

• Instead, focus on objects that are all in some way “genuine,” but look for systematic differences

$340 $135

Symbolic Proximity

Symbolic Proximity•We value certain entities (movie stars, favorite bands,

luxury brands, etc).

Symbolic Proximity•We value certain entities (movie stars, favorite bands,

luxury brands, etc).

• Authentic objects: we want to be close to the ‘essence’ of those entities

Symbolic Proximity•We value certain entities (movie stars, favorite bands,

luxury brands, etc).

• Authentic objects: we want to be close to the ‘essence’ of those entities

• Can be reflected in spatial proximity - wanting to own objects that have come into direct physical contact with those entities (contagion)

Symbolic Proximity•We value certain entities (movie stars, favorite bands,

luxury brands, etc).

• Authentic objects: we want to be close to the ‘essence’ of those entities

• Can be reflected in spatial proximity - wanting to own objects that have come into direct physical contact with those entities (contagion)

• Can be reflected in temporal proximity

Sotheby’s1996

Julien’s Auctions 2005

• 1,983 items (antiques, art, clothing, decorations, furniture, jewelry, etc.)

Sotheby’s1996

Julien’s Auctions 2005

• 1,983 items (antiques, art, clothing, decorations, furniture, jewelry, etc.)

• Pre-auction estimates & final sale values

Sotheby’s1996

Julien’s Auctions 2005

• 1,983 items (antiques, art, clothing, decorations, furniture, jewelry, etc.)

• Pre-auction estimates & final sale values

• 3 blind coders: How much contact did the person have with the item? (1 = None, 9 = A lot ; α = .81)

Sotheby’s1996

Julien’s Auctions 2005

Paired analysisItem Pairs

Paired analysisItem Pairs

Paired analysisItem Pairs

Paired analysisItem Pairs

Paired analysis

8

9

10

High Contact Low Contact

Log

Sale

Val

ue

Item Pairs

5!

6!

7!

8!

9!

10!

11!

12!

1! 2! 3! 4! 5! 6! 7! 8!

Am

ount

sol

d fo

r at

auc

tion

(log-

tran

sfor

med

)!

Ratings of Physical Contact!

β =.28, p <.001

β =.19, p <.001

U.S. Marshall’s Service, 2010

5!

6!

7!

8!

9!

10!

11!

12!

1! 2! 3! 4! 5! 6! 7! 8!

Am

ount

sol

d fo

r at

auc

tion

(log-

tran

sfor

med

)!

Ratings of Physical Contact!

r =.28, p <.001

r =.19, p =.001

r = -.10, p =.057

Does a similar process hold for brands?

$340 $135

Made in USAMade in France

What is driving this difference?

$340 $135

Made in USAMade in France

What is driving this difference?

Contagion: Items from the original factory are thought to possess the essence of the brand

$340 $135

Made in USAMade in France

Built in 1945, the Depot Street building is the workplace of almost 400 associates. Each pair of shoes they produce is a proud work of craftsmanship that carries a little bit of the long history that is the town and its people.

Activating Contagion

The salience of the contagion concept can be manipulated (Mishra, JCR, 2009; Newman et al., JCR, 2011)

Activating Contagion

The salience of the contagion concept can be manipulated (Mishra, JCR, 2009; Newman et al., JCR, 2011)

Prediction: Activating contagion should increase valuation for the original factory item

Activating Contagion

MethodPhase 1: Priming

Contagious Vignettes

Not-Contagious Vignettes

Phase 2: Product Evaluations

MethodPhase 1: Priming

Contagious Vignettes

Not-Contagious Vignettes

Phase 2: Product Evaluations

Original factoryParis, France

Newer factorySan Dimas, CA

Identical products, same company, same retail price

MethodPhase 1: Priming

Contagious Vignettes

Not-Contagious Vignettes

Phase 2: Product Evaluations

Original factoryParis, France

Newer factorySan Dimas, CA

Identical products, same company, same retail price

DVs: Authenticity, Valuation

Enhancement of Authenticity

PrimePrime

Not-Contagious Contagious0

0.6

1.2

1.8

Pref

eren

ce fo

r O

rigi

nal L

ocat

ion

Enhancement of Authenticity

PrimePrime

Not-Contagious Contagious0

0.6

1.2

1.8

Pref

eren

ce fo

r O

rigi

nal L

ocat

ion

Enhancement of Authenticity

PrimePrime

Not-Contagious Contagious0

0.6

1.2

1.8

Pref

eren

ce fo

r O

rigi

nal L

ocat

ion

Enhancement of Authenticity

PrimePrimeNot-Contagious Contagious

Enhancement in Value

PrimePrime

Earlier Numbered Items

No. 23: $13,750

Earlier Numbered Items

No. 23: $13,750 No. 5: $30,000

Earlier Numbered Items

No. 23: $13,750 No. 5: $30,000

Earlier Numbered Items

No. 1: $35,000

People value earlier numbered items because they seem closer to the origin

The origin

1 2 3 4 5

Sense of distance increases

Being close to the origin imbues early numbered items with more of the Beatles’ essence

Ntotal Meanprice Medianprice SEprice UKpressing USpressing βnumber

Serial Number

1-99 28 $4,459.80 $3,403.00 789.14 16 4 -.51***

100-999 79 $1,004.20 $750.00 118.15 32 14 -.56*

1000-9999 336 $360.19 $236.96 21.47 149 37 -.25**

10000-99999 1581 $153.98 $106.27 3.95 818 100 -.16***

100000-999999 4418 $72.46 $46.79 1.31 1580 448 -.17***

1000000+ 1466 $27.23 $16.51 1.00 36 996 -.08

The effect persists

Summary

Across a range of items (celebrity memorabilia,

luxury goods, limited editions), valuation driven by a desire to be close to the essence

Summary

Across a range of items (celebrity memorabilia,

luxury goods, limited editions), valuation driven by a desire to be close to the essence

Appears to rely on a common mechanism of contagion that helps explain why we value authentic objects

Summary

Thanks!