A new report from McKinsey says that word of mouth is the "primary factor" behind between 20% and 50% of purchases. It also finds that recommendations from a "trusted source" like a friend or family member are 50 times more likely to persuade someone to buy a brand than a "low impact" recommendation. Advertising runs a distant second. "Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising in categories as diverse as skincare and mobile phones," the report claims. The study points to the emerging power of mobile …

Two members of Congress are urging the Food and Drug Administration to move quickly to limit the amount of salt in processed foods, calling the matter a "public health crisis" that demands a swift response from government. "I understand they want to do it in a phased kind of a deal, but I don't want it to be too long," says Sen. Tom Harkin (D-Iowa), chairman of the Health, Education, Labor and Pensions Committee. "This is crying out for change that's long overdue." Rep. Rosa DeLauro (D-Conn.) agrees. "I don't want this to take 10 years," she says. …

Whether consumers are pinching pennies or not, advertisers want them to loosen up a bit, Ken Bruno reports, with commercials that use humor, colorful images and upbeat language. BMW of North America, for example, has a new "Story of Joy" campaign with print ads featuring happy-looking adults, kids and dogs with headlines that lead off with "Joy is ..." Then there's Volkswagen's "Punch Dub," which invites the first person to spot a VW to poke a companion on the arm. Procter & Gamble's Old Spice ads feature Isaiah Mustafa as "the man your man could smell like" …

On the other hand (see above item), Jenn Abelson finds that Staples shoppers are trading up, at least in the writing instrument category. Rollerball pens are again in vogue after falling behind stick pens, "as penny-pinching gives way to, if not extravagance, at least a return to prerecession tastes," she writes. Lower sales and tough cost-cutting at Staples preceded the recession, Abelson writes, but now deliveries are being upgraded, and customers are splurging more on discretionary items. Computer sales increased by double digits in the fourth quarter, and the company's EasyTech business, which offers technology services, doubled compared …

Americans' new penchant for penny-pinching is forcing high-end retailers such as Whole Foods and Starbucks to change the way that they do business, Bruce Horovitz reports. Whole Foods now touts weekly sales, for example. And Starbucks, home to $4 specialty brews, now also offers a basic cup of joe for $1.50. But they're not alone in appealing to our parsimonious leanings. Renewals at warehouse club Costco are booming, Dannon is offering monthly sales on best-sellers, Denny's has rolled out a nationwide value menu and Morton's steakhouse offers three mini-burgers at its bar for $5. NPD Group …

"Cheap marketing stunts" such as moving the secret recipe and offering a 500-calorie sandwich that replaces bread with chicken breasts has generated a lot of ink and buzz for KFC, Emily Bryson York reports, but the sizzle hasn't translated into sales. Not only that, but the tomfoolery shows a lack of consistent brand positioning, she writes, which has contributed to a loss of six points in market share since 2005 to 30% in 2009. "They don't have a clear identity anymore, and I think that's hurt them," says branding consultant Denise Lee-Yohn. The NPD Group's Harry Balzer observes …