1. An interactive toy that performs a method for interacting with a user, the method comprising: activating a phrase-detection state in which said toy is configured to receive a first plurality of audible sounds corresponding to text read aloud from a book; analyzing the first plurality of audible sounds to detect one or more triggering phrases; detecting a triggering phrase was read aloud by the user reading the book; upon detecting the triggering phrase, activating a term-detection state in which said toy is configured to receive a second plurality of audible sounds corresponding to text read aloud from the book; analyzing the second plurality of audible sounds to detect one or more triggering terms; detecting a triggering term was read aloud by the user reading the book; and upon detecting the triggering term, activating a response sequence that supplements a story told in the book.