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; receiving, through a microphone embedded in the toy, the first plurality of audible sounds; processing a signal associated with the first plurality of audible sounds to detect one or more triggering phrases, wherein the one or more triggering phrases are a combination of words corresponding to text from the book; detecting a triggering phrase was read aloud by the user reading the book; upon detecting the triggering phrase, switching to a term-detection state in which said toy is configured to receive a second plurality of audible sounds; receiving, through the microphone, the second plurality of audible sounds; processing a signal associated with the second plurality of audible sounds to detect one or more single triggering terms, wherein the one or more single triggering terms are predetermined words or commands; detecting the one or more single triggering terms spoken by the user; and upon detecting the triggering term, activating a response sequence that supplements a story told in the book, wherein the response sequence is determined from a pre-programmed response program.