Pricing strategy is a funny area of business that everyone seems to hate. What role does the brain play in this, and how can you leverage behavioral economics to overcome your brain’s natural tendencies?
Some apps or websites are beautiful, stylish, and well thought out in terms of UX, but have one problem: they are boring. These products can trigger both desire and resistance in the user at the same time. Here are a few tricks that will help solve this problem not from a rational, but from an emotional side.
Research suggests that human beings have a natural tendency towards seeing deeper meaning in ordinary things. We don’t just appreciate an object’s physical features, we also perceive its deeper, hidden meaning; its soul. This is especially true when it comes to products. The perceived "soul" of a product deeply impacts how a consumer values it. Marketers can directly craft the deeper meaning of their products through clever storytelling.
The debate between differentiation and distinctiveness in brand positioning is a false dichotomy. While distinctiveness is more important for a brand, differentiation can also be used to your advantage. Understanding your brand positioning relative to competitors is a valuable strategic tool that can help your brand consistency in your tactical efforts. In this article, I discuss how you can build and measure the values that differentiate your brand.
Hope is a positive emotion. It helps people to get through hard times. But hope can have a flip side: it keeps people from walking away from bad situations when they should. When it's time to sell losing stocks, as explained in this article, the hope to break even might make investors end up in a worse financial situation.
Successful innovation requires far more than a market gap, a visionary, funding, and new technology. Innovation is a behavioral process from start to finish. It relies on the decision-making processes and behaviors of both producers and consumers, as well as the surrounding support system. Behavioral science, the science of how we make decisions, has invaluable practical insights for innovation on all fronts.
Meat and dairy production causes considerable environmental damage, which most consumers are unaware of. Is the answer to this eco-labeling, where consumers are provided with a sustainability rating on product packing? Would consumers welcome this information, and would it promote consumers to make sustainable choices?
Many behavioral interventions offer win-wins to firms, governments, and other stakeholders. However, research has shown that experts do a poor job predicting the effectiveness of behavioral interventions. This article aims to help calibrate forecasts of an intervention's effectiveness. I outline six steps to help assess whether a published effect is likely to be useful in practice.
Targeting the right customers with the right message is one of the most established strategic goals in marketing. However, traditional approaches to targeting can often end up being ineffective and sometimes even harmful to brands. In this article, we discuss a framework for social media targeting based on insights from behavioral biology.
More and more people struggle with debt, and while people differ in their motivations, preferences, and their reasons not to pay, debt collection practices rarely take these factors into account. Using psychological insights, debt collection can be made more debtor-friendly and effective. The results: increased repayments for companies and a lower financial burden for consumers.
