Why You Buy
Behavioral economics is a new science that sheds light on some of our most important decisions. It is the study of how and why people make money-related choices. Here are some of the things the studies have shown thus far: Decision Paralysis One study showed that customers spent more when given four samples of jam to taste than when they had twenty to choose from. Too many choices seemed to lead to an inability to decide. Limiting options may be a useful sales technique, according to this research finding. Sunk-Cost Fallacy People are more likely to attend an event if they paid for the ticket than if they got it free, even with the same information and interest. The money is spent, and logically has no relevance to the decision, but this phenomena of behavioral economics persists even when this is pointed out. Aren't most of us going to feel worse throwing away a ticket we paid for? The applications are obvious, if you look. Perhaps, for example, rather than giving away tickets to "get rich" seminars, the organisers would get better attendance by selling their "$100" tickets for $3. Just having paid something makes people more likely to attend. Confirmation Bias We tend to act economically in a way that confirms our current beliefs. When negotiating to buy the exact same model of Mecedes, for example, current owners, who presumably already believe in the value of a Mercedes, pay $7,000 more, on average, than new Mercedes customers. I'm sure you can imagine the value of this knowledge to companies that sell high-priced items. Extremeness Aversion People seem to instinctively avoid extremes, according to the research. Given a choice of televisions costing $300, $500, and $700, for example, not many buy the $700 one. Add a $1200 television to the choices, however, and more will then buy the $700 one, because it is no longer the most expensive one. In the information coming from these studies, you'll find much to help your sales and marketing efforts right now. You can also learn enough to protect yourself as a consumer. For more on behavioral economics, watch for "Why You Buy, Part Two." Steve Gillman has been studying every aspect of money for thirty years. You can find more interesting and useful information on his website; http://www.unusualwaystomakemoney.com
Related News
|
 |
|
|
RELATED ARTICLES
Database Marketing: Secrets To Skyrocket Your Online Profits Using Database Marketing
What is database marketing?
How to Profit from Your Expertise (Part 1 of 2)
Are you looking for a natural way to market your professional services? What if you could exponentially multiply the number of motivated, pre-qualified prospects you reach in a fraction of the time that networking and referrals require?
Getting Paid to Promote Yourself
We all know we can pay a magazine or a newspaper to run ads for us. Businesses do
it all the time. In many cases, you're obliged to advertise to survive. But wouldn't
you rather promote yourself and your company in a number of publications, and get
paid for it?
Online Mentorship Programs: Cash in on Your Expertise
Whether you're a former retail store owner known for your
creativity, a championship bridge player, or a
psychotherapist with a long current waiting list for
openings, if you possess expertise that makes colleagues
and aficionados want your pearls of wisdom, you can create
a new income stream with an online mentorship program.
Blowing Your Own Horn
Opportunity Assistance Business Resource Center
http://www.opportunityassistance.com
SMS for the Estate Agent - Targeted Marketing Tool, or Legal Minefield?
Imagine having at your disposal a means to immediately inform house buyers that you have just the property they are looking for. Potential buyers have given their details and their preferences - imagine that you can send them this information no matter where they are or what they are doing, they can read it at a time that's convenient and can act accordingly in their own time. Imagine that you can do this quickly and easily, in a matter of minutes, regardless of the number of recipients.
Marketing Strategy and Template for Independent Professionals
Having a marketing strategy and marketing approach is very important. Thus, instead of recreating the wheel, here is a short, sweet, easy-to-understand marketing strategy template to help you place your ducks are in a row in designing your marketing strategy.
Are You Overlooking Your Hidden Profit Centers?
There are other names given to "Back-End Selling". You may think of it as follow through, or maybe VALUE added. Both are good terms. Let's take a quick look and see just how you can profit from this idea.
Top 5 Tips For Media Selection
Marketers have a wide variety of media at their disposal. Most of us think first of the advertising troika of newspapers, magazines and TV. But there are a number of other options depending upon what you are trying to accomplish.
Your Marketing ? From The Couch To The Cash Register
When you put time or money into any marketing plan, your only
objective is to MAKE A SALE. Are you sure your marketing is going to
get your customer from their couch to your cash register?
Five Deadly Small Business Marketing Mistakes
Here are some marketing mistakes that take a heavy toll on small
businesses. They have been very harmful to businesses at any stage, but especially harmful for new businesses.
Understanding Survey Software Features
If you take a look at the features that different survey softwares offer, you will quickly realize that understanding all of them is no mean task. But it is very important that you do because only then you can choose the right survey software. It is important for one other reason, it determines your price. More features invariably means more dollars. So if you don't choose the right survey software, you might end up paying more for features you don't need.
Marketing on the Cheap: Write? Right!!
We all know the value of writing articles for promoting your website or online store. However, writing articles to promote your old-fashioned, traditional brick and mortar business has been around forever.
Marketing Hat for Graphic Designers or Wannabe?s
Many people think that the quality of any graphic design is determined by how aesthetically pleasing it is: Although making the card look good is important, this couldn't be further from the truth. The only true measure of any design, at least commercially, is "How well does it pull?". By pull we mean what type of response does it elicit? Does it pull in calls, or pull people into the store? In essence, does the design accomplish what it set out to do?
Assumption Based Marketing Vs. Fact Based Marketing
One of the most common mistakes in marketing is making decisions based on assumptions rather than fact. You think of an idea for a marketing piece and believe that it is a great idea.
Guide to a Profitable Marketing Mix
You may have heard the term Marketing Mix used in connection with marketing planning.
5 Ways To Entice Your Parallel Market to Trade Links
Lots of people get confounded when attempting to exchange links, you're not alone. The people who have the spot you want are competitors. The people who don't aren't worth exchanging links with. What to do?
The Dare-To-Be-Different In Marketing Checklist
There is a big payoff in being different. When you accept "what is" you place yourself in the category of "sameness," and people don't buy sameness. Why should they? They can do sameness themselves. If your prospects aren't seeing the value you offer, you may be coming across as the same and not daring to be different.
Loan Officer Marketing ? How Branding Shapes Your Prospects Perceptions
Social scientists have proven that people experience what they come to expect. It's like the first time you watched your favorite movie. Before you saw it maybe you read a favorable movie critic's review, or a friend told you it was a great, or your favorite filmmaker directed the movie.
Promotional Bags: Your Company Details on Parade
The trick to a good promotion is to attach your company details to something useful. Now, there is "private useful" like the promotional toothbrush you use in the privacy of your own bathroom, and there is "public useful" that you use out there where everyone sees you inadvertently parading the promotion.
|
