.

.

Empower Your Instinct

Psychology Insight for Marketers

   
ProductPricing

 

3 Ways to Optimize Product Pricing with Psychology

 

Have you ever wondered how companies and retailers set their prices? If you’ve ever taken an economics class, your go-to answer is probably something about supply-and-demand, right? While these laws certainly have a large influence over pricing, another realm of study does as well: psychology. In this blog post, I'll introduce how to optimize product pricing with Psychology with three case studies.   

more

Posted by Madeline Ford on Jun 25, 2013

Consumer Behavior product pricing product-market fit products Customer Segmentation Psychology and Marketing Purchasing Behavior

14798617_s-resized-600

Psychology of Impulse Buying


We’ve all been victims of impulsive buying. Maybe you went shopping with a friend, swearing you weren’t going to spend any money and then *poof* you own a new shirt. Or maybe a new kitchen appliance caught your eye and you had to have it. Or maybe you had actually planned on going shopping, for, let’s say, groceries, and you end up buying a few items that weren’t on your list. Whatever the context may have been or what degree of planning you might have done prior to shopping, if you have ever bought something you did not plan on ahead of time (whether or not you can justify the purchase after the fact), you have participated in the culture of impulse buying. There are countless factors that influence an individual’s rash decision to buy impulsively and much research has been done to better understand this behavior. Furthermore, marketers often use this knowledge to promote impulse buying in the hopes of increasing their bottom line. But while impulse buying does indeed mean more product bought, it can also lead consumers to harbor negative post-shopping feelings about the producer and retailer (Zhang and Wang 2010).

more

Posted by Madeline Ford on Jun 20, 2013

Consumer Behavior product-market fit products Distribution Channels Customer Segmentation Buying Behavior Psychology and Marketing Purchasing Behavior

Segmentation

Segmentation: 5 Blog Posts You May Have Missed

We know you’re busy and we want to make your life a little bit easier by launching our weekly list of posts you may have missed. This list will include our favorite links from lesser known blogs that contributed valuable content or insight, based on a specific topic related to psychology, brand personality, and consumer behavior. Here you will find content covering market, customer and email segmentation.

more

Posted by Angela Bray on Apr 4, 2013

segmentation Customer Segmentation Psychology and Marketing

BrandAffinity

Strengthening Brand Affinity: 5 Blog Posts You May Have Missed

We know you’re busy and we want to make your life a little bit easier by launching our weekly list of posts you may have missed. This list will include our favorite links from lesser known blogs that contributed valuable content or insight, based on a specific topic related to psychology, brand personality, and consumer behavior.

more

Posted by Angela Bray on Feb 20, 2013

Consumer Behavior Customer Segmentation Brand Personality

Focus_Groups

 

Focus Groups: Why People Behave Differently When They Are Being Watched

Imagine you have been tasked with increasing revenue for an “honor system” coffee donation in your office. A collection box has been placed next to the shiny new caffeine machine and everyone is told to donate at least 50 cents whenever they help themselves, and more if they feel inclined. While this may seem impossible (who’s going to pay more if they don’t have to?!) there’s a tried and true way of ensuring consistent payment without hiring a barista: stick subtle eyespots (images of eyes, or eye shaped designs) on the machine. In an elegant study by Bateson et. al. 2006, this potentially silly-sounding method led people to donate three times more to the pot than their coworkers who were exposed to a coffee machine without the eyespots. This study fits into a growing body of research trying to unravel exactly what effects implicit cues have on behavior. An implicit cue is simply something we are not aware of which can then have an effect on behavior (the output). For instance, the eyespots in the above example were an implicit cue which made the subjects feel as though they were being watched, thereby altering their behavior, leading them to act in a more altruistic manner. When marketing research firms conduct focus groups, dozens of implicit cues (for example. the neighborhood the site is in, the furniture in the room, how the other participants are dressed, etc.) may affect people’s behavior and responses. While many of these can be controlled, research suggests that the “feeling of being watched” can have far-reaching effects that bias the results of the focus group.

more

Posted by Madeline Ford on Feb 19, 2013

Consumer Behavior Customer Segmentation Nonconscious Motivations Research Traits and Scales Psychology and Marketing Motivation Surveys Research Methods

Email

Follow Us