marketing Archives - BehavioralEconomics.com | The BE Hub https://www.behavioraleconomics.com/tag/marketing/ Home of the Behavioral Economics Guide and the Behavioral Economics Academy. A behavioral science hub hosting information, discussions and resources. Sun, 23 Jun 2024 13:01:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 179258705 Pricing Strategy: How Our Brains Keep Us Stuck https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/ https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/#respond Mon, 04 Dec 2023 06:02:32 +0000 https://www.behavioraleconomics.com/?p=10768 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?

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]]> https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/feed/ 0 10768 How the Science of Storytelling Can Drive Behavior https://www.behavioraleconomics.com/how-the-science-of-storytelling-can-drive-behavior/ https://www.behavioraleconomics.com/how-the-science-of-storytelling-can-drive-behavior/#comments Wed, 10 May 2023 05:19:07 +0000 https://www.behavioraleconomics.com/?p=10448 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.

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]]> https://www.behavioraleconomics.com/how-the-science-of-storytelling-can-drive-behavior/feed/ 4 10448 How to Position Your Brand: The Behavioral Science Behind Relative Differentiation https://www.behavioraleconomics.com/how-to-position-your-brand-the-behavioral-science-behind-relative-differentiation/ https://www.behavioraleconomics.com/how-to-position-your-brand-the-behavioral-science-behind-relative-differentiation/#comments Mon, 13 Mar 2023 06:58:47 +0000 https://www.behavioraleconomics.com/?p=10359 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.

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]]> https://www.behavioraleconomics.com/how-to-position-your-brand-the-behavioral-science-behind-relative-differentiation/feed/ 12 10359 More Conversions With Social Media Targeting: Lessons From Behavioral Biology https://www.behavioraleconomics.com/more-conversions-with-social-media-targeting-lessons-from-behavioral-biology/ https://www.behavioraleconomics.com/more-conversions-with-social-media-targeting-lessons-from-behavioral-biology/#comments Mon, 24 Oct 2022 04:56:14 +0000 https://www.behavioraleconomics.com/?p=10018 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.

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]]> https://www.behavioraleconomics.com/more-conversions-with-social-media-targeting-lessons-from-behavioral-biology/feed/ 1 10018 Empathizing With Future Selves https://www.behavioraleconomics.com/empathizing-with-future-selves/ https://www.behavioraleconomics.com/empathizing-with-future-selves/#comments Mon, 19 Sep 2022 06:00:18 +0000 https://www.behavioraleconomics.com/?p=9966 We’re generally poor at predicting how events will impact future states of happiness. And yet, if we’re going to make good decisions in the present, we need to empathize with our future selves at some level. How can we reconcile this? The answer may lie with art, visualization, and social cognition.

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]]> https://www.behavioraleconomics.com/empathizing-with-future-selves/feed/ 2 9966 Behavioral Segmentation in Marketing: How to Increase Conversions https://www.behavioraleconomics.com/behavioral-segmentation-in-marketing-how-to-increase-conversions/ https://www.behavioraleconomics.com/behavioral-segmentation-in-marketing-how-to-increase-conversions/#comments Mon, 04 Jul 2022 09:44:01 +0000 https://www.behavioraleconomics.com/?p=9766 Market segmentation is a valuable strategic tool in marketing. How to properly do segmentation is, however, not widely known. In this article, I lay out the principles of segmentation and provide a step-by-step guide.

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]]> https://www.behavioraleconomics.com/behavioral-segmentation-in-marketing-how-to-increase-conversions/feed/ 2 9766 The Behavioral Economics of Price-Setting https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/ https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/#respond Tue, 07 Dec 2021 06:24:39 +0000 https://www.behavioraleconomics.com/?p=9005 Prospect theory proposes that when making decisions people use a reference point to frame prospective alternative outcomes as either potential gains or losses; when considering prospective gains, they are risk-averse and prefer certainty, but when considering prospective losses, they are risk-prone and prefer to risk the possibility of larger but uncertain losses. However, when setting prices people make decisions that contradict prospect theory: they are risk prone when cutting prices with the prospect of revenue gains, and risk averse when raising prices that they associate with perceived revenue losses.

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]]> https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/feed/ 0 9005 Is It Loyalty or Habit? https://www.behavioraleconomics.com/is-it-loyalty-or-habit/ https://www.behavioraleconomics.com/is-it-loyalty-or-habit/#comments Tue, 18 May 2021 11:20:46 +0000 https://www.behavioraleconomics.com/?p=8474 Marketing theories on loyalty mostly dismiss the idea that consumer's repeated usage of the brand may be a result of a habit, rather than any emotional commitment to the brand. As a result, loyalty marketing often misses one vital component of generating customer stickiness - trying to convert brand choice into a habit. Neuro-imaging suggests that as actions are repeated, the activity in areas of brain involved in decision making actually decreases. This calls for an additional perspective of looking at loyalty as creating a habit loop. It may not involve significant additional resources, but can substantially enhance the effectiveness of the loyalty programs or marketing.

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]]> https://www.behavioraleconomics.com/is-it-loyalty-or-habit/feed/ 4 8474 When Red Means “Go”: Color and Cultural Reactance in Risk Preferences https://www.behavioraleconomics.com/when-red-means-go/ https://www.behavioraleconomics.com/when-red-means-go/#comments Tue, 06 Apr 2021 10:07:03 +0000 https://www.behavioraleconomics.com/?p=8213 Color can affect judgment and decision making, and its effects may vary across cultures. Research reported in this article shows that cross-cultural color effects on risk preferences are influenced by personal associations of color-gain/loss. Our research finds a cultural reactance effect, a phenomenon in which people who hold culturally incongruent (vs. cultural mainstream) color associations show a stronger risk preference.

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]]> https://www.behavioraleconomics.com/when-red-means-go/feed/ 1 8213 Black Magic: How Product Colors Influence Prosocial Behaviors https://www.behavioraleconomics.com/black-magic-how-product-colors-influence-prosocial-behaviors/ https://www.behavioraleconomics.com/black-magic-how-product-colors-influence-prosocial-behaviors/#comments Tue, 05 Jan 2021 08:13:31 +0000 https://www.behavioraleconomics.com/?p=7746 There are “moral meanings” that people ascribe to objects in white and black colors. We show that consumers see buying a product in white color as an act that is morally good and buying a product in black color as an act that is morally bad. Those who buy white-colored products feel licensed to behave less prosocially afterward, while those who buy black-colored products are more prosocial as they feel a need to compensate for their initial misconduct.

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