Posts tagged Consumer Behavior

5 Traits that make people ‘cool’

Consumer Behavior November 5, 2019

Cool people.

Huh?

What does that even mean?

Have you ever met someone, who without even opening his mouth to speak seems ‘cool’ to you.
It’s a big party. People are trying to socialize. Some work to impress others. Others seem like they don’t belong.

Yet, that there is this one person who seems, without interacting much, ‘cool’.

How does he do that?

It wouldn’t be long before you see him interacting with others. He is comfortable in his own skin. Whether he is speaking to others or not, it doesn’t matter. He is ‘cool’ right there, where he is.

Learn how modeling can influence behavior

Cognitive Bias Consumer Behavior November 2, 2019 1 Comment

One of the key principles of persuasion is being liked. If people like you, they would be more likely to be influenced by your behavior. If they like anyone, they would be influenced by what they do.

Robert Cialdini had a whole section in his book, Influence just about liking.

… which brings me to talk about ‘modeling’ as a tool to influence behavior.

To persuade, ask, don’t tell

Cognitive Bias Consumer Behavior Sales skills October 25, 2019

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To persuade” could be one of the hardest things you can come across. I have been there. Multiple times. Every single day if you ask me.

Having a sound and logical arguments may work with some people, especially engineers and programmers, but at the end of the day, we are human. Humans are emotional, and whether you can do a good job hiding it or not, your emotions have an unneglectable impact on your decisions.

I have mentioned before the “endowment effect”. It’s such a powerful cognitive bias, and because it’s so powerful, you can use it in multiple ways.

The endowment effect basically says,
“We place greater value on items because we own them.” – Adam Ferrier, The Advertising Effect: How to Change Behaviour

Previously, I have demonstrated how you can use the best of the endowment effect before consumers buy your product so that they feel they own it, value it even more, then take out their credit cards.

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But…

What if all you want is to persuade someone to buy into your idea?

Are you an impulsive shopper? Wash your hands

Cognitive Bias Consumer Behavior Spending money October 22, 2019

Do you know an impulsive shopper? Ask them to wash their hands

Anyone one of us could be an impulsive shopper.

You could be having a bad day. Then find yourself at the mall, doing some retail therapy, and buying tons of things you don’t need. Perhaps even buy one item; however, that one item is so damn expensive.

You are always one moment away from making yet another impulsive shopper decision.
One of the key factors that influences you, as a consumer, to buy is the endowment effect.

The endowment effect basically says, “We place greater value on items because we own them.”
Adam Ferrier, The Advertising Effect: How to Change Behaviour

3 Amazing pricing psychology tips to try right now

Consumer Behavior Product Pricing October 18, 2019

If you are starting a new business or introducing a new product into the market, pricing is a topic that is always on top of mind.

You think, “How to price my product?”

In theory, the pricing formula should be straight forward (see below).

Material cost + Labor cost + Overhead cost = Total cost
Total cost + X% of Desired profit = Product cost

Assuming you zeroed on your product price, there are a few pricing psychology principles that you could embed in your pricing strategy.

So, let me ask you a question,

Have you thought about how pricing psychology can influence your consumers’ buying behavior?

What the IKEA effect can teach us about employee engagement

Cognitive Bias Consumer Behavior October 14, 2019 2 Comments

The IKEA effect?

What is that all about?

In some countries, or particularly in the west, IKEA is known as one of the cheapest options to buy furniture. This is not the case in the Middle East though.

And even though it’s known as one of the cheapest places to buy furniture, once you actually buy that piece of furniture, it’s very hard to let go of it.

It’s very hard to let go. You want to take it with you whenever and wherever you move. From one apartment to the next, you pack it and unpack it.

You do that because you have fallen for that IKEA piece of furniture. You have fallen for it even if it was so simple, even if it was so basic, even if all your friends have the same exact one, but perhaps in a different color.

You have fallen for it because IKEA made the best of what is called the “endowment effect”.

Discover how color psychology can increase your conversions

Consumer Behavior Consumer Marketing Product design October 11, 2019

Know your customer.

In different terms, when it comes to product design or marketing, one key element to your success is knowing your customer.

Some call it in the broader level of a customer segment, where basically you know specific statistics about your customer, such as age, demographics, etc.

Those who take a deeper look to empathize with their customers create personas or avatars. A customer avatar is an imaginary representation of your target customer in a specific segment. The avatar or the persona is Amy who in her mid-20s and loves to go swimming every day after work. She is self-aware and motivated to remain healthy because her Grandma died from such and such disease.

Knowing your customers can help you in so many decisions, from what to say and what not to say, what language to use, where to find them and how to trigger them.

One of those decisions is color.

Here’s the secret to behavioral change

Consumer Behavior Product design Service design October 1, 2019 1 Comment

If you are creating a product that isn’t a necessity, you are competing on time. With so many distractions, simply, there isn’t enough time to do all the things we want to do.

You are competing to convert customers from what they do now to what you want them to do.

You are competing to convince them to go to Zumba classes instead of the gym. You are competing to influence them to eat gluten-free lactose-free sugar-free muffin instead of the muffin we grew up knowing. You are competing to persuade them to use Uber instead of the taxi. You are competing to have them book airbnb instead of a hotel. You are competing to make them view Instagram stories instead of Snapchat.

But, hey, how can you do that?

Amazing negotiation and persuasion tricks to try right now

Book Reviews Consumer Behavior Sales skills Self development September 20, 2019 3 Comments

One of the top needed skills for the job market in 2019 is negotiation skills, persuasion, and influence.

LinkedIn: The Most In-Demand Hard and Soft Skills of 2019

Forbes: The Skills You Need To Succeed In 2020

… and what a better way to tackle this, than making the best of my favorite subject of consumer behavior?
Consumer behavior is the study of how consumers search for, choose, buy, and use your products or services.

Consumers are people. Whether you influence them to buy your products or services or influence them to buy into your ideas, you can more or less follow the same concepts.

Persuasion and influence could be one of the hardest tasks anyone can be assigned to. Some people are skilled, while others are left dazzled, not sure what could be the next step they can take to improve in that area.

I know. I know because I bet you are a bit like me and face this situation every single day — at work or in social settings. After all, I am a nerd, and well, I did study software engineering. This is quite far from negotiation skills if you ask me.

Read: Learn how consulting changed my life

The good news is negotiation skills, persuasion and influence can be taught. Yes. Some people think that only the born talented are the ones who can exceed in that area, but I beg to differ.

Clever consumer behavior tricks to build trust and close a sale

Consumer Behavior Sales skills Spending money September 16, 2019 1 Comment

Before a consumer grabs her wallet to pull out her credit card, she needs to trust you. She thinks…

Are you credible? Will I regret this?

There are multiple ways to build trust, and showcase your credibility. Today, I will be discussing two techniques, powered by consumer behavior studies.

So, how can you build trust?

Demonstrate that you can fulfill her need.