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What Pricing Strategy Beats Discounts?

If you want to sell more product by running a sale, which would make more sense: advertising “price cut 33%” or “50% more” product? Functionally, the two are the same level of discounting. Researchers at the University of Minnesota found, though, that a “50% bonus pack” sold 71% more than a “35% discount,” even though the latter is a slightly lower price per unit. […]

By |November 15th, 2012|

What’s the Magic Word for Ecommerce Sites?

Long before the Mad Men era, advertising experts knew that certain words get the attention of readers and spur them to action. One word has made just about every top ten list, and new research from Kantar Media shows this word remains as powerful in the online world as it was in print. The study surveyed at a large number of online shoppers (2500+) to determine what would motivate them to place an order.

Here’s the list of factors that motivated buyers: […]

By |March 6th, 2012|

Small Surprise, Big Mood Change

What does it take to make you happy? Not much. A classic study by psychologist Norbert Schwarz found that ten cents would do the trick. He and his cohorts repeatedly placed a dime near a copy […]

By |December 29th, 2010|

The Neuromarketing of Burgers

There’s hardly a shortage of places to buy hamburgers in the US, but the restaurant chain Five Guys has opened 300 stores in the last five years, and has contracts for many more. Locally, I’d been hearing about the fantastic hamburgers and fries at Five Guys for months, and finally ventured inside to see what has allowed the chain to grow in a seemingly saturated market. What I found were very good burgers and even better applied neuromarketing. In one short visit, I saw a variety of different techniques, most of which I’ve written about in past posts: […]

By |October 15th, 2009|

The Power of FREE!

A few days ago, I wrote about the power of the word “New” to get our attention – if there’s a more potent attractor out there, it’s almost certainly “FREE!” For years, advertising gurus have listed “free” on every compilation of powerful headline words. Now, research conducted by Dan Ariely (a Duke behavioral economist, previously at MIT) shows us that “free” is far more effective than “almost free.” Indeed, a preference for “free” seems to be another feature hardwired into our brains. […]

By |July 10th, 2008|