Archive | Neuroeconomics RSS feed for this section

Secrets of the Moneylab

Secrets of the Moneylab

Book Review: Secrets of the Moneylab: How Behavioral Economics Can Impact Your Business by Kay Yut Chen with Marina Krakovsky Economics can be dry stuff – remember “macro,” “micro,” and supply/demand curves? Fortunately, Secrets of the Moneylab is a lot more fun than Econ 101 because it focuses not on theory but on how people [...]

Continue Reading...

Scary Thought: A Treatment for Impulse Buying

Scary Thought: A Treatment for Impulse Buying

Here’s a thought that would terrify many marketers… what if consumers prone to impulsive behavior decided to take a pill to quiet those impulses? While clearly lack of impulse control is a serious issue for some individuals and can lead to extreme behavior, marketers of everything from checkout lane mints to Porsches depend to some [...]

Continue Reading...

Pricing Lessons from Restaurants

Pricing Lessons from Restaurants

My last Neuromarketing post, Neuro-Menus and Restaurant Psychology, talked about various things restaurant menu engineers do to maximize sales and profits. I think it’s worth calling special attention to one aspect touched on in that post: how price presentation affects sales. Not, the price itself, which of course is very important, but the way the [...]

Continue Reading...

Ants and Humans

Ants and Humans

If the late Nobel Laureate Herb Simon were still around, I’m sure he’d be fascinated by neuromarketing. He did a lot to explode myths of human behavior, notably that people always behave in a rational, utility-maximizing, manner. I never met Simon during my student years at Carnegie-Mellon (though I did serve on a committee with [...]

Continue Reading...

Brain Fight: Who’s the Decider?

Brain Fight: Who’s the Decider?

One of my favorite chapters in How We Decide by Jonah Lehrer is The Brain is an Argument. In this chapter, Lehrer highlights how complex our decision-making process really is, and how competing options battle for supremacy.

Continue Reading...

Banking Mess: Blame Our Brains

Banking Mess: Blame Our Brains

As the current financial chaos moves toward some kind of resolution, there will no doubt be plenty of Monday morning quarterbacking to explain what went wrong. One group that one wouldn’t expect to have explanations are neuroscientists. As it turns out, neuroscience researchers actually can shed some light on why things went so wrong. One [...]

Continue Reading...

Danger in Discounts

Danger in Discounts

I’m a sucker for discounts. Show me something that costs $50, tell me I can have it for $25, and my hand will be reaching for my wallet while my brain is still trying to figure out whether I need the item at any price. Most of us respond that way – our brains are [...]

Continue Reading...

Anchor Pricing Strategies

Anchor Pricing Strategies

Here’s a scenario… You decide to venture into a cell phone store despite your reluctance to deal with a bewildering number of phones, options, plans, along with a confusing price structure. As usual, you find you’ll have to wait a bit for a salesperson. The greeter hands you a card with a big “97″ printed [...]

Continue Reading...

The Power of FREE!

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 [...]

Continue Reading...

Bikinis, Babes, and Buying

Bikinis, Babes, and Buying

Scantily clad women have been used to sell products to men for decades, and likely for millennia in one form or another. There’s little doubt that the typical male brain is wired to respond to attractive females in revealing attire. But is this a cheap attention-getting trick that has no real impact on sales, or [...]

Continue Reading...