Marketing Decoded — Marketing Psycho

In the book “Decoded. The Science Behind Why We Buy” by Phil Barden the author analyzes models of consumer behavior from a scientific point of view. The author talks about how people make decisions and what is behind their choice of a brand and also shows how you can use this scientific knowledge in your marketing activities.

There are different ways to increase the value:

  • Price can increase subjective value. There is an unspoken rule: the higher the quality, the higher the price.
  • The use of verbal techniques. It is important to make a distinction when describing the benefits of purchasing a product or avoiding losses.
  • Reducing the perceived price. Studies show that if you use promo signals on the price tag, even the increased price will be perceived by buyers as reduced. “Anchoring” — the price of the product is compared with other prices. The first price was an anchor, and the second was estimated in comparison with it.

3 principles of creating convincing interfaces for decision making:

  • Tangibility: no signal no action. According to the research results, the more often a person touches the product, the higher the probability of buying.
  • Immediacy: I want it right now. The shorter the distance to the object, the higher the subjective value and fewer apparent barriers to possession.
  • Confidence is the ratio of the expected probability of success to the possible risk. In other words, it is a probability to get what you want and/or avoid costs.

Marketing and sales professional with over 10years experience in b2b industry of power electronics and power semiconductors.