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I spend 18 hours each week turning marketing psychology into readable newsletters.
The Contrast Effect Read online Rosser Reeves, an American ad executive from the 1950s, was eating lunch in Central Park. He and his colleague saw a man begging for money. It was late afternoon, but the beggar hadn't made much money. Reeves told his colleague: “I bet I can dramatically increase the amount of money that guy is raising simply by adding four words to his sign." The colleague agreed, and Reeves introduced himself to the homeless man. He explained that he knew something about...
Expense Boosts Value Read online This quote summarises one of the most overlooked marketing lessons. Rory Sutherland in Alchemy¹ This idea (that expense boosts value) is known as costly signalling. I did a silly, and simple, experiment² to prove it. I showed 200 random Brits an ad for my podcast. 50% saw only the ad. 50% saw the ad superimposed onto a billboard. The billboard signaled expense, and it made Brits 61% more likely to listen. But advertisers can push this further. Rather than just...
Don't Change The Name Read online I shared a (semi) viral post about the WHSmith rebrand a few weeks back. WHSmith, a two-century-old British retailer, was sold. As part of the sale, the name had to change. WHSmith would become TGJones. For non-Brits, this name change is a big deal. WHSmith has been on British high streets for over two centuries. And there are 3 behavioural science reasons why I think this rebrand will fail. 1. Habits In Jan 2009, Tropicana rebranded. Their new sleek design...