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I spend 18 hours each week turning marketing psychology into readable newsletters.
Differential Price Framing Read online Want people to go premium? Don’t show them the full price. Show them the difference. That’s the idea behind differential price framing. In 2019, David Hardisty¹ at UBC tested it with New York Times subscriptions. Group A saw this: – $9.99/month for web + app – $16.99/month for web, app, print, podcast, crossword Group B saw this: – $9.99/month for web + app – +$7/month for all the extras Same total price. Different framing. But in Group B, twice as many...
Veblen Effect Read online Last week, I wrote about how Blue-Emu successfully sells pain relief cream (that doesn't actually cure pain). It indicated that perception trumps reality and reminded me of this study 👇 Rory Sutherland described this eloquently in a recent talk, saying: “I don’t have a $0.79 headache—I’ve got a $3.99 headache!” It's not just painkillers that benefit from higher prices. Eco-products do too. Research¹ cited in the brilliant Science Says measured sales of sustainable...
Operational Transparency Read online Voltarol is the world's number one pain relief gel. Unlike almost every other gel on the market, Voltarol actually works. Clinical tests have been done to prove that the gel penetrates the skin to supply pain relief. And yet, there are dozens of other very successful paom relief creams that don't supply real pain relief. Take Blue-Emu, an over-the-counter cream with $42 million in annual sales. So, why is Blue-Emu successful in a world where Voltarol...