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I spend 18 hours each week turning marketing psychology into readable newsletters.
Specific Goals > Unspecific Goals Read online Unspecific goals don't work. Psychologists¹ Locke and Latham proved it. In 1975, the two researchers set up a real-world experiment at a logging company. Drivers were only loading trucks to 60% capacity. For the control, all staff members were given an unspecific goal: Unspecific goal = “Do your best.” Performance did not increase. The researchers then asked staff what a hard but fair goal would be. They said 94%. That became their new specific...
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...