The Boomerang Effect of Discounts - Why Lower Prices Can Backfire and How to Avoid a Decrease in Sales
Discover how to improve sales by applying the right discounts for the right products.
Discover how to improve sales by applying the right discounts for the right products.
I Love cooking!
I literally spend hours in the kitchen every weekend preparing meals for my wife and kids;
and there is nothing more rewarding than watching them enjoy the meal so much that they ask for more.
I am not a chef, but there is one essential thing in cooking: high quality ingredients are necessary to bring out the authentic flavours of any dish.
So, what does my cooking have to do with neuromarketing? Well, everything!
More than the cooking itself; the connection lies in how my wife and I shop and pick items when we want to prepare a meal.
In today’s day and age, the most successful brands are the ones that deliver feelings and emotions. By stimulating senses (like sight, hearing, taste), emotions will be delivered and learning will be stimulated. This is very effective, because our senses are directly linked to the limbic part of our brain that is responsible for memories, feelings, pleasure and emotions.
Imagine you’re buying something at the vegetable market, organic carrots for instance. The price tag says it’s $2.00 for the carrots, which is twice the price you would pay for in the supermarket. You decide it’s too much and want to walk away. And then the owner of the market stand comes up to you and says: “Hold on, for you, the price is only $1.00!” How would you feel in this case?
It’s one of the most intriguing questions in neuromarketing today: how can we predict people’s choices by having a peek into their brain activity?
Our brains are made up of many clusters of neurons, each devoted to specific – but often yet weakly understood – functions and processes. Scientists and marketers unite in pursuit of so-called ‘buying buttons’. These specific brain areas are particularly responsive towards alluring products, commercials or otherwise money-spinning marketing stimuli.