rsmudge
11-24-2009, 06:08 AM
Hi guys, it's been awhile since I've been active on this board. Things are going good though. My muse http://www.feedbackarmy.com is steadily growing in sales and my life is good otherwise.
I have a book recommendation for you. You need to check out Predictably Irrational by Dan Ariely. [insert Amazon affiliate link here -- j/k]
The book talks about behavioral economics: how we perceive things and what leads us to make decisions--especially decisions that don't make logical sense. As I'm reading it I'm filled with all kinds of ideas about how to better market and present a product and prices to the users.
Here are some of the most powerful chapters so far:
- Chapter 2 talks about relativity. If you were out to buy a $25 item and learned it was on sale elsewhere for $18, would you drive 5 minutes to take advantage of this? Now pretend you're out to buy a $499 item and learn it's on sale elsewhere for $492. Would you drive 5 minutes to take advantage of this? Most people answered yes in the first case and no in the second. Where this gets fascinating is when he breaks down a magazine ad meant to manipulate buyers into choosing a certain option. Worth the price of admission alone. Next product I do, I plan to play with some of these ideas for my pricing model.
- Chapter 3 talks about the power of free. Again some powerful lessons here. Learn why $0.01 and free are such different entities even though there is a single penny difference.
- Chapter 9 covers the effect of expectations. The lesson - sell first and break any surprise details after the buyer is sold.
I have a book recommendation for you. You need to check out Predictably Irrational by Dan Ariely. [insert Amazon affiliate link here -- j/k]
The book talks about behavioral economics: how we perceive things and what leads us to make decisions--especially decisions that don't make logical sense. As I'm reading it I'm filled with all kinds of ideas about how to better market and present a product and prices to the users.
Here are some of the most powerful chapters so far:
- Chapter 2 talks about relativity. If you were out to buy a $25 item and learned it was on sale elsewhere for $18, would you drive 5 minutes to take advantage of this? Now pretend you're out to buy a $499 item and learn it's on sale elsewhere for $492. Would you drive 5 minutes to take advantage of this? Most people answered yes in the first case and no in the second. Where this gets fascinating is when he breaks down a magazine ad meant to manipulate buyers into choosing a certain option. Worth the price of admission alone. Next product I do, I plan to play with some of these ideas for my pricing model.
- Chapter 3 talks about the power of free. Again some powerful lessons here. Learn why $0.01 and free are such different entities even though there is a single penny difference.
- Chapter 9 covers the effect of expectations. The lesson - sell first and break any surprise details after the buyer is sold.