opportunity 37 of 150 Psychology is the business of understanding and influencing human behaviour. It is through psychology that we understand human behaviour, and it is with that understanding that we are in a position to influence that behaviour. Psychology lies at the heart of great marketing. Understanding why consumers do what they do, and […]

opportunity 37 of 150 Psychology is the business of understanding and influencing human behaviour. It is through psychology that we understand human behaviour, and it is with that understanding that we are in a position to influence that behaviour. Psychology lies at the heart of great marketing. Understanding why consumers do what they do, and how we can make them do what we need them to do, is central to effective and cost efficient marketing. Can psychology help us understand the ‘power of free’? Does ‘FREE’ actually work? The short answer is yes! Psychologist and behavioural economist, Dan Ariely, conducted an experiment in which he offered a sample of consumers the following: Chocolate A – 25c Chocolate B – 1c Surprising to some, the vast majority of subjects saw greater value in, and opted for, chocolate A. That is, respondents preferred chocolate A even though it was 24c dearer. This…