Professional Documents
Culture Documents
out-and-out science,"
❑ Consistency is valued
❑ Similarity
❑ Compliments
Delight your customers with unexpected quality, and you will earn their affection
SOCIAL PROOF Truths Are Us
❑ Validates a choice
❑ Response to uncertainty
❑ Perception of similarity
How to Use Social Proof for Marketing ???
Positive Reviews
• Reviews/ Ratings
Endorsements
• Celebrity
• Trusted Experts
• Peers
How to Use Social Proof for Marketing ???
Popularity
Social Media Following
Proof of Demand
User or Customer Count
• No of items sold
• Individual customers recent purchases
• No of customers currently viewing
How to Use Social Proof for Marketing ???
• Newsite
• Popular blogs
• Publications
• Cetifications
Example and strategies
Vs
RECIPROCITY The Old Give and Take…and Take
Gift Obligation to
Reciprocate
How uninvited gifts generate feelings of
obligation ???
Obligation to
Receive
Psychological cost of Non compliance to
Reciprocity
Internal Possibility of
Discomfort External Shame
What is the indirect approach to RECIPROCITY ??
• Provide something exclusive and unique to the recipient so they feel special;
• The way we see the difference between two things that are presented
one after another.
= Trade off
Anticipated Losses
Pain of Paying
Pain of Paying Solves Three Inter related problems
❑ Hyperbolic Time Discounting: People place disproportionate weights on the immediate present
relative to all points in the future
❑ Underweighting Opportunity Cost: Experienced losses are given greater weight than forgone gains
❑ Complex Intertemporal Consumption Decision: Consumers cannot calculate trade-offs among all
goads that marketplace offers
Pain of Paying Varies Across Individuals
Ways to reduce Pain of Paying..???
• Transaction utility
o Individual’s expectations and beliefs