I took Ogilvy's course on Behavioural Economics and Comsumer psychology.

Here are the 10 important theory's I learned from it which you'd be a fool to miss out on:

Loss aversion theory:

The negative psychological impact we feel from losing something is about twice as strong as the positive impact of gaining the same thing.

Finding ₹100$ would makes us happy
Losing ₹100$ would makes us 2X unhappy
Sentence Framing:

The way you frame your sentences is very important. Make them forget about the negative thing by reiterating something which might be positive. We have a stronger bias for things that sound positive.

10% chance of death Vs 90% chance of survival
Goal Gradient Hypothesis:

Humans are hardwired for instant gratification.
as people get closer to the reward, they speed their behavior. So, reward people sooner instead of later

eg: Don't make a goal of reading 52 books a year, make it 1 chapter per day.
Mental Anchoring:

It's the phenomenon where our decisions are heavily based on the 1st piece of information we receive, regardless of whether the information is relevant or not.

Make the first piece of information powerful.
Defaulting:

People tend to stay with the default settings.

Case 1: When people had to opt out of being organ donors- very few people opted out
case 2: When people had to opt in - very few people opted in.

Simply changing the default setting made a drastic difference.
Scarcity:

Companies make limited edition products to drive sales even though they can make the SAME product in abundance

One way of encouraging customers to buy their products, is FOMO. If they didn't buy now they might not get a chance later

Example: Limited Edition Sneakers
Pain of Paying:

Just thinking about money can make you experience a kind of physical pain that stops you from spending

eg: Removing the currency dollar in the menu increased the average spending by 12%
eg: Starbucks launching a membership card
Ikea Effect:

When you sell something where the person has to assemble the item at the end, we put higher value to the things we help create

Eg: Subway Sandwhich Vs McDonalds
TLDR; for the lazy folks

1) Loss aversion theory
2) Sentence framing
3) Goal Gradient Hypothesis
4) Mental Anchoring
5) Defaulting
6) Scarcity
7) Pain of paying
8) IKEA Effect

(This is all that I could fit lol)
I'm thinking of making more threads, give me ideas for what you'd like to see.

More from Marketing

The emergence of many new hypocrisies typically heralds an emerging new cultural synthesis.

Are you disturbed that you agree with one of those viewpoints? Or perhaps that other people you respect do?

1/x


Let me offer a framework for thinking about things like this, something called an “Omega Event.”

It was first described to me by Erik Martin, one of Reddit's first community managers:

In governance, Omega Events exist due to the fact that no system of beliefs, no worldview, no set of rules, can account for everything that will ever happen.

Eventually someone (or some group) will do something that lies outside the scope of all existing rules, and you will have to make decisions again from first principles.

Sometimes the Omega Event emerges from the confluence of many unrelated factors. When it does, it is wholly different from anything you’ve encountered.
20 Most Important Lesson of 2020

// A THREAD //


It was a fast and weird year.

The year of change.

My life changed a lot and I learned even more.

Here are the 20 most important lessons - which will shape the upcoming decade for me.


1. Systems Are Better Than Goals

In the past, I failed many of my goals.

This year I've realized that it could be caused by the fact that they were goals, not systems.

Thanks, @ScottAdamsSays for helping me realize this.

Short article on the topic:
https://t.co/lyBqGBR0yM


2. Use Notion More

@NotionHQ is definitely the most useful tool I've discovered this year.

I use it for:

- Twitter
- Freelance CRM
- Content Creation
- Website project management

And for personal use, it's completely free.


3. Email Is Immortal

This year we saw on social sites:

- Shadow bans
- Normal bans
- Decreasing reach (e.g. during the presidential election)

That's why I believe building an independent audience e.g. email list is mandatory.

P.S. https://t.co/iuhQJIf80K

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