Picture this: You’re mindlessly scrolling through your Instagram feed, and there she is – Kylie Jenner, effortlessly flaunting the latest makeup trends. Now, Kylie is not just a reality TV superstar; she's a mega influencer with millions of followers. When you see her sharing her makeup tips and product recommendations, you can't help but feel a sense of wishful identification. You admire her glamorous lifestyle and think, "Maybe I can achieve a touch of that too!" It's like having a front-row seat to the world of luxury. These feelings of identification with Kylie spark a desire to emulate her, and suddenly, those makeup products she's endorsing become must-haves in your beauty routine.
Current Topic: Strategy
Suppose you want to sell a cupboard; how do you determine the price? You will probably compare prices with similar ones and how much the purchase price was. Buyers, in turn, will judge it on external features: how many drawers are there, what material is it made of? Yet often there is a difference in what the seller thinks a product is worth and what the buyer is willing to pay. This is also called the endowment effect (Thaler, 1980).
However, society is becoming increasingly technological, and more (digital) services are offered. Think, for example, of a platform like Amazon, a company specializing in data privacy, or the experience of going to a concert. How are these services evaluated? And more importantly, how big is the seller-buyer gap? Let’s dive in!
Emojis have taken over how the world communicates online. From social media platforms to text messages, emojis have become an integral part of our daily communication. These little expressive icons have taken over our digital conversations. They add a splash of color, humor and personality to our messages making them more engaging and relatable. It’s amazing how a simple string of symbols can convey emotions and ideas, with just a touch of playfulness.
Marketers love to end their prices with the magical numerical combination of 99. This practice, which is also known as charm pricing, psychological pricing or odd pricing, is seen in virtually every country across the globe. There’s no question about it: it works. But new research shows that the pricing trick will backfire under specific circumstances.
Did you click? Clickbait is a strategy for viral journalism, where the hunt on clicks is accelerating. Powerful and emotional words can make your headline irresistibly clickable, as previous research already showed that clickbait headlines were successful in baiting clicks.
A loyal example of clickbait usage is the website Buzzfeed, where titles are calling on emotions and curiosity by not revealing the conclusion of the article (see figure). This website is known for its rigorous use of analytics and A/B tests, showing that they will be fully aware of the effects that these clickbait headlines have on article clicks.
But does clickbait also contribute to shares and word-of-mouth or do they elicit a certain level of distrust or disappointment?