There are only 24 hours in a day for us to get through our to-do lists. So how do we decide what to prioritize? Lucky for us, our brains use cognitive shortcuts to simplify decisions and cut corners. But here’s the catch: cutting corners has consequences. And when it comes to our brain, cutting corners leads to cognitive biases.
2 euros off or a complementary recipe book?
Price-based incentives remain one of the most common types of sales promotion. However, non-monetary incentives have become increasingly more common. Non-monetary incentives mean that consumers receive a free gift (premium) with a purchase of a product. A good example is McDonalds’s Happy Meal, which comes with a free toy.
So what do consumers prefer? 2 euros off or a complementary recipe book? A recent study looked at the fast moving consumer goods (FMCG) retail sector to explain why price cuts are superior to premiums.
Every day, we make decisions between multiple choices and alternatives. After a while, our brains find shortcuts to help us make decisions faster, in a more “efficient” way. This is called fast-thinking, according to Daniel Kahneman, a behavioral economist and author of Thinking Fast and Slow. When we have more time to decide, we begin to refer to our memories and past experiences to make a final choice; this is considered slow-thinking.
Are you up to date?
Knowledge is expanding faster and faster nowadays, it’s said to double every 12 hours! This means that there’s a lot of neuromarketing facts including new tips and tricks you might have missed. The past half year, there have been articles on dominance, packaging, the prediction of Tinder dates, pricing green products, and sound/smell in stores and ads. We summarized the main findings below. Sit back in your beach chair and get ready for some new inspiration!
Both advertisers and researchers have known for many years that music can tip the scale in an ad’s favor. The well-chosen tune can make all the difference when it comes to people attending towards the ad, developing positive attitudes and associations – and ultimately forking over their hard earned cash to buy the product.
But what exactly constitutes the right music?