The Psychology Behind The Best Business Strategies

Source: Forbes, Nov 2010

1. Labor Leads to Love

Sometimes you just need to put the customer to work. Researchers have seen that a bit of sweat equity can actually increase the perceived value of the product. Just consider Build-a-Bear or Ikea, two phenomenons of cheap products that are loved and valued.

When people exert sufficient effort in some task and successfully complete that task, they will experience a feeling of having engaged in fruitful labor, which will then drive increased valuation of the fruits of labor – the products they have crated.

2. Let Them Know You’re Working, Even if You’re Just a Website

People don’t mind waiting if they know you’re working hard. Just think about Starbucks and their unnecessarily long and complicated cappuccino maker. It’s not that they couldn’t figure out how to make one faster, it’s that Starbucks knew customers attributed more value to perceived barista effort.

3. Let Them Vote

Customers who are empowered to select the features or products to be marketed, such as M&M color, show stronger demand for the underlying products.   The concept of voting helps consumers develop a psychological ownership of the product.  But if the outcome doesn’t reflect the consumers’ preferences or if the consumer didn’t feel qualified to make a decision, then the empowerment-product demand effect diminishes.

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