Final Reflection

This course has been extremely interesting and has evoked a new curiosity in me about psychology.  I never realized just how calculated our purchases are and the various ways we go about justifying our decisions.  I really enjoyed reading The Paradox of Choice, and learning about the effects that too many choices have on us.  I find it very interesting when I shop now, as I notice various ways in which marketers push me to choose their product or make an irrational decision.  I also enjoyed learning about the various selves-extended, ideal, and looking-glass.  Overall, this class has made me assess my decisions much more and helped me escape some of the classic marketing tactics employed today.

Psychological Pricing

I was shopping at Safeway the other day for a few items, and noticed something rather peculiar.  While I was adding up the costs of goods in my head, I noticed that I gravitated towards products that ended in a price of 99 cents.  A product that cost $2.99 was regarded as only costing two dollars, and a product that cost $5.99 was regarded as only costing five dollars and so on.  After a little bit of research, I learned this was a marketing tactic called psychological pricing, based on the theory that certain prices have a psychological impact.

Consumers tend to perceive “odd prices” as being significantly lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 is associated with spending $1 rather than $2. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points (Wikipedia).  According to a study published in Marketing Bulletin, more than 60% of prices in advertising material ended in the digit 9.  This is another example of how marketers have taken advantage of the human brain.

Oreo's Latest Ad

I was browsing Adweek.com when I came across this new advertisement for Oreo's:

I found this advertisement highly entertaining, and while somewhat inappropriate, it was refreshing to see a commercial take a different route during the holiday season.  What was even more interesting is that "Cookie Balls" are not a product sold by Oreo's, but according to the Internet, a ball of cream cheese rolled in crushed Oreo's and then dipped in chocolate.  I can't say that I've seen a company advertise for something their product can be used for rather than the product itself.  With the myriad of cheesy, emotional holiday ads, an advertisement rapping about balls was very welcome.  While I don't feel suddenly induced to purchase Oreo's, the song has been stuck in my head for quite some time now.  This is another great example of creative advertising by The Martin Agency.

Black Friday Madness

This past Friday marked another one of the saddest traditions known to man-Black Friday.  On Black Friday, consumers rush into stores, pummeling and mauling others in an effort to get that 'great deal' or 'huge discount'.  This so-called holiday seems to get more chaotic and violent every year.  Check out this video of two women fighting over a 23in LCD TV in Wal-Mart:

After watching this I couldn't help but wonder, are the discounts on Black Friday great enough to warrant this type of behavior?  It would seem as though the common assumption is that retailers stock up on goods and mark down the ones that don't sell, thus benefitting the consumer.  But in reality, retail profit margins tend to be higher in the holiday season, despite all the promotions.  So while consumers think that flat screen TV for 40% off is worth trampling others over, the truth is that a lot of the discount is already priced into the product.  Retailers have trained consumers to shop for deals and be entranced by discounts.  Unfortunately, many do not understand this and that is why we witness the kind of behavior in the video above.  

Turkey Day Nudges

I was grocery shopping at Town & Country earlier this month when I learned about the 'Turkey Day Incentive Program'.  It goes something like this: Spend $350 or more, and get a free Turkey for Thanksgiving, or spend $750 or more and get a free organic turkey.  That one simple word--free--seemed to dissolve all rational thought surrounding the offering.  My first thoughts were "oh spend $350 and get a free turkey? Hell yeah I can do that.  I'll just make sure to get all of my groceries here".  The thought of spending such an absurd amount of money to obtain a 'free' turkey(which is probably only worth about $30 bucks), never crossed my mind.  It wasn't until later that I realized what a subtle, and effective nudge this was.  Everyone I know seems to be yearning for their "free" turkey, and spending more and more at Town & Country-even on items they don't normally buy.  I find this shift in consumer behavior fascinating and terrifying at the same time.  Are we really that easy to manipulate?

Overview of 'Connected' by Nicolas Christakis and James Fowler

I recently picked up 'Connected' by Nicolas Christakis and James Fowler, which is about "how your friends' friends' friends affect everything you feel, think and do".

'Connected', is as you might have guessed, all about connectedness and the influence that those in our networks have upon us.  The book stresses the idea that we are often unconsciously influenced by those around us, and that the power of influence extends 3 degrees (friend's friend's friends).  The book expands upon the power of social ties and how they affect emotions, sex, health, politics, money, and technology.  The book goes on to make some interesting claims--here are a few I found interesting:

-The biggest predictor of grades in US Universities are the grades of other students in their dorm

-When people sit next to a person who is over-eating, they tend to eat more

-Suicide can be contagious

-Whilst no one vote has ever swung any election, a decision to vote increases the likelihood of others to vote

-Even sickness can be influenced by networks.  Back pain tends to be a culture-bound syndrome

'Connected' argues that it's not enough to understand individual behavior, we must understand the human network as an entire connected system.  I'd highly recommend this book to anyone looking for an engaging and enlightening read.

The new Iphone

As many of you know, Apple has recently released the new iPhone 5 available in two models- the iPhone 5C and 5S.  Starting at $99, the lower end iPhone 5C differs from the 5S in that it comes in various bright colors, has an A6 processor (versus an A7), and lacks the fingerprint identity sensor that the 5S so proudly boasts. The 5S sports the classic, elegant colors (silver, gold white) and starts at $199.

Once these make their way into the hands of consumers, will a social hierarchy develop within iPhone users? My guess is yes. Apple needs to be careful not to ruin the social reasons people would buy the 5S for.  This will be interesting to see develop in the near future.

Beer Commercials and Impressions

It's undeniable that most beer commercials these days tend to stereotype the average male as one who spends the majority of his time being a dumb ass watching sports and drooling over attractive women..  When I took some time to think about what came to mind when I thought of beer commercials, two things stood out more than anything: sports and food.  More often that not, you can expect to see a group of guys sitting around the TV, snacks a plenty, celebrating a touchdown or home run together.  Take for example this Bud Light ad below.

It, just like most other beer ads, depicts a largely male group standing around a tailgate stuffing their faces with food and drinking light beer.  While I can't relate very well to this ad since I don't watch a lot of sports, I can see the appeal in what looks to be a fun celebration with friends an attractive girl laying it all out.  However, there is nothing in this ad that resonates.  After watching this ad I forgot about it almost immediately.  Enough so that I had to re-watch it in order to write this blog post.  Now keep this Bud Light ad in mind and check out this new advertisement from Guinness that will warm your heart.

There's no denying the fact that this advertisement had an incredibly inspiring, heart-warming message. While it does involve sports, it sends a message that men are defined not only by their physical ability but their kind heartedness and character.  By ending the advertisement with "The choices we make reveal the true nature of our character," Guinness has left the viewer thinking: how have I defined myself? What do my decisions contribute to my image? By putting a strong message in my head and forcing me to think about my actions/choices, Guinness has succeeded in it's advertising goal.  I think it's safe to say that after watching this commercial, I will automatically relate the Guinness brand to being representative of a strong male character.  I think Guinness is at the forefront of starting a new trend in advertising that seeks out a deep emotional appeal.