Marketing 04. Psychology of Choice. How humans make decisions. Cognitive biases. Marketing implications. Ethics.

1. Personal Branding
2018 / @JoanTubau

2. Marketing 04. Psychology of Choice

4. Kahneman: System 1 / System 2. Cognitive dissonance
After 24 hours, I will rationalize my emotional decision

8. Survival of the fittest + Sexual selection
Group selection. 90% signalling, cooperation strategies

15. All animal decisions: Approach or avoid. Familiarity
Observed behavior... explanation. Not exactly science

19. Farmers / warriors. Interconnection: Nature + Nurture
Biological factors are there, but culture shapes society

22. Time preference + Risk aversion + Status seekers
Oversimplification too. Solution? Responsibility!

27. Visual illusions. Follow @AkiyoshiKitaoka
Cognitive illusions. Greater cost, regulation

35. Ecological mind. The strange rationality of System 1
Freud's Superego, beyond social rules. Institutions' role

39. Libertarian paternalism. Nudge = 'Empujoncito'
Statu quo bias. I take the default option, unless...

43. Pricing: Art, not science. How choices are presented
5€ for Starbucks coffee? Ok! 0,99€ for WhatsApp? No!

47. How to Price Anything (Jory MacKay)
1. What you see is what you want. Marrakech bazar pricing. The higher you start...
2. How your price sounds (and looks) is important. Specific. $342,978 or $350,000?
3. Spending hurts, reduce pain. Saliency (cash / credit card), timing (prepayment)
4. Invisibly raise your price. Relative to starting point (yelling in a crowded room)
5. Do not compete on the lowest price (without adding context). Avoid price wars
How Apple Plays the Pricing Game (Ben Kunz)
1. Decoy. iPad, iPad mini. Going out with your 'similar but slightly uglier' friend
2. Establish a high reference price. Consumers search for comparison points
3. Obscure the reference point. Consumers will pay more, if they cannot compare
4. Bundle components to hide what you can. Ex-post spending (gadgets, apps, etc.)

53. Real estate: Anchor, relativity, loss aversion, 'free'
Arbitrage opportunities. Should we discuss ethics?

59. Mental accounting, endowment effect, sunk cost, etc.
Emotional, instinctive decision-making. And learning

64. Productivity. Get 1% better everyday
18-month plan. Attainable, daily goals

67. New Year's Resolution (Behavioral Economics edition)
1. Deadlines. Accountability, if not delivered on time. Tell all your friends about it
2. Skin in the game. Real incentives: Expensive skinny jeans. stickk.com
3. Remove options. Pension funds (not according to the rational model). H. Cortés
4. Do it with a partner. Mutual surveillance. By comparison too (Alcoholics Anon.)
5. Do not fight procrastination. Instead, natural self-control mechanism: Gratitude
6. Create an habit. Children's daily toothbrush. Ironically, from willpower

71. Overestimation of what can be achieved in 1 year
Underestimation of what can be achieved in 10 years