The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

438. Apple Card: Behavioral Economics in Action (Refreshed Episode)

Oct 21, 2024

Dive into the fascinating world of behavioral economics with a look at the genius behind the Apple Card launch. Discover how Apple expertly built anticipation and shaped consumer expectations. Uncover the power of framing and herding behaviors in marketing strategies. Explore the psychological insights on consumer behavior, celebrity endorsements, and the allure of subscription services. Learn how businesses can innovate and step away from the status quo to capture customer interest and loyalty.

45:01

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Quick takeaways

Apple builds consumer anticipation strategically, releasing information early to stimulate engagement and enhance perceived product value.

Framing the Apple Card as having 'no fees ever' effectively shifts consumer perception, masking potential costs while highlighting its advantages.

Deep dives

Building Anticipation and Expectations

Anticipation plays a crucial role in consumer behavior, as it stimulates the brain's reward center through dopamine release. By announcing new products like Apple Card before they are available, Apple successfully builds excitement and expectations among potential customers. This strategy encourages consumers to think positively about the upcoming product, enhancing its perceived value upon release. The concept is reinforced by studies indicating that the thrill of the unknown can often be more rewarding than the actual product itself.

Intro

7min

The Psychology of Anticipation in Rewards

3min

Psychology of Consumer Anticipation

13min

Consumer Behavior and Framing in Subscription Services

3min

Framing the Future of Financial Products: Lessons from the Apple Card

20min

In this episode of The Brainy Business podcast, Melina Palmer revisits the impactful announcement of the Apple Card and its behavioral economics implications. Originally aired in April 2019, this episode explores the strategic genius behind Apple's reveal of its new financial product.

Melina discusses the anticipation and expectations built by Apple, the delayed pricing strategy, and the clever use of framing and herding behaviors to captivate potential customers. She also explores how familiarity and celebrity endorsements are crucial to Apple's marketing success. Melina's analysis provides valuable lessons for businesses in any industry, emphasizing the importance of stepping out of the status quo and seeing opportunities from a fresh perspective.

In this episode:

Understand the behavioral economics behind Apple's announcement of the Apple Card.
Learn how anticipation and expectations can be strategically built to enhance customer engagement.
Discover the importance of framing and herding behaviors in marketing.
Explore the role of familiarity and celebrity endorsements in successful branding.
Gain insights into how businesses can break free from the status quo and innovate.

Show Notes:

00:00:00 - Introduction Melina Palmer introduces the episode and explains the relevance of revisiting the Apple Card announcement.

00:04:30 - Building Anticipation Discussion on how Apple built anticipation and expectations through their strategic announcements.

00:09:15 - Delayed Pricing Strategy Exploration of Apple's decision to delay pricing announcements and its impact on customer perception.

00:14:45 - Framing and Herding Analysis of how Apple used framing and herding behaviors to influence customer decisions.

00:20:10 - Familiarity and Celebrity Endorsements Examination of the role of familiarity and celebrity endorsements in Apple's marketing strategy.

00:25:30 - Subscription Models Insights into Apple's use of subscription models and their appeal to consumers.

00:30:45 - Apple Card Features Detailed breakdown of Apple Card's features and how they are framed to appeal to customers.

00:35:50 - No Fees Message Discussion on the framing of Apple Card's no fees message and its implications.

00:40:20 - Cashback Rewards Analysis of Apple Card's cashback rewards and their behavioral economics impact.

00:42:10 - Personal Financial Management Exploration of Apple Card's personal financial management tools and their user-friendly design.

00:44:00- Conclusion, What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.

Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.

I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.

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