Modern Wisdom #626 - Richard Shotton - 8 Psychology Hacks Behind The World’s Biggest Businesses
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May 11, 2023 
Richard Shotton, a behavioral scientist and founder of Astroten, discusses the fascinating ways psychological principles drive consumer behavior. He reveals powerful words that enhance persuasion and how small commitments can lead to bigger decisions. Shotton dives into the 'red sneakers effect,' explaining how breaking conventions can elevate brands. He highlights the peak-end rule, emphasizing that memorable experiences shape lasting impressions. Learn how language framing and authority impact our choices, showcasing the subtle manipulation behind marketing.
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Value Neglect
- People react to the numerical size of discounts, not the actual value.
- Marketers exploit this "value neglect" by using larger percentages or absolute numbers.
Framing Discounts as Bonuses
- Frame discounts as "bonus packs" or "added value" rather than price reductions.
- This leverages people's naive response to larger numbers, boosting perceived value.
Extremeness Aversion
- Consumers tend to avoid extreme options, preferring middle choices.
- Introduce a high-priced "decoy" product to make other options more appealing.
