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

441. Cracking Consumer Codes: Hunter Thurman of Alpha-Diver on Pricing Psychology

Oct 31, 2024

Hunter Thurman, President of Alpha-Diver, combines behavioral science and neuroscience to decode consumer behavior. He shares insights from the BEV 50 report, revealing that price perceptions often contradict actual costs. Hunter explains how social context and emotional connections can outweigh price, affecting choices for routine brands like Coke compared to explorers like Poppy. He also discusses the paradox of perceived wealth, highlighting how self-image influences spending decisions, particularly in the snack market.

52:26

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Hunter Thurman

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Quick takeaways

Hunter Thurman emphasizes that consumer perceptions of pricing are nuanced, often leading to surprising purchasing behaviors that defy conventional pricing wisdom.

The importance of social context in influencing consumer behavior highlights that community engagement and shared values can drive brand loyalty beyond merely competing on price.

Brands in the exploratory quadrant should focus on emotional storytelling and sensory experiences to resonate with consumers, fostering deeper connections and loyalty.

Deep dives

The Birth of Alpha Diver

Hunter Thurman founded Alpha Diver in 2011 to address the shortcomings he perceived in traditional market research, focusing on understanding not just the 'what' but the 'why' behind consumer behavior. He emphasizes the importance of applying behavioral science to reveal deeper insights into how and why people make purchasing decisions. By collaborating with experts in neuroscience and psychology, Thurman's team developed frameworks to measure, analyze, and predict human behavior in the marketplace. This data-driven approach enables leading brands to fine-tune their strategies and better align with consumer motivations.

Intro

4min

Navigating Back to School Routines and Family Antics

2min

The Psychology of Pricing Strategies

20min

The Paradox of Perceived Wealth and Consumer Choices

4min

Navigating Brand Perception and Consumer Engagement

21min

Insights on Consumer Branding and Pricing Psychology

3min

In this episode of The Brainy Business podcast, Melina Palmer welcomes Hunter Thurman, president of Alpha-Diver, for an engaging discussion on the intersection of neuroscience, market research, and consumer behavior. Hunter shares his journey from traditional market research to founding Alpha-Diver, a firm that leverages behavioral science to uncover the deeper motivations behind consumer actions. With a focus on the BEV 50 report, Hunter reveals fascinating insights into how pricing perceptions differ between high-interest, exploratory brands like Poppy and Olipop and routine staples like Coke and Pepsi.

Hunter explains how consumers' concerns about price are often inversely related to the actual cost per ounce, challenging the conventional wisdom that price directly dictates consumer behavior. This episode delves into the psychological factors that influence purchasing decisions, emphasizing that the perceived cost and social context often outweigh the actual price. Hunter and Melina discuss strategies for brands to navigate these complexities, whether they are market leaders looking to maintain their dominance or new entrants aiming to carve out a niche.

In this episode:

Explore the unexpected relationship between price and consumer perception.
Understand the importance of social context in influencing purchasing decisions.
Learn about the different psychological drivers for routine and exploratory brands.
Discover actionable strategies for both established and emerging brands to thrive in a competitive market.
Gain insights into how to leverage behavioral science to better understand and predict consumer behavior.

Show Notes:

00:00:00 - Introduction Melina introduces Hunter Thurman and the focus of today's episode on pricing insights from the BEV 50 report.

00:04:30 - Hunter's Background Hunter shares his journey from traditional market research to founding Alpha-Diver and applying behavioral science to understand consumer behavior.

00:10:15 - The BEV 50 Report Hunter discusses the BEV 50 report and the surprising findings about consumer perceptions of price and value.

00:15:45 - Price Perception vs. Actual Cost Hunter explains how consumers often perceive lower-priced routine brands as more expensive compared to higher-priced exploratory brands.

00:25:00 - Psychological Drivers The conversation shifts to the psychological factors that drive consumer behavior and how brands can leverage these insights.

00:30:20 - Strategies for Market Leaders Hunter provides actionable advice for established brands to navigate pricing challenges and maintain consumer interest.

00:35:50 - Strategies for Emerging Brands Hunter shares tips for new brands looking to enter the market and differentiate themselves.

00:45:00 - The Promised Land Hunter describes the "promised land" for brands that successfully balance routine use with high consumer interest.

00:50:30 - 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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