Simplifying Complexity In conversation with Rory Sutherland - Part 2
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Feb 19, 2024 
Rory Sutherland, UK Vice Chairman of Ogilvy, discusses decision-making and consumer behavior, exploring heuristics in decision-making, significance and anomalies, limitations of the scientific method, pricing strategies, nonlinear perception, and consumer behavior dynamics.
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Choice Boosts Consumer Response
- A British Telecom marketing test showed offering response choices increased subscription rates.
- Phone-only responses got a 2% rate, post-only 5%, but offering both raised it to 7%.
Price Signals Quality in Wine
- English sparkling wine succeeded by ramping price and brand perception like Champagne.
- Pricing signaled quality and occasion, key to market success despite product similarity.
Nonlinear Perception of Price
- People often perceive price and quantity logarithmically, not linearly.
- This explains why small savings on cheap items motivate more effort than equal savings on expensive items.