Behavioral Science For Brands: Leveraging behavioral science in brand marketing. How Grey Goose uses price to signal superior quality
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Jun 6, 2023 The podcast dives into how consumer expectations shape our taste experiences, particularly in food and drink. It highlights Grey Goose Vodka's strategic use of premium pricing to enhance perceived quality. The discussion reveals the risks of offering free gifts and the importance of communicating retail prices. Additionally, it explores how the origins and perceived effort behind a product boost its status. Overall, it emphasizes the crucial role that branding and aesthetics play in consumer perceptions.
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Grey Goose Brand Origin Story
- Sidney Frank created Grey Goose in 1996 as a premium French vodka brand with a high price point and elegant packaging.
- He used product placement in 'Sex and the City' and charity galas to target wealthy consumers, driving explosive sales and brand prestige.
Price Influences Perceived Quality
- Price strongly influences people's quality expectations, which then alters their actual experience of the product.
- This is crucial for vodka, which is odorless, tasteless, and colorless; people pay mainly for their perception of quality.
Avoid Lowering Prices or Promotions
- Avoid lowering prices or excessive promotions as they can diminish brand value and quality perception.
- Use promotions carefully to avoid anchoring customers to lower prices, reducing their willingness to pay full price later.