Behavioral Science For Brands: Leveraging behavioral science in brand marketing. Interview: Melina Palmer, author of What your Customer Wants and Can't Tell You
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Apr 3, 2025 In this engaging conversation, Melina Palmer, an expert in behavioral economics and author of 'What Your Customer Wants and Can't Tell You,' shares her insights into the psychological nuances of brand marketing. She discusses how luxury brands like Hermes manipulate scarcity to enhance desirability. The episode dives into Costco's clever pricing strategies that boost value perception. Melina also emphasizes the importance of understanding consumer behavior through the lens of empathy and group identity, making a compelling case for nuanced marketing.
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Hermès Birkin Bag Scarcity
- Hermès uses extreme scarcity to drive demand for their Birkin bags.
- Customers must spend a substantial amount with the brand and build a relationship with a sales associate to be considered.
Birkin Bag Psychology
- Scarcity, social proof, FOMO, and loss aversion drive the intense desire for Birkin bags.
- The exclusivity and understated design contribute to the feeling of being part of an 'in' group.
Costco's Value Strategy
- Costco exemplifies a value brand, prioritizing member value and reciprocity.
- They offer deep discounts on select items, like rotisserie chicken and hot dogs, even at a loss, to build member loyalty.
