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

Explore the truth about pricing in this podcast as they discuss the subconscious influence of advertising, the power of anticipation and sensory cues in selling, and capturing the subconscious mind with sensory cues. Learn how to generate excitement and influence consumer behavior by solving real problems and delivering value to customers, regardless of price.

I am so excited about today’s episode. Why? Because I love questions. I love asking them, being asked them, evaluating them, and looking for new ones. Innovative approaches are all about asking questions. As a “what if” personality type, questions are my jam. I also have an awesome freebie to go along with this. I talk about my ENTP personality type. My favorite book A More Beautiful Question, and how actionable questions can be used in business. I talk about the right approach to questioning and going from “why” to “what if” to “how.” I talk about questionstorming and how this can help you find innovative questions that lead to innovative answers in your business. Questions are a great tool to think outside the box and come up with business changing answers. Show Notes [01:48] I am an ENTP which means I'm extroverted, intuitive, thinking, and perceiving. Stats say that between 1% and 3% of the female population is this personality type. [02:26] In MBTI, all of the types have a title to help describe them. The ENTP is known as "the visionary" or "the inventor." [02:33] My strength is understanding the world around me almost immediately, absorbing ideas, and turning possibilities into ideas. [02:48] ENTPs are great at solving problems in unique ways and asking "what if." [03:09] I also have a love of finding the right answer, and I've always been a straight-A student. [03:26] When it comes to brain training what is better? Questions or answers? and Why? [03:33] A More Beautiful Question by Warren Berger is my favorite book. [04:54] A beautiful question is an ambitious yet actionable question that shifts the way we think about something. [06:09] Innovations that came out of beautiful questions include Airbnb, the Cheetah prosthetic leg, Kodak film, Wite-Out, and microwaves. [06:15] The right approach to questioning is to go from Why? to What if? to How? [06:33] Why questions are your big overarching questions. This is where you start from. This is passion and the core of what you do. [07:20] Why do we have to wait for the picture? Is a question that was asked by the daughter of Kodak's founder. [08:09] People who asked these questions change the world. And you can to with a little bit of brain training. [08:20] Our brains are built on habits and rules of thumb which the subconscious uses to make decisions. [08:53] The more habits you let your subconscious brain get used to, the less reason it has to stop and give your conscious brain something to work on – allowing it to be more and more complacent. [09:18] I'm going to ask you a few questions about your morning routine… [10:07] These questions refer to places where your subconscious brain has taken over the process. [10:19] Train your questioning muscle with these simple tasks of putting your makeup on with your nondominant hand or taking a different route to work. Change things up and force your brain to pay attention. [11:26] How our brains store and retrieve information. [11:39] The Political Mind: A Cognitive Scientist's Guide to Your Brain and Its Politics and the blue square example. [14:19] What does this have to do with business? [14:57] Brainstorming is taking ideas off the surface but not really digging in. [15:14] To help clients approach problems and think about things from different angles, I recommend the activities from Thinkertoys: A Handbook of Creative-Thinking Techniques. [15:39] Questionstorming is an easy thing to try. The goal is to ask as many questions as possible. [16:37] An example of questionstorming. [18:28] Asking “what if” questions and taking the problem on as your own to shift your thinking. [18:37] Pandora asked “what if” we could map the DNA of music? [18:44] The brainy business “why” question is: Why is behavioral economics a best-kept secret? [18:49] What if I show people why it matters? What if I tell people how it works? [20:31] Becoming a better questioner and linking distant connections. [20:52] The final piece is the “how” question. Keep asking “how” until you get to the final piece that sticks. The trick is to fail and fail often. [22:00] Solving problems means knowing what questions to ask. [23:33] Don't let your fear of finding the perfect question keep you from getting to the right answer. [23:50] It takes many questions to find the path to an answer. Start asking as many questions as you can. [25:14] Helping organizations to ask better questions and look at things in a new way is probably my favorite thing to do.   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. Links and Resources: A More Beautiful Question Unlocking the Secrets of the Brain Filene Research Institute The Political Mind: A Cognitive Scientist's Guide to Your Brain and Its Politics Thinkertoys: A Handbook of Creative-Thinking Techniques E.E. Cummings John Tukey Melina@TheBrainyBusiness.com   Send an email to Melina@TheBrainyBusiness.com and reference episode 4 Questions and Answers to be one of the first three people to get a free strategy session.

All over the place these days – they offer you something for free, you fill out a form and get onto their list. So What Makes a Good Lead Magnet? So many kinds – checklist, template, white paper, video tip – I have my ebook, The 10 Behavioral Economics Concepts You Need To Know (And How To Apply Them), which I do invite you to download if you haven’t already. Links and Resources Sweetening the Till: The Use of Candy to Increase Restaurant Tipping Giving Your Donors a Gift—Wait! Research Suggests The power of yard signs II: Escalation of commitment What Makes a Good Lead Magnet? (69 examples from Opt In Monster) Customer Avatar Unique Value Proposition   Tap for full show notes

This episode discusses the Top 5 Wording Mistakes Businesses Make — a highly requested topic when I did a survey on The Brainy Business Facebook page, which, if you do not already like that page I encourage you to check it out. There is a great discussion there, and I share different content including a lot of tips and you can connect directly with me and others who love behavioral economics. I’ve broken the Top 5 Wording Mistakes down into five categories: too literal, too boring, too much, too vague, and too confusing.  Show Notes: [01:37] Today’s episode is all about the Top 5 Wording Mistakes Businesses Make. [03:37] If you have made any of these mistakes, it is important to know that you are not alone and you are in good company. The wording mistakes are easy to change and fix.  [05:12] I’ve broken the Top 5 Wording Mistakes down into five categories: too literal, too boring, too much, too vague, and too confusing. [05:30] An example from the too literal category about a top-notch local nail salon.  [09:25] People need to have the message properly framed for their brain.   [10:49] Thinking, “it is still true and it was a good thing then so it can’t hurt now” is not true. Keeping that old sign up is damaging your reputation now.  [12:04] Finding a new way to frame the old literal message will help you stand out and be more effective.  [13:41] Another example in Too Literal is talking about features instead of benefits. [16:23] Features and literal translations rarely break through the clutter and don’t get remembered. When you are too literal, it is just noise. Use interesting, catchy wording to break through the clutter. [16:55] The next mistake is being Too Boring.  [19:21] With a boring name, it will not stand out and you’re not going to talk about it even if it is your favorite.  [22:48] Let’s talk about Cotton Candy grapes. Would we have come to the place of thinking they taste like cotton candy without the prompt? [23:55] In this situation, we have all been primed with the concept of cotton candy. Very likely we wouldn’t have all said it tastes like cotton candy but now we did. [24:32] The other concept that comes up, in this case, is the concept of expectation.  [25:58] When we believe beforehand that something will be good it generally will be good and when we think it will be bad it will be bad.  [27:32] You probably know that dopamine is responsible for enjoyment in the brain and it drives a lot of our behavior, but studies have shown that anticipation is where the dopamine is released versus the treat itself. [30:31] The lesson here is to be interesting to get attention. [31:45] The next wording mistake businesses make is including too much.  [32:13] Our brains get overwhelmed easily, way quicker than you would think. This wording mistake is the most common offense. [34:33] When your conscious brain is too bogged down with information for it to be easily remembering, it can’t block and help with your making good decisions.  [36:14] The point of marketing is to get people interested enough to go to your website, pick up the phone, or come in person. The thing that you are trying to get them to do is take the next action.  [37:56] It is more effective to have one message you are trying to get across to get someone interested enough to learn more.  [38:36] The 4th wording mistake is being too vague. Melina shares a study from a grocery store.  [42:06] Our brain will latch onto an anchor even if it is arbitrary. Look for times when you can get to something specific that is not tied to something literal.  [43:45] Understanding how these concepts work together is important if you are trying to implement some of these.  A lot of this work together to help you be more effective.  [44:25] The last wording mistake I see businesses make is being too confusing.  [45:20] What is it that I want my ideal client to do and how can I make it easy for them to understand what it is and take the next step? Our brains are busy and quick to move on if what is there is confusing.  [46:51] Having one task for everything that you put out there so that it is not confusing for them and it is really clear is key.  [50:30] What is your interesting and not so literal and not vague way of messaging that isn’t confusing? [51:19] Melina’s closing thoughts. 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. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s new book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Past Episodes & Other Important Links: The Cotton Candy Grape: A Sweet Spin On Designer Fruit Priming Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions Shopping, Dopamine, and Anticipation Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making An Anchoring and Adjustment Model of Purchase Quantity Decisions Episode 16: Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode Episode 18: Priming: Why You Should Never Have A Difficult Conversation With Someone Holding An Iced Coffee: A Behavioral Economics Foundations Episode Episode 11: Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode Episode 32: The Overwhelmed Brain and Its Impact on Decision Making Episode 123: Get Your D.O.S.E. of Brain Chemicals, a Behavioral Economics Foundations Episode Get Melina’s book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

This episode is called Unlocking the Secrets of the Brain. And, in many ways, that is what the entire Brainy Business podcast will be dedicated to. That is what behavioral economics is all about. And it is what I am so passionate about. In this episode, I am going to talk about three things: Why you should care about behavioral economics and the impact it has on your business. A little bit about how the brain actually works to give you a foundation to start from. A little about my background and why I am qualified to share this information with you! Links and Resources The Golden Age of Neuroscience has Arrived 52 Card Media Thinking, Fast and Slow The Buying Brain Filene Research Institute Duke University’s Center for Advanced Hindsight The Chicago School of Professional Psychology   Tap here for full show notes