BackNYU marketing professor Scott Galloway described advertising as akin to a 'turd floating in a swimming pool' – suggesting that it interrupts an otherwise pleasant experience. For most people, advertising is an unwanted intrusion that offers little value. While advertising and communication, more generally, can deliver benefits to advertisers and is sometimes necessary, it is rarely the key ...
ROUNDING CAN REDUCE SALES
Researchers Manoj Thomas, Daniel H. Simon and Vrinda Kadiyali conducted many studies looking at the effects of precise pricing. Precise pricing involves using a price that avoids round numbers and appears precise. $211.35 is considered precise. $210.00 is considered rounded. A recent study found that ‘precise prices’ (say $395,425) are most often judged less than ‘round ...
HOW TO CAUSE CUSTOMERS TO FORGET ABOUT PRICE.
HOW TO CAUSE CUSTOMERS TO FORGET ABOUT PRICE. In 2022, Bernard Arnault was the world's wealthiest individual. In 2023, he is ranked number 2 behind Elon Musk. Arnault is the Chair and CEO of LVMH - Moët Hennessy Louis Vuitton, the world's ...
WE ARE VICTIMS OF COLLECTIVE ILLUSION.
A recent report on the Reserve Bank of Australia highlighted the dangers of ‘group think’ in setting interest rates. It was suggested that when the Governor makes a recommendation to the board – the natural inclination is to accept it. A consensus is reached without in-depth critical reasoning. In his book Collective Illusions, Todd Rose examined the drivers ...
HOW TO TEST SACRED COWS.
Few businesses on the planet have been more successful than IKEA. Established in 1943, the world's 8th largest retailer employs 211,000 people in one of 445 stores in 52 countries. In 2022, IKEA reported a gross profit of 14 billion euros, up from 13 billion euros in the previous year. IKEA has revolutionised retailing, persuading shoppers to travel to ...
