Many marketers think they understand consumer behaviour. But do they? They certainly need to! It is a big call to try and change or influence consumer behaviour without understanding its antecedents.  Did you know the following? Leverage the power of competitive sentiment and fear of loss to cause a consumer to pay a premium for […]

Many marketers think they understand consumer behaviour. But do they? They certainly need to! It is a big call to try and change or influence consumer behaviour without understanding its antecedents.  Did you know the following? Leverage the power of competitive sentiment and fear of loss to cause a consumer to pay a premium for your product. Harvard Universities Max Bazerman generated $17,000 for charity – auctioning $20 bills to his students. Students were asked to bid over time for a $20.00 note, knowing that they are in a competitive auction and that all profits generated by the auction would go to charity. One student bid and paid $204 for a $20 bill. This study has been replicated many times. Other psychologists have also auctioned off $20 bills, and in most cases, while the bidding started at $1.00, it invariably rose to $20 and then $21 – and in some cases rose…