Neuromarketing: 𝐇𝐨𝐰 𝐭𝐨 𝐎𝐯𝐞𝐫𝐜𝐨𝐦𝐞 𝐓𝐡𝐞 “𝐎𝐮𝐜𝐡!” 𝐨𝐟 𝐏𝐚𝐲𝐢𝐧𝐠?
Day by day the competition in the market is increasing in rocket speed. The question is “𝐡𝐨𝐰 𝐭𝐨 𝐬𝐭𝐚𝐲 𝐚𝐰𝐚𝐲 𝐟𝐫𝐨𝐦 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 𝐨𝐫 𝐛𝐞𝐚𝐭 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧?”
The answer is 𝐍𝐞𝐮𝐫𝐨𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠.
𝐍𝐞𝐮𝐫𝐨𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 says 𝐝𝐨𝐧’𝐭 𝐬𝐞𝐥𝐥 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬, 𝐬𝐞𝐥𝐥 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫’𝐬 𝐁𝐫𝐚𝐢𝐧.
There are 𝟏𝟎𝟎’𝐬 𝐨𝐟 𝐭𝐨𝐩𝐢𝐜𝐬 𝐢𝐧 𝐍𝐞𝐮𝐫𝐨𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 which is not possible to cover in the single article.
So, if you like this first result-oriented Neuromarketing topic, 𝐟𝐨𝐥𝐥𝐨𝐰 𝐦𝐞 Pradeep Verma for other 𝟗𝟗 𝐧𝐞𝐮𝐫𝐨𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐭𝐨𝐩𝐢𝐜𝐬 which will definitely 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐲𝐨𝐮𝐫 𝐬𝐚𝐥𝐞𝐬 no matter what product you have and what is the cost of the product.
Let’s come to the point….
- 𝗛𝗼𝘄 𝘁𝗼 𝗢𝘃𝗲𝗿𝗰𝗼𝗺𝗲 𝗧𝗵𝗲 “𝗢𝘂𝗰𝗵!” 𝗼𝗳 𝗣𝗮𝘆𝗶𝗻𝗴?
One of the key insights neuroeconomics and neuromarketing research have provided us is that buying something can cause the pain center in our brain to light up. Below are the main pain centers.
𝐁𝐮𝐧𝐝𝐥𝐢𝐧𝐠 𝐌𝐢𝐧𝐢𝐦𝐢𝐳𝐞𝐬 𝐏𝐚𝐢𝐧
Auto luxury bundles minimize negative activation because their price tag covers multiple items.
The consumer can’t relate a specific price to each component in the bundle (leather seats, sunroof, etc) and hence can’t easily evaluate the fairness of the deal or whether the utility of the accessory is worth the price.
Similarly, 𝐀𝐦𝐚𝐳𝐨𝐧 offers bundle recommendations to generate more revenue and increase buyers.
Cost perceived fairness or unfairness of the deal that creates the reaction.
There is not always a single “𝐟𝐚𝐢𝐫” price for an item. For most people, a cup of tea at 𝐖𝐚𝐠𝐡 𝐁𝐚𝐤𝐫𝐢 𝐋𝐨𝐮𝐧𝐠𝐞 is a fair price which is more than 𝟏𝟎𝐗 𝐡𝐢𝐠𝐡𝐞𝐫 than a cup from a street corner Tea Stall.
𝒀𝒐𝒖𝒓 𝒑𝒓𝒊𝒄𝒆 𝒔𝒉𝒐𝒖𝒍𝒅 𝒃𝒆 𝒇𝒂𝒊𝒓 𝒆𝒏𝒐𝒖𝒈𝒉 𝒂𝒄𝒄𝒐𝒓𝒅𝒊𝒏𝒈 𝒕𝒐 𝒕𝒉𝒆 𝒔𝒖𝒓𝒓𝒐𝒖𝒏𝒅𝒊𝒏𝒈 𝒑𝒆𝒐𝒑𝒍𝒆.
𝐂𝐫𝐞𝐝𝐢𝐭 𝐚𝐬 𝐏𝐚𝐢𝐧𝐤𝐢𝐥𝐥𝐞𝐫
A credit card reduces the pain level by transferring the cost to a future period where it can be paid in small increments.
Hence, not only does a credit card enable a consumer to buy something without actually having the cash, but it also tips the scale as one’s brain weighs the pain versus the benefit of the purchase.
𝐁𝐫𝐚𝐢𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲: 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐏𝐚𝐢𝐧, 𝐌𝐚𝐱𝐢𝐦𝐮𝐦 𝐒𝐚𝐥𝐞𝐬
Pricing and the product itself need to be optimized to minimize the pain of paying.
First, the price must be seen as fair. If your product is more expensive than others, take the time to explain why it is a premium product.
If you find yourself in a situation where, for cost or other reasons, the price of a product is likely to produce an “𝐨𝐮𝐜𝐡!” reaction from your customers, see if some kind of a bundle with complimentary items will dull the pain.
Payment terms and credit options can also reduce the pain of paying. Don’t push your customers into buying products they can’t afford, but even affluent customers will feel less pain if they don’t have to make immediate payment in cash.