7. Now *
9. Quick *
13. Hurry *
15. Suddenly *
20. Bargain *
21. Easy *
59. Revolutionary *
61. Amazing *
62. Remarkable *
63. Startling *
64. Sensational *
65. Magic *
66. Miracle *
68. Improvement *
70. Announcing *
75. Introducing *
76. Offer *
77. Compare *
78. Challenge *
79. Wanted *
An in-depth look at why people buy what they buy.
At the most basic level, it’s important to understand that most people buy for one of two reason — they buy to move closer to pleasure or to move further away from pain.
.. People don’t buy a cherry red Maserati because it’s the logical thing to do — they buy it because it’s makes them feel something.
The same can be said for a $10,000 speaker system or a $500 pair of Denim Jeans or a $300 plate of caviar or a $1,000/night stay at a luxurious resort.
These decisions aren’t logical, they’re emotionally driven.
.. So, when selling a product that is pleasurable to your customer, be sure to consider triggering their emotions. Make them feel something.
.. People justify their purchases with logic.
In the previous section we discussed that when people make purchases to move them closer to pleasure they will make their buying decisions based off emotion.
.. When Mark goes out and makes the emotionally charged decision of spending $60,000 on a brand new Maserati, sooner or later he will have to answer the question, “Mark, why the hell did you spend a small fortune on a cherry red Maserati?”
This is where the concept of logic enters into the picture. Generally speaking, while people make emotional buying decisions, they will justify their purchases with logic.
.. People buy because other people buy.
.. There is a reason products “trend” on Amazon, they become increasingly popular as more people use them, wear them and show them off.
.. what’s very interesting about this concept of trust is that 84% of online shoppers are now trusting product reviews as much as recommendations from their actual friends.
.. As a marketer, be very aware of what your customer’s are saying both online and offline about your product or service. Not to mention, create products or services that are easily-shareable to strengthen their chances of going viral.
.. Ask your customers how they feel when they use your product. Pay extra close attention to the words and emotions they describe. Recycle their words and feelings and enhance them in your marketing messaging.
.. You need to find out the logic behind buying whatever you’re selling. I would start by asking your customers the following question — our product is kind of expensive, why did you spend your hard earned money on it? Their answer(s) will be heavily factual. They won’t say “because I love it and it makes me feel good”. They’ll be more likely to say something like “because it had features A, B and C and because it solved this specific problem.” Yes, this question will be a bit abrasive, but it is important. It puts the customer in the hot seat much in the same way if they were asked by a friend or family member. Once you’ve established the logical reasons for buying your product or service, this should also be included in your marketing messaging.
we talk a lot about the “post-war capital-labor accord” and the golden age of the 1940s-1970s. In these years, inequality went down, unions flourished, civil rights laws were passed along with LBJ’s Great Society programs like Medicare, etc. Corporations saw themselves as not just profit-seeking nexuses-of-contracts but also as institutions with duties to their stakeholders – employees, local community organizations, etc.
.. Then everything went to hell in the 1970s. Oil shocks, poor economic performance, large increases in foreign competition, an overheated economy created by the meeting of increased social spending and increased military spending, all combined to create massive inflation and other sorts of economic upheaval.
.. union contracts were blamed for causing inflation and big business began to push for
regulatory changes (to fight the hated EPA and OSHA, along with unions) and increased layoffs.
Institutional investors, growing rapidly in size in part *because* of the prosperity of the “golden age” (e.g. the massive pension funds like CALPERS and TIAA-CREF), began to demand discipline from corporations unused to having to listen to anyone
.. Changes in financial regulations and institutions made possible the junk bond market and, in turn, a more active market for corporate control – suddenly, large firms that were used to making acquisitions became targets.
.. by the mid-1980s, the golden age had ended along with the capital-labor accord and something new had begun – perhaps we can call it the “neoliberal era
.. This era’s hallmarks include the dramatic decline in unions, massive increases in the share of wealth going to the top 1% and .1% (cf. Piketty and Saez), massive increases in the share of profits going to finance (cf. Krippner 2005), and an overall change in the way that corporations perceived themselves.
.. No longer institutions with obligations beyond profit-seeking, corporations became (thought of as) legal fictions that served the sole purpose of maximizing shareholder value
.. The old dominant strategy of firms was to “retain and reinvest”, the new mantra was to “downsize and distribute”
.. The old model of the firm was GM – a massive, vertically integrated institution that dominated a market and did everything in-house. The new model was the “Original Equipment Manufacturer” (OEM), a firm like Nike that designs a product and markets it but outsources and off-shores as much of the actual producing, distributing, etc. The firm is now a brand, an identity demarcating a certain set of contracts, whose value is more about intangibles than men and machines.
.. Okun’s Law is an economic relationship between the magnitude of an economic downturn (in terms of real GDP) and increases in unemployment
.. if GDP (production and incomes, that is) rises or falls two percent due to the business cycle, the unemployment rate will rise or fall by one percent. The magnitude of swings in unemployment will always be half or nearly half the magnitude of swings in GDP.
.. The last downturns – 1991ish, 2001ish and the current moment – have all been characterized by “jobless recoveries” or, more broadly, much larger decreases and much smaller increases in unemployment than would be predicted by Okun’s law.
.. “businesses will tend to “hoard labor” in recessions, keeping useful workers around and on the payroll even when there is temporarily nothing for them to do”.
.. Manufacturing firms used to think that their most important asset was skilled workers. Hence they hung onto them, “hoarding labor” in recessions. And they especially did not want to let go of their prime productive asset when the recovery began. Skilled workers were the franchise. Now, by contrast, it looks as though firms think that their workers are much more disposable—that it’s their brands or their machines or their procedures and organizations that are key assets.
.. The 1980s saw a reordering of the world – a transition from a period governed by one set of rules that privileged the relationship between businesses and their employees to one that privileged (relatively speaking, in ideology anyway) shareholders.
.. What variables should we care about, if GDP seems to be connected less to welfare than it used to be?
.. the neoliberal period is marked by dramatic, mind-boggling increases in executive compensation without, as far as I know, any signs of better performance or increased shareholder value.
Human beings have many natural tendencies that need to be vigilantly monitored in the context of modern life. For example, our craving for fat, salt and sugar, which served us well when food was scarce, can lead us astray in an environment in which fat, salt and sugar are all too plentiful and heavily marketed to us. So too our natural curiosity about the unknown can lead us astray on a website that leads us too much in the direction of lies, hoaxes and misinformation.
In effect, YouTube has created a restaurant that serves us increasingly sugary, fatty foods, loading up our plates as soon as we are finished with the last meal. Over time, our tastes adjust, and we seek even more sugary, fatty foods, which the restaurant dutifully provides. When confronted about this by the health department and concerned citizens, the restaurant managers reply that they are merely serving us what we want.
.. There is no reason to let a company make so much money while potentially helping to radicalize billions of people, reaping the financial benefits while asking society to bear so many of the costs.