Behavioral Economics

By: A Staff Writer

Updated on: Jul 19, 2024

Mind Games for the Win

Your customers aren’t always rational. Understand their quirks to boost sales.

• Anchoring Effect: First number they see influences what feels ‘reasonable’.
• The Urgency Factor: Limited time, limited stock… FOMO drives action.
• Social Proof: Testimonials and reviews create the herd mentality.
• The Power of Free: Even small freebies feel like wins for customers.
• Choice Overload: Too many options lead to decision paralysis.
• Price = Perception: How you frame price impacts perceived value.

Small tweaks based on psychology make a big difference to your bottom line.