#1053 - Richard Shotton - 11 Psychology Tricks From the World’s Best Brands | Modern Wisdom

The podcast explores the application of behavioral science principles in marketing and branding, with Richard Shotton, a behavioral science expert, providing insights. The conversation covers various cognitive biases, such as the gold dilution effect, price relativity, and loss aversion, illustrating how these impact consumer behavior. Brands like Five Guys, Red Bull, and Guinness are analyzed to demonstrate successful marketing strategies rooted in psychological principles. The discussion also examines the illusion of effort, the impact of AI on perceived value, and the effectiveness of scarcity and limited-time offers. Shotton emphasizes the importance of understanding consumer psychology for effective marketing and internal persuasion.

Outlines

Part 1: Core Branding, Focus

Part 2: Pricing, Perception, Value

Part 3: Effort, Quality, Distinctiveness

Part 4: Scarcity, Habits, Influence

Part 5: Cognitive Biases, Framing

Part 6: Psychology of Persuasion

Part 7: Resources, Recommendations

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#1053 - Richard Shotton - 11 Psychology Tricks From the World’s Best Brands

Modern Wisdom

Part 1: Core Branding, Focus

The Gold Dilution Effect: Why Focusing on One Thing Makes You Better

Selling Outcomes, Not Features: Visualizing Productivity for Nutonic

Part 2: Pricing, Perception, Value

Price Relativity: How Red Bull and Grenade Bars Changed the Comparison Set

The Grenade Effect: Premium Pricing and Gaming the Meal Deal System

The Pratfall Effect: Leaning into Guinness's Delay and Imperfections

Part 3: Effort, Quality, Distinctiveness

The Labor Illusion: How Dyson and Skyscanner Emphasize Effort for Perceived Quality

The Illusion of Effort and AI: Why AI Music Feels Egregious

Liquid Death: The Power of Distinctiveness in Marketing

Haagen-Dazs: Creating an Image of Sophistication Through Dubious Provenance

Part 4: Scarcity, Habits, Influence

The Pumpkin Spice Latte: Scarcity and Habituation

Influencer Marketing: The Messenger Effect and Costly Signaling

KFC: The Power of Scarcity and Limiting Fries

Part 5: Cognitive Biases, Framing

Buy Now, Pay Later: The Penny-a-Day Effect

Loss Aversion: Framing Negatives vs. Positives

Present Bias: Give More Tomorrow and Fast Food

Moral Licensing: Virtue and Overcompensation

Part 6: Psychology of Persuasion

The Power of Indulgence: Selling Vegetables and Grenade Bars

The Keats Heuristic: Rhyme and Believability

Strangers to Ourselves: People Don't Know Their Own Motivations

The Semmelweis Reflex: Ignoring New Ideas That Challenge Existing Ones

Part 7: Resources, Recommendations

Richard Shotton's Newsletter and Book Recommendations

#1053 - Richard Shotton - 11 Psychology Tricks From the World’s Best Brands

Modern Wisdom

Part 1: Core Branding, Focus

00:41The Gold Dilution Effect: Why Focusing on One Thing Makes You Better

The Gold Dilution Effect: Why Focusing on One Thing Makes You Better

04:36Selling Outcomes, Not Features: Visualizing Productivity for Nutonic

Selling Outcomes, Not Features: Visualizing Productivity for Nutonic

Part 2: Pricing, Perception, Value

08:26Price Relativity: How Red Bull and Grenade Bars Changed the Comparison Set

Price Relativity: How Red Bull and Grenade Bars Changed the Comparison Set

15:58The Grenade Effect: Premium Pricing and Gaming the Meal Deal System

The Grenade Effect: Premium Pricing and Gaming the Meal Deal System

19:33The Pratfall Effect: Leaning into Guinness's Delay and Imperfections

The Pratfall Effect: Leaning into Guinness's Delay and Imperfections

Part 3: Effort, Quality, Distinctiveness

22:32The Labor Illusion: How Dyson and Skyscanner Emphasize Effort for Perceived Quality

The Labor Illusion: How Dyson and Skyscanner Emphasize Effort for Perceived Quality

27:18The Illusion of Effort and AI: Why AI Music Feels Egregious

The Illusion of Effort and AI: Why AI Music Feels Egregious

33:53Liquid Death: The Power of Distinctiveness in Marketing

Liquid Death: The Power of Distinctiveness in Marketing

37:58Haagen-Dazs: Creating an Image of Sophistication Through Dubious Provenance

Haagen-Dazs: Creating an Image of Sophistication Through Dubious Provenance

Part 4: Scarcity, Habits, Influence

42:43The Pumpkin Spice Latte: Scarcity and Habituation

The Pumpkin Spice Latte: Scarcity and Habituation

46:37Influencer Marketing: The Messenger Effect and Costly Signaling

Influencer Marketing: The Messenger Effect and Costly Signaling

54:00KFC: The Power of Scarcity and Limiting Fries

KFC: The Power of Scarcity and Limiting Fries

Part 5: Cognitive Biases, Framing

58:15Buy Now, Pay Later: The Penny-a-Day Effect

Buy Now, Pay Later: The Penny-a-Day Effect

1:02:59Loss Aversion: Framing Negatives vs. Positives

Loss Aversion: Framing Negatives vs. Positives

1:07:34Present Bias: Give More Tomorrow and Fast Food

Present Bias: Give More Tomorrow and Fast Food

1:13:10Moral Licensing: Virtue and Overcompensation

Moral Licensing: Virtue and Overcompensation

Part 6: Psychology of Persuasion

1:16:19The Power of Indulgence: Selling Vegetables and Grenade Bars

The Power of Indulgence: Selling Vegetables and Grenade Bars

1:20:16The Keats Heuristic: Rhyme and Believability

The Keats Heuristic: Rhyme and Believability

1:23:18Strangers to Ourselves: People Don't Know Their Own Motivations

Strangers to Ourselves: People Don't Know Their Own Motivations

1:25:39The Semmelweis Reflex: Ignoring New Ideas That Challenge Existing Ones

The Semmelweis Reflex: Ignoring New Ideas That Challenge Existing Ones

Part 7: Resources, Recommendations

1:33:51Richard Shotton's Newsletter and Book Recommendations

Richard Shotton's Newsletter and Book Recommendations