In an evaluation of customer behavior called “Tightwads and Spendthrifts,†Rick, Cryder, and Loewenstein recognize that the level to which people today will invest is determined by the psychological “pain†that the spending causes. Individuals will spend, they argue, until it hurts.
In particular, they determine three sorts of men and women:
The “unconflicted,†or the biggest group, commit an average volume of dollars before pain ensues. For these folks, marketing and advertising need to sway them to enhance their discomfort threshold.
The “spendthrifts’ invest readily and conveniently. Standard advertising and marketing methods is often employed to attract this sort of consumer.
The hardest individuals to reach will be the “tightwads†who take plenty of persuading to element with their money since they hit the pain threshold sooner. Minimizing the buying discomfort for this group may be the secret to success.
The book that you are reading bases all of its advertising and marketing strategies on this premise laid out by Rick, Cryder, and Lowenstein. Promoting a solution to a person demands the marketer, I contend, to locate ways to move the meter of one’s discomfort threshold by means of some kind of reframing. And what could be far more potent in the job of reframing discomfort than by tying our spending habits to our incredibly identity? The athlete who runs till he or she can hardly stroll views the lactic acid accumulating in his or her legs not as pain but as an investment in future glory around the field. The law student who pulls an all-nighter studying for an exam will not be experiencing the low of pain, but is rather preparing for the higher of accomplishment inside the classroom.
So when the marketer frames the solution in such a way that spending is tied to a bigger truth regarding the identity on the consumer, then there ceases to become a pain threshold since there ceases to become any discomfort at all. Purchasing a item is not seen by the customer with regards to just how much it drains from one’s bank account, you see, but is rather seen when it comes to how much it adds to one’s identity.
The rest in the book lays out for the reader 4 with the most potent facets of our identities as they relate to our consumerist tendencies: people today today are specially inattentive, trendy, needy, and tribal.
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