Question

how do marketers use each chosen effect to maximize their profits : decoy effect , priming , framing , Reciprocity and selective attention

Answer 1

Decoy Effect is the process through which consumers are offered preferences to choose among two options by offering third option (which may be inequitably dominated). Hence, the marketers uses this method to influence the way consumers buy products and make appropriate purchase or making absolute preference. For example, spending $2 for small size popcorn verses $3 for large size. Therefore, the ‘bargain hunter’ becomes a ‘value seeker’.

Priming is used to influence a response by an individual to have a ensuing stimulus with no conscious guidance. It is generally used to change the reaction by a customer. For example, how a web site to search for a car brand and what a viewer can remember about the brand by reacting towards the available content. Hence, Marketers use this technique to increase profits, by making people remember about the key factors related to the brand.

Framing effect is used to present the choices (irrespective of loss or a gain). Individual react in different ways in both the conditions. Everyone hate in losing rather preventing. So generally marketers focus on things which a consumer may lose if they will take on the given offer and in this case a significant loss becomes a motivator for profits.

Reciprocity plays a role in terms of how an individual should respond to marketing and becomes valuable. In this case an individual may be ready to do anything for a brand in return. For example, writing a testimonial for a brand.

Selective attention relates with the stimuli which is generated to get the brand noticed by a consumer. It is like when an individual learn about something new and unconsciously look out for it everywhere. For example, retargeted advertisements used by marketers.