All articles tagged with #consumer psychology
Originally Published 2 months ago — by Fortune
Starbucks' limited-edition $29.95 Bearista Cold Cup sold out within hours, leading to chaos in stores and high resale prices up to $50,000 online. The company apologized for the unexpected popularity, highlighting consumer desire for unique, status-symbol items even during economic challenges, driven by the psychology of small treats and exclusivity.
Originally Published 7 months ago — by Forbes
Southwest Airlines' decision to start charging for checked bags, ending its 'bags fly free' tradition, risks damaging customer trust and loyalty by violating key consumer psychology principles like loss aversion, brand consistency, and anchoring, potentially leading to significant long-term brand and market share losses despite short-term revenue gains.
Originally Published 1 year ago — by The Associated Press
Retail and restaurant businesses are increasingly offering paid loyalty programs to make their most dependable customers feel valued for an up-front fee, promising perks such as free deliveries, first dibs on new launches, and priority treatment. This trend is rooted in the business case for treating big spenders well and the fundamental human need for belonging. However, some experts warn that businesses run the risk of making customers who can't afford to opt in feel left out and diminished, and skeptics think paid memberships might be a way for companies to disguise cost increases or cheat their subscribers by changing the program perks down the road.
Originally Published 2 years ago — by Daily Mail
A Trader Joe's enthusiast shared the psychological tricks used by the popular supermarket chain to encourage customers to spend more. The store's business model focuses on investing in customer experience, with charismatic employees who go above and beyond to assist shoppers. The store's artistic design, hand-drawn signs, and limited product selection create a local market feel, while the lack of choice reduces decision fatigue and impulsive buying. The layout of the store and parking lot creates a sense of busyness, and seasonal and limited-run products add to the shopping experience. Trader Joe's relies on customer loyalty and consistent pricing to keep shoppers coming back.