Today I want to talk about the two different norms that exist and how each of them play out in the long run, how they impact our relationships, a products market perception, brand loyalty, drives virtual ownership and makes offers and ads work or in some cases not work.
Social norm is driven by the emotional aspects of our behavior and our perception towards people and situations. Therefore, reciprocity, empathy and even virtual ownership (a sense of ownership and not actually owning something) can make a huge difference to how we behave. This aspect is widely used in product/service promotions for instance when consumers are offered automobile test drives, or trial period premium cable TV subscription at a heavy discount. The mere act of test driving can create a sense of virtual ownership as the mind starts visualizing the test drive vehicle as something the individual owns. This then has the potential to influence purchase decisions because he/she starts valuing it much more than when there was no sense of a virtual ownership here.
Similarly, once we begin to experience the goodness or additional benefits of a premium subscription, letting it go becomes way too harder than paying the extra bucks for the premium subscription. All this because the mind gets used to it as something we now own and letting it go gets difficult.
Market norm is driven by the rules of a rational economist or a rational player as espoused in Game theory. Cost benefit analysis and assessment form the basis of decision making when market norm is at play.
The remarkable point is we do have some control on which norm gets triggered in a situation,for instance by the choice of words we use... More on this later. Until then, have a good rest of the week.
Social norm is driven by the emotional aspects of our behavior and our perception towards people and situations. Therefore, reciprocity, empathy and even virtual ownership (a sense of ownership and not actually owning something) can make a huge difference to how we behave. This aspect is widely used in product/service promotions for instance when consumers are offered automobile test drives, or trial period premium cable TV subscription at a heavy discount. The mere act of test driving can create a sense of virtual ownership as the mind starts visualizing the test drive vehicle as something the individual owns. This then has the potential to influence purchase decisions because he/she starts valuing it much more than when there was no sense of a virtual ownership here.
Similarly, once we begin to experience the goodness or additional benefits of a premium subscription, letting it go becomes way too harder than paying the extra bucks for the premium subscription. All this because the mind gets used to it as something we now own and letting it go gets difficult.
Market norm is driven by the rules of a rational economist or a rational player as espoused in Game theory. Cost benefit analysis and assessment form the basis of decision making when market norm is at play.
The remarkable point is we do have some control on which norm gets triggered in a situation,for instance by the choice of words we use... More on this later. Until then, have a good rest of the week.
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