Episode 62 Interview: Melina Palmer, author of What your Customer Wants and Can't Tell You
In this interview, we catch up with Melina Palmer who has released a new book: The Truth About Pricing. She discusses how brands like Hermes and Costco have applied principles from behavioral science. We cover ideas like scarcity, reciprocity and the importance of in groups.
Episode Highlights
The extreme scarcity strategy behind Hermès’ Birkin bags creates exclusivity, high demand, and a resale market more profitable than gold.
Scarcity consistently outperforms other biases in studies measuring their relative effectiveness in influencing consumer behavior.
Costco leverages behavioral biases like scarcity, reciprocity, and value priming to drive loyalty and sales.
Resources & Useful Links
See below for additional resources from this week's episode.
Keep Listening
Ep51 - Interview: Seth Stephens-Davidowitz, author of Everybody Lies, on how to uncover hidden consumer motivations
MichaelAaron and Richard sit down with economist and data scientist Seth Stephens-Davidowitz, who reveals why direct questions often don't reveal one's true motivations. They also unpack concepts like the illusion of effort, the curse of knowledge, and how to handle conflicting datasets effectively.
Ep50 - The replication crisis: How to avoid basing your marketing on bogus findings
This episode dives into a concept known as "replication crisis" in behavioral science. We explore how repeated attempts to replicate certain studies have yielded results that challenge or contradict the original findings, calling their validity into question. We highlight some well-known studies to be cautious of and share practical advice on how to ensure the findings you apply are reliable.
