A powerful brand is the consistent identity of a trusted source. A powerful brand reflects its trusted reputation for quality, leadership, and integrity, underpinning all stakeholder relationships.
With both inflation and recession fears high, many companies are embarking on cost-reduction initiatives. Moreover, the dislocations of the pandemic have changed many customer needs and buying patterns. So much flux may be unnerving but actually creates opportunity for firms to alter business models in ways that both reduce expenses and keep customers delighted. This is a time to look beyond the typical business reaction and use the uncertainty as an advantage.
Which is better for the brand? Asking users to pay for individual services? Or asking users to buy a bundle of services? There is a lot behavioral psychology involved in this choice that affects brand perceptions. There are inherent risks whichever approach a brand employs.
Everyone in retail has heard the apocryphal story about how Stanley Marcus, known to all as Mr. Stanley, would greet his customers at the Neiman Marcus door in Dallas every morning. He knew his customers by name, knew what they wanted and treated them as the VIPs they were. They returned the favor by giving Mr. Stanley and his Neiman Marcus store their lifelong loyalty.
Persuasion engages innate human responses. When used as an influence tactic, scarcity can change beliefs, attitudes, or behaviors due to actual or perceived pressure. Social psychologists have been especially interested in scarcity and influence because it can cause significant behavior changes and result in people making decisions they otherwise would not have made. Items have a greater appeal when their availability is limited or restricted.
