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What is behavioral economics? Why does it matter to you?

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Podcast Episodes

What is behavioral economics? Why does it matter to you?

344. Mastering Customer Behavior: Neuroscience Secrets with Prince Ghuman (Refreshed Episode)

In this episode of The Brainy Business podcast, you’ll hear an insightful conversation between host Melina Palmer and guest Prince Ghuman, a renowned neuromarketer and author. The discussion centers around the importance of incorporating neuroscience and psychology in marketing strategies. Prince emphasizes the need for marketers to understand human behavior and behavior science in order to create more effective campaigns and improve customer satisfaction. 

He discusses concepts like pattern recognition, the mere exposure effect, and the balance between novelty and familiarity. Prince also explores the adoption curve and how different consumer segments prefer varying degrees of newness and safety. By incorporating these insights into your marketing strategies, you can better connect with consumers and optimize your marketing efforts. This episode provides valuable knowledge and practical tools for marketers seeking to enhance their marketing strategies and campaigns.

In this episode, you will:

  • Discover the untapped potential of incorporating neuroscience and psychology in your marketing strategies for more effective customer engagement.
  • Unravel the concept of NAS (new and safe) and unlock its impact on consumer preferences, positioning your brand as a trusted choice in the market.
  • Gain a deep understanding of the adoption curve and learn how to appeal to different consumer segments, maximizing your marketing efforts for better ROI.
  • Harness the power of pattern recognition to identify consumer preferences and create meaningful brand connections that drive loyalty and repeat business.
  • Explore the shared responsibility of consumers and marketers in shaping the digital landscape, ensuring ethical practices that foster trust and satisfaction in the online marketplace.
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HERE'S A 2 MINUTE TIP.

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SHOW NOTES:

00:00:00 – Introduction,
Melina introduces the episode and welcomes Prince Ghuman as the guest. They discuss the intersection of behavioral science and marketing and Prince’s background in the field.

00:02:08 – Prince’s Background and Playbook,
Prince shares his journey into the world of behavioral science and marketing. He discusses his experience working at startups and established corporations, as well as his transition to becoming a professor. Prince highlights the importance of neuroscience and psychology in marketing and mentions the playbook he developed over the years.

00:06:12 – Principles vs. Hard Science in Neuromarketing,
Prince explains the division between principles and hard science in neuromarketing. He emphasizes the significance of understanding the principles of human behavior and psychology in marketing, even if neuroimaging is not accessible to all marketers.

00:08:23 – The Importance of Principles in Neuromarketing,
Prince discusses the importance of principles in neuromarketing and how they can be applied to improve marketing strategies. He mentions the lack of emphasis on neuroscience and psychology in traditional marketing curricula and highlights the need for more practical applications of behavioral science in marketing.

00:10:00 – Applying Decision-Making Science to Marketing,
Prince mentions the book Thinking, Fast and Slow by Daniel Kahneman and its significance in understanding decision-making. However, he emphasizes the need for tactics and practical applications of decision-making science in marketing and customer experiences. He envisions a future where neuromarketing principles are integrated.

00:15:00 – Evolution of Marketing and A/B Testing,
The conversation begins with a discussion about the evolution of marketing and the use of A/B testing. The guest emphasizes the importance of understanding the psychological underpinnings behind marketing strategies and conducting more scientifically informed tests.

00:16:30 – Why We Like What We Like,
The guest introduces the concept of the mere exposure effect, which states that the more we are exposed to something, the more likely we are to prefer it. They also discuss the idea of “new and safe,” where people are attracted to things that are both novel and familiar. Understanding this concept can help brands come up with better product tests and launch strategies.

00:18:16 – The Psychological Context of Product Adoption,
The guest explains how the psychological context of product adoption is often overlooked. Early adopters are more accepting of imbalances between new and safe, while late adopters prefer safety. Understanding this can help brand managers tailor their launch strategies and target different segments of the market.

00:21:14 – Using Familiarity and Novelty in Product Launches,
The guest uses the example of Oreo cookies to illustrate how brands can incorporate familiarity and novelty to attract mass market appeal. By sandwiching a new flavor between familiar elements, brands can grab attention and break through established patterns, even if the new flavor itself doesn’t sell well.

00:24:34 – Pleasure in Pattern Recognition,
Prince addresses a question about why humans derive pleasure from pattern recognition.

00:29:31 – The Use of Game Mechanics in Engagement,
The guest talks about how game mechanics are being used across various genres of games to increase engagement. He gives examples of sports games like NBA, soccer, FIFA, and NFL, as well as board games like Monopoly. Unpredictability is a key factor in increasing engagement, and this is seen in social media apps like Facebook, Instagram, and TikTok, where users are constantly scrolling to see what comes up next in their feed.

00:30:46 – Engagement 2.0 and Compulsive Behavior,
The guest discusses how engagement in digital products, like social media apps, can lead to compulsive behavior. The unpredictability of what comes next on these platforms keeps users engaged and scrolling. He emphasizes that engagement is only a few steps away from compulsive behavior and explains why some apps have come under fire for exploiting this.

00:34:57 – The Role of Users in Data Science and Behavior Modeling,
The guest points out that while tech companies are often criticized for using data science unethically, users also play a role in this behavior modeling. He suggests that consumers need to be willing to pay for digital products and services if they want to see a change in the way data science is used. He compares it to the organic food movement, where consumers demanded and paid a premium for healthier options.

00:36:27 – Marketers’ Responsibility in Understanding Neuroscience,
The guest emphasizes the importance for marketers to understand neuroscience and psychology in order to create better products and experiences for consumers.

00:43:10 – Importance of Understanding Your Customers,
Understanding your customers’ goals and communication preferences is crucial in business. Avoid comparing yourself to others and focus on meeting your customers’ needs. This is the foundation of Melina Palmer’s book What Your Customer Wants and Can’t Tell You.

00:43:37 – Conclusion,
Melina’s top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media — you’ll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.

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