Melina Palmer Png

A Behavioral Economics Analysis of Costco

Melina Palmer

If you’ve been listening to the podcast for a while, you have likely heard me mention Costco before. They do so many things differently than traditional business might suggest is best or profitable, but they have found a way to make it work and their business thrives because of it. In this episode, I’m going to discuss how Costco rivals almost any store or brand, and how they don’t do traditional marketing and advertising.

I’ll talk about how they invest back into the community, have a simple code of ethics, reward shareholders, and how having a membership model and plan can work if it’s done right. Costco is the perfect brand for a behavioral economics analysis, because they do things differently, but in a smart, strategic way that makes their unconventional plan a huge success. Today, we learn why Costco is the powerhouse that it is (and what you can implement in your own business – even if your model is completely different).

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