Mental accounting also referred to as psychological accounting, refers to mental categories and values people associate with money, be it losses or expenses. This behavioural economics aspect points out that people may not always be logical about their expense and investment decisions because they view money in different categories, with some categories given more prominence than others.
Colour may rightly be called the most important element in branding and design. Human minds associate meanings to colours. Psychiatrists believe that humans tend to have bodily reactions to stimuli from colours. Hence marketers should use them carefully to send the right messages and create the desired impressions in consumers’ minds.
In today’s world, having good quality products need not be enough for success. A good marketing strategy is crucial to make or break a brand. Be it through word-of-mouth or through advertisements, marketing helps to lessen the gap between brands and consumers. Since the advent of digital marketing, it’s become a two way process – in addition to brand communication, customers also communicate their needs, feedback and suggestions to brands.
Ambiguity aversion refers to the bias when people tend to lean towards known outcomes over unknown ones. They want to avoid uncertainty and choose what they are confident of. It is applicable when a choice has to be made between risky or ambiguous alternatives.
Owning a home is one of the most important and strongest aspirations of a person’s life journey. Emotions are attached to a buyer’s decision to buy a real estate property. Touching the right chord could make or break his/her decision to go for a deal.