Samuel RaccahRichard SassonZiv RottmanGroup ProjectExample 1On its website, under Hours and Admission, the New York Metropolitan Museum of Art lists a series of recommended prices, which is based on age and occupation. The meaning of the word recommended is intentionally ambiguous and its doubtfulness is increased by the following word associated to it - fees. The policy of the Museum behind it is very simple: every visitor is not obliged to pay the recommended fee, and can arbitrarily choose the amount of money he/she wants to donate to the Museum. However, rather than implementing an automatic mechanism, the purchasing system requires the interaction between the cashier and the visitor. Furthermore, according to a recent AP article, the Museum's ticket cashiers are trained to be vague about the entry fee for General Admission and will just try to charge you the full amount. This deliberate behavior is aimed to maximize ticket revenues. The reason and the assumptions that led the Museum to adopt this strategy rather than a usual and tradition fixed price policy are as follows:- Social Proof - Every customer who wants to visit the Museum has the trivial perception that the entry is free, but the interaction with the cashier and the very high likelihood that every customer before and after him will donate the nominal value leads the visitor to act in the same manner. Both the physiological sense of affinity with our similar and the Darwinian competition between human beings in terms of richness, affect the behavior of the visitor, thus leading him to donate the suggested amount. This sample shows two transverse application of the Social Proof principle. First, customers tend to imitate people who are similar to them (the acceptation of similar is situation dependent and in this case, every visitor is similar to another visitor) even if the vast majority agrees on the unfairness of this policy. Second, people tend not to diverge from the common sense in order not to alter the status quo- Reciprocity - Every visitor is aware of the service provided by the Museum and consequently, what it takes to maintain the Museum. According to this uneven relationship between visitors and the Museum itself, consumers perceive a sense of obligation towards the Museum, which contributes to donating the suggested amount. This idea derives from the ancient Latin principle do ut des, which states that people are more likely to give something when they receive something back. In this sense, the term donation acquires a different meaning because its no more an endowment but rather a settlement. Reciprocity can also be a barrier to exit in microeconomic terms: it indeed represents a social obligation that doesnt allows consumers to avoid the deposit of money once they decided to visit the museum.- Anchoring: the word recommended plays a significant role in approaching consumers to donate the suggested goal of $25 per visitor. During its initial phase, the Museum decided to implement a free - donation policy. As a result people donated on average, a lower amount of money because the value they attributed to their visit was lower than the Museum expectations. Several studies demonstrated that people tend to pursue the expected goal when suggested, which is why the Museum changed its policy and guided visitors to a desired amount; resulting in aligning visitors behavior to the Museums expectations.Overall, this misleading strategy received several negatives reviews both from visitors and from famous newspaper. To cite just two of them:The Met does not have a fixed fee for admission, but it has encouraged donations with suggested fees since 1970. Prominent signs at each ticket booth feature bold pricing schemes with the word recommended in a smaller, italicized font. Last year, the Met was sued, and pilloried in the press, for these admission practices, which were seen as misleading: Many visitors, especially those unfamiliar with the donation scheme, understand the fees to be mandatory. - The New YorkerI myself experienced this when I first came to NYC, and it was very unpleasant. Now I live here and know better. For the aforementioned reason, I give this place 4 stars instead of 5. -TripAdvisorExample 2In 2007, Coca Cola decided to launch a new type of Coke - Coca Cola Zero. At that time, the only variation from the original Coke was Diet Coke. However, the sales of the Light version never reached an acceptable level and always represented a marginal share in the Coca Cola Company. There were two reasons behind the failure of the Light edition:- Misogynous consumers: the vast majority of Coca Cola drinkers are males, and the term light was associated to a female target because of the heritage of the word diet. Even if there was no skepticism about its reduced level of sugars and calories, males felt their virility compromised when they drank the light version and therefore, preferred to maintain their social status by drinking regular Coke.- Emotional attachment to the original Coke: many consumers didnt want to try the new version because of their fidelity to the traditional taste. The differences in the ingredients conferred to the light version a perceived difference in the taste that was much more pronounced than its real impact. The social addiction distorted the sensorial perception, which led to a mere success in terms of consumers adoptions.In order to solve these two problems, Coca Cola decided to launch a new product. The commercialization of the new product had several advantages: while people felt they already knew the brand Coca Cola, a new product was devoid of any social prejudice - think about the scenario Black&Deker faced - and yet the brand Coca Cola made it somehow familiar. A new tabula rasa was ready to be written: consumers who knew the light version were more complicated to be persuaded, whereas new consumers had no regret and their initial perception about the new product could be easily directed towards the desired vision. Besides, the new advertising campaign aimed to promote Coca Cola Zero was gender-targeted; satisfying both the Social Proof and the Liking principle: males consumers didnt feel their manhood compromised anymore because the publicized image related to the new product was intentionally profiled for males: TV commercials always represented male figures drinking the Cola while actresses appreciated their gesture. This campaign was a marketing example of how aversion to a certain product can be alleviated by inserting the product in the proper context with similar consumers. Furthermore, another core value that Coca Cola Zero achieved was to promote no substantial difference in taste from the original Coke. This goal was accomplished by reversing the Context-Effect: many advertisements showed consumers drinking Coke from a traditional cup of Coca Cola without perceiving any dissimilarity. However, the cup contained Coca Cola Zero and not the traditional one, and when the experiment was explained, consumers felt surprised by the similarity between the two variances. Being aware of the Context-Effect principle, Coca Cola tried to annihilate its influence in consumers preferences and promoted the new product as a male-oriented Cola with the same taste of the original one. Coca Cola Zero: great Coke taste, zero sugarNowadays Coca Cola commercializes three different Cokes: Coca Cola, Coca Cola Zero and Coca Cola Light, each one targeting different consumers in different and somewhat complementary contexts (in some cases, cannibalism between two products occurred).Example 3- https://www.youtube.com/watch?v=eubWYPhcEEoWhenever we try reaching out to consumers and influence their buying habits, thinking process, and decision making we need to target their system 1, which is also known as their guts, rather than system 2, which is the mind. Targeting consumers mind and influencing them in a rational manner had proven to be less efficient than aiming at a much deeper level. Therefore, most companies who advertise, target its customers emotions.In the Anti-Drunk Driving Commercial by Budweiser, the marketing team clearly went for system 1. It took something everyone love a puppy and showed how we its owners - is all he got. The commercial established the relationship between the owner and his puppy from the day he could barely walk. Then, several years later, when the owner is eligible to drink, we are told that whenever we leave the house, our dogs simply wait and wait for our return. However, in some cases we never do; and they (the dogs) will never understand the reason why. All they will know is that the most important thing in their life is gone because YOU chose to drink and drive. The commercial ends with the relief that we made the right choice and decided to stay the night and NOT drink and drive. The emotional part in this commercial is when the owner opens the door, while his dog sits and waits for him all night long not knowing whether he will return or not. However, the moment the door opens, the dogs excitement from seeing his owner is what should influence us, the viewers when making the decision of drinking and driving.Example 4In 2004, when Nokia was the undisputed leader in the cellular phones industry, it decided to amaze its consumers with an innovative product: the Nokia 7200. At that time Nokia was able to produce different types of products encompassing every sort of consumers. Resulting in a market share larger than any other competitor and brand identity, which included different targets in different segments. This competitive advantage allowed Nokia to create a unique product, relying on a sizable share of customers desirous to purchase it. The Nokia 7200 had two peculiarities: (1) only 7200 units were produced, and (2) it was the first Nokia Phone to have a shell design. The perception of its exclusivity was increased by two factors: a quantitative factor that reduced the chances of owning it, and a qualitative factor that raised the palatability of owning it. It was both a limited edition and a special edition. Furthermore, the price was an extension of its distinctiveness: it was sold for more than $500 and at that time $500 was the threshold attributed by the vast majority of consumers to their budget for a phone (nowadays it has dramatically increased and it can be assumed to be $700). The purpose of the Brand was to create a status symbol people might identify with: it was not only a phone, it possessed a series of features that created an experience rather than an object. It had a leather case, cutting edge technological specifications, and it was the first and only shell-designed Nokia phone. This combination of added value and perceived distinctions are an example of the Scarcity principle: things become more desirable if you know that their accessibility is limited.However, one of the major dilemmas related to the commercialization of this product was why Nokia wanted to sell a restricted number of phones, which will reduce its potential revenues. The answer to this question is connected to the Halo effect: the overall perception of a brand can be influenced by a singular detail that changes the total perspective. For example, several studies demonstrated that the iPod positively influenced the image of Apple when it was launched. Similarly, the Nokia 7200 was aimed to increase and enhance the appearance of Nokia that was involved in both high-tech and low-tech phones, and the last category could damage the performances in the high-tech field. Therefore, an advanced and appealing phone could boost Nokias sales, improve its brand identity, and spread the idea of a leading firm developing disruptive technologies and restraining prices.

Example 5The social proof principle is a concept connected to marketing strategies.It consists of doing something recognized as socially acceptable only because a large group of people perceives it as such. It is all about the mass, the community.Marketing is taking advantage of this mechanism, which regulates the dynamics and leverages the collective consciousness.Implementing this in the everyday life is fairly easy: you simply look at how people behave around you in order to avoid potential social gaffes.The mechanism mentioned can be seen in the animal world as well. One clear example is when animals are uncertain whether or not to cross a river. Researches suggest that they will get together in large groups and then cross the river, which increases their chances of survival. This mechanism also resides in the human psyche. A concrete practice of the principle mentioned, is in the web. Given the so-called info-commerce, the average user now turns to the web in order to find out more information.Do you want to book a restaurant or a hotel? Check the reviews on TripAdvisor, Airbnb or Booking.com and choose the one with the highest score. Do you need to buy an item on Ebay? It is likely that you will tend to buy from sellers who have a consistent number of sales in addition to several positive feedbacks.In short, everything the customer want is reassurance. That's why most companies websites present its customer testimonials on in its landing page.This technique plays two factors: first, it pushes the buyer to purchase the item/service; and second, it aims to make the reader feel as if he/she are the only one who did not try the new product or service, triggering a feeling of inadequacy given the fact that many other customers (before him) already tested the novelty successfully. Basically, it uses the sense of belonging to a group or a community. The customer can fill the gap with a simple and impulsive click.

Example 6- https://www.youtube.com/watch?v=CIbwrwWDXfc- https://www.youtube.com/watch?v=GXru4Q7LgxoA great tool that is applied all around us when trying to influence consumers buying habits is liking. This tool simply means that consumers are more likely to purchase a product, or use a service that someone we know and like is also using.A great example of this tool can be seen in the Nespresso commercial where Nespresso chose George Clooney as its face in all its commercials and paid him an exceptional amount of $40 million to do so. The reason is simple many people know and LIKE George Clooney. People often want to look like someone they like, they want to wear the same clothes as them, and drink the same drinks they do. Nespresso obliviously knew that and wanted to take advantage of that. If Clooney drinks Nespresso coffee, millions others will follow and drink it as well. In the commercial, the marketing team took a situation, which is not really that important, but the fact that Clooney participates as the main character is what makes the difference. This is the reason Nespresso did several different variations of this commercial, all relating the same general idea be like George Clooney and choose Nespresso.In some cases, Nespresso chose another tool to increase its sales scarcity. It made a special edition capsule and priced it at a significant higher price than its regular capsules. This concept works on the notion of scarcity by putting pressure on us the consumers to purchase this luxury item before it runs out of stock. By simply adding the work limited edition, or limited supply it is able to create the feel of urgency in its consumers minds.Example 7- https://www.youtube.com/watch?v=AcNK7M2eCI4In the movie World War Z, a lethal virus attacks the entire world except Jerusalem. The protagonist of the film decides to visit Israel in order to consult the local government to analyze their strategy. The world is facing a global catastrophe because of the inner human tendency to accept the status quo: scientist from different countries agreed on a common thesis that underestimated the virus and treated it as normal bacteria. However, once the bacteria spread globally, Jerusalem prevented its diffusion thanks to the 10th man rule: if nine of us look at the same information and arrive at the same conclusion, its the duty of the tenth man to disagree, no matter how.This sample has an evident biblical matrix - 10 is the required number of people for the prayer - but it explicit the meaning of the Evil principle: whenever an option is chosen, the examiner has to evaluate objectively every single possibility without the influence of personal favoritism or social partisanships. However, the effectiveness of this approach can be guaranteed if the analysis is effectuated ex - ante and not ex - post: everyone can critically highlight fallacies in his assumptions once they proved to be incorrect, but not everyone can anticipate weaknesses in their own beliefs. This behavior is due to the anthropocentrism that characterizes human beings and that overestimates the validity of ones thesis. The human brain tends to draw inductive conclusions - the brain assumes that a certain theory is effective and it tries to describe every aspect of reality with this lens. This approach creates a distorted perception of reality because the brain starts from the ontological level rather than from the epistemological level. Because its easier to correct mistakes made by other people than to correct personal mistakes, the way this critical method is implemented is by conferring to a specific person the encumbrance to openly disagree with the majority. Even if the scene of the movie is unreal, it perfectly describes a decision making process shared by different strategic units: the Israeli Army, the Government and any consultancy department. Despite its application very often might be redundant, it reduces biases.Example 8The web is saturated with pictures. Images can communicate emotions and can be much more straightforward and persuasive than a text statement. Purchasers tend to follow their celebrities or people who hold a similar lifestyle, values and habits. Therefore, the principle of liking is extremely relevant and connected to pictures posts on the web.According to various statistics, as time goes on, we see that images are the content that works in the best manner across different social media, such as Facebook, Instagram, Twitter, etc. Facebook has been the first to recognize this aspect. Some statistics, about its operation, found that those who used the pictures tool for marketing policies obtained better results in terms of likes, comments and visibility. The principle of liking, applied in this case, is therefore extremely significant. In this sense, Facebook has been extremely strategic in acquiring Instagram. It seems that it is testing the possibility to buy the products, which are promoted in the form of images collection. Also Foursquare, with its latest updates has become more and more visual while Twitters statistics notes that the most popular tweets are those that contain pictures.This is useful in order to understand how Instagram became a social media, which is included in integrated strategies for a companys social media marketing. In the case of B2C or B2B, it is relevant to be able to develop this new concept of marketing that goes beyond the emotions communication by the use of a mobile application. What underlies the fashion bloggers and brands success is the promotion of its products, derived from the loading of images that immortalize celebrities with the product.Hence, the principle of liking is extremely synergistic and strategic in the success of social media marketing. Consumers tend to follow the celebrities to who they aspire, especially those who are most closely resembled to their culture, habits, and lifestyle.Nordstrom operates a creative use of Instagram in promoting celebrities: it approaches consumers to its models in order to attract them. In the past it was rare to see a star behind the scenes immortalizing the normal side of a celebritys lifestyle. Given the new role of Instagram, it seems to be a trend that gives the fans the possibility to feel close to their idols. Nordstrom gives to his followers the chance to see how its catalogues are built.In addition, companies like Sephora exploit the contrast between the before and after. This type of companies aim at showing how its product discerns from other prototypes.In this sense, celebrities pictures on Instagram should emphasize the before and after. Sephora is trying to give its followers creative ideas as a result of using its products.Example 9The principle of commitment and consistency comprise of the obsessiveness need to be coherent with our previous actions. Once we have made a decision or taken a position, we usually encounter a series of personal and interpersonal pressure, which pushes us in the same direction as our previous commitment.Leonardo Da Vinci stated: Its easier to resist at the beginning rather than at the end.This principle has a practical and precise implementation in web-marketing context, where the user acts in a certain manner, which will drive him towards the same path he has been before.In fact, if the user makes a choice, he tends to be consistent in not disproving it.Certainly, the result is not guaranteed, but at the same time, customers have the best chance of success with this technique. Practical examples of this principle implementation are Ikea and Amazon with the Giving back is easy policy, which explicitly consider the chance to return purchases within a predefined period of time greater than the one provided by law.If the customer had second thoughts about purchasing an item, he/she may decide to return the item within 14 calendar days from its delivery without providing any reason.That said, Amazon provides in addition to the law rights, the possibility that items purchased on the portal (with the exception of large products and products listed for which the withdrawal right is excluded by law) may be returned within 30 days from delivery. For Ikea, such term is valid even up to 90 days. For Macys even no precise return deadlines are requested. In most cases, the refund will be credited in 3/5 working business days from when the product has been returned and reached the logistics center.The decisive step to ensure customers in the long-term is to guarantee certain benefits aimed at the resolution of potential problems.The faculty of giving back the items purchased for an extended period, guarantees the customer to make their own choices in full serenity and effectiveness, as it allows saving time by not having to think about the alternatives when buying the item. The main advantage derives from the fact that this opportunity can make the customer fall into the habit of maintaining consistency even when it is not strictly appropriate to do so.Indeed, the same concept is reproduced also in the principle of loss aversion, which asserts that it just hurts much more to lose an item rather than the feeling of acquiring the same item.This way, customers gain confidence in the company, which might increase its probability of becoming a return customer.Example 10An everyday example of social effect - how group actions can influence an individual action - can be seen in nightclubs, pubs, and other social venues. By nature, we are drawn to do what our peers are doing. No one likes to be the exceptional and if everyone is doing something, the individual would like to be part of that something.The nightlife scene understood that and took advantage of it by showing potential customers the attractiveness of entering its nightclub/ pub and being part of the buzz. This is done by either showing the customer how pack the nightclub is, or in some cases where customers cannot see what is going on inside, by creating a line of people at the door who are waiting to enter. This might work for the benefit of the business in cases where the club itself is actually empty, but the line outside gives the false impression that it is actually full. Once we see a crowd of people waiting to enter, we presume that this is a popular place that we want to be a part of. Although in most cases it simply means that this place has a good PR person and a great marketing plan, which place it as one of the most attractive places to go out to. Another method social venues use to attract potential customers is the context effect. This refers to the location in which the nightclub is located and in particular, how physically close it is to another nightclub. In many cities, all the nightclubs/ bars are located in close proximity to one another. Usually on the same street. This phenomenon can increase the attractiveness of one nightclub over another by showing customers the value of entering one nightclub over another. One nightclub can lure its customers by offering a lower admission fee, free drinks, etc. This, however, can also scare customers away. By offering free drinks or first free drink, the nightclub actually raises the coverage fee and advertises it with one free drink. This is a great example of down-selling, although the customer doesnt really have a choice here. He/she can choose to pay the high admission and receive the free drink, or to not pay and not enter. In most cases the customer will pay, walk in, and take the free drink. Finally, another key norm nightclubs/ bars often use is the liking tool by inviting celebrities to enter the club/bar. This helps attract other customers who want to take part and be close to the person they admire and like.