What helps to persuade people to choose their products?

Which one do I choose?

SOURCE: allBusiness

It is easy to predict which product a person might choose based on the incentives that are given.
Facial product companies use many incentives to get a person to choose their product.

The article “7 Psychological Triggers that Win Sales and Influence Customers,” is written by Beth Morgan who was a former VP of Operations at Red Bricks Media and is now the COO of Twine Data. The article was published June 5, 2018. The article shares seven ways that companies use psychological ways to persuade customers to buy their products. I think there are three main ways within the seven that are the primary way to grab the customer. 

The first main thing that grabs the client is reciprocity. This is the idea where we feel compelled to give something back. So for this sake, a customer would buy the product, and the company would give them something for free. It is a free gift in exchange for the purchase. This is an easy way to get people to buy the product. Honestly, I think this is a great and easy way to influence the customers to buy your product. How can you pass up the opportunity to get a free gift?!

 The next thing in the article that influences the client is the idea of scarcity. In this case, it can be shown in the way where sales are ending or the product is almost out of stock. If there is a sale ending, the customer is led to believe that that is the best price on it so they should buy it. If it is almost out of stock, then people will have the idea that it is a great product because it seem many people are buying it. I sometimes fall for this too and it is a great way to get people to buy the facial products. Since there are so many to choose from, making an announcement that they are running low on stock will get a client to buy that product over a fully stocked product.

 The last strategy I believe is a great way to get customers to buy facial products is liking. It is shown where a client has a one on one connection with the salesman or using relatable models. In the case of facial products, they may do before and after use of product for model to show the audience that they love the product and it truly works. I personally think that if the salesman is smiling and is down to earth, a person is more likely to buy the product. Also, if they have a story of their own to connect to the product and the patient, it would be even better. Overall, there are many incentives that can be used to persuade a customer to buy your facial product over another, but these are the three main ones I believe can give you the best success in your sales numbers.

 Next post will be answering the question: What is the best way to promote your product?

How do companies predict if an innovation will be attractive to consumers?

Companies do not have unlimited money so they have to predict what consumers want when allocating their resources for R&D. 

This article discusses how companies research what is attractive to consumers and how companies attempt to differentiate their smartphones. 

Gizmodo

Companies want to find any feature that will differentiate their product from the competition, however this is only half the battle since the feature also will have to be preferred by consumers in order for them to purchase it. Companies use market research to predict if a product will be successful.

 In the article "How Apple Conducts Market Research and Keeps ios Source Code Locked Down" the author analyzes that it is very difficult for companies to know exactly what consumers want in an innovation since the consumer has never seen anything like it. Companies cannot release their ideas or test them because that would allow the competition to steal or copy ideas. Companies therefore have to research the opinions of consumers such as what they use most in a smartphone and what they wish would be improved to see if the innovation will be attractive.

Companies, in this case Apple, can do this using different types of market research such as surveys to study things like consumer preferences and how they vary based on region, customer satisfaction of products, and factors causing consumer to purchase their product. Companies use the results and feedback from the research to identify consumer wants and then predict whether the innovation matches these wants. 

Battery Breakthrough Could Increase Tesla Battery By 70%

SOURCE: ctvnews

The article, "Swedish Battery Breakthrough Could Boost A Tesla’s Range By 70% " written by Lee Mathews in 2017 demonstrates the economic principle that all choices have an opportunity. Specifically, Tesla could make batteries with more range but it isn't Tesla's priority at the moment; they are using their scarce resources to meet production quotas.  

      Tesla has been using their own battery technology and techniques. They aim to keep the cars safe when they do crash and have a good amount of battery range. The recently released Tesla Model 3 can drive for about 220 miles before running out of charge, with the extended battery range it can reach 310 miles. With these new battery breakthroughs it can increase the range of Tesla´s batteries by 70%. The car would be able to drive for 375 emission free miles on the base model and the extended battery could reach over 500 miles on a single charge.

     The way they can get so much more range is because they are to get the cells to be packed more tightly inside a special ceramic casing. Cadenza has been in talks with Tesla about using these in their newer car models, Tesla has been more focused on reaching their quota for their new cars but will most likely be adding this technology to their cars within the next five to ten years.

Future research: How can this battery technique be used in new electric vehicles but also keep the cars safe and not overheat.

Is the Rise of Tesla Changing the Future for Gas/Diesel Car Companies?

Source: tesla.com

The economic principle I’m exploring is “Because of scarcity, people choose. All choices have an opportunity cost”.

My research question to help me study the economic principle is “Why are car companies going electric?”

The article published in Mashable titled “If it seems like every carmaker is going electric, that's because they are”

demonstrates this economic principle by showing that car companies are being pressured by the government to go electric, the combustion engine is phasing out, and companies like Tesla have been very successful with their all electric cars. 

First, car companies are being forced to abandon the combustion engine. In an article published on Mashable, Brett Williams wrote, “Traditional car companies are also shifting to focus on EV production because they might be forced to abandon the internal combustion engine in the near future. There are multiple efforts around the world to restrict the use of cars powered by gas and diesel alone, encouraging the use of EVs.” Car companies might be forced to abandon the combustion engine due to greenhouse gases and other environmental problems. 

 Second, companies like Tesla are shocking the world with their electric cars. Tesla has led the US market in sales after the release of the Model S. People are interested in this car not only because of its luxury and comfortable interior or its aggressive exterior but because it is a cheaper alternative due to the fact that you don’t need to pay for gas. Along with not paying for gas, the Tesla Model S has roller coaster like speed and it has been seen beating the world’s fastest cars in a 0-60 race. 

Third, governments are pushing car companies to go electric. Gas and Diesel cars generate intense amounts of pollution and many countries, like China, are working on completely banning them. Other countries like France and the UK have stated that gas and diesel cars will be banned by the year 2040. This is a growing problem for big name automakers, so they are starting to work on an all electric lineup of cars. 

 In my next blog post I will research the question: How does going electric affect a car company?

Successful Marketing Strategies.

Source: Digital Marketing Agency

The economic principle I’m exploring is “People generally respond to incentives in predictable ways”

My research question to help me study the economic principle is “What type of marketing creates a direct response?” The Weidert Group, a marketing agency published the article, “Top 10 Most Effective Marketing Strategies” by Vicki Woschnick demonstrates this economic principle by explaining various successful marketing strategies such as cause marketing, internet marketing and paid media advertising.

To start off, there are many different marketing strategies that companies use and one of them is Cause marketing. Cause marketing is a marketing method that guarantees the consumer that the company has their same values. For example, a company that publicly supports a nonprofit charity or a social cause would be cause marketing. According to Vicki Woschnick and the Weidert Group Marketing firm, “When choosing between comparable brands, 90% of U.S. shoppers are likely to switch to a cause-branded product.” This illustrates that Cause marketing is an effective marketing method because a customer buys both the product and brand with every purchase. I think that cause marketing is a creative way to advertise because many consumers might not realize a company supporting a cause is a marketing strategy.

 Another marketing strategy that is very effective is Internet marketing which has become more popular today. Vicki Woschnick states, “online marketing, combines web and email to advertise and drive e-commerce sales. Social media platforms may also be included to leverage brand presence and promote products and services.” In other words, Internet marketing is a wide variety of marketing the allows companies to easily spread their ads in a quick period of time. This method is predicted to generate over $4 trillion by 2021 which demonstrates its success. I think internet marking is going to become even more popular than it already is because older fashioned companies will realize they will not be able to earn the same profits unless they advertise online.

 Paid media marketing is the third strategy that has displayed a direct response from consumers. Vicki Woschnick explains how paid media marketing works by stating, “a company buys or ‘sponsors’ a link that appears as an ad in search engine results when keywords related to their product or service are searched (this process is commonly known as search engine marketing, or SEM)” In other words, these are the ads that appear on a consumer’s device based on their search history. The Weidert Group claimed 65% of consumers will click on a paid ad, therefore the direct response if very common. I think that paid media is a topic consumers talk about which promotes even more advertisements. Even though the conversations are usually negative, the method is still effective because more than half of the people actually click on the ad.


In my next blog post I will research the question: How do social media influencers impact marketing?

Stormy Daniels and Donald Trump, is there a Crime?

                                               Source: TheHollywoodReporter.com

The economic principle I’m exploring is how Institutions are the ‘rules of the game’ that influence choices. My research question to help me study the economic principle is What is a current controversy surrounding campaign finance law?

The article published in the Wall Street Journal details the current questions arising from the Stormy Daniels scandal which pertain to Trump potentially breaking campaign finance law through his lawyer’s payment to Daniels.  

 First, it is important to understand what led to the possible breaking of campaign finance law by the Trump Campaign. Adult film star, Stephanie Clifford, who goes by the name of Stormy Daniels claims that she first met Donald Trump at a celebrity golf tournament in 2006 and from then on the two had an ‘on and off’ affair. Daniels even claims that she was with Trump when he received a call from Democratic candidate Hillary Clinton. After Trump cut off ties with Daniels as to not damage his political future, Trump’s personal lawyer, Michael Cohen, paid Daniels $130,000 to stay silent about their affair.

Second, it is important to understand how these actions taken by Cohen and potentially by Trump would have broken campaign finance law. According to the Federal Election Commission, all contributions made to a candidate from an individual or group must not exceed $5,400 per election cycle and a payment of $130,000 well exceeds this limit. However, there is also question raised as to if this payment was used to influence the 2016 election. The FEC states that contributions to campaigns are, “anything of value” that could influence an election. Many argue that the $130,000 paid by Cohen was used to maintain Trump’s reputation as to not damage his image just 12 days before Election Day. 

Third, the Trump Administration has remained on the defensive under this scrutiny. One important question that needs to be answered is if Trump’s payment was related to the election which was coming in 12 days or if the payment would have been done to protect Trump’s reputation even if he wasn’t a presidential candidate. The Trump administration argues not only that the funds were not used to influence the election, but also that Trump was never made aware of this payment till he started paying Cohen back in increments of $35,000 in February of 2016. It is also arguable that since Trump is paying Cohen back for his payments to Daniels that the initial ‘hush money’ could be deemed a personal expense.

Though there are many questions left unanswered, Michael Cohen’s recent guilty plea could bring even more damage to the Trump Administration in regards to this controversy. I believe that Cohen's payment to Stormy Daniels did break current campaign finance law. The payment's close proximity to the election clearly shows that Cohen's payment was of value to the Trump campaign since if the story did break, many of Trump's core supporters could have their opinions shift with the news of an affair. While the Trump campaign argues that this payment would have been made if he wasn't running for President, Trump never paid other women such as Marla Maples with whom he had an affair to remain silent.

In my next blog post I will research the question: What actions is the government currently taking to make stronger campaign finance laws?

Government Regulations on Healthcare

Source: Tooth Wisdom

The economic principle I’m exploring is: “Institutions are the "rules of the game" that influence choices"

 My research question to help me study the economic principle is: "What are the current government regulations on healthcare companies?"

 The article "8 Important Government Regulations in United States Healthcare"  published by Regis College demonstrates this economic principle by showing the many different regulations that have gone into our healthcare system all the way from 1945-2010. It shows the many ways in which healthcare has changed in the U.S. and how the system has grown.

 First, programs such as medicare have changed the way our healthcare has operated for decades. Medicare provides insurance coverage for nearly 50 million Americans, including coverage for senior citizens. Medicare is important because it provides healthcare to people with low-incomes, the disabled, and elderly, who may not have full access to it otherwise.

Secondly, another vital part of the U.S. Healthcare system is Medicaid. Medicaid originally just insured those who were low income, but now it extends to "various recipients, such as uninsured expectant mothers, temporarily unemployed workers and disabled individuals". Medicaid is the nation's primary source of health insurance for low-income earners. 

 Thirdly, one of the more controversial and recent additions to healthcare in the U.S. is the Affordable Care Act, or the ACA. This is an Obama-era policy which requires "most U.S. citizens to apply for health insurance coverage, levying a penalty for individuals who fail to secure insurance but making exceptions for a few protected groups". It also "offers health care professionals the opportunity to participate in shaping the delivery of patient services. The medical field can benefit from input that helps deliver better services to the growing patient population while reducing care expenses". All of these different policies help shape the United States Healthcare system, and understanding these policies can help determine better policies for the future.

 In my next blog post I will research the question: How does U.S. Healthcare differ from other countries?