In the past when we’ve talked about pricing strategies in digital marketing, it’s mostly been a conversation about post-click conversion rate optimization. Sure, we’ve always been able to put prices in ad text. But with the release of 2 newer ad extensions in Google AdWords (and the presence of product listing ads), it’s becoming more and more of a pre-click conversation as time goes on.
Part of what makes us human
When you get to Marketing 201, you learn that buyers make emotional decisions when it comes to purchasing, and then use rationale to justify their behavior after their emotions have influenced them one way or the other.
In a recent book I read called Misbehaving: The Making of Behavioral Economics, the famed economist Richard Thaler talks about the differences in behaviors that behavioral economists are learning because of human emotion. He calls what a human would be without any emotion an “econ.” (instead of a robot). An econ is a being that would make decisions simply based on choosing the best logical choice given all the available information.
Throughout the book, he goes through study after study of scenarios and points out the differences between what a econ would do versus what humans tend to do because they’re emotional creatures.