Use this knowledge to shape the customer’s buying process. Ideally, the customer no longer needs to think and decide consciously, and the purchase is a matter of course instead.
Behavioral Economics
People rarely make rational decisions
BUT THEY ARE MOSTLY PREDICTABLE
Use this knowledge to shape the customer’s buying process. Ideally, the customer no longer needs to think and decide consciously, and the purchase is a matter of course instead.
People tend not to change pre-selected options (default) in the purchase process, even if they did not focus on these options themselves.
Anchor effect
People are guided in their price acceptance by other numbers (anchor) in the temporal and spatial environment of the purchase, even if they have nothing to do with it.
Decoy effect
If people have to choose between A and B, their decision also depends on whether another option C is available (decoy) - even if nobody wants this option.
Framing effect
Whether a given product's advantages are (for example) worded negatively or positively will crucially impact on a person's decision for or against it.
Endowment effect
People find it harder to give something back once they own it than if they had never owned it.
Mental Accounting
People treat the same amount of money differently, depending on where it comes from and what it is to be spent on.
People’s purchasing decisions depend not only on the product but also on the context – and this is something that you as a company can also actively influence.
The GRIPS types
Five typical “irrational” types of decision-makers
Bargain Hunter
… enjoy searching & comparing, and love discounts and extras.
Price Accepter
… are enthused by products and often spend more than they'd originally planned.
Risk Avoider
… are cautious consumers who are afraid of being taken advantage of.
Routine Buyer
… are loyal and have a great deal of trust in specific brands and products.
Indifferent Buyer
… aren't interested in comparing products or prices, but are looking for a quick solution.
Shaping purchasing decisions
Vocatus has developed a comprehensive theory of purchasing behavior from the individual behavioral economics effects and published it in the academic paper A Positive Typology of Irrational Decision Strategies.
We use this decision theory to shape your customers’ buying decisions. Because empirically speaking, all purchasing decisions can be traced back to five types of decision-makers. We call them the GRIPS types.
With this model, we have combined the individual findings around “behavioral economics” in a way that allows an effective application in pricing and sales.
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Each person has many faces
One and the same person will decide differently in different situations.
If they’re a Bargain Hunter when they’re buying a mobile phone, they might be a Price Accepter when purchasing a new car, or they could manifest themselves as a Routine Buyer when they’re stocking up with detergent.
The GRIPS-Types explained quickly
Price strategy
Making the price a minor matter
Learn how to use different behavioral economics effects for yourself and how to meet the different types of decision makers optimally. You can use a mix of product features, exciting price dynamics, and suitable payment models to encourage your customers to buy.
Learn how to use different behavioral economics effects for yourself and how to meet the different types of decision makers optimally. You can use a mix of product features, exciting price dynamics, and suitable payment models to encourage your customers to buy.
The key to success is to listen to the customer based on his personal decision strategy. If you know the different decision-making criteria of your customers, you and your sales partners can use convincing arguments even more effectively.
The key to success is to listen to the customer based on his personal decision strategy. If you know the different decision-making criteria of your customers, you and your sales partners can use convincing arguments even more effectively.
“The bridge between the logical behaviors and the “real” human behaviors has proven to be a very powerful tool to move the dial of customer understanding to the next level.”
Marcello Maggioni
COO
Sky Deutschland GmbH
Our customers speak for us
“…bearing quantifiable fruit…”
“It is fascinating to observe how the behavioral economics mindset in our company is spreading worldwide and bearing quantifiable fruit.”
Dr. Jan Myszkowski
Head of Best Practice
Lab Talanx International
“…customer appointments quadrupled…”
“With the help of GRIPS types, Vocatus has developed a concept for a customer-oriented approach for our service staff. This enabled us to quadruple the number of customer appointments arranged by telephone.”
Petra Schmidt
Head of Smart Banking
Bank Austria
“…courage to make clear decisions…”
“The cooperation with Vocatus has taken away false fears, sensitized us to aspects that had previously been underestimated, and given us the courage to make clear decisions.”