Branding and Positioning
This term describes how a brand wants to be perceived (e.g., Volvo = ‘safety’)
What is brand positioning?
This type of online advertising targets users based on their browsing behavior and interests
What is behavioral targeting?
9.99 feels significantly cheaper than 10 due to this psychological pricing tactic."
What is charm pricing?
This mental shortcut causes consumers to rely too heavily on the first piece of information they see — like an original price — when making decisions.
What is anchoring?
According to this theory, people tend to avoid losses more than they seek equivalent gains, which is why “limited-time offers” are so persuasive.
What is Prospect Theory?
Coca-Cola’s ‘Share a Coke’ campaign replaced its logo with popular names, leveraging this strategy
What is personalization?
Going ‘viral’ is a goal of this type of unpaid media exposure, often driven by shares or influencers.
What is earned media?
Netflix uses this pricing model where customers pay regularly for ongoing access
What is subscription pricing?
Consumers often believe a product is better simply because it’s more expensive, even if the quality is identical. This is due to this bias.
What is the price-quality heuristic?
A small change in how options are presented — like putting the healthiest meal at the top of a menu — can influence behavior without restricting choice.
What is Nudge Theory?
When Dove shifted from ‘soap’ to ‘self-esteem’ messaging, it executed this type of positioning.
What is emotional positioning?
This metric measures how often users interact with a social media post (likes, shares, comments)
What is engagement rate?
Apple prices new iPhones high initially, then lowers them over time. This is called ______ pricing
What is price skimming?
When people assume that something that is easily recalled (like a dramatic ad) must be more common or important, they are falling for this bias.
What is confirmation bias?
A person is more likely to donate if shown that "90% of people in your city already donate." This marketing tactic relies on this heuristic.
What is social proof?
This car brand’s ‘Ultimate Driving Machine’ slogan has anchored its positioning for 50+ years
What is BMW?
A disastrous Twitter campaign by this soda brand involved #ItsNotComingHome during the World Cup, angering fans.
What is Pepsi?
Airlines and hotels use this complex algorithm to adjust prices based on demand and timing.
What is dynamic pricing?
This effect explains why consumers prefer products they've seen repeatedly, even if they've never tried them — familiarity breeds liking.
What is the mere exposure effect?
When consumers stick with the default option on a subscription plan or product bundle, it demonstrates the power of this cognitive bias.
What is the status quo bias?
This tech giant’s brand value dropped $180B after failing to innovate (e.g., BlackBerry, Nokia)
What is BlackBerry?
This platform’s ‘Stories’ feature, copied by Instagram and others, revolutionized ephemeral content
What is Snapchat?
This illegal practice involves competitors secretly agreeing to fix prices, like the 2015 tuna cartel scandal.
What is price-fixing?
When people assume that something that is easily recalled (like a dramatic ad) must be more common or important, they are falling for this bias.
What is the availability heuristic?
This heuristic explains why consumers demand more money to give something up than they would be willing to pay to acquire it in the first place — simply because they already own it.
What is the endowment effect?