How advertisers make us spend money

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6 Minute English 7 min 4 speakers 7 chapters transcribed 3 months ago
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What strategies do advertisers use to influence our purchasing decisions?

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Olen Shannon Maldonado 0:26
Olen Shannon Maldonado, käsintehtyjä artesaanituotteita myyvän Jaui lahjakaupan perustaja. Valitsin Shopify, koska alustoja testatessani totesin sen ehdottomasti yhdeksi helppokäyttöisimmistä alustoista. Minulla oli tärkeää pohtia kehittymistämme tulevaisuudessa. Kaikki myyntiin tarvittavat työkalut, kuten varaston suunnittelu, ovat kätevästi dashboardissa. Aloita ilmainen kokeilu shopify.com-sivustolla.
Charlotte McDonald 0:56
6 Minute English from bbclearningenglish.com
Hello, this is 6 Minute English from BBC Learning English. I'm Pippa. And I'm Phil.

How does celebrity endorsement impact consumer behavior?

What's the last thing you bought and why did you buy it? I bought a new pair of headphones recently because my old ones broke and I did lots of research to try and find a good pair. How about you? I bought a soft drink on the way to work this morning. It might be because I saw someone I like promoting it in an advert. We call this a celebrity endorsement, but why do they work? Let's start by hearing from Ben Jones, a behavioural research expert, speaking to BBC World Service programme, Business Daily.
Mark Hibbett 2:06
When we're unsure, we don't know what to do, it's kind of easy to follow the lead of those who we think are credible or knowledgeable. It's a mental shortcut. It's something that helps us navigate uncertain times or make quick choices.

What is nudge theory and how does it affect our choices?

Mark Hibbett 2:19
We start doing that from an early age. Our parents, for some people, our teachers, you know, these people help us learn and make sense of the world. And some businesses can draw on this through things like endorsements, you know, dentists recommending toothpaste, athletes endorsing sportswear.
Ben says that endorsements work as a mental shortcut. This is something that helps us make a decision quickly. If we trust the endorsement then we don't need to think about it that much. In this episode we're going to look at the way that people can be convinced to do things. And as usual, we'll learn some useful new words and phrases. And remember, you'll find all the vocabulary and a quiz on our website, bbclearningenglish.com. OK, but first I have a question for you, Pippa.

How do touchscreen ordering systems increase sales?

Today we're talking about behavioural science. What's the name of the theory that says people respond to small prompts? Is it a. push theory, b. pull theory, or c. nudge theory? I'm not sure. I'm going to say B, pool theory. OK, well, we'll find out the answer at the end of the programme. In recent years, many fast food chains have installed touchscreen machines for people to order their food. They've reported taking more money as a result. Could behavioural science tell us why this happens? Here's product designer Dean Ward speaking to BBC World Service's Business Daily.

What role does feeling judged play in our buying decisions?

Firstly, the psychology of speaking to someone and feeling judged, we think is a key factor. So would you like extra fried? Would you like to go large? Not all people, but I think there's definitely a large proportion of people who may feel judged in those instances and may say no. There's the fact that you've got more time to look. You can see the product, you can see what's in it, you can see other products linked to it as well. And also around upsell as well. Would you like to add this? Would you like to do that? Because you've got more time and you're not being judged, you're very much more inclined to actually say yes to these things.

How can behavioral science be used to encourage social eating?

And that's typically what we're seeing. An increased basket spend of typically 25-30%. If people feel judged, then it means that they worry what other people will think of them. If we have to ask a human for extra fries, we might worry what they think of us. But no one feels judged by a computer screen. If you upsell something, then you get someone to spend more. For example, waiters often try to get people to buy larger portions, more drinks or dessert. Dean says that upselling can increase people's basket spend. A basket spend is the total amount that someone spends in one transaction on everything that's in their basket. Now, this is an example of a business using behavioural science to nudge people to do things.

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