Using Bounded rationality to your advantage

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tasmi1234
Posts: 114
Joined: Thu Dec 26, 2024 3:13 am

Using Bounded rationality to your advantage

Post by tasmi1234 »

By being smart about your offer, you can take advantage of our tendency not to make optimal decisions:

Simplify choice
Customers get overloaded with too many options. By presenting a limited but thoughtful selection, you make it easier to choose. For example, offer three service packages (basic, standard, premium) instead of endless customization options.
Provide clear points of comparison
People have trouble determining the value of something without context. Help them by offering relevant comparisons. For example, if you do consulting work, compare the cost to what it would cost the client not to solve the problem.
Emphasize one core benefit
Because customers cannot process all the information, it is effective to denmark mobile numbers list focus on one clear benefit. Instead of a long list of features, highlight the main problem you are solving.
Leverage social proof power
People often make decisions based on what others do because they can't research all the options themselves. Reviews, testimonials and references from similar customers can therefore be very persuasive.
Offer a clear default option
Many people choose the "default" option because they don't want to spend the energy figuring out alternatives. By offering your best option as the default, you make it easy for customers to make a good choice.
Of course, all of this must be done ethically: the goal is to help customers make better decisions, not to manipulate them.

Resources
Simon, H. A. (1955). "A behavioral model of rational choice." The Quarterly Journal of Economics, 69(1), 99-118.
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