Brand “Religion”

Have you ever thought? Which is first brand name in the world? Most probably it would be any oldest Religion. This Brand Religion is deeply rooted in human brain. Story of this brand transfer from one generation to another generation like no other brand can ever did, probably not will not be able to do in future. Here is what can we learn from brand Religion?

1. It spread awareness by hiring celebrities (Godmen) and media houses (religious institution)

2. It generated interest by giving a product benefit (promise of heaven, resolution of difficulties etc.)

3. It evoked desire by making example of people who did not join and suffered.

4. It generated action by making it easier to join. It had an amazing distribution network reaching grassroots villages, with service outlets manned by well trained staff.

Feature centric Vs Benefit centric

Features are something external, characteristic of product and services, appearance, its components and its capabilities. Benefits are value which you are offering along with your product and services.

Features are descriptive but Benefits are emotional. Many business owners talk about their work in the term of features it offers, but it`s much more power to talk about the benefits customers receive. Feature is tangible but Benefit is intangible in nature. Benefits add values to your product. What is Value, exactly? Here’s the basic definition.

val-ue: something desirable and of worth, created through exchange or effort. Value means helping people.

A feature satisfies the need of customers, but Benefits goes satisfies the hidden need. For example: You go to for horse riding to one of the ranch outside city which offer riding, lodging, food and thousand acres of riding facility, but these are things which they are offering, yes they are satisfying you needs but what benefits are you getting is Freedom to escape and be someone else. After hectic weekdays in office now you want to enjoy fullest it is not food and lodging which are satisfying you its benefit which gives customer a Freedom kind of sense which something beyond the basic needs. 

One day you daughter went to shopping and bought one wedding dress along with others accessories but not this feature attracts your daughter instead a emotional benefits that gives sense of special feeling on wearing dress. 

May be your product is full of features that you thinks is innovative and extra to what your competitors are offering but what is they are not give any benefits to your customers, What is they not feeing emotionally satisfied.

What about the new recipe book you have bought from the market, which has lots of simple recipes to make at home and those are easy too but exactly benefits you are getting from this book is that you are able to spend quality time with your family.

Decoy Effect

(The decoy effect is the phenomenon whereby consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated. An option is asymmetrically dominated when it is inferior in all respects to one option; but, in comparison to the other option, it is inferior in some respects and superior in others.)

Decoy effect plays an important role in pricing. Every day we come across such kind of product and service pricing where simply use of additional option create confusion in the mind of buyers. Human mind is always give preference to such option where one can compare the price of product and service with other available option. For example: You are searching for magazine for annual subscription and you find out following pricing:

1.Online subscription:  $75

2.Print subscription: $125

If you have to make a decision you simply go with option 1^st. Here no option for comparison so you directly make a decision. But, here is another option.

1. Online subscription:  $75

2. Print subscription:  $125 (Decoy)

3. Online and print subscription: $125 

So, now what would you do, yes you think  option 2, is not applicable because now at the same price you are getting both kind of subscription Online as well as Print, your mind directly choose option 3. Just use of additional option (Decoy) change you buying decision and you make a purchase as company need. What happened here human brain start comparing with other option which relatively less beneficial.

This kind of pricing strategy being used is all product and services.  

Second Example:  You are planning to go on vacation to and you approach to travel agent he gave you following option.

       1.   Rome:  4 places with breakfast and snacks including.

       2.   Paris: 4 places with breakfast and snacks.

Here, both the places are equally important as travel and tourist point of view, and you will not compare with the price and you directly choose any option according to your choice where you actually would like to go.   But,

What if one more option given to you?

1. Rome:  4 places with breakfast and snacks including.

2. Rome:  4 places without breakfast and snacks including.(decoy)

3. Paris: 4 places with breakfast and snacks.

Now, your mind starts comparing price with less attractive option. And you buy exactly same option what that travel agent wants you to buy.