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About this Blog!

Hi,

Thanks for visiting my blog!

I will be writing on  :

~Commitment Economics~

Propose some value added benefits. Seek a nominal commitment from the consumers for the value added benefits. This is the Holy Grail to boosting your sales.

Eg.

  1. Amazon Prime
  2. Saavn Pro
  3. Jio Prime
  4. Zomato Gold
  5. Ola Prime

Idea: Induce the customer to give you a nominal fee. You would always be pricing at the point you wanted to sell. In order to reap the benefits of whatever small amount that he/she has invested in, and to take advantage of the investment, he will purchase your products for the value added benefits they receive. By doing so, you give him a feeling(just a feeling) that he is smarter than the rest and receives superior treatment. Who doesn’t like it?

The basic tenants involve the principle of “Sunk Cost Fallacy”. For a detailed reading on Sunk Costs, read an amazing write up at: https://youarenotsosmart.com/2011/03/25/the-sunk-cost-fallacy/