About this Blog!


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.


  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/




Freemium, Freakonomy- Attention!!


It rules the business models today…You charge certain segments of customers ie premium and utilise their funds to offer free services to others. The premium segment comes after the free segment has risen to substantially high numbers.


My modified definition:-

You offer services a dirt cheap rates (almost free) and freak out the competition. eg Jio. Terribly low rates, freaked out every one major player in the telecom space in India. Today Jio=Voda+Idea+Airtel



The word “free” rings bells across caste, creed, educated/uneducated, intellectual/dumb, child/adult.

Recently BigBazaar launched a shrewd campaign called FreeShopping. I too got swayed by it. In the store, i hear a 10 year old child telling his father, “Dad, we need to buy for 456 more to get things for free”


The psychology behind free- I am not a psychologist. But just as we all breathe oxygen, we all drink water, all of us- fall in for free!!  What goes behind it? I call upon my anthropology and psychology friends to share their views.