The Definitive Guide to Pricing Plans: Or why people make decisions the way they do.

It is one of the most fascinating reads in recent times. I was aware of dark matter in the user interfaces and constant notifications- based on exploitation of primaeval emotions like FaceBook does.

I was trying to explore the correlation of social networks and how (and why) people take the decision to join one (or stay on where they already are).

The Anchoring Effect is a psychological phenomenon in which people tend to use the first piece of information they get as the reference point for making comparisons and judgments about related items.

Renowned researchers Tversky & Kahneman were some of the first to study this cognitive bias. Later work by Dan Ariely, author of the formative book Predictably Irrational, confirmed people tend to make judgments and compare items based on the “anchor,” or first piece of information they’re exposed to.

I think this primarily explains why oncologists are now flocking to Twitter. It serves as an anchor to get the need for social validation. Tweet likes/ reTweets serve as psychological indices too for perceived influence. Twitter, actually, is an advertising platform.

via The Definitive Guide to Pricing Plans (CRO (Conversion Rate Optimization))

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