Vocabulary

greediness – алчность

legislation – законодательство

endorse – одобрять

stock exchange – фондовая биржа

discrepancy – несоответствие, расхождение

unimplemented – неосуществленный

ASSIGNMENT

Read the text; look up all the terms in the economic dictionary.

30. Psychological tricks used by advertisers

Advertising has been a form of glorifying merchandise since very early times. Nowadays it exists in many different forms. However to appeal to customers, advertising will have to work in accordance with the principles of psychology and sociology.

The principles of advertising are largely based on the psychological processes of attention, perception, association and memory.

In this text six powerful secret psychological tricks that marketers can use to increase the effectiveness of advertising and marketing are revealed.

You will recognize these tricks being used everywhere in advertising today.

Psychological Selling Trick Number 1: Reciprocity

Reciprocity works like this: you give someone something of value for free. That person feels an obligation to return the favor. Reciprocity is a very powerful principle. However, you would be surprised how many advertisers totally misunderstand it. Either they do not understand the concept of “free”, or they do not have total faith in the principle of reciprocity.

For example, consider the offer “get a free camera when you subscribe to our magazine for two years”. That is not free. Or – “free installation with a one year commitment”. That is not free either. The customer is paying with an obligation.

Psychological Selling Trick Number 2: Scarcity

Scarcity works like this: There is a limited amount of the item available. After those are gone, the item will not be available.

The effectiveness of the scarcity principle is well demonstrated by the large part of the population involved in looking for antiques, collectibles, and memorabilia simply because these items are scarce. Scarcity is often contrived, as when a company produces a “limited edition”.

Mind, that manufactured items, especially DVDs and CD-ROMs, cannot be “scarce”. All scarcities of manufactured items are contrived. There are many ways to contrive scarcity. Scarcity is a very powerful tool.

Vocabulary

perception – восприятие

scarcity – недостаток, нехватка

reciprocity – взаимность

antiques – антиквариат

collectibles – коллекционные вещи

memorabilia – исторические вещи

commitment – обязательство

contrived – надуманный

obligation – долг

merchandise – товары

31. Psychological tricks used by advertisers (continuation)

Psychological Selling Trick Number 3: Commitment

Commitment makes a customer to take a small step towards a goal. One example is the “two step” method used in mail order. Another example of using commitment as a marketing tool is a survey. By answering a few questions, a prospective customer takes that first step to commitment. So, he is obliged to take the next step.

Yet another example of using commitment as a marketing tool is a lottery. For example, people enter their name and address on a ticket for a chance to win a new car. A salesman uses that information to contact them.

Psychological Selling Trick Number 4: Consensus

Consensus makes prospective customers to believe that everybody wants to buy your product. Everybody can't be wrong, so the product must be fantastic!

Of course, you are smart enough to know that everybody CAN be wrong. The headlines used in the consensus principle are: “It’s the new sensation crossing the country”, “People just can't get enough of them”, “Record sales!”, “Unbelievable response!” and “Join millions of smart consumers!” Combine this with a photograph of a large group of people, a long line of people and you have a powerful message. Many people think they are having fun only when they are in a large, noisy crowd.

Psychological Selling Trick Number 5: Authority

Authority involves getting prospective customers to believe that someone who is clever or famous uses your product or service. If a clever or famous person uses your product, then it must be fantastic!

The bigger the authority, the more powerful the advertising message will be. For example, doctors are authorities. “Most doctors prescribe Tylenol for arthritis pain”. Large organizations are authorities. “The National Heart Association says – Quaker oatmeal is good for your heart”. The Federal Government is an authority.

Most advertising using the authority principle is taken out of context and exaggerated. Some advertising uses fake authorities. “My dog biscuits are recommended by the International Association of Dog Nutritionists” (there is no such organization). Some advertising uses a study as an authority. “A recent study found that my lemonade tastes better than any other brand” (my mother liked it better). Authority message is very powerful as well.