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Grow your business with consumer-driven insights

Unlock the full potential of your business with data-driven consultancy. Employ a powerful combination of data interpretation and strategic expertise to make informed decisions. Optimise pricing, brand equity, product development and customer targeting while driving sustainable growth in today's competitive market.

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Explore our
case studies

Discover stories of businesses that overcame challenges and achieved remarkable results thanks to our tailored and collaborative approach.

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Know which buttons to push to optimise customer experience - and exactly how hard to push them

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Renewed insights on how to best measure price elasticity and pricing power

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How Telenet took actionable segmentation to the next level

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How Center Parcs offers the right accommodation to its guests, thanks to data-powered insights

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How an automotive company optimised their advertising messaging: The importance of brand alignment when launching a new product

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How Center Parcs Europe optimised revenue management and increased profits

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Revolutionizing business intelligence in FMCG: A journey from spreadsheets to a streamlined online portal

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Optimising loyalty card programme for a global retailer (award-winning study)

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Connecting the data through multiple information sources

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How Pernod Ricard decoded the travellers' buying behaviour: Segmentation beyond nationalities

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How a global pharma company successfully communicated the launch of a new medicine through strategic salesforce allocation

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Mastering Path to Purchase: How Pernod Ricard UK unlocked invaluable shopper insights

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Discovering the new generation of players

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Behind the success of Ballantine’s Light

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Supporting Pernod Ricard's commitment to sustainability

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How Niko reshaped its business model while expanding consumer reach

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How to strategically balance brand equity and profitability: Pernod Ricard's pricing and portfolio optimisation

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Revitalizing cinema advertising: How Brightfish transformed pricing strategy for optimal value and increased revenue

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Commonly solved business questions

What product features drive the value of our products?

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Boobook conducts in-depth market research to identify what drives customer choice. We use a variety of methodologies, such as conjoint, MaxDiff or key driver analysis. Furthermore, we use available data, e.g., through web scraping, to understand how other companies set their prices.

Are our prices aligned to the customer value?

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By measuring brand equity, evaluating price perception, and using sell-out prices, boobook identifies how well current pricing is aligned with the perceived brand value. Following this, we also measure price elasticity to advise the right price strategy.

How resistant are our brands to price increases?

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Willingness to pay, or price elasticity, is valuable information every brand should know and understand. We support companies in measuring price elasticity by analysing existing transactional or market research data. The analysis results in a demand curve used as input to any ‘what-if’ scenario, such as future price increases.

Who are our biggest competitors in terms of brand power?

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Any company/brand operates in a competitive environment. Through consumer listening and analytics, we provide insights into how a brand compares to its key competitors regarding brand performance, image, and price elasticity.

Who are the different types of customers, and how can we best serve them?

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The “average” customer or consumer doesn’t exist. Through detailed customer listening and advanced analytics, we divide customer audiences into clear segments, referred to as personas. Apart from building a clear view of these personas, i.e., how they behave, what they purchase, and what drives them, we create a clear target/action plan for each target group. On top of this, we link our insights with the CRM database so that individual targeting can be done.

The boobook principles

At the heart of boobook, there is a passionate and dedicated team aligned on values and work ethic. These are fundamental guides that shape our culture and help us tackle challenges together.

Collaborative spirit

Whether it's within our team or with our clients, partners or suppliers, we foster an environment of co-creation, knowledge sharing, and open dialogue. We thrive on asking questions and challenging one another because we know that together, we achieve smarter and more effective solutions.

Deep expertise

With over 20 years of industry experience, our talented professionals bring a wealth of knowledge and expertise to every project. We stay at the forefront of the latest data analysis techniques, AI tools, and industry trends to deliver exceptional results.

Personalised approach

While some business questions may be similar, each business is unique. We are dedicated to comprehending your specific business requirements and developing customised solutions that will fuel growth and success.

“Boobook team makes data talk and answers business needs in a way that is really relevant. They are always very clear on the business and the business constraints, and how the business can use the data.”
Emma Donnellan
Head of Centre of Excellence, Shopper, E-Shopper and Traveler at Pernod Ricard

Insights and 
inspiration

Your source of valuable knowledge and inspiration on how to optimise your business with the right pricing, product, brand and customer strategies.

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min. read

Decoding psychological pricing: Cognitive biases & decoy techniques

Have you ever wondered why we sometimes make irrational choices when faced with purchasing decisions? Cognitive biases, the subtle quirks of human thinking that shape our choices, play a significant role in human behaviour. These cognitive biases, or mental shortcuts, lead us down unexpected paths, impacting our choices.  

As marketers or pricing managers, understanding these biases opens doors to crafting persuasive messaging and pricing strategies that resonate with a target audience subconsciously, nudging them towards desired actions. In this final article in our series on psychological pricing techniques, we'll delve into cognitive biases, like decoy techniques, and explore how they influence decision-making processes and sway consumer behaviour effectively.  

What is a decoy technique?

The decoy effect is a powerful technique for pricing and portfolio communication, both online and offline.  
The mother of all decoy techniques involves introducing product alternative options that are either overly expensive, too small, or irrelevant, ultimately steering consumers toward a desired purchase/product. By creating a context in which choices are evaluated and influenced through comparison, the decoy effect can lead individuals to make decisions they might not have otherwise.

Initially described by Joel Huber, John Payne, and Christopher Puto of Duke University in a 1982 paper, this decoy effect was explored through multiple experiments testing consumer preferences across various products like beer, restaurants, and cars. Respondents consistently favoured the target product or service when presented with a decoy option, showcasing the impact of this cognitive bias on decision-making.

How to apply cognitive bias & decoy techniques to pricing communication?

Let's now examine some fundamental cognitive biases affecting conversion rates and offer valuable insight into consumer behaviour. From the instantaneous bias to the powerful decoy effect, which subtly guides decision-making through comparison, each bias presents an opportunity for marketers to fine-tune their messaging for maximum impact.

  1. Know when to communicate your prices as you promote your products

The timing of when your customer sees the price of your product can significantly impact their decision to purchase. If the price is displayed before the product (and its detailed features/specs), customers are more likely to make their purchase decision based on the price alone. As the price was the first product specification they received, they anchored it and used it as a reference to evaluate all the other elements.

However, if the product is shown first in all its glory and details, and the price comes afterwards, customers are more likely to consider the quality and features of the product before making a decision. You first “seduce” the consumer with all these great product features and make them dream. At the end of the product exploration, you communicate the price in little detail—i.e., the cost of all these nice features. It's essential to keep this in mind when deciding how to display your prices.  

For luxury products, it's best to showcase the product features and specs first and then the price, while for everyday (i.e. cheaper) goods like food, it's more effective to display the price first (as ‘decoy feature’) and then the product details.  
Remember, your customers' first impression of your product can heavily influence their decision to purchase, so it's essential to get it right the first time.

2.  Add a decoy option to subtly steer choices toward the preferred option

When you have two product alternatives - one cheap and one primary - it's common for consumers to choose the more affordable option. To counteract this, you can use the decoy pricing technique mentioned above. I.e. adding a "dummy" product that is a worse deal than the primary option. This makes the main product appear more appealing and can increase the likelihood of being purchased.  

Sometimes, when we have to make a choice between different options, we may need clarification on which one to choose. Adding an 'irrelevant option' - an obviously wrong option - to the list can nudge us towards your preferred choice. This applies to pricing decisions, but also to other situations like social gatherings where bringing in a less attractive friend can make us appear more appealing to others. Similarly, in politics, adding irrelevant candidates can sway votes toward a particular candidate.  

The Economist example: The importance of irrelevant alternatives

In case you want to know more about this last example, check out the work of behavioural economist Dan Ariely, the author of Predictably Irrational, who uses classic visual illusions and his own counterintuitive (and sometimes shocking) research findings to show how we're not as rational as we think when we make decisions.

He uses an example from the Economist.com subscription options and pricing to explain this theory.  

Ariely presented MIT students with three options: web-only ($59), print-only ($125), and print+web ($125). When offering all three options, 84% chose print+web, 16% chose web-only, and (obviously) no one chose print-only.  
When he removed the print-only option and presented only web-only and print+web to another group, most students chose the cheaper web-only option. This demonstrates that the seemingly irrelevant print-only option served as a decoy, making the ‘print&web option’ appear much more valuable by comparison. Without this point of reference, people defaulted on the cheapest choice.  

This experiment shows how the presence of a strategically placed, less attractive option can significantly influence consumer decisions by providing a favorable comparison for the option the seller wants to promote.

Dan Ariely-Pricing the Economist > https://youtu.be/xOhb4LwAaJk

A screenshot of a computerDescription automatically generated

3.  Raise your prices gradually

One effective pricing strategy that makes use of cognitive bias in a clever way is gradually increasing your prices in smaller increments using the 'Just Noticeable Difference' (JND) technique, also known as Weber's law.  


The JND refers to the point consumers will perceive a price change. This method allows you to gradually introduce price increases to your customers without causing sticker shock. This is particularly useful as people tend to be biased toward the idea that prices will remain constant, which can make sudden price increases jarring.

4. Avoid mentioning defective items when selling a set (e.g. in second hand store)

When selling a set of items, it's best not to mention any damaged or inferior pieces that may be included. This was confirmed by an experiment conducted by Christopher Hsee at the University of Chicago. The experiment asked participants to evaluate the price of dinnerware sets sold at a clearance sale in a local store. The store regularly priced these dinnerware sets between $30 and $60.

The experiment had three groups: one group evaluated both sets mentioned above, while the other two evaluated Set A and Set B separately. The dishes in both sets were of equal quality. The question posed was: which set is worth more?

The outcome showed that the group who evaluated both sets was willing to pay a little more for Set A than for Set B: $32 versus $30. This is a rational and logical outcome when comparing both sets. However, the results were reversed for the single evaluation groups: Set B was priced much higher than Set A, at $33 versus $23!

The psychological explanation behind this phenomenon is that sets and bundles are often evaluated based on norms and prototypes. Set A's estimated value was lower than Set B's because people wanted to avoid paying for broken dishes. Consumers read ‘broken’ and think ‘junk’. ‘Broken’ usually comes with associations of ‘junk’ or ‘lesser value’. When the average or norm dominates the evaluation, it is not surprising that Set B was valued more.

Interestingly, its value was improved by removing 16 items from Set A (7 of them intact). This shows that sometimes, less is more regarding bundles and sets. The prevailing standards and norms regarding the quality of sets and bundles can bias our perception.

5. Charge a little more for add-ons / updates / product accessories

Did you know you could charge relatively more for add-ons, updates, or product accessories? This is thanks to a psychological theory called the Sunk Cost Fallacy. People and companies are more likely to continue with a product or project if they have already invested a lot of money, time, or effort, even when it's not the best or most economical thing to do.  

A classic example of this concept, is the printer and toner market. Printers themselves are often sold at relatively affordable prices. However, the cost of replacement ink or toner cartridges, especially when purchased from the same brand, can be exorbitant.  
Once you've invested in a printer from a specific manufacturer, you're more likely to accept these inflated prices for compatible cartridges because you're essentially "locked in" to that brand's ecosystem. This phenomenon is sometimes referred to as being "married to the hardware”.


In other words, consumers are willing to pay more than a reasonable, conform price for add-on products if they have already invested in the basics. This could be as trivial as filling in an email address on an info page in the context of considering a future internet provider…

 

6. Go for an acceptable/fair price, instead of the lowest price

It's often wiser to opt for an acceptable or fair price instead of the lowest possible price. This is because consumers tend to be wary and suspicious of deals that seem too good to be true.  

In a world of rampant overconsumption, people have had enough bad experiences to know that nothing comes for free. As a result, they tend to view excessively low prices with prejudice and assume that they must be deficient in some way.  

To address this issue, many businesses use the Propensity Score Matching (PSM) method, or what we call the “Van Westendorp” pricing method which suggests that an ideal price range lies between "a great buy for the money" and "on the high side”. Van Westendorp's Price Sensitivity Model is based on a comprehensive, multi-question approach to indirectly measure willingness to pay, as opposed to directly asking potential buyers for a specific price point. This model assesses a range of prices rather than just one or a few, providing a more in-depth understanding of what is a ‘correct’ price for your product/service.  

Conclusion

Using psychological pricing (messaging) techniques for your goods/services is one thing, however setting an accurate price at the base is something else. Price setting should be based on market insights on brand strength, product evaluation, customer needs and expectations, etc. This approach allows you to look at psychological pricing techniques as ‘the icing on the cake’.  
You need a well-thought-out, insights-based price at the start. And rest assured, once you have this, you can use psychological pricing messaging techniques to maximise your earnings.

If you're looking to take your business to the next level, you need to nail your pricing strategy. At boobook, we understand this and are committed to helping you navigate the complexities of pricing. Our approach combines robust consumer-based data analysis topped with insights from behavioural economics to create pricing strategies that align with your customers' decision-making processes. This drives profitability and business growth.  

As we wrap up our series on psychological pricing (messaging) techniques, we hope we inspired you to explore more about pricing strategies and how to integrate them into your overall marketing strategy.  

If you have questions or want to know more, reach out to our team!  

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min. read

Decoding psychological pricing: Prospect theory and Loss aversion

Pricing and price visualisation plays a crucial role in impacting consumer choices through the intricate web of psychology. Understanding psychological pricing can give you an edge in marketing and pricing strategy. It's all about understanding consumer psychology to make your offerings irresistible, rather than just the numbers on a price tag. As we continue our series on scientifically supported principles, in this part of the series, we’ll discuss Prospect Theory and Loss Aversion.

The intersection of behavioral economics and marketing has created some of the most ingenious techniques for capturing consumer attention and inciting purchasing action. At the forefront of this technique is Prospect Theory – a concept so potent that its creators, Daniel Kahneman and Amos Tversky, altered fundamental assumptions about human decision-making and rewrote the rules for 21st-century marketers.

What is prospect theory?

Prospect theory is all about how we, as human beings, perceive value. It underscores the simple reality that people are not always rational, and economic decisions are not always made based on final outcomes of maximal utility. Instead, losses and gains are immediate, causing emotional reactions that can transform the landscape of what's considered 'valuable.'

Prospect Theory proposes that individuals tend to value losses and gains differently. This theory, also known as Loss Aversion, suggests that people tend to make decisions based on potential gains rather than potential losses. The foundation of this theory lies in two key principles: Loss Aversion (the feeling of loss being stronger than the pleasure of an equivalent gain) and the importance of Framing (the impact of how options are presented).

Understanding this theory is the first step in leveraging it to create pricing (and communication) strategies that appeal to the deeper workings of the human psyche, but it's just the beginning. As we continue our series on psychological pricing techniques, we're going to explore in-depth how you can apply Prospect Theory to revamp your pricing communication and gain a competitive edge in the market.

How to apply prospect theory when messaging your prices?

How many times have you seen a banner flash 'Only 5 left!' and it's those last few that seal the deal for you? This strategy is not just a coincidence but a clever use of scarcity to trigger loss aversion. The fear of missing out (aka FOMO) is a powerful psychological motivator, compelling consumers to act quickly lest they 'lose' an advantage.

Or let’s take a warranty as an example to make things even clearer. Money-back guarantees, free trial periods, and satisfaction assurances not only reframe the purchase as an opportunity (the possibility of extra gain) - but can also drastically reduce a potential loss (i.e. being unsatisfied with the purchased product, seen as ‘money lost’) in consumers’ mind.  

To implement the Loss Aversion principle in your pricing, consider these messaging approaches:

  1. Arrange prices strategically: When you arrange your products from highest to lowest price (e.g. as standard sorting in the web shop), customers are more likely to opt for the pricier options that are presented at the start. This behavior highlights how people gravitate towards avoiding losses, considering choice as a loss, and feeling the impact of loss.  
    By showcasing the more expensive items at the top of the list, customers perceive a decline in quality as they scroll down or look further onto the shelf, ultimately choosing the initially presented, more expensive selections as the 'safe choice'. So, think twice before prioritizing your lowest-priced items by default just to create an image of being an affordable brand.

  1. Strategic timing for discounts: Offering discounts towards the end of the month can significantly boost the effectiveness of marketing campaigns. Research shows that customers are more financially capable at the beginning of the month, making it an ideal time for promotional, non-discount activities. Discounts, conversely, are more positively received towards the end of the month as individuals prioritize saving money during this period. This timing aligns with the 'Bottom Dollar Effect' in behavioral economics, where expenses feel more burdensome towards the month's end.  
    So, to link this with the Loss Aversion theory: the pain of losing extra dollars at the end of the month is harder than losing them at the beginning of the month. Making price discounts many people’s best friend at the end of the month.

  1. Implementing a steadily decreasing discounts (SDD) pricing strategy:  
    The steadily decreasing discounts (SDD) pricing strategy engages consumers in a psychological game. By gradually reducing discounts (instead of keeping them the same or increasing them!), customers are driven by a fear of missing out, anticipating future price increases. This fear prompts them to make purchases sooner (i.e. stimulating impulse buying) to avoid higher prices later, again leveraging the principles of loss aversion and scarcity.

In all these cases, the key is to gently guide the customer towards the feeling of 'missing out' on a product or a deal. This involves highlighting the potential 'loss' that the customer might experience by not making a purchase decision immediately.  

The pitfall of overusing loss aversion strategies

The strategic use of loss aversion can be a powerful tool for marketers, but relying too heavily on playing up potential losses can diverge into manipulative territory, reducing trust in your brand and sacrificing long-term customer loyalty.

The ultimate goal shouldn’t be manipulation of your customers’ emotions but aligning with their needs and expectations in a way that builds trust and nurtures meaningful relationships.  

In conclusion, tapping into loss aversion through the lens of prospect theory is a potent method on its own, however by combining this approach with a focus on building strong customer relationships, businesses can create a winning strategy that drives long-term success.

Using psychological communication techniques to maximize your sales is one thing, but setting the right price at the base, considering your brand strength and customer expectations, is something entirely different. Both are important.  

If you're looking to take your business to the next level, you need to nail your pricing strategy. At boobook, we understand this and are committed to helping you navigate the complexities of pricing. Our approach combines robust consumer-based data analysis topped with insights from behavioural economics to create pricing strategies that align with your customers' decision-making processes.

Don’t miss our upcoming final article in this series on psychological pricing techniques, delving into cognitive biases and decoy methods with explanatory examples.

Category
min. read

From PhD in consumer adoption of plant-based food to insights executive: Meet Listia, boobook's newest addition to the team

When you think of consumer insights experts, a biotechnology scientist might not be the first profile to come to mind. However, for Listia Rini, who recently joined the boobook team, this unconventional background gives her work a unique edge. Fresh from completing her PhD in consumer attitudes towards plant-based foods, Listia brings the team a unique blend of scientific rigour and consumer understanding.

Originally from Sumatra, Indonesia, and growing up in Jakarta, Listia's academic journey has taken her across continents. After completing her bachelor's degree in biotechnology in Indonesia, she pursued a Master's in Food Innovation and Health at the University of Copenhagen. It was during her master's research on sustainable soy milk that she discovered her true passion: understanding consumer behaviour.

But something felt missing. "I spent so much time in the lab, running tests and analysing samples," admits Listia. "I kept thinking about the people on the other side of all this research. "We can develop amazing products in the lab, but what's the point if consumers don't want them?" Listia reflects.  
This realisation led her to a PhD position at Ghent University working on the Smart Protein project, a major European initiative involving 33 partners across the continent. Her research focused on consumer adoption of plant-based foods, mainly how social media influences awareness and acceptance of plant-based alternatives.

Listia Rini recently joined boobook as our new Insights Executive

Revealing new customer insights about plant-based foods

While sustainability and environmental concerns drive interest in plant-based alternatives, most Europeans still identify themselves as omnivores and prefer their traditional meat-based diets. But what caught Listia's attention was a simple yet crucial finding: "People weren't avoiding plant-based foods because they didn't like them – they need more information about plant-based food,” she explains.

This led her down an unexpected path: studying how social media shapes our food choices. "Social media has completely changed how we learn about new foods," she says. "Information about plant-based options spreads like wildfire now. But there's a catch - anyone can post anything, and there's no fact-checking. It's a double-edged sword."

Making the leap

At boobook, Listia's scientific background adds a fresh dimension to the team. Managing complex studies across multiple countries during her PhD wasn't just an academic exercise - it taught her how to tackle real-world insights challenges and spot patterns in massive amounts of data.

When asked about her transition to boobook, Listia's enthusiasm is evident. "From my first conversation with the team, it felt authentic and comfortable—more like a friendly chat than a formal interview," she says. Despite having just completed her PhD, she opted against taking a break, drawn to boobook's holistic approach to consumer-driven insights and its warm company culture. "I immediately felt welcome. The atmosphere was warm, and everyone made me feel effortlessly included."

Looking ahead, Listia is excited to apply her consumer behaviour expertise beyond the food sector. While her background is in food, she's keen to explore other industries. "What excites me is seeing how our insights can make real changes for companies and consumers," she reveals.

AI and the human touch

Listia takes a measured view of the evolving role of technology in consumer insights. "AI is a tool to help you work more efficiently, but it shouldn't make the ultimate decisions," she argues, emphasising that human insight remains crucial. Her experience with social media research has shown her the potential and limitations of digital tools in understanding consumer behaviour.

As consumer insights industry continues to evolve, Listia's combination of academic rigour and practical focus on consumer needs positions her well for her new role. "In academia, we often go very deep into very specific topics," she reflects. "In business, it's about finding the core insights that can drive real change."

Beyond work

Listia is rediscovering her passions after intensely focusing on PhD studies. An avid cook who enjoys experimenting with plant-based recipes, she practices what she researched, having significantly reduced her meat consumption. "I make dumplings without meat, using more mushrooms and vegetables," she shares. Her other interests include swimming and exploring new places, particularly seeking authentic local experiences rather than tourist hotspots.

Listia's path from lab work to consumer insights is more than just an exciting career change - it shows how different ways of thinking can come together to solve problems.

The shift from academic deadlines to business timelines represents a new challenge but one that Listia welcomes. The practical application of research is precisely what drew her to the role, along with the opportunity to work across diverse sectors and methodologies.

"I'm excited to see where this takes me," Listia concludes. "Every project is different, every challenge is new, and that's exactly what keeps it interesting."

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