We constantly look for ways to improve how others see us
Research shows that we consume goods and services in part to increase status and gain social advantage, regardless of our income or social standing.
Sivanathan & Pettit (2010). Protecting the self through consumption: Status goods as affirmational commodities. Journal of Experimental Social Psychology.
The study
150 students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.
Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.
Sivanathan & Pettit (2010). Protecting the self through consumption: Status goods as affirmational commodities. Journal of Experimental Social Psychology.
Key Takeaways
There are multiple ways to elevate brand status:
Form strategic alliances with successful others with whom you share compatible goals (Thorndike, 1920), e.g. Go-Pro and Red Bull.
Develop your core purpose to raise your products’ perceived value (Chernev & Blair, 2015), e.g. Patagonia who “use business to inspire and implement solutions to the environmental crisis.”
Create and control new ways of promoting industry excellence. Dribbble, a platform for design teams to show off their work provides paid-for "Pro Business" status badges to distinguish the best from the rest.
Invest in a tiered loyalty scheme to elevate consumers’ status & brand attachment (Nunes & Dréze, 2006), e.g. British Airways Executive Club.
In further detail
We constantly look for ways to improve how others see us
Research shows that we consume goods and services in part to increase status and gain social advantage, regardless of our income or social standing.
Sivanathan & Pettit (2010). Protecting the self through consumption: Status goods as affirmational commodities. Journal of Experimental Social Psychology.
The study
150 students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.
Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.
Sivanathan & Pettit (2010). Protecting the self through consumption: Status goods as affirmational commodities. Journal of Experimental Social Psychology.
Key Takeaways
There are multiple ways to elevate brand status:
Form strategic alliances with successful others with whom you share compatible goals (Thorndike, 1920), e.g. Go-Pro and Red Bull.
Develop your core purpose to raise your products’ perceived value (Chernev & Blair, 2015), e.g. Patagonia who “use business to inspire and implement solutions to the environmental crisis.”
Create and control new ways of promoting industry excellence. Dribbble, a platform for design teams to show off their work provides paid-for "Pro Business" status badges to distinguish the best from the rest.
Invest in a tiered loyalty scheme to elevate consumers’ status & brand attachment (Nunes & Dréze, 2006), e.g. British Airways Executive Club.
In further detail
We constantly look for ways to improve how others see us
The study
150 students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.
Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.
In detail
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Read moreScarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Self-Expression
We constantly seek out ways to communicate our identity to others
Default Effect
We tend to accept the option pre-chosen for us
Priming
Our decisions are shaped by memories recalled from things just seen or heard
Anchoring
What we see first affects our judgement of everything thereafter
Autonomy Bias
We have a deep-seated need to control our situations
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Status Quo Bias
We tend to stick with our previous choices, even if the alternatives might be better
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Round Pricing Preference
We prefer and trust whole numbers over those ending in a 9
Salience
Our choices are determined by the information we're shown