Summary of blog

I studied the economic principle of incentives. There are multiple factors that persuade consumers to buy certain goods. Some use brand names– often times we’re drawn to popular, or rather, positional goods. Other times companies use prices to let consumers know which goods are better quality. This price signal, however, isn’t always accurate, but it does a good job of attracting consumers.

Prices signals aren’t the only things companies are using to attract buyers– companies incorporate imagery into their advertisements to attract consumers. Companies use bright, creative fonts that trigger the right side of consumers’ brains– the side responsible for processing emotions. When consumers see bright neon signs or intricate lettering, it establishes an emotional connection to certain brand names.

The name of the company also matters in regards to attracting consumers. It’s been proven that companies with names that appear more repetitive or are seemingly more related to one’s native language tend to draw in more buyers.

Overall, you can see that companies use several different factors that persuade consumers to buy their products; most of them incorporating some form of psychology to appeal to customers.