Ananya Birla’s Post

𝐄𝐧𝐝𝐨𝐰𝐦𝐞𝐧𝐭 𝐄𝐟𝐟𝐞𝐜𝐭: 𝐁𝐞𝐡𝐚𝐯𝐢𝐨𝐫𝐚𝐥 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐢𝐧 𝐀𝐜𝐭𝐢𝐨𝐧 Behavioral economics studies the psychological factors that affect economic decisions and consumer behavior. A notable psychological phenomenon influencing our buying decisions is the Endowment Effect. We tend to place a higher value on things we own, often overestimating their worth due to sentimental or perceived attachment. Many brands sense a valuable opportunity here: consumers are inclined to value a product or service more if they feel a sense of ownership. Offering free trials or test drives, whether for streaming services or car dealerships, strategically leverages the Endowment Effect in consumer psychology. Initially, a potential subscriber might struggle to envision the value or justify the cost of a streaming service in their daily life. However, by granting a complimentary trial period, companies enable consumers to experience and "own" the service without immediate financial commitment. This sense of psychological ownership enhances the perceived value of the service, significantly boosting the likelihood of a subscription purchase once the trial ends. Another compelling example is the way Starbucks personalizes the coffee-drinking experience. By allowing customers to customize their drinks and even write their names on the cups, Starbucks taps into the Endowment Effect, making consumers feel a unique sense of ownership over their beverages. Apple uses the Endowment Effect through their showrooms, allowing consumers to engage directly with their products and cultivate a feeling of ownership. The Endowment Effect enables brands to forge deeper emotional ties with consumers. #EndowmentEffect #BrandLoyalty #Apple #Starbucks        Picture source: Facebook/The Decision Lab

There are no shortcuts to a better you. The only hack is passionate consistency. Picture Source: Pinterest

"My model for business is The Beatles. They were four guys who kept each other's negative tendencies in check. They balanced each other, and the total was greater than the sum of the parts." – Steve Jobs

Sometimes, jumping into the ring before you think you're ready isn't about being reckless, it's about embracing uncertainty, where courage finds its truest form and excellence can emerge. 

Your team is the heartbeat of your success.

𝗧𝗵𝗲 𝗛𝗲𝗱𝗼𝗻𝗶𝗰 𝗧𝗿𝗲𝗮𝗱𝗺𝗶𝗹𝗹 In 2021, I enrolled in the "Science of Well-being" course offered by Yale University, and I'm eager to share some key insights I gained. More often than not, what excited us yesterday, doesn’t today. You buy a new car and you get habituated to it. The pleasure reduces in a few months. I learned that this is nothing but hedonic adaptation. When we market/build our products, we should be aware of this adaptation cycle or the hedonic treadmill. So how do we sustain consumer joy beyond the point of purchase? One way I guess, for businesses, is to communicate their core brand message in new, exciting and engaging ways. Here are several approaches to enhance long-term product satisfaction across different industries. 𝘾���𝙣𝙩𝙞𝙣𝙪𝙤𝙪𝙨 𝙄𝙣𝙣𝙤𝙫𝙖𝙩𝙞𝙤𝙣: I think what Spotify does is very cool. For instance, Artist Spotlights help listeners to discover new music. Streaming platforms also have to refine and improve the recommendation algorithms to introduce users to new music, artists, and playlists that align with their evolving tastes. Incorporating gamification elements like badges, rewards, and challenges can also motivate users to explore new music, create playlists, and interact with the platform. 𝙋𝙚𝙧𝙨𝙤𝙣𝙖𝙡𝙞𝙯𝙖𝙩𝙞𝙤𝙣: At Ikai Asai, we bring a global contemporary language to Indian crafts for the 21st century household through creations and collaborations with different designers for renewed collections. Since embracing bespoke designs, Ikai Asai has unlocked a world of new opportunities. Customization also creates a sentimental value. Research shows that a sentimental attachment to products/services can act as buffer against hedonic adaptation. 𝘼𝙣𝙩𝙞𝙘𝙞𝙥𝙖𝙩𝙞𝙤𝙣 𝙈𝙖𝙧𝙠𝙚𝙩𝙞𝙣𝙜: Apple excels in anticipation marketing through its highly anticipated product launch events. Months before the launch, it builds excitement with cryptic teasers and media speculations. On launch day, Apple live-streams the event, creating a global spectacle and engaging consumers worldwide in real-time. Taking this cue, I’d love to tell you that we are working on something to enliven your olfactory senses. 𝙃𝙞𝙜𝙝𝙡𝙞𝙜𝙝𝙩 𝙀𝙭𝙥𝙚𝙧𝙞𝙚𝙣𝙘𝙚𝙨 𝙊𝙫𝙚𝙧 𝙋𝙤𝙨𝙨𝙚𝙨𝙨𝙞𝙤𝙣𝙨 Airbnb, a leading online lodging marketplace has a feature called "Experiences" that provides unique travel activities hosted by local experts. These range from cooking classes and city tours to outdoor adventures and cultural activities. This shift aims to create lasting memories and emotional connections for travelers. 𝘾𝙤𝙢𝙢𝙪𝙣𝙞𝙩𝙮 𝘽𝙪𝙞𝙡𝙙𝙞𝙣𝙜 Foster a strong sense of community among users by encouraging discussions, sending newsletters, creating social media groups and facilitating collaborations. Creating a vibrant community can enhance the overall user experience and encourage long-term engagement. Picture Source: Calvin and Hobbes, Comics by Bill Waterson

I'm often asked about how I balance different ventures. A deep sense of purpose keeps me aligned with my priorities and helps me manage time. I also believe in selecting the right people, empowering my team and trusting them to get the job done. The Eisenhower Matrix has been one of my guides in juggling diverse enterprises. This technique is a way to organize tasks by urgency and importance. It categorizes tasks into four quadrants based on urgency and importance: Urgent and Important, Important but Not Urgent, Urgent but Not Important, and Neither Urgent nor Important. 𝗜𝗳 𝗶𝘁’𝘀 𝘂𝗿𝗴𝗲𝗻𝘁 𝗮𝗻𝗱 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 – I do it right away. I prioritize such tasks above all others, making them the top items on my to-do list. 𝗜𝗳 𝗶𝘁’𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗯𝘂𝘁 𝗻𝗼𝘁 𝘂𝗿𝗴𝗲𝗻𝘁 – I schedule it for a time when there are no urgent and important tasks remaining. 𝗜𝗳 𝗶𝘁'𝘀 𝘂𝗿𝗴𝗲𝗻𝘁 𝗯𝘂𝘁 𝗻𝗼𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 – I delegate it. Many tasks tend to fall in this category and can be a drain on the resources. 𝗜𝗳 𝗶𝘁'𝘀 𝗻𝗲𝗶𝘁𝗵𝗲𝗿 𝘂𝗿𝗴𝗲𝗻𝘁 𝗻𝗼𝗿 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 – I can choose to not do it at all. For an organization, it can be a sign of what they can discontinue. Picture Source: Pinterest/@theblogrelay

  Doing your best can look different every day. 

"No, we don't know where it will lead. We just know there's something much bigger than any of us here."- Steve Jobs

Don’t be afraid to be different. The world needs it. - Bjork