Building the Neighborhood
You have to build out platforms before you can build a community.
Pricing strategy to maximize sales revenue and minimize consumer surplus.
Review Rate Sales Estimation
Using review rates as a proxy for sales volume.
Marginal Sales vs. Marginal Effort
Is additional effort worth the additional sales?
Game Sales are Exponential
The distribution of game sales follows an exponential curve.
Fear of Missing Out
People make irrational decisions when they are afraid they might miss out on a big opportunity.
The amount a consumer would have paid for a product above the price they actually paid.
Word of Mouth Disparity
Negative information is much more likely to be shared and is transferred much faster.
Shock Value of WoM
Explains how content can go viral.
Having a large number of ongoing occurrences beyond the initial spike (high standard deviation).
How multiple marketing exposures can yield greater conversion rates.
Top of Mind
Staying in the forefront of a customer’s mind.
Product Life Cycle
How sales volume and customer characteristics change as a product ages.
People are more sensitive to losses than gains of similar magnitude.
Grassroots signals that a product or service is good.
Tempering expectations to avoid hype and eventual disappointment. Important due to sensitivity to loss.
Perception is Reality
For most people, truth is irrelevant. Perception is their reality, no matter how distorted.
How advantages can stack over time to yield increasing advantages.
Framing and Positioning
Context is everything.
Setting anchor prices like suggested retail price, can influence perceived value.
The cost of what you are giving up when you make a decision involving scarce resources like time and money.
Substitutes (In Consumption)
Alternatives to a given product or service.