Melina Palmer, an applied behavioral economist, discusses how to sell to the brain, not just the buyer. Her core message revolves around understanding the subconscious drivers of purchasing decisions. She emphasizes that price is often secondary to emotional and psychological factors.
Why People Buy: It’s Not About Logic, It’s About the Cookie
We think customers are rational. They’re not. According to behavioral economist Melina Palmer, purchase decisions are driven by subconscious cues, not logical reasoning.
Two identical cookies. Two different outcomes.
• Scenario 1: A wafting cookie scent lures you in—you buy.
• Scenario 2: A loud vendor shoves a discount in your face—you walk away.
• Lesson? Context and how you’re drawn in matter far more than price.
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The Elephant and the Rider: Who’s Really in Control?
Borrowing from Jonathan Haidt’s metaphor:
• The Rider = our conscious logic
• The Elephant = our subconscious impulses
And in every buying decision, the elephant leads. Brands must learn how to nudge the elephant.
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Why Lowering Price Is Not the Answer
Brands panic when customers don’t buy. The knee-jerk response? Lower the price. Bad move.
Melina busts the biggest myth:
“A lower price doesn’t necessarily increase sales.”
Real-life case:
• A dress priced at $34 wasn’t selling. Raised to $39—it sold 30% more.
• Why? Left-digit bias. $39 feels premium but still psychologically acceptable.
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The Real Definition of Value (Hint: It’s Not Price)
Melina urges brands to understand what “value” means to their customer.
Types of perceived value:
• Social proof: “Others are buying it, so it must be good.”
• Scarcity: “Only 100 units exist—I must have one.”
• Status: “Owning this shows I’m special.”
“Supreme sells Pyrex cups for $25. Resold for hundreds. Same functionality. Different psychology.”
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Value vs. Quality: Stop Living in the Gray Area
Melina’s warning:
“Most brands say they’re premium but act like bargain bins.”
Two paths:
• Value brand: Frequent discounts, round-number pricing ($9.99)
• Quality brand: Premium storytelling, no discounts, strong identity ($500 vs $499)
Consistency is everything. A Porsche can’t market itself like a pickup truck.
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Choice Architecture: Framing Changes Everything
Give customers fewer—but clearer—choices. Don’t drown them in options. Use anchoring to guide decisions.
Example:
• Patek Philippe watch ad: “You never actually own a Patek Philippe. You merely look after it for the next generation.”
• Emotionally reframes a $50,000 product as legacy, not a watch.
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Build a Nudgeability Map
Melina’s proprietary framework:
“Start with micro-moments that are both important and nudge-able.”
Optimize:
• Email subject lines
• Product page layouts
• Call center responses
• Landing page CTAs
Test. Iterate. Don’t just guess.
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Break the Category, Build the Identity
Brands like Dove and Nike don’t just sell soap or shoes. They sell identity and emotion.
Dove: “It’s not soap, it’s moisturizing cream.”
Always: “Run like a girl” turns a stigma into strength.
They’ve reframed the product by owning a cause, creating emotional stickiness.
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Pricing Is a Process, Not a One-Time Decision
“Pricing isn’t carved in stone. It’s iterative.”
- Test prices regularly
- Customers forget old prices faster than you think
- Anchor your price to value—not cost
One golden rule: Be clear. Be consistent. Be brave.
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Melina’s Final Advice
• Don’t discount out of fear.
• Choose your lane—value or quality—and stick to it.
• Know your customer’s inner motivation.
• Build memory consistency across touchpoints.
“A brand is a memory. Every interaction stacks up. Make sure they align.”
Jagged with Jasravee, the Marketing Show 
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