In this episode of The Brainy Business podcast, Melina Palmer welcomes Hunter Thurman, president of Alpha-Diver, for an engaging discussion on the intersection of neuroscience, market research, and consumer behavior. Hunter shares his journey from traditional market research to founding Alpha-Diver, a firm that leverages behavioral science to uncover the deeper motivations behind consumer actions. With a focus on the BEV 50 report, Hunter reveals fascinating insights into how pricing perceptions differ between high-interest, exploratory brands like Poppy and Olipop and routine staples like Coke and Pepsi.

Hunter explains how consumers' concerns about price are often inversely related to the actual cost per ounce, challenging the conventional wisdom that price directly dictates consumer behavior. This episode delves into the psychological factors that influence purchasing decisions, emphasizing that the perceived cost and social context often outweigh the actual price. Hunter and Melina discuss strategies for brands to navigate these complexities, whether they are market leaders looking to maintain their dominance or new entrants aiming to carve out a niche.

In this episode:

Explore the unexpected relationship between price and consumer perception.
Understand the importance of social context in influencing purchasing decisions.
Learn about the different psychological drivers for routine and exploratory brands.
Discover actionable strategies for both established and emerging brands to thrive in a competitive market.
Gain insights into how to leverage behavioral science to better understand and predict consumer behavior.

Show Notes:

00:00:00 - Introduction
Melina introduces Hunter Thurman and the focus of today's episode on pricing insights from the BEV 50 report.

00:04:30 - Hunter's Background
Hunter shares his journey from traditional market research to founding Alpha-Diver and applying behavioral science to understand consumer behavior.

00:10:15 - The BEV 50 Report
Hunter discusses the BEV 50 report and the surprising findings about consumer perceptions of price and value.

00:15:45 - Price Perception vs. Actual Cost
Hunter explains how consumers often perceive lower-priced routine brands as more expensive compared to higher-priced exploratory brands.

00:25:00 - Psychological Drivers
The conversation shifts to the psychological factors that drive consumer behavior and how brands can leverage these insights.

00:30:20 - Strategies for Market Leaders
Hunter provides actionable advice for established brands to navigate pricing challenges and maintain consumer interest.

00:35:50 - Strategies for Emerging Brands
Hunter shares tips for new brands looking to enter the market and differentiate themselves.

00:45:00 - The Promised Land
Hunter describes the "promised land" for brands that successfully balance routine use with high consumer interest.

00:50:30 - Conclusion
What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn.

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The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics