How neuromarketing can bridge the Seller-Buyer Gap
🎧📝🎙️Episode Summary:In this podcast episode, the focus is on the disparity between what sellers charge for their products and what buyers are willing to pay, with a particular emphasis on the differences between goods and services. It delves into the realm of neuromarketing and explores why this seller-buyer gap is more prominent for services than for tangible goods.Physical Distance Leads To Mental Distance:A meta-analysis by Nguyen and Wang (2023) highlights that services are often valued more by sellers than by buyers. This discrepancy is attributed to the intangible nature of services, making them harder for buyers to evaluate.The psychological aspect is also discussed, where people can easily form positive associations with tangible products through touch, but services remain psychologically distant, leading to cognitive embodiment.The challenge lies in reducing this mental distance between buyers and services.Bridging The Seller-Buyer Gap:Neuromarketing strategies can help narrow the seller-buyer gap, although not entirely eliminating it, as some resistance encourages buyers to evaluate the true value of the service.The key idea is to focus on the emotional experiences and the reflection of one's identity in the service or brand when marketing services.Utilizing influencers familiar to the target audience can make the service more relatable and closer in the minds of potential buyers.Framing messages to emphasize potential losses, like the risk of being hacked when protecting data, can highlight the value of the service.Take Home Points:Sellers often overvalue their goods and services compared to what buyers are willing to pay.Services, in particular, face a substantial seller-buyer gap.Marketing strategies should differ for goods and services, emphasizing product specifics for goods and emotional connections and identity reflection for services.Unique strategies, such as collaborating with content creators and effective framing, can enhance service marketing.