The first letter of your name. The average climate of your country. The presence of the color pink. These so-called “context effects” have an enormous influence over the way we think and behave. In this lesson, Adam Alter, assistant professor of marketing at New York University Stern School of Business, explains how you can use these context effects to your advantage—whether you are naming your company or choosing the color of an everyday product.
(bright upbeat music) … - In the world of marketing, … most of the effects that people talk about are effects … that associate colors with particular outcomes … or particular character traits. … So the color black is supposed … to signal dominance or power. … And the color blue is supposed to be real … but also a little bit laid back, … a little bit more calm. … It's associated with the ocean and sky. … And so there's an argument … about what color you should make a car. … That if you're trying to make a car sell better … and it's a luxury car, … perhaps a color black makes more sense … because what you're going for as a key attribute … for a luxury car is the color black. … And that's generally true of luxury purchases. … People are going to be more attracted to black luxury purchases … because that signals the sort of power and dominance … that you'd hope from those purchases. … That's one of the attributes that matters. … In contrast, if you have a compact car … or an everyday product, something that's perhaps more fun …
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