McDonald's Behavioral Economics: Random Rewards Work Better
Posted in: UncategorizedNowhere is the phrase Monday morning quarterback more on point than the Monday after the Super Bowl. While most sports fans are debating why Russell Wilson passed from the one-yard line, those of us whose favorite game is marketing are trying to figure out what certain brands were thinking in their choice of Super Bowl spots.
Some reviews are measuring brain waves, others are looking at consumer votes and some are just personal opinion. Well, we think we know what was behind some of the very good as well as some of the not-so-good efforts. It’s all about leveraging the unconscious factors that drive 95% of consumer decision-making, and the best way to do that is through behavioral economics. Of course, when you can combine the smart use of behavioral economics (B.E.) with your brand’s core positioning, you’ve really got a home run — make that a touchdown.
And that’s just what McDonald’s did. McDonald’s “Pay with Lovin” promotion randomly will let people pay for their meal over the next two weeks with acts of love and kindness. It’s a great use of the BE principle of “random rewards,” which engender more loyalty than regular expected rewards not only among those who receive, but among those who observe. The fact that McDonald’s tied the rewards to its “Lovin It” tagline and new campaign direction made it even stronger. Touchdown McDonald’s.
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