Thursday, January 10, 2008

Using Swarm intelligence to improve sales

From wikipedia, a reference to this article:
"Swarming the shelves: How shops can exploit people's herd mentality to increase sales"

Found it at:
http://xinkaishi.typepad.com/a_new_start/2006/11/economist_psych_1.html

The main idea here is to use swarm intelligence to help increase sales. Swarm intelligence is the theory of how humans behave in the presence of a crowd or swarm. Consumers tend to buy products that they perceive to be more popular among the crowd. A well known example of this is downloading online songs. Songs that have been downloaded a lot of times generally tend to get downloaded more often than the others. I think this is because, when trying to decide between two products, it is always nice to have some external confirmation that you made the right choice. Getting a product that is more popular seems like a safer choice.

The article talks about utilizing this phenomenon to increase sales by informing the customers about which products are bought more.

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