Digital Glossary

competitive advantages over a brand’s competition that help to protect its long-term revenue and market share

popularized by Warren Buffett, refers to a business' ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms.

An echo chamber is an environment where a person only encounters information or opinions that reflect and reinforce their own.

It's happend when a message within a network (such as a Facebook group) is passed around or shared, meaning the network of members are more likely to see the message again and again.

The Gruen Effect refers to the psychological response of consumers in a shopping environment. It is named after the Austrian architect, Victor Gruen, who is considered the father of the modern shopping mall.
The Gruen Effect describes the disorienting and distracting effect that a well-designed shopping environment can have on a consumer. Specifically, it refers to the tendency for shoppers to become disoriented and lose track of time when they are exposed to certain design elements, such as curved pathways, changing lighting, and unexpected design features.

According to Gruen, this effect was intentional and designed to encourage consumers to spend more time in a shopping environment and ultimately buy more products. The Gruen Effect is still relevant today and is often used by retailers to create an immersive and engaging shopping experience for their customers.

the propensity of the brand to be thought of in buying situations.

It's the propensity of a brand to be noticed or come to mind for individuals in buying or consumption situations

A psychological principle that suggests that the human brain can hold approximately 7 (plus or minus 2) pieces of information in working memory at a time. This means that people are better able to remember and process information when it is presented in smaller, more manageable chunks rather than as a large, overwhelming mass of information.

A behavioral economics concept that suggests that small, subtle, and often indirect changes in the environment can influence and guide people's behavior towards making better choices. It is based on the idea that people often make choices that are not in their best interest because of cognitive biases or other external factors thai influence their decision-making process.
Nudges can be designed to encourage people to make better choices without forcing them to do so. For example, placing healthy food options at eye level in a cafeteria can nudge people towards making healthier choices. Similarly, using default options, such as enrolling employees in a retirement plan by default, can nudge people towards saving for their future.
The idea behind Nudge Theory is that these small nudges can have a big impact on behavior change without limiting people's freedom of choice. The theory has been applies in various domains, including healthcare, environmental conservation, and public policy, t encourage people to make better decisions for themselves and society.

a strategy of deliberately ensuring that the current version of a given product will become out of date or useless within a known time period

it's (also called built-in obsolescence or premature obsolescence) is a policy of planning or designing a product with an artificially limited useful life or a purposely frail design, so that it becomes obsolete after a certain pre-determined period of time upon which it decrementally functions or suddenly ceases to function, or might be perceived as unfashionable.

The rationale behind this strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as "shortening the replacement cycle"). It is the deliberate shortening of a lifespan of a product to force people to purchase functional replacements.

The Ultimatum Game is an experimental game in game theory where two players interact and have to decide how to divide a sum of money. One player, called the "proposer," is given a sum of money and must propose a way to divide it between themselves and the other player, called the "responder." The responder can either accept or reject the proposal.
If the responder accepts the proposal, the money is divided according to the proposal. However, if the responder rejects the proposal, neither player receives any money. The game is interesting because it is often assumed that people are rational and self-interested, so the responder should accept any offer greater than zero. However, in practice, responders often reject proposals that they perceive as unfair. This behavior has been observed across many different cultures and contexts, and it has been argued that it reflects a concern for fairness or reciprocity in human decision-making.