Friday, June 21, 2013

How Consumer Behavioural Economics is helping to promote “Lose Weight” Products and Programs

One of my childhood friends, who have always been obese, had his awakening call 2 years back. He started with a simple diet plan, then started going to programs promising to reduce 4-6 inches in 1 week, later started taking tabs, tonics, powders, and other supplements to reduce weight. His Moto was rather simple he actually wanted to reduce weight with very little or no physical exercise.

Though he understood the fact that Exercise is the best and cheaper way to reduce weight his argument was “When a product is available in the market to reduce weight without exercise why not take it?” It strike me… we buy many things in life just as a supplement to reduce our human effort; any machine is made - invented is to reduce human effort as bottom line. In that context why not buy a product which would reduce your weight without sweating a drop.

Now the question is whether there is a product truly made (Applicable to Everyone) to reduce weight without involving the traditional method that is Exercise?  The Answer is as much as I know and have seen there is none. If my statement is true then how come this industry survives…? When it cannot do what it supposed to do for a major chunk of their customer base if not all. In a recent article in New York Times I read Weight Lose market has a $ 3 Billion whooping US dollars market turnover in US alone… Imagine other countries in Asia where Obesity population levels are growing every day.

In order to understand better I had an honest discussion with my friend about his failures attending various programs to lose weight. Initially he commented saying all the programs he attended either did not suit him or did not worked as expected… so I asked why continue doing the same error, Initially he did not have answer later on I realised it was his guilt of quitting made all the difference, Someone trying to quit smoking is no different than my friend who is afraid to quit going to people promising to reduce his weight.

Corporates in weight lose industry, who produce and sell Powders, Tablets, Diet Plans, Books etc… know for a matter of fact that there consumer market will never reduce and it will only multiply though they produce no results. They confidently open shops investing only on marketing. Where they market not their products, but creating a Maya that FAT PEOPLE ARE UGLY.

Mostly the trend I see in the corporations is this, they struggle so much only to make a prospective customer to a customer, they do very little to retain them, as chances of a customer quitting using their product is very high (which they are completely aware off), or the payment plan is in such way that mostly they make their profit in the first transaction itself. They see only two kinds of customers, first one is the kind who know it’s not working but the guilt of quitting makes them stay and pay.  Second One is the one who boldly calls a quit but eventually lands up in another program and ends up paying….It’s a cycle.


Corporates follow simple game theory as there marketing strategy, once a person enters there office only 2 options are given to him/her and they are forced to choose one. Either choose a program and get stuck there or call it quit and join another program. As you see both the options are designed by the corporates and you have left with no choice either u spend and stay with this corporates and be happy in heart thinking you are at least trying or live with the feeling you are FAT and UGLY.