Learn how using psychological biases can inject creativity, change consumer behaviour and increase impact, like magic!
In marketing, it is really helpful to understand consumer behaviour. One fascinating aspect of this is how our psychological biases influence the effectiveness of marketing messages and what we buy. Like a magical sleight of hand.
My article summarises the key points from a fascinating, thoroughly researched book ‘The Illusion of Choice: 16½ psychological biases that influence what we buy’ (by Richard Shotton). This explores some of our key psychological biases and how entrepreneurs and marketers can use them to influence their customers’ purchasing habits and brand perceptions.
Where opportunities arise, I take advantage of these biases at Real Marketing Transformation when developing clients’ USPs, brand stories, website, adverts, email marketing and PR when working as their virtual marketing manager or fractional marketing director (CMO).
Sensation Transference
Louis Cheskin’s concept of “sensation transference” shows that our enjoyment of products, such as margarine, is shaped by our expectations. Elements like colour, smell, and packaging influence our perception and overall experience.
Cheskin described this phenomenon, saying, “All the elements of the experience – colour, smell, even the packaging – contributed to our expectations and therefore the taste.”
This demonstrates that marketers must consider all aspects of a product or service’s presentation.
Habit Formation
Humans are “cognitive misers,” meaning we prefer to rely on habits rather than making new decisions every time we face a similar situation. Susan Fiske, a psychologist at Princeton, puts it succinctly: “Thinking is energy intensive, so we ration it.”
This tendency is crucial in marketing, as targeting the start of new time periods (eg the beginning of a week, month or season) can disrupt old habits and encourage new behaviours.
For instance, the probability of someone visiting the gym increases by 47% after a new term begins.
Samuel Smiles, a Victorian author who wrote the first and very popular Self-Help book (first published in 1869), noted, “To uproot an old habit is sometimes a more painful thing, and vastly more difficult, than to wrench out a tooth.”
To encourage habitual purchasing, make the process as easy as possible and consider using uncertain rewards to enhance loyalty. Pret a Manger’s approach of offering random free coffees has proven more motivating than consistent incentives.
As Richard Shotton highlights, “The best way to encourage a habit is to make it as easy as possible.”
Make It Easy
Making the desired behaviour easy to perform can have a significant impact. Companies like Netflix, with its auto-play feature, and Amazon, with one-click ordering, reduce customer effort and thus enhance engagement.
Daniel Kahneman notes, “Diminishing the restraining forces is a completely different kind of activity.”
Even small changes, such as simplifying forms or processes, can lead to major improvements in user experience.
A creative example is the “champagne button” in some exclusive restaurants, which streamlines the process of ordering champagne with a single button press.
Another approach is Freedman and Fraser’s two-step approach: begin with a small, easy-to-achieve change, then follow up with a larger request.
Or, Make It Difficult
In some cases, adding a bit of complexity can increase the perceived value of a product. This is known as the “IKEA effect,” where consumers value items more when they have put effort into assembling them.
The act of requiring more effort, like adding an egg to a cake mix, can enhance satisfaction and perceived quality. Betty Crocker saw a sales increase when they required customers to add an egg to their cake mixes, making them feel more like “proper cooks.”
Similarly, Charles Spence and Qian Wang from the University of Oxford found that participants rated the same wine 10% higher when it was opened with a corkscrew compared to a screw-top bottle!
The Generation Effect
Advertisements that require a bit of mental effort can be more memorable. This effect leverages our enjoyment of solving problems and the desire to share those experiences with others. For example, ads with clever wordplay or puzzles often become talking points among friends, enhancing their impact and recall.
Psychologists found that participants who read text in a difficult-to-read font had higher recall rates than those who read easy fonts. Specifically, 87% memorised text written in a disfluent font, compared to 73% for an easy font.
The Keats Heuristic
The “rhyme as reason effect” or “Keats heuristic” shows that rhyming phrases are perceived as more believable.
This was famously used in the O. J. Simpson trial with the phrase, “If the gloves don’t fit, you must acquit.”
Despite its power, the use of rhymes in advertising has declined. In 2007, about 4% of print ads included a rhyme, compared to 10% in the 30 years prior.
Rhyming and alliteration can make brand messages more memorable and impactful.
Concreteness
Concrete language makes messages more memorable and relatable. Instead of abstract statistics, use stories to convey your message. We all know about the power of story telling.
This approach, known as the “identifiable victim effect,” can significantly boost engagement and response rates. For example, those who read a personal story about an individual’s plight donated more than double compared to those who only read statistics.
Arthur Schopenhauer advocated for simplicity, saying, “One should use common words to say uncommon things.”
You should aim for precise, relatable details to enhance your messaging.
Precision
Using precise numbers rather than round figures can enhance credibility and noticeability. Precise claims are often seen as more accurate and reliable. For instance, sellers who set a precise asking price for their homes, like £599,499 rather than £600,000, often achieve closer to their asking price than those who use rounded figures.
Researchers found that people were more likely to give money when asked for a specific amount, such as £5, compared to a vague request for any change. This is known as the “pique effect.”
Extremeness Aversion
Consumers tend to avoid extreme options, preferring middle-ground choices. This bias can be harnessed by positioning your product as the moderate option among a range of choices.
The “decoy effect,” where an inferior option makes another option more attractive, is a related approach. You can also include an expensive, premium product to make the middle option more attractive. This approach is used a lot by ecommerce businesses, particularly software vendors, on their websites.
In research, older adults were found to pick the middle option 61% of the time compared to 41% for younger adults. This suggests that extremeness aversion is also particularly useful for products targeting older consumers.
Denominator Neglect
Consumers often focus on headline figures rather than what they represent. For example, a 25% discount might seem better than £5 off, simply because 25 is a larger number. Marketers can use this bias by presenting discounts in the most impactful format, such as percentages for lower-priced items and absolute terms for higher-priced ones.
When offering multiple discounts, presenting them in ascending order can increase perceived generosity and effectiveness. For example, people interpreted a sequence of 20% and 25% discounts as better than a single 40% discount.
Actions are More Accurate than Words
Behavioural science shows that what people say motivates them often differs from what actually motivates them in reality. Observed data is more reliable than claimed data: what people do is often different from what people say.
Timothy Wilson, a professor at the University of Virginia, said, “People are strangers to themselves,” highlighting the disconnect between stated and actual motivations.
The type of music played in a store can significantly influence wine sales. When French music played, French wine sales increased; when German music played, German wine sales rose.
Framing or Context Alters Perceptions
The way information is presented, or framed, can drastically alter perceptions. For example, describing mince as “75% lean” rather than “25% fat” significantly improves its perceived quality.
Daniel Kahneman explored this concept, noting that we often base decisions on what is immediately visible, a phenomenon he termed “What You See Is All There Is” (WYSIATI).
Using nouns rather than verbs in language can also be powerful. For instance, asking people how important it is to be a “voter” rather than to “vote” increases engagement because nouns reflect identity more strongly than actions.
Fairness Motivates
Fairness is a strong motivator. People are willing to punish perceived unfairness, even at a cost to themselves.
However, when raising prices, providing a justification (eg increased costs) can help maintain customer satisfaction. For example, mentioning specific reasons for a price increase can make customers more accepting.
Ellen Langer’s research found that using the word “because” increased compliance, even if the reason was trivial. “Because” acts as a trigger for accepting a rationale, regardless of its content.
Freedom of Choice
People resist attempts to limit their autonomy, a reaction known as reactance. When trying to influence behaviour, it’s often better to charm than to coerce. Pennebaker’s research suggests that you need to temper your language when trying to change the behaviour of others.
Therefore, phrases like “but you are free to refuse” can reduce resistance and increase compliance.
Giving people a voice and the freedom to say no can significantly increase their willingness to comply.
The Red Sneakers Effect
Nonconformity can signal high status. Brands or individuals that deviate from norms can appear more competent and influential, but only if they already have a certain level of status. Premium pricing can also reinforce this perception of intentional nonconformity.
Francesca Gino termed this idea the “red sneakers effect,” noting, “Nonconforming behaviours boost perceived competence and status.”
However, this effect only works if the individual or brand already has high status. For those lacking status, nonconformity can backfire.
The Halo Effect
Positive perceptions in one area can influence perceptions in other areas. This is the “halo effect.” For instance, a likeable or attractive brand is often assumed to be of higher quality. Marketers can leverage this by focusing on improving easily noticeable traits like design or humour in advertising to indirectly boost perceptions of quality and trustworthiness.
Edward Thorndike’s research in 1920 showed that superiors who rated a soldier highly on one trait, such as appearance, tended to rate them highly on other unrelated traits, such as leadership.
Consumers Buy Humour
Humour can enhance brand memorability and likeability. Despite a trend towards more serious advertising, evidence suggests that humour can significantly boost engagement, positive emotions, and purchase intent.
Nicolas Guéguen’s research found that serving staff who told jokes received larger tips, demonstrating the effectiveness of wit in improving outcomes.
However, humour should align with the core message to avoid overshadowing the brand. Humorous ads that are relevant to the message tend to be more effective and memorable.
The Peak-End Rule
People remember the most intense part and the end of an experience. Improving the worst parts of a customer experience and ending on a high note can significantly enhance overall satisfaction and loyalty.
Kahneman suggests focusing on minimizing negative experiences and amplifying positive ones to leave a lasting positive impression.
Deploy These Psychological Biases to Improve Marketing Effectiveness
Understanding and applying these psychological biases in your USP, website, adverts, email marketing, content marketing and PR increases the success of your marketing.
By considering how consumers think and make decisions, entrepreneurs and marketers can be creative with higher impact, more effective communications campaigns that resonate on a deeper level, increasing returns and driving better results for their brands.
If you need to inject some magic into your marketing, book a chat via the link below.
Photo credits: Izzy Lamotte (my daughter) – Northern Lights in St Andrew’s
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