Consumer Psychology

Influence Consumers

Most organic ways you can spread the word about your product.

Consumer psychology is the art and science of why people buy what they buy. Using Human Psychology to Your Advantage Humans are generally wired the same, and that gives you a specific advantage in your marketing. So long as you’re not using them unethically, these psychological factors can add an edge to your strategy and help you stand apart from the competition.

1- Framing

How a piece of information is framed can make it more or less effective at changing behavior.

Framing is not about what is said, but how it is said.

The Framing Effect is the principle that our choices are influenced by the way they are framed through different wordings, settings, and is simply the way you present information

In a 1979 study, Amos Tversky and Daniel Kahnemann proved that the decisions we take are also influenced by the way they are framed. Different wordings, settings, and situations will have a dramatic effect on the outcome of the decision made.

Tversky and Kahneman asked participants in their study to decide between two treatments for 600 people who contracted a fatal disease pandemic

Treatment A would result in 400 deaths,

and treatment B had a 33% chance that no one would die but a 66% chance that everyone would die. This was done with :

positive framing (how many people would live)
negative framing (how many people would die)

Treatment A received the most support (72%) when framed as saving 200 lives, but dropped significantly (to 22%) when framed as losing 400 lives.

The framing effect has consistently proven to be one of the strongest biases in decision making

The origins of the advertising date back in a very distant time. Publicity exists since civilization and commerce origins. This shows that there has always been an obvious need to communicate, and in the beginning, word-of-mouth advertising was the most common.

For me, this is the number-one tactic.

When people talk about your products, services, or brand spontaneously that is the word of mouth marketing.

That is free and trusted advertising for your company.

Generate an Emotional Response One of the main reasons that word of mouth advertising exists, is that people enjoy sharing their thoughts and experiences with other people.
Start with Your Employees Who better to promote your brand than the people who know everything there is to know about your business?
Social media (Facebook, Instagram, Twitter, LinkedIn, etc) Review platforms (Amazon, Yelp, HealthGrades, etc) Blog posting and article writing
Referral Programs / Refer a Friend
Engage (Be Part of the Conversation) Want to make sure that your customers are constantly talking about your company? Then become a part of the conversation. Engage with your audience, and listening to what they’re saying in your industry.
Provide Quality Service and Treat Every Customer With Respect
Continuously involve communities.
Seminars: Like theme parties, seminars are organized by influential or veteran people within an organizational hierarchy
People never stop talking about Red Bull because the energy drink company literally never stops hosting festive events that get people involved.

This chocolate only contains 20% sugar

This chocolate only contains 6-gram sugar

Framing techniques are commonly used by marketers and advertisers

THE USE OF FEAR APPEAL FOR ANTI-SMOKING ADVERTISING CAMPAIGNS

Framing techniques are commonly used by marketers and advertisers

Gain-framing: this type of framing highlights what they have to gain from using a particular product.

Loss-framing: refers to human nature to avoid losses as much as possible fear is a particular type of loss and of missing out

2- The Mere Exposure Theory

The mere exposure effect is easy to observe in the marketplace. When it come to new products or technology, most of us have to have a lot of exposure before we feel comfortable buying.

For example, the iPhone wasn’t the first smartphone. Neither was the Blackberry. The first smartphone was actually the Simon Personal Communicator:

Released in 1994—more than 10 years before the iPhone—IBM’s personal communicator had a touch screen and many of the same features and apps that we all love today. But it was new. Too new.

At the time, people weren’t really comfortable with the idea of an all-in-one device like a smartphone. They didn’t see the need for it and was also very expensive compared to another mobile. people just weren’t that interested.

The Blackberry 5810 was released in 2002 and performed better, but it was still largely seen as a gadget. But, it got people familiar with the idea of smartphones, which set the stage for Apple’s release of the iPhone in 2007.

As groundbreaking and hip of a product as the iPhone was, if Apple had released it in 1994, it almost certainly would have been a flop. It would have been too new, too revolutionary, too unnecessary, even. The mere exposure effect hadn’t bred contentment towards smartphones yet.

The more often you put your message in front of your audience, the more likely they are to remember it—and take your desired action.

On an episode of the 60-Second Science podcast, Steve Mirsky details how the brain tries to anticipate words before they’re fully spoken out loud. This is a prime example of our brains always being at work. Even as you read this blog or listen to someone speak, your cerebrum is attempting to predict the word that will be spoken or typed next. So, when something familiar is changed slightly, people can be surprised and it will be more easily remembered.

While the bandwagon effect can have dangerous consequences, it can also lead to the adoption of healthy behaviors. If it seems that the majority of people reject unhealthy behaviors (such as smoking) and embrace healthy choices (such as exercising and working out), people may then become more likely to avoid risky choices and engage in healthy actions.

Diets: When it seems like everyone is adopting a certain fad diet, people become more likely to try the diet themselves.
Elections: People are more likely to vote for the candidate that they think is winning.
Fashion: Many people begin wearing a certain style of clothing as they see others adopt the same fashions.
Music: As more and more people begin listening to a particular song or musical group, it becomes more likely that other individuals will listen as well.
Social Networks: As increasing numbers of people start using certain online social networking websites, other individuals become more likely to begin using those sites as well. The bandwagon effect can also influence how posts are shared as well as interactions within online groups.

Social proof theory

The good news is that social proof isn’t just some random flash in the pan but rather a known phenomenon that savvy marketers have been tapping into for hundreds of years. For example, the British Royal Family has been awarding royal warrants of appointment to their suppliers since 1155, making these warrants one of the oldest forms of social proof.

Photos and testimonials from customers
Company names and logos, particularly from recognizable and well-respected brands
Customer case studies
Ratings or feedback from customers
Reviews on third-party sites such as Yelp or Google
Seals of approval from well-respected organizations
Number of followers on social media platforms
Sharing buttons with share counts and like counts
Download and purchase counts
Listing the number of customers
Celebrity endorsements and shoutouts from influencers
Testimonials from industry experts and expert social proof

3- The bandwagon effect – Social proof theory

Groupthink is another term for the bandwagon effect. Bandwagon bias is a form of groupthink. It’s a cognitive bias that makes us believe something because other people believe it.

It’s easy to say that the word “Bandwagon” usually gets a bad reputation. For example, bandwagon politics, bandwagon sports fan, bandwagon diet, etc. However, Most marketers are aware of this concept already and are used to create an illusion of popularity on a product that may have been or is about to be introduced into the market. It feeds on the human emotion of, “if everyone has one, I want one too,” by making a certain product seem desirable by all.

Customers know that if they simply follow the crowd, they won’t go too far wrong.

4- Principle of Reciprocity

This principle defines the human need and tendency to want to give something back when something is received. This need is strongest when the gift is given without expectation of return.

Offer Something First:

this can be in any form such as gifts, points, discounts, or exclusive offers. To make the most out of this principle, an additional incentive can be offered post-sale for future business or even utilize knowledge and information. provide your customers with something of value. By offering them information such as guides, e-books, or instruction videos, it is significantly more likely that they’ll be interested in reciprocating.

Offer free-trials:

music giant Spotify has used this tactic with great success. By providing a free 30-day trial for Premium Membership, customers become reluctant to cancel at the end of the trial period. Other companies like DropBox use similar approaches.

Keep The Relationship Going:

there is nothing that irks customers more than being treated like a number. Maintaining a good relationship with your customers is very crucial, and something you need to consider very seriously.

Make Customers Feel Special

everyone likes to feel special from time to time. Whether it’s a complimentary glass of champagne at a restaurant or a room upgrade at a hotel, it’s almost guaranteed your customer will respond favorably.

5- Scarcity

Scarcity appeals are being used to stimulate consumers to buy a particular product because of a limitation.

Scarce items appear more valuable:

According to the law of supply and demand, items in low supply often cost more and therefore scare items are expensive items that act as status symbols. Example: To get one of the few Birkin bags produced by luxury brand Hermes, you’ll probably be waitlisted for years…just to pay the $10K+ price tag.

Scarce items feel exclusive:

Those who have scarce items have exclusive access, which is not openly available to others. This, in itself, makes a scarce item more desirable. This is why clubs have VIP areas, airlines have special membership lounges, etc.

Scarce items make people feel powerful:

Snagging a scarce item means you have access to something other people want but can’t have–which gives the owner power.

The limited time shipping offer boosted sales by 30%.

6- Curiosity

Curiosity as a concept is nothing new.

When it comes to attracting customer attention sometimes a little information goes a long way.

The curiosity gap is the space between what we know and what we want or even need to know.

In November last year, Uber and creative agency BBH Singapore teamed together for a campaign designed to challenge car ownership in the country. They placed giant tissue packets in parking spaces around Singapore and enlisted numerous bloggers and influencers to post images of them, igniting a widespread debate online about parking issues. Uber’s so-called “chope” campaign orientated around the goal of reducing traffic in congested cities across Asia. The bizarre appearance of the tissues caught people’s attention and the campaign spread like wildfire on social media, getting people thinking and talking about the company.

One great tactic when it comes to curiosity marketing is leaving out information that you know people will notice and therefore reach out to you, to get more information. When someone asks you a question, you have the chance to engage them, one-on-one to answer their question and strike up a conversation with them. When you do this, you are exponentially more likely to close them as a customer.

Businesses rely on consumers’ curiosity to gain their attention, hopefully, their business, and eventually their loyalty. Curiosity can influence consumers by Enticing people to learn more about your business or product Improving click conversion rates. Offering memorable information connected to your brand Making your business relevant.

The problem with curiosity marketing is the potential for abuse. How often have you clicked on something “interesting” only to find out it led to a spammy website or even a dangerous corner of the web where malware entered your computer, or nefarious elements tried to scam you or get a hold of your credit card data.

7- loss aversion

Loss aversion is the psychological principle that says the pain we feel from losing something is far greater than the positive emotions we feel from gaining it. most people will derive less pleasure from winning $1000 than they would derive suffering from losing $1000, knowing that this bias exists and how it affects our decision making is our ultimate goal. We cannot eliminate loss aversion, but we can be aware of it.

Loss Aversion is utilized in sales and marketing to influence and motivate consumers’ buying decisions You can implement them in your ads.

8- A Desire to Be Right

People want to be right. They want to be part of the winning side. Part of the reason people conform is that they look to other people in their social group for information about what is right or acceptable.4 If it seems like everyone else is doing something, then people are left with the impression that it is the correct thing to do.

9- Baader-Meinhof

Have you ever thought about something and then you started to see it everywhere?

This ‘follow-you-everywhere’ perception is sometimes called the Baader-Meinhof Phenomenon. It is the perception of discovering something new. The Baader-Meinhof Phenomenon, or frequency illusion, can affect anyone who has ever learned anything new. It’s the difference between something actually happening a lot and something you’re starting to detect a lot. Once an object or an idea catches your attention, your brain keeps an unconscious tab on it. You think you aren’t doing anything intentionally. In a way, your mind is playing a bit of a trick on you. Yes, you actually are seeing it more frequently than before, but only because your brain is simply now recognizing it. This type of “frequency illusion” can actually be triggered intentionally as part of a marketing strategy.

Seeing something appear again and again can lead to the assumption that it’s more desirable or more popular than it is. Maybe it actually is a new trend and lots of people are buying the product, or it could just seem that way

10- The Snowball Effect

Snowball Effect can be described as an action that grows both in significance and size with time. For instance, imagine a snowball rolling down the slope of a hill. Doesn’t it get larger and larger as it keeps on coming down and more snow gets collected? It becomes very big and powerful. Marketing efforts are like that snowball rolling down the hill. Be patient, be consistent, and keep working your plan and your business will grow and prosper.