3 Case Studies To Prove How Psychology Helps You Read The Mind Of Your Customers
Well, marketing is all about playing with consumer’s mind. Thereby, psychology plays a significant role in formulating marketing principles.
So, today we have got some interesting marketing lessons from psychology itself that can help you play smart! Get ready to understand the science of marketing the psychological way!
The decoy effect, popularly known as the asymmetrical dominance effect with economists, is a phenomenon where people tend to have a change in preference between two options when presented with a third option that is asymmetrically dominated. It plays a crucial role in making decisions.
To understand this concept better, taking a look at the following example.
National Geographic ran an experiment to test how the decoy effect influences consumers to buy a large popcorn rather than a small or medium one.
To begin with, they offered the first group of consumers a small bucket of popcorn for $3 or a large one for $7.
The result revealed that most of the consumers chose to buy the small bucket, due to their personal needs at that time.
As for the second group, they decided to offer three options: a small bucket for $3, a medium bucket (the decoy) for $6.5 and a large one for $7.
This time, most of the consumers chose the large bucket because they saw value in more popcorn for only $0.5.
The medium bucket was asymmetrically dominated by the large bucket. In other words, the decoy effect encouraged the consumers to go for the expensive option.
So, now you know the clever way of presenting your products. We would personally recommend you to keep a minimum of three products as an option and keep the pricing of the decoy close to your high-end product.
It is based on simple human nature. When you realize that you might end up losing something you want it even more. Jack Brehm has talked about this phenomenon in his book Theory of Psychological Reactance.
In the experiment, he placed two identical toddler toys in a room.
One had a plexiglass barrier in front of it forcing the toddlers to go around the barrier to get the item. The other toy was accessible in front of them.
As you might have guessed it!
The most attractive toy was the one that had the barrier in front of it.
The same works for marketing.
Our probability to buy something automatically increases when we hear words like “Only 2 left”, “ 20% off until midnight.”
It creates a certain sense of urgency which pushes us to buy as we fear we might miss on something.
We personally recommend you to not to lower down the prices of your product instead use scarcity principle by presenting limited stock. It really works!
Satyendra Singh’s review of color psychology in relation to marketing found that people make up their minds about a product within 90 seconds and 62%-90% of that decision is based on color alone. This tells us that color matters!
Let’s start with talking about the popular color choices. Like blue is considered the color of trust, yellow is used to evokes instant happiness and red is a symbol of passion and vigor. So now you know why Facebook goes blue and why your favorite food joints are coloring themselves in red and yellow.
When it comes to picking the “right” color, research has found that predicting consumer reaction to color suitability is far more important than the individual color itself.
But the bottom line is that there is no hard and fast rule when it comes to picking the right color. Comprehending about the feeling each colors matters but color alone can’t thrive on its own. Color along with other factors like fonts, logo create the overall mood associated with your brand.
So before picking up red, yellow or blue, make sure you know the hue to allure your audience first and then build a complete package!
Now you exactly know how you can naturally trigger somebody to buy your product. Connect with The Hustler collective and let’s design a campaign that hits the right connection with your audience.