I spent 70 hours digging into cognitive biases.
The top 6 biases that brands exploit to influence purchase decisions:
The top 6 biases that brands exploit to influence purchase decisions:
1. Anchoring Bias
Initial prices influence subsequent perceptions of value.
Example: A $200 handbag marked down to $100 feels like greater value than if it was just priced at $100.
Advice: Be wary of inflated "original" prices during sales
Compare product value objectively.
Initial prices influence subsequent perceptions of value.
Example: A $200 handbag marked down to $100 feels like greater value than if it was just priced at $100.
Advice: Be wary of inflated "original" prices during sales
Compare product value objectively.
2. Framing effect
The way information is presented alters our perception.
Brands use specific wording to elicit desired reactions.
Example: "99% fat-free" is more appealing than "Contains 1% fat", but they're the same.
Insight: The power of framing is in the presentation.
The way information is presented alters our perception.
Brands use specific wording to elicit desired reactions.
Example: "99% fat-free" is more appealing than "Contains 1% fat", but they're the same.
Insight: The power of framing is in the presentation.
3. Peak-end rule
Our memory of an experience is shaped disproportionately by its most intense moments (peak) and its conclusion (end)
This is why we always remember the highs and lows of vacations.
Recommendation: Always ensure your customer ends on a positive, memorable note
Our memory of an experience is shaped disproportionately by its most intense moments (peak) and its conclusion (end)
This is why we always remember the highs and lows of vacations.
Recommendation: Always ensure your customer ends on a positive, memorable note
4. Scarcity bias
βLimited edition!β
βOnly a few pieces left!β
βExclusive discounts today!β
These are all scarcity tricks used to give us FOMO and buy today.
Always be aware of tricks that add artificial scarcity.
βLimited edition!β
βOnly a few pieces left!β
βExclusive discounts today!β
These are all scarcity tricks used to give us FOMO and buy today.
Always be aware of tricks that add artificial scarcity.
That's a wrap!
If you enjoyed this thread:
1. Follow me @EvanNierman for more of these
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If you enjoyed this thread:
1. Follow me @EvanNierman for more of these
2. Subscribe to my newsletter for more breakdowns like this: strategies.redbanyan.com
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