Definition: Relying too heavily on the first piece of information received.
Application: Displaying a higher price first to make a lower price seem more reasonable (e.g., “Was $200, Now $150”).
Ethical Consideration: Ensure that the initial price is genuine and not artificially inflated, as this could mislead consumers.
Definition: Trusting and being influenced by authority figures.
Application: Using endorsements from experts or celebrities to boost credibility (e.g., “9 out of 10 dentists recommend”).
Ethical Consideration: Ensure all endorsements are based on legitimate expertise and accurately represent the product’s merits.
Definition: Making decisions based on readily available information.
Example: Coca-Cola’s ubiquitous advertising makes the brand easily recallable when thinking about soda.
Ethical Consideration: Be careful not to overwhelm consumers with constant advertising, which could lead to overexposure and diminish trust.
Definition: Adopting beliefs or behaviors because others are doing so.
Application: Highlighting the popularity of a product (“Best-seller”).
Ethical Consideration: Only highlight popularity if it’s factually accurate, to avoid misleading consumers into thinking a product is more popular than it is.
Definition: Difficulty making a decision when faced with many options.
Application: Simplify product offerings or use guided selling techniques to help customers navigate choices.
Ethical Consideration: Ensure that simplification or guiding techniques genuinely help consumers rather than pushing them toward specific products.
Definition: Mental discomfort caused by holding conflicting beliefs or making conflicting decisions.
Application: Provide post-purchase reassurance and support to alleviate buyer’s remorse.
Ethical Consideration: Reassurance should be based on genuine support, rather than attempting to convince consumers to stick with a purchase they regret.
Definition: Focusing on information that confirms existing beliefs.
Application: Presenting curated testimonials that reinforce positive perceptions of your product.
Ethical Consideration: Present a balanced view, including both positive and constructive feedback, so consumers can make informed decisions.
Definition: Changing preferences between two options when a third, less attractive option is introduced.
Application: Adding a higher-priced option to make mid-priced options more appealing.
Ethical Consideration: Avoid using the decoy effect to manipulate consumers unfairly; make sure all options are genuinely valuable.
Definition: The tendency for people with limited knowledge to overestimate their competence.
Application: Simplifying your product information and tutorials, making it appear easy to use so consumers feel more confident purchasing (e.g., “Anyone can use it!”).
Ethical Consideration: Be transparent about any complexities or learning curves involved, to avoid misleading customers.
Definition: Valuing something more highly simply because it is owned.
Application: Offering free trials or samples that make customers feel ownership over the product.
Ethical Consideration: Make it easy for consumers to opt out or return products, ensuring that they don’t feel pressured to keep something just because they’ve tried it.
Definition: Making decisions based on how information is presented.
Application: Present information in a way that highlights the most attractive aspects of your offer.
Ethical Consideration: Ensure that the framing is transparent and doesn’t obscure important information, such as terms and conditions.
Definition: Using one positive attribute to influence the perception of other unrelated attributes.
Example: A luxury brand’s reputation for quality influences consumers’ perceptions of all its products, even if they are unrelated.
Ethical Consideration: Make sure the positive attributes being highlighted are relevant to the product being marketed.
Definition: Making decisions based on the majority’s actions.
Application: Use “trending now” or “most popular” sections on your website.
Ethical Consideration: Ensure that these sections are accurate reflections of consumer trends, and don’t artificially create a sense of popularity.
Definition: The tendency to believe something as true after repeated exposure.
Application: Repeating brand messaging across multiple channels, creating familiarity that leads to trust.
Ethical Consideration: Ensure that repeated messaging is truthful and does not rely solely on repetition to persuade.
Definition: Preferring to avoid losses rather than acquiring equivalent gains.
Application: Offering limited-time deals or free trials that emphasize potential loss (“Don’t miss out”).
Ethical Consideration: Make sure limited-time offers are genuine and not used as a manipulative tactic to rush consumers into making decisions.
Definition: Separating money into different “accounts” based on subjective criteria, such as the source or intended use.
Application: Consumers treat a bonus or tax refund as “fun money” and spend it more freely than regular income. Marketers can position products as ideal for discretionary spending.
Ethical Consideration: Encourage responsible spending rather than capitalizing on consumers’ mental accounting biases to promote unnecessary purchases.
Definition: Overestimating positive outcomes and underestimating potential risks.
Application: Framing your product or service as a “sure win” for positive outcomes, like “97% satisfaction guaranteed.”
Ethical Consideration: Set realistic expectations and avoid exaggerating claims, ensuring that consumers are aware of any potential risks or limitations.
Definition: People judge experiences largely based on how they felt at the peak and the end of the experience.
Application: Creating memorable and positive experiences at key points in the customer journey, such as first impressions and post-purchase follow-ups.
Ethical Consideration: Ensure that these key moments are genuine and not artificially staged to manipulate consumer perception.
Definition: Feeling obligated to return a favor after receiving something.
Example: Offering free samples or gifts to create a sense of obligation in customers to purchase your product.
Ethical Consideration: Offer samples or gifts without creating an undue sense of obligation; consumers should feel free to make their own purchasing decisions without pressure.
Definition: Perceiving something as more valuable when it is limited.
Application: Creating urgency with limited stock or time-sensitive offers.
Ethical Consideration: Be honest about product availability and avoid using false scarcity tactics to pressure consumers.
Definition: Making decisions based on the actions of others.
Example: Showing customer reviews or user-generated content to validate the popularity of your product.
Ethical Consideration: Ensure that social proof is genuine and not fabricated or selectively presented to create a misleading impression of popularity.
The difference between Social Proof and Herd Behavior lies in the nuance of how people are influenced by others in decision-making.
Social proof involves using others’ behavior as a guide when making decisions, especially in uncertain situations, while herd behavior emphasizes blindly following the majority simply to conform.
Definition: Continuing with a decision due to prior investment, even when it’s no longer beneficial.
Application: Encouraging initial investment (time, money, or effort) in your product or service to increase long-term engagement.
Ethical Consideration: Don’t rely on sunk cost manipulation. Encourage continued engagement based on ongoing value rather than previous investments.
