Cognitive biases are repetitive mistakes your mind makes when judging, evaluating, remembering, or making a decision. These mistakes are not unique to you, nor are they simply common. They are built-in our minds the same way our instincts are. They are the shortcuts that evolved so that we think less. Not because nature is cruel like that, but because it takes too much energy to think, and it would take so much more if we thought things through the way we do when trying to answer a math question. Also, we’d probably go insane.
Have you heard the term "neuromarketing" thrown around often enough in the past years to start wondering what in the world is it? Just another buzzword or have these psychologists (marketers? neuroscientists? charlatans??) come up with something different and worth looking at? Or maybe, all companies are already using the method and you're running behind, desperately late for the party? Let's find out.
This is going to be one of the most eye-opening blog posts ever. You’ll realise, at least I hope you will instead of disregarding all of this and moving on, that so many of your judgements regarding your business, your buying behavior, and indeed the world you live in are terribly wrong.
The experience of anything is a result of two things: the characteristic of the experience (e.g., the quality of the product, the reality of the event, the actual abilities of a person) and what we expect from this experience (e.g., the expectations from the product, the interpretation of the event, the stereotype about the person’s abilities).
There’s a solid amount of psychological research exploring what makes a person likeable enough to buy from. Let’s dig into it. After all, whether you’re a salesperson (or hiring salespeople) or an expert building a personal brand, it’s equally important to have this sort of influence on your customers, isn’t it?
Advertising is based on eliciting emotions. Brands spend so much budget and effort trying to make you notice them, remember them, associate them with strong and powerful feelings. While the common mantra is “don’t sell the product, sell the solution”, for many companies this has manifested into selling a feeling. For example, look at this ad.
From a very young age, most of us believe that the more choice - the better. While the benefits of some choice are absolutely clear, anecdotal evidence suggested long time ago that “too much” choice might be hurting people’s satisfaction, including product satisfaction, and hurting sales when it comes to businesses. Is that really the case?
The law of demand states that conditional on all else being equal, as the price of a good goes up, the demand for it goes down and, conversely, as the price of a good goes down, the demand for it goes up. And logic dictates that’s exactly what should be happening. But of course it’s not (at least, not all the time).