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The Default Effect Explained: How Pre-Selected Options Shape Consumer Decisions

Key Takeaways: What Is the Default Effect? The default effect describes our natural inclination to stick with the option that’s already been chosen for us when making a decision. Many people see these defaults as subtle recommendations, or perhaps they just go along with them to avoid overthinking things. “Example: Users are more likely to stay subscribed to a service if the subscription automatically renews (opt-out) than if they had to manually re-subscribe (opt-in). In fact, one study found that cancel rates dropped from 99.8% to 36.4% simply by changing

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Mastering Emotional Marketing: How to Create Campaigns That Connect and Convert

Key Takeaway: What Is Emotional Marketing? Emotional marketing is all about creating genuine connections with consumers by tapping into feelings such as joy, nostalgia, fear, empathy, and trust. Harvard Business School professor Gerald Zaltman highlights that a staggering 95% of purchasing decisions are made in the subconscious, primarily driven by emotions rather than logic. From Rational to Emotional: A Paradigm Shift Traditional marketing tends to highlight features and benefits, whereas emotional marketing digs deeper into how a brand makes you feel. In a time when products are often similar and

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What Is Distinction Bias? Understanding Its Impact on Consumer Behaviour

Key Takeaways: What is Distinction Bias? Distinction bias is the tendency we have to see differences between choices as much more pronounced when we assess them together (in joint evaluation) than when we consider each option separately (in separate evaluation). This concept was first formally introduced by researchers Christopher Hsee and Jiao Zhang. It serves to highlight how the context in which we make decisions can significantly influence our choices. Joint vs. Separate Evaluation For example, when you’re in a shop, you might find yourself comparing two smartphones side by

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The Illusory Truth Effect in Advertising: Boost Believability Without Deception

Key Takeaways: What Is the Illusory Truth Effect? The illusory truth effect, sometimes referred to as the illusion of truth or validity effect, refers to our tendency to accept repeated information as true, even when it’s false. This phenomenon is driven by something called processing fluency, which is essentially our brain’s inclination to favour information that feels easy to digest. When we encounter a message multiple times, we often don’t stop to think about its accuracy. Instead, the familiarity of the message makes it feel true. Research has shown that

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What Is the Less-Is-Better Effect? A Marketer’s Guide to Smarter Decisions

Key Takeaways: What Is the Less-Is-Better Effect? The less-is-better effect highlights a quirk in our decision-making: people tend to prefer an objectively inferior option when it’s presented on its own, but they switch their preference to a better option when comparing both side by side. This idea was first put forward by behavioural scientist Christopher Hsee and has been backed by various consumer psychology studies. In Hsee’s original research, participants showed a greater willingness to pay for a 7-oz ice cream that overflowed from a 5-oz cup rather than an

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What Is the Third Person Effect? How It Impacts Your Buying Decisions

Key Takeaways: What Is Third Person Effect? The Third Person Effect (TPE) is a psychological phenomenon that many of us encounter. It’s the tendency we have to believe that other people are swayed by media messages, like adverts, news articles, or political content, more than we are ourselves. In other words, we often think, “I’m not influenced, but everyone else probably is.” This concept was first proposed by W. Phillips Davison in 1983. He noticed that people usually overestimate how persuasive media is for others, while underestimating its effect on

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Endowed Progress Effect in Marketing: Psychological Tactics to Boost Conversions

Key Takeaways: What Is the Endowed Progress Effect? The Endowed Progress Effect highlights a captivating psychological insight: people are more likely to finish tasks when they believe they’ve already made some progress, even if that progress was simply given to them. This straightforward yet impactful motivator can affect our behaviour. When a goal feels as if it’s already in motion, we tend to invest more in seeing it through. You can see this principle at work in loyalty programmes that kick off with initial points, or onboarding checklists that show

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Hyperbolic Discounting: How This Cognitive Bias Shapes Consumer Buying Decisions

Key Takeaways: What Is Hyperbolic Discounting? Hyperbolic discounting is a cognitive bias that causes people to favour immediate rewards over future benefits, even when the latter are more advantageous. This concept is fundamental to behavioural economics and is particularly useful for understanding time-inconsistent choices, such as overspending, procrastination, and addiction. Research illustrates that most people opted for receiving £50 today rather than waiting a year for £100. However, when faced with the choice of £50 in five years versus £100 in six years, they chose the latter. While the delay

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