Understanding Consumer Behaviour

Cognitive bias in consumer behaviour helps us understand why folks sometimes make impulsive buys or feel regret over their shopping choices. These mental shortcuts influence how we view brands, weigh up options, and ultimately make purchases, often without even realising it. This article explores how cognitive biases shape our day-to-day buying decisions, featuring real-life examples and handy tips for smarter shopping. What Are Cognitive Biases? Cognitive biases are those subconscious mental shortcuts we all take when making quick decisions, even if they sometimes lead us to make irrational choices. They

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

Key Takeaways: What Is Present Bias? Present bias is a common human tendency where we tend to overvalue immediate rewards while overlooking larger, long-term benefits. We often prioritise what feels urgent now over what could be better for us later, even if waiting might lead to a more rewarding outcome. For instance, if you’re offered £100 today or £120 next week, most people would jump at the chance to take the £100 right away. That’s present bias in action. This idea is closely linked to hyperbolic discounting, which describes how

Have you ever felt a twinge of regret after making a purchase that seemed right at the time? That uneasy feeling is called cognitive dissonance, a crucial psychological concept every marketer should grasp. In today’s crowded digital marketplace, it’s vital to understand cognitive dissonance, how it arises, how to minimise it, and its impact on consumer behaviour. This article breaks down the theory, illustrates its presence in consumer actions, and provides practical marketing strategies to transform dissonance into customer loyalty. What Is Cognitive Dissonance? Cognitive dissonance refers to that uneasy

We live in a time with endless choices. Whether it’s picking a show to watch on Netflix, choosing a CRM to implement, or deciding which flavour of almond milk to buy, it’s incredible how many options we have. Ironically, having so many choices can often leave us feeling less satisfied rather than more fulfilled. This situation, known as the Paradox of Choice, has significant implications for marketers, UX designers, and product strategists. When we overwhelm consumers with options, we risk losing engagement, reducing conversions, and damaging brand trust. In this