Where Psychology Meets Marketing

Explore the science behind consumer minds and how it shapes modern marketing strategies.

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What Is the Decoy Effect? How Marketers Use It to Influence Your Choices

June 29, 2025

The decoy effect is a clever pricing strategy that encourages consumers to choose a preferred option by adding a third, less appealing choice. It not only shapes how we perceive value but can also significantly alter buying decisions. By grasping how this effect operates, marketers can develop astute pricing strategies, while consumers can become more mindful about their choices. Key Takeaways: What is the Decoy Effect? The decoy effect, often known as asymmetric dominance, is a cognitive bias in behavioural economics. It occurs when a less appealing third option, known

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Cognitive Bias in Marketing: 11 Powerful Examples & Practical Strategies

June 18, 2025

Why do some brands win loyalty while others get ignored? It often comes down to how well marketers use cognitive bias, the subtle mental shortcuts shaping every buying decision. In this guide, you’ll learn what cognitive biases are, why they matter, and exactly how to apply them to boost your marketing impact. What Are Cognitive Biases? Cognitive biases are the habitual twists in our thinking that can lead us away from making entirely rational judgments. They’re like mental shortcuts, heuristics, if you like, that our brains lean on to sift

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How the Availability Heuristic Shapes Marketing, and How to Use It

June 15, 2025

Key Takeaways: What Is the Availability Heuristic? The availability heuristic is a mental shortcut that we all use to make decisions quickly and efficiently. Instead of going into a detailed analysis, we often rely on the information that’s easiest to remember, things that are vivid, recent, or evoke strong emotions. This concept was introduced by Nobel Prize-winning psychologists Amos Tversky and Daniel Kahneman, and it’s a handy way to save cognitive energy in our everyday choices. However, it does come with its downsides; it can lead us to misjudge frequency

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What Is Decision Fatigue? How It Impacts Consumer Behaviour and Marketing

June 13, 2025

Have you ever found yourself feeling rather overwhelmed by a lengthy menu or perhaps made an impulsive online purchase to get it over with? That’s what we call decision fatigue, a mental strain that can impact how we shop, click, and ultimately convert. In the digital age, grasping this psychological phenomenon enables marketers to enhance the customer experience, increase conversions, and foster greater brand loyalty. Key Takeaways: What Is Decision Fatigue? Decision fatigue refers to the mental exhaustion that sets in after making too many choices, making it harder to

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What Is the Framing Effect? How Marketers Use It to Influence Consumer Decisions

June 12, 2025

Key Takeaways: What is the Framing Effect? The framing effect is a psychological phenomenon where our decisions can be swayed simply by the way information is presented. It’s not just about the content itself; it’s all about how it’s delivered. Although both perspectives highlight the same reality, the emotional and cognitive reactions can vary significantly. This inconsistency in rational decision-making is what makes the framing effect particularly powerful and a popular subject of study in psychology and behavioural economics. Why It Matters in Marketing Marketing is all about persuasion, and

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What Does FOMO Mean in Marketing? Psychology, Examples, and Proven Strategies

June 11, 2025

Key Takeaways: What is FOMO? FOMO, or Fear of Missing Out, refers to that gnawing feeling we get when we suspect that others are having fantastic experiences while we’re left out. This term took off in the early 2000s, but it was first introduced by marketing strategist Dr. Dan Herman in 1996. The Psychology Behind FOMO FOMO, or the fear of missing out, boils down to social comparison theory. It’s that instinct we all have to measure ourselves against others. Studies have found that experiencing FOMO can light up the

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Focusing Effect: The Hidden Bias Influencing Your Decisions (And How Marketers Use It)

June 10, 2025

Key Takeaways: What is the Focusing Effect? The focusing effect is a cognitive bias that occurs when people place too much emphasis on a single aspect of an event or situation, often at the expense of other important factors. This can lead to an inflated perception of the significance of the thing they’re concentrating on, which may result in poor decisions or judgments based on incomplete information. Why the Focusing Effect Happened? Our brains are wired for efficiency, often relying on what we call “heuristics,” those handy mental shortcuts that

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

June 9, 2025

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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What Is Distinction Bias? Understanding Its Impact on Consumer Behaviour

June 6, 2025

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

June 4, 2025

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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