The Psychology of Choice: How Marketing Shapes Consumer Decisions Beyond Logic
- 3 hours ago
- 4 min read
Author: Lara Batur
Consumer behavior is a very complex study that attempts to predict consumer decisions, the emotions behind those decisions, and the stimuli that prompt them to make decisions. Although we like to believe that we make these decisions thoughtfully, rationally, and economically, most of our consumer decisions are greatly influenced by emotions, identity, and the opinions of others. Understanding these forces and learning to work with them is one of the most powerful advantages a brand can have.
How the Human Brain Makes Decisions
When making purchasing decisions, we most often distinguish between two systems: the first system refers to quick and emotionally driven decisions, while the second refers to slower, rationally considered decisions. Although brands most often try to attract rational customers through their marketing campaigns using logical and useful facts, customers driven by instinct and momentary feelings are very important and valuable. How do emotions influence consumer habits and decision-making? For example, imagine a consumer who enters a coffee shop after a hard and stressful day. There, he is greeted by a calm and positive atmosphere, soft, pleasant music, and friendly employees. Inspired by this wonderful atmosphere and pleasant, comforting emotions, the consumer decides to reward himself with a premium, more expensive drink selection. The consumer justifies his higher cost with positive emotions and a feeling of immediate pleasure. On the other hand, a consumer can also be motivated by some negative emotions. Imagine a consumer browsing online for deals. An ad for a product pops up with a big "only 2 items left" sign. Driven by a sense of urgency and anxiety, the consumer reflexively buys the product without thinking enough about its qualities and necessity. The consumer may later feel angry, nervous, and regretful about the thoughtless purchase.
Cognitive Biases That Influence Consumer Decisions
There are several cognitive biases that brands use to influence consumer decisions. The first is called the Scarcity effect and is characterized by limited offers and offers with a certain number of available products. In this way, consumers feel a sense of urgency and a sense of greater value due to owning a limited version of the product. The next concept is Social proof, or user and expert reviews and product recommendations. It is based on behavioral psychology research that shows that consumers are more likely to trust a brand if they see that other people are using it and are happy with it. It influences purchasing decisions by reducing perceived risk and reinforcing the idea that the product or service is reliable and valuable. Furthermore, we have the Anchoring Bias, which is a phenomenon due to which we usually rely on the first information we receive about a brand or product. When we receive new information about a brand, we study it from the reference point of our anchor rather than seeing it objectively. That is why it is very important that the brand maintains a constant positive image of its identity. The last concept is Loss aversion, according to which people experience a loss more strongly than a gain of the same value. In other words, losing €20 hurts more than gaining €20 makes us happy. Therefore, consumers are often more motivated by avoiding loss than by achieving gain.
Ethical Use of Psychology in Marketing
When using psychology to create a marketing strategy, brands should be very careful not to cross the line into manipulation. The main goal should be to create long-term loyalty among their users, not short-term conversion. Here are some simple guidelines for achieving these goals.
Be focused on your target audience and speak to them.
Remember that the final decision of the buyer should come from them, you can encourage them with advice and facts, but you should not manipulate them and force them to buy.
Be honest and transparent, this way you enjoy the trust of your consumers.
Practical Applications — How Brands Can Apply Psychology Responsibly
Now that you know the psychological marketing tricks, here are some examples of how to use them honestly and ethically. If a product is truly limited or very low in stock, a brand can honestly and transparently explain why instead of aggressive "only 1 item left" ads. Also, a brand can use real stories and authentic experiences of other users to build trust and loyalty with new users. As for emotional connection, it can be built through sharing real experiences and behind-the-scenes footage of the brand, bringing it closer to consumers.
Conclusion
Consumer decisions are rarely based solely on logical and rational thinking. In most cases, they are driven by feelings, social influences, the experiences and testimonies of others, and many other momentary stimuli. With all the psychological research available, brands must be careful that incentives and strategies do not turn into manipulation. That is why it is very important to approach these strategies ethically and transparently, and to be focused on building long-term relationships and trust.
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