We’re Inside Minds
Behavioral Economics in Action
Our research is founded on behavioral economics. Most research is based upon rational, logical thinking only. Behavioral economics assumes the whole mind is at work in making choices.
Automatic, unconscious, emotional “favoritism” influences all buying decisions. Your customers are pre-biased for, or against your messages.
Discover and leverage key customer biases!
How It Works
1. Customers are predictably irrational when making decisions.
2. Mental shortcuts (heuristics/biases) are the primary way buying choices happen.
3. The mind is unconsciously primed and biased for or against your product.
4. Customer choices are made emotionally and unconsciously, then justified rationally.
The mind`s system 1 is emotional and unconscious – the autopilot.
The mind`s system 2 is activated to rationalize system 1 – the inner lawyer.
Behavioral economics is useless to marketers unless it can be applied in a practical way.
There are over 100 behavioral economics “biases.” Biases are things that get in your way or benefit you. They cause favoritism for or against your campaign. Here are just a few examples:
- Loss aversion: Marketers gain sales by implying lost opportunities. This attracts the brain emotionally. The pain of loss is approximately twice as potent as the pleasure generated by gain.
- Instant gratification: Marketers need to understand the language of “now” that appeals to their customers. Customers respond to concrete, immediate benefits. They tend not to respond to delayed gratification even if that is the most logical benefit of an offering.
- The framing effect: every product has multiple opportunities to leverage the framing effect that will impact customer choice. People are more likely to buy meat that is labeled 85% lean than 15% fat. Why? One label frames the topic about fat, the other about leanness. Language directs the mind and choice.
- Episodic memory dominance: Marketers who know how to imply a story in copy and visuals connect with human authenticity. Humans make meaning via story. That story needs to make connections with consumers’ own episodic memory and imagination.
- The priming effect: What should marketers know about priming to be successful? Marketers need the whole mind, not just the fractional, rational one. Marketers must not be over reliant on simplistic 4Ps and 4Cs thinking. Each and every stimulus around your product has the potential to prime (influence) your customer for or against you: the retail setting, competitors, lighting, adjacent pricing and anything the customer is exposed to right before or next to your product. WholeMind™ research will identify priming effects that matter.
Customer Biases Work for or Against You
Automatic, unconscious, emotional “favoritism” influences all buying decisions. Your customers are pre-biased for, or against your messages. Our Map-of-Choice™ can help you find and leverage key customer biases.
The Map-of-Choice™ is like a GPS for branding, positioning, innovation and communication. A more predictable, efficient pathway.