Neuromarketing data reveals the way primal instincts of people affects their buying decision. Having a good understanding of these ways will help a business to use these insights to get customers buy into their products and services.
Heuristics is a concept of behavioral economics that is defined as “cognitive shortcuts” that simplifies the decision-making process. While there are several familiar heuristics that impact consumer behavior, we will be discussing the wide-known ones.
“Fear of Loss” and the “Endowment” Effect
We have this deep fear ingrained into our minds about the uncertainty of things. Due to this reason, we have a tendency to accumulate things. Losses make us fearful. We are more motivated and sensitive to lose than gains.
We have hunter instincts to overcome our fear of starvation. Another strange aspect of our nature is that we tend to value things more before we own them. Once we own it, we fail to realize its importance compared to the time when we didn’t own it.
Stratac marketing implements a strategical and tactical approach in providing research-based marketing and consulting services to its clients. It uses heuristics consumer psychology, to investigate what works for a business and its competition, and compares a business to its heuristics and best practices.
Consumer implications:
Businesses understand these primal instincts and tendencies in people. They come up with an offer that is geared towards creating urgency in the mind of consumers. Some of the offers like “Now or never” create a fear of loss, and “30-day trial”, “Try before you buy” etc. increases the apparent product value in the eyes of the consumer.
Both of these strategies work powerfully and manipulate the minds of people and become successful in drawing consumers into the product/services of a brand.
Framing and Anchoring
Experiments have clearly revealed that mentioning or displaying a number impacts the numerical judgments of a person and governs the buying decision later. This effect can have inferences for survey design too.
Psychologists have shown that people have an increased tendency to draw towards a middle price when they are asked to rate anything on a number scale.
Consumer implications:
Another thing that is worth noting that the way a product gets shown on the shelf influences its supposed value. Buyers are going to do a price comparison with adjacent products to figure out what is cost-efficient/costly versus reasonable.
When expensive variants are introduced, it assists the other alternatives as they are perceived to be more affordably priced. By forming a reasonable-sounding assessment between a service or a product and a more expensive one, it becomes easy for people to shift the frame of reference and gives them a happy feeling of spending more.
Conclusion
So, this makes it quite clear how the primal instincts of human behavior influence his or her buying decision. By understanding this concept, a business can capitalize this behavior to its own favor and make more sales in the business.
