How to use psychology in marketing? - 10 principles of human behaviour you need to know
In recent years, there has been a growing interest in applying the principles of human behavior theory to marketing. By understanding the psychology behind purchasing decisions, companies can more effectively target their marketing efforts and improve their results.
There are ten general principles of human behavior that can be applied to marketing, and by understanding them, businesses can more effectively influence customer behavior.
In this article, we will discuss how businesses can use psychology in their marketing and outline ten principles of human behavior that can be used to improve results.
As anyone in the business world knows, competition is essential to success. To stay ahead in the market, businesses must constantly innovate and adapt to the ever-changing landscape. One of the best ways to do this is by understanding the psychology of human behavior.
By understanding how people think and act, marketers can develop marketing plans that are tailored to their target audience. This ensures that businesses use their resources in the most effective way possible and gives them a competitive edge. In today's market, businesses need all the advantages they can get, and understanding the psychology of human behavior is a great way to secure an edge.
By understanding psychological principles, businesses can improve their marketing efforts and see a real impact on the bottom line.
Principle #1 - Reciprocity or reciprocity
The principle of reciprocity is a fundamental principle of human behavior and plays an important role in business and marketing. Simply put, the principle of reciprocity states that we are more likely to help those who have helped us in the past. This principle can be traced back to our evolutionary history when cooperation was essential for survival. In today's world, the principle of reciprocity continues to govern our behavior, albeit in a less visible way. For example, we often tend to do business with companies that have provided us with good service in the past.
Similarly, we are more likely to be loyal to brands that offer us privileges or discounts. Ultimately, companies and marketers who understand the principle of reciprocity can use it to their advantage by creating loyalty programs or offering special deals to their best customers. By understanding and leveraging the power of reciprocity, businesses can create mutually beneficial relationships with their customers.
Principle #2 - Social proof
Social proof, also known as the group effect, is a powerful force in people's decision making. Essentially, it states that people are more likely to do something if they believe other people are doing it too. This principle has been studied extensively in psychology and has been shown to have a significant impact on human behavior. In business and marketing, social proof can be used to influence consumer behavior.
For example, businesses can use customer testimonials and reviews to create a sense of social proof and encourage potential customers to make a purchase. And for even greater impact, businesses can use celebrity endorsements, influencers to harness the power of social proof. By including a famous person in their advertising, businesses can create the impression that their product is popular and desired by many people. Ultimately, social proof is a powerful tool that businesses can use to influence consumer behavior.
Principle #3 - The Lure Effect
The lure effect is a well-established phenomenon in the field of human behaviour. It occurs when people are presented with two options and one is significantly more attractive than the other. The result is that people are more likely to choose the more attractive option, even if it is not the best one for them. The lure effect has been extensively studied in marketing, and businesses often use it to encourage people to make purchase decisions that are not in their best interest.
For example, a car company may offer two different car models, one of which is significantly more expensive than the other. The result is that people are more likely to choose the cheaper model, even if it is not the better car for their needs. The click-bait effect can be a powerful business tool, but it's important to use it ethically and responsibly, otherwise you risk taking advantage of people's cognitive biases and manipulating them into making choices that are not in their best interest.
Principle #4 - Scarcity
The scarcity principle dictates that people are more likely to desire and value something rare or in short supply. This principle is often used in business and marketing as businesses can create a sense of scarcity around their products or services to increase demand. For example, an apparel company may release a limited edition or a hotel may offer a special price for a limited time only. By creating a sense of urgency, businesses can encourage customers to make a purchase decision more quickly.
While the scarcity principle can be effective in some situations, it is essential to use it cautiously. If businesses overuse scarcity tactics, they may find that customers become resistant to them and begin to ignore their messages. Furthermore, if the product is truly scarce, creating a sense of scarcity around it can lead to frustration and anger among customers who can't get the product. It is therefore important to use the scarcity principle carefully and only when it is truly justified.
Principle #5 - Anchoring
The anchoring effect is a cognitive bias that refers to our tendency to rely too heavily on the first information we receive when making decisions (anchoring). This can lead us to make sub-optimal decisions as we may not consider all the available options. In business and marketing, anchoring can be used to influence consumers' perception of value. For example, if a store offers a 10% discount on all goods, shoppers are likely to fixate on that 10% value and perceive all goods in the store as 10% cheaper than they normally are. This may lead them to make impulse purchases or buy items they would not normally consider. Businesses can also use anchoring to increase the perceived value of their products.
For example, by bundling several items at a reduced price, shoppers are likely to fixate on the total amount saved and perceive the individual items as more valuable than if they were sold separately. Ultimately, understanding how anchoring works can help businesses better influence consumer perceptions and encourage them to make more favorable purchasing decisions.
Principle #6 - Priming
One of the most commonly used theories in business and marketing is the principle of priming, which states that an individual's current behavior is influenced by previous behavior or exposure to certain stimuli. This theory has been widely studied in the field of psychology and has been shown to have a significant impact on human behavior. For businesses and marketers, "priming" can be used to influence consumer behavior in a variety of ways.
For example, if a customer is exposed to a product advertisement featuring a celebrity, they are more likely to purchase the product than if they saw the same advertisement without the celebrity. This is due to the fact that the customer's prior exposure to the celebrity activates certain associations in his mind that then influence his subsequent behaviour. Similarly, firms may use priming to create a sense of urgency in customers by exposing them to time-limited offers or other time-sensitive information. By understanding how priming works, businesses and marketers can more effectively influence consumer behavior and achieve desired results.
Principle#7 - The Baader-Meinhof Phenomenon
The Baader-Meinhof phenomenon is the name given to the experience of having just learned or noticed something and then immediately encountering it again, often in a seemingly unrelated context. It's described as a form of synchronicity, and is used to explain everything from the feeling that the world is conspiring against you to the feeling that you're being watched. The principle can also be applied in business and marketing.
For example, a company might launch a new product and then suddenly notice a sharp spike in sales of similar products from other companies. This could be due to the Baader-Meinhof phenomenon: once people become familiar with the new product, they are more likely to notice other similar products. Similarly, a company may launch a new marketing campaign and then suddenly notice an increase in competitors' advertising. This could be due to the Baader-Meinhof phenomenon: once people become aware of the campaign, they are more likely to notice other similar campaigns. In both cases, the Baader-Meinhof phenomenon can provide valuable insights into consumer behaviour. By understanding how and why people are attracted to certain products or ideas, companies can better target their marketing efforts and achieve success.
Principle #8 - The Reducing Effect
The principle of parsimony is a principle of human behavior that suggests that people are more likely to remember information if it is presented to them in a concise and clear manner. This effect has important implications for businesses and marketers who often have to convey complex messages to potential customers. When designing advertising or marketing materials, it is extremely important to consider the effect of shorthand and how it can affect the way people receive and remember information. By keeping messages clear and concise, businesses can increase the likelihood that people will remember their products or services when making purchasing decisions. In today's competitive marketplace, the effect of redundancy can be a powerful tool to differentiate a company's products and services from those of its competitors.
Principle 9 - Grouping
The principle of grouping states that people tend to group things together. This principle can be seen in many aspects of life, from the way we organize our closets to the way we arrange our furniture. In business and marketing, clustering is often used to group products or services.
For example, a clothing store might group all of its shirts together, or a grocery store might group all of its products together. This principle can be used to make it easier for customers to find what they are looking for, and can also help businesses sell more products by highlighting the similarities between products. When used effectively, grouping can be a powerful tool for businesses and marketers.
Principle # 10 - Avoid wastage
Avoidance for loss states that people are more likely to avoid losses than to seek gains. This principle has been extensively studied in the field of behavioral economics and has important implications for businesses and marketers. For example, loss aversion helps explain why price discounts are so effective in increasing sales. When consumers see a discount, they perceive it as a loss (the initial, higher price) and are motivated to take action ( buy the product) to avoid that loss. Again, businesses can use loss aversion to their advantage by framing their products and services in terms of what customers stand to lose by not using them. By highlighting the potential losses associated with a solution, marketers can encourage customers to make a purchase and avoid these losses.
In conclusion, loss avoidance is a powerful principle that can be used to influence human behavior. By understanding how it works, businesses and marketers can use it to their advantage and increase sales and profits.
Other principles from psychology used in marketing
In addition to the above, there are other principles from psychology that are used in marketing goods and services.
Here are some of them:
Principle of Authority - This principle is based on the idea that people tend to accept the opinion of authority figures. In marketing goods and services, this principle can be used by using advertisements with authority figures, testimonials from experts, or testimonials from customers to persuade consumers to purchase the product or service.
Likeability Principle - This principle is based on the idea that people tend to trust people they like. In the marketing of goods and services, this principle can be used by using advertisements that are entertaining, entertaining or present the product or service in a way that makes consumers feel connected to the brand.
Principle of persuasion - this principle is based on the idea that people tend to be persuaded by arguments that are logical and convincing. In marketing goods and services, this principle can be used by using evidence, facts, statistics or other logical arguments to persuade consumers to purchase the product or service.
Rhetoric Principle - This principle is based on the idea that people tend to be persuaded by speech that is appealing and persuasive. In marketing goods and services, this principle can be used by using advertisements that have an appealing design, fun music, or other visual element to make the advertisement attractive and persuasive.
Fun principle - This principle is based on the idea that people tend to choose options that provide them with entertainment or pleasure. In marketing goods and services, this principle can be used by presenting products or services that provide entertainment or pleasure to consumers, such as fun games, experiences or trips.
Emotion principle - This principle is based on the idea that people tend to react emotionally to certain situations or stimuli. In marketing goods and services, this principle can be used by using advertisements that evoke strong emotions in consumers, such as sadness, happiness, fear or excitement.
Principle of Inertia - This principle is based on the idea that people tend to keep doing what they have done in the past until they are given sufficient reason to change it. In the marketing of goods and services, this principle can be used by providing products or services that are an improvement on previous models or that are part of a brand well known to consumers.
Principle of attraction - this principle is based on the idea that people tend to choose options that provide them with more options or benefits. In marketing goods and services, this principle can be used by providing products or services that have a greater number of options or a greater number of advantages over competitors.
It is essential for businesses to know the principles of human behavior that have been discussed in this article. By understanding how these principles work, businesses can use them to their advantage and improve their marketing efforts. So if you want to learn more about these concepts and how they impact marketing, keep an eye out for our next articles on the topic. Or contact us today. This is our area of expertise and interest, and we'd love to help you understand how these ideas can benefit your business.
We also offer social media marketing services, call us on +359 2 8505364