31 May Behavioral Science and Marketing: Shifting Your StrategiesReading Time: 1 minute
What is Behavioral Science?
Behavioral Science allow us to track down, analyze, and understand our decision-making process. We can analyze the criteria through focusing on physiological and economic perspectives. Marketing activities either directly or indirectly influence your buying decisions. Think about when you pick up that shirt in a store. You ponder on whether on not to get it. That’s science affecting your psyche.
According to Behavioral Sciences and Marketing Research, “Numerous behavioral studies in recent years have revealed consumers’ limited rationality and show that even seemingly irrational behavior follows certain patterns and rules.”
As a result, applying psychological findings to marketing and pricing measures offer the most profitable opportunities. Helping to predict purchase behavior allows for more precise ideas. We can target consumers more effectively.
In order to create a marketing plan based on behavioral science, they have to ask questions in order to get the answers they need:
- Which psychological effects are more important and prioritized?
- How can those effected implement these to existing marketing efforts?
- Do we need to create new strategies and promotions?
- When are the best times to launch those activities?
But other than these important queries, the need to set up a good foundation or strategy may prove to be crucial when it comes to generating interest in your product or service. With that being said, these three are the most common yet effective ways to speak to your audience.
1. The Deal Effect:
When there is a discount for two products with a different value, it has to be the same percentage of discount as the other one. For example, if we had two products, one is $10 and the other is $500, they both need to be discounted at 60%. In order to get solid results with the more expensive items. The same price reduction is perceived to be less attractive at a high price level than at a low price level.
2. The IKEA Effect:
Research shows that people who are more involved with the design or creation of the product, value their purchase more. If you build or create something yourself, you are committed and more willing to spend money. Take it from McDonald’s. They conducted a focus group in which participants created their own menu. This interaction resulted in all positive feedback from the group. This idea seemed to catch on to Nike and Adidas when they began to allow customers to customize their own products.
3. The Smart Decision Effect:
People like to be proud of what they have. It could be because of functionality or the results or uniqueness. Furthermore, it also creates loyalty and commitment to the bran. The image of the brand should be very well established in the eyes of their target audience and their existed customer base.
Remember, “Commitment comes from something that produces good results.”- if you are in the process of creating this effect, your next concern should be how can we make this a habit in peoples lives. If you able to establish yourself as a part of their life, then you are one more step closer to completing the buying criteria puzzle.
These three are pretty much the fool-proof methods to get your potential patrons on board with the idea of whatever it is you’re selling. It is best to keep these in mind – especially if you’re someone who is starting out in the market or have new products you’re thinking about launching. We are human beings after all- with our day-to-day activities affected by the different areas of our brain, tapping into someone’s subconscious sure wouldn’t hurt in this case.