People in general are creatures of habit. We get attached to buying the same products from the same brands over and over again. For example: what happens to our favorite brand of chips, cosmetics or electronics when the brand/product undergoes a change. A change in packaging or a change in brand name could have a big impact on the way consumers perceive the product/brand. Will the old trusty chips, that you once called your favorite, still be the same after a change?
Imagine you’re spending the night in your nearby cinema, viewing Hollywood latest blockbuster. What determines how much you’ll enjoy the movie?
You might think about factors such the film’s beautiful cinematography, the popcorn’s crisp bite or even the usherette’s cute smile. Surprisingly, brain scientists from Princeton University have now unearthed a much more subtle influence on our experience of pleasure: the freedom of choice you had prior to attending the movie. The pleasure generated from choosing between options – let’s say a romantic comedy and a sci-fi epic – spills over to the subsequent experience. This is called the Choice Premium Effect.
People love routines. Of course, we like to think that we all make well-considered choices. But as a matter of fact, most of the time we are slaves to our own habits. This makes psychological sense, because why spend your precious time deliberating on your options and getting distracted by unnecessary details, if you can also apply a working recipe and go straight for the best result?
With neuromarketing, whether something is winning or losing conversions for you boils down to the absolute details. As specified in the overview article we recently published, some small changes can lead to big differences. Whether it’s a small change in pricing, the way you position your ads or the way you frame social proof, it all boils down to the details. And this new finding is no different than the others.
“Majority of stock sold!”, “Nearly sold out!” Are you getting nervous by seeing these kind of phrases in advertisements? Do you have the feeling that you have to buy this product? Personally, when I need a product and see this kind of advertisements I want to buy the product immediately. I don't want to run the risk missing out on this fantastic offer. As a marketer I know a lot about the influencing power of advertisements, but why do I still fall for these scarcity appeals?