You may have heard the phrase “If you build it, they will come.” This assumes that the marketeer knows best and the market will recognize this and come to buy. If you, the marketeer, are in love with a product, it’s natural to project that love onto your target audience. However, it may be the right product at the wrong time, or just a product that doesn’t meet customers’ needs.
Marketing managers are only human, and humans have their own personal preferences. These preferences can become a problem, however, when they project them onto a target market that may or may not share their preferences. As a result, they may miss out on capturing sales for a product that really resonates with their audience, while they focus on marketing something that is not as appealing to their prospects. This tendency is called the false consensus effect, or FCE.
Let’s say that you’re about to buy a new shirt or dress for a fancy dinner party, which brand would you choose?
RAFUO or rafuo?
Which one did you like best? Chances are that, when looking for a conspicuous purchase as in this example, you’d choose RAFUO because it looks more premium. It is the extent to which the brand looked premium that helped sell the conspicuous product. Psychologists discovered that uppercase characters have a subtle, yet consistent effect on how premium a brand appears to be.
For me, personally, when I’m listening to the radio in the morning and the host is telling a personal story, I find myself immersively listening and feeling empathy. However, the moment they talk about the daily news I’m just laid back casually.
The same holds true for sales pitches where the salesperson starts by telling a bit about his personal life and background before going into the material.
From self-help books to popular gurus preaching the rules of financial literacy – they all seem to have piece of advice in common: budgeting. Presumably, budgeting is the core ingredient of a healthy financial life. It just makes sense to determine in advance what you are going to buy and for what cost. But is it actually true?
If our brains would be perfectly rational, budgeting makes sense. And in many cases, budgeting tends to work in our favor. After finding out we overspend on dining out or buying new clothing, it wouldn’t hurt to set a purchase limit for the next months. Unfortunately, when we put on the goggles of a behavioral scientist and measure the intricacies of what actually happens when people set budgets, some surprisingly irrational patterns emerge.
To put it bluntly: under specific circumstances, setting prior budgets will predictably make you spend more. Period. So, let’s dive into the data on the surprising psychology behind budgeting.
From Kodak to Coca-Cola. And from KitKat to Kool-Aid. Over the years, many brands have been born with the letter -K as their first phoneme. This preference among branding practitioners was so apparent that Schloss (1981), who was first to quantify the overrepresentation of the letter K, has dubbed his linguistic discovery the “K effect”.
Is there something magical about the letter K that made it the phoneme of choice among brand creatives? Should new brands adopt it as well, or is it wiser to avoid it nowadays? And how did the K effect fare in recent years? Recently, a new study has been conducted to see whether K has held its ground in 2021.