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Posts Tagged ‘Marketing and Consumer Behavior’

Why Cognition Makes Funny and Weird Ads so Great

April 29th, 2022 No comments


Let’s be honest, most of us don’t like commercials or advertisements interrupting our entertainment, but for many Americans super bowl Sunday is the one night of the year where we actually look forward to the commercials. In fact, many even relate to the meme below. We often even discuss them afterward with our friends. Unsurprisingly, the boring commercials rarely get brought up, but the bizarre ones that made us laugh will certainly start some conversation. In fact, we probably don’t remember the boring commercials we saw the day before. This is due to the humor and von Restroff effects which are cognitive biases that result in remembering information better when humor or something bizarre is involved.

Super Bowl Commercial Ad

Mindful Scrolling

April 25th, 2022 No comments

A better understanding of cognitive biases can improve your social media habits

Instagram. Snapchat. Facebook. Twitter. Youtube. If you use any of these sites, you are one of 7 in 10 Americans using social media to connect with people around the world – these platforms have become a part of our lives and culture. And if you’ve spent more than five minutes on one of these sites, you have probably been subjected to some… interesting opinions. Maybe your weird aunt retweeted something about vaccines causing autism, or a random page with thousands of followers pops up, selling herbs and crystals to align your chakras and stay healthy. Maybe it’s an account with “fact” in the name, but half of their posts explain that 5G causes covid-19 symptoms. The comments under these posts are a vicious mix of devout believers and non believers, each citing articles to prove their arguments. How did we get here? What forces could lead somebody to advocate for “Flat Earth”? Hint, it happens at the intersection between web design and human psychology. As we move into the future, social media will only expand its influence on the world, for better or for worse. This isn’t on anybody’s mind when they pull out their phone to scroll for a few minutes on the toilet, but maybe it should be. 

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Don’t Let Your Anchor Control Your Shopping: The Anchoring Bias

November 23rd, 2020 No comments

Imagine walking into a clothing store before the holidays. You are on the lookout for a long-sleeved shirt to wear to a dinner party next week but do not have much time due to a haircut appointment in half an hour. While driving there you thought this would be a fairly quick and easy task, but now, while wedged between a mother and daughter, you are repeatedly asking yourself why you didn’t just buy something online. You don’t

Clothing rack during the holidays.

have time for this! Once you finally locate the long-sleeved clothing rack and maneuver through all of the people, you find the perfect black long-sleeved shirt. You hold up the shirt to get a better look and glance down at the price tag. The first two numbers on the price tag are two and nine which are followed by two small nine’s, but you only fixate on the first two and nine. You decide that $29 is too expensive which is fine because the material seems like it would be itchy anyway. As you are putting the shirt back, you notice a big red sign above the clothing rack. The sign reads “50% off” in the middle with sixty dollars crossed out on the top followed by the new price of 29.99 dollars on the bottom. You freak out while thinking to yourself: “it used to be 60 dollars! I must get this!” It becomes a no-brainer and you immediately walk towards the cash register completely forgetting about the possibility of the material being terribly itchy. 

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Rhyming for a Reason: Why Rhyming Slogans are More Effective in Communicating Big Ideas

November 26th, 2019 2 comments

If you’ve been to a college or interacted with a college student, you know how demanding the academic requirements are. Would you believe me if I said, “C’s get diplomas”? Sure. That makes sense, after a minute of thinking… But what if I had said, “C’s get degrees”? Boom. Got it. You’ve probably heard that one before, and there’s a reason why. The second statement communicates the main idea quicker than the first, even though both convey the same message. 

The Rhyme as Reason Effect (also called the Eaton-Rosen Effect) is the phenomenon that occurs when a person believes that a saying is more accurate when it rhymes. By contrast, a saying that means the same thing, but does not rhyme, is judged as less accurate. Like the example above. A second example that you’ve probably heard before is the saying, “What sobriety conceals, alcohol

“A drunk mind speaks a sober heart” — Jean-Jacques Rousseau

reveals.” This is judged as more accurate than, “What sobriety hides, alcohol reveals,” or “What sobriety conceals, alcohol shows,” even though all three statements are saying the exact same thing. So now you may be asking, why does this happen? Is it just because rhyming phrases are more fun to say, or is something else going on? Let’s think about this. 

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I TOTALLY needed that $99 pair of light-up, pizza-alien sneakers…

November 25th, 2019 No comments

The $99 pair of light-up pizza, alien shoes that we all TOTALLY need (source)

Amazon Prime one-click ordering is dangerous territory. Bacon-patterned duct-tape? A ten-pound bag of gummy bears? A pool floaty shaped like a dinosaur? The only thing standing between you and these extremely valuable purchases is 1-click (and free 2-day delivery, of course). But you needed that $99 pair of light-up pizza-alien sneakers– your purchase was entirely justified. Even though you already have 5 other pairs of sneakers, your life would not be complete without this specific pair. Let’s be real, every person (including you) has impulsively bought something and then spent the rest of the day validating or rationalizing your decision. Well, that urge to justify your purchase is a real psychological phenomenon named Post-Purchase Rationalization, or the idea that people tend to justify and defend the purchases they make even if the purchase was impulsive, misguided, inadequate or so on (i.e. you telling yourself that buying those sneakers was a good decision is you post-purchase rationalizing). 

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The Real Reason We Like Subpar Art (and other self-creations)

November 23rd, 2019 No comments

I want you to think of the furniture in your house. There is the bedroom furniture set or the kitchen chairs or the family room couch or even the framed photos in the hallway. But, you know that handmade bookshelf, the one that is a little lopsided but “has character”? Or what about the barely-functional pinch pots you made in summer camp? If you are anything like me, you have held these items in your grips for years and can’t just throw them away. You built those things! Your blood, sweat, and tears (ok maybe that’s a stretch…) went into creating something and you like them. You like them maybe even more than the thing you bought at the craft store. Store bought things should be more expensive because they are made professionally, but you are willing to pay more for something handmade. But should you? Handmade items are often made by amateurs and are lower quality than something made by a machine. However, the crooked, scuffed items you assemble from a box get more attention and praise. This trap you are falling into is so quirkily named the IKEA effect (yes after the Swedish furniture brand). This concept describes the tendency for people to overvalue products that they themselves created, even more than machine manufactured products. So yes, that handmade ornament by little cousin Johnny WILL remain on the Christmas tree for years to come, despite the poor craftsmanship!

What is valued does not always hold the highest value!

This effect originated in the field of Consumer Psychology to describe cognitive processes that underlie consumer behavior. A study that first proposed the term described the tendency for people to overvalue their own creations in comparison to professional creations of the same or better quality. This effect does not just rely on objective value of the products either; IKEA boxes of the same caliber are rated as worth more money if they are self-assembled (Norton, Mochon, & Ariely, 2012) and so are origami structures and LEGO buildings (Norton et al., 2012). Products themselves clearly hold intrinsic value (perceived natural value) to those beholding them, but other subjective factors are contributing to filling the gap between objective value and customer value. Our emotions play a large role in decision making. Wow! It seems like we are not consciously in control of our judgments on objects! Yikes!

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Hop on the Bandwagon…. or Don’t!

April 26th, 2018 2 comments

Would you ever jump off a bridge because everyone else is? Have you ever bought a product because “everyone” has it and you feel left out? If so, you have fallen into the trap of the bandwagon effect. This cognitive bias is defined as  people’s tendencies to quickly conform to popular trends or beliefs within their society (Simon, 1954). This cognitive bias is one that is frequently seen within everyday behaviors. Whether it is seen in social media, advertisements, politics, fashion, or any other trends, people are always trying to jump on this metaphorical bandwagon. One question about why people choose to conform, even if it is not in line with their own personal values or opinions, can be partially answered by the bandwagon effect. Conforming to social norms is something that the Millennial generation has continued to do as a result of pressures from prior generations.

Bandwagon Effect Meme

Although the bias was proposed in 1954, nowadays, the constant pressures to always be up to date with the different trends will only continue to grow as social media continues to take over our lives. The recent creation of social media and other forms of communication only help such cognitive biases flourish. The image to the right is a meme that is mocking the bandwagon effect. Nowadays, people’s eating habits are changing purely because things like “not eating gluten” are cool. People are ignoring actual evidence about different product’s true purposes, and hopping on the bandwagon. People’s desires to consume, buy, and use certain products are not always influenced by the product’s usefulness, but rather by what trend setters are doing. For example, extraneous items that are not necessities of life, such as iPhones, are typically bought based on consumer reviews. Think about things you have purchased in the past. Can you think of any good examples of products you bought because it was advertised as, “everyone’s favorite,” or “America’s best?”

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That Band is Really Cool, But I Swear It’s Everywhere

April 24th, 2018 2 comments

Have you ever scrolled through Spotify and discovered a band you like?  Have you ever started listening to all its songs and suddenly you start hearing it all the time on the radio and seeing advertisements for its new album or concert? Or maybe you just found out you’re pregnant and see parents with their kids everywhere you go? While it’s easy to think that maybe you just discover bands that magically and suddenly get really big or that maybe more people suddenly have kids these days, you’re actually probably experiencing what is called the Baader-Meinhof phenomenon or frequency illusion.

Kids are everywhere! Or so you think.

The frequency illusion occurs when a person experiences something, like finding a song he or she likes on Spotify or becoming pregnant, and then afterwards believes that the experience or phenomenon happens all the time. So why does this occur? Well, there are two cognitive processes that are involved in creating the frequency illusion: selective attention and confirmation bias (Zwicky, 2006).  Read more…

Sure, I can afford it: The cognitive principles behind mental accounting

April 17th, 2017 3 comments

imgflip.com/memegenerator

I could really go for a burger and milkshake right now.  It’s the end of the month; rent has been paid, my student loan contribution is accounted for, and I’ve maxed out my self-imposed monthly restaurant allowance. It looks like I’m out of luck.  But, after some quick mental math, I realize that I spent $10 less than expected on groceries this month.  Score!  It’s burger time. We’ve all done this: designating money for specific purposes, guesstimating how much we’ve spent, and mentally moving money around when convenient.  These behaviors, among others, are what psychologist Richard Thaler (1985) calls “mental accounting.”  Mental accounting is the process of creating mental representations (meaningful mental images) of money based on its form, how it was acquired, and how you intend to use it.  Indeed, there was nothing concrete about my monthly restaurant allowance or grocery budget.  They were simply my personal mental accounts.  In other words, mental accounting helps us organize our spending behaviors.  It’s not just about budgeting, though.  Categorizing money for one purpose or another can help us restrict our purchases, or, like my decision to buy the burger and milkshake demonstrated, justify moving money around our mental accounts.

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One Item, Two Prices: How the Endowment Effect Can Explain Different Valuations of the Same Object

April 17th, 2017 No comments

If you are not aware of the United Airlines disaster/debacle/controversy/blunder (take

Figure 1: United Airlines aircraft

your pick), I would highly recommend familiarizing yourself. However, to save you some time, I will provide you with a short recap of what happened. On April 11, 2017 United Airlines had over booked a flight from Chicago to Louisville and needed to make room for four members of the flight crew. You can probably guess where this is going –  an overbooked flight with four additional seats needed means that four passengers have to change to a later flight (math!). No one wanted to volunteer to give up their seat, so United Airlines bumped four passengers who were already seated from this flight. For whatever reason, one man really did not want to give up his seat that he had already paid for. Thus, United Airlines underwent an “involuntary de-boarding situation” and thought that it would be a good idea to physically remove this man while he was kicking and screaming. Fortunately for us, and unfortunately for United Airlines, this incident was caught by many people on video and then posted to social media. If you’re curious about what United Airlines missed and how they could have potentially avoided the bad PR they incurred after the event, you should continue reading.
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