Rachael Leung
3/8/17
Psychology 100
Extra Credit
Psychology in Marketing
The world of marketing and advertising is constantly evolving. In David McRaney’s You Are Not So Smart he describes the ways that people are deluded in to thinking that they are rationale individuals, yet become victims to psychological marketing. Here are a few things that he discussed.
Utilizing Social Proof. Social proof is a psychological occurrence where people are more influenced to work with a business when they have noticed that others have participated and gotten positive results from it. Within the context of marketing psychology, businesses wants customers to participate in behaviors that will lead to a sale or will generate a new lead. An example of utilizing social proof is using real testimonies someplace on the website that shows happy customers. This experience …show more content…
In a study about choice conducted by Sheena Lyengar, shoppers were offered a free sample of jam. One day there was 24 flavors to choose from and 6 on a different day. With more flavors, 20% more people stopped to take a sample. However, only 3% made a purchase. When only 6 different jams were offered, 30% of people made a purchase after trying a sample. That’s a huge difference in conversion and a clear indication that less options helps conversions.
Create a Tribe and an Enemy. Are you a MAC or a PC person? Technically on a base level, both are just computers. And yet, people are fiercely loyal to the brand that they identify with. In psychological terms, this is called social identity theory where a person’s sense of self is based on their group memberships. This same theory can be applied to brand loyalty.
Hurry, hurry, hurry! McRaney discussed that one of the persuasion techniques is to invoke scarcity and a sense of urgency through time-based scarcity. In marketing terms, this means having a limited time offer, or only having a limited amount of tickets. One of the biggest examples? Black
3/8/17
Psychology 100
Extra Credit
Psychology in Marketing
The world of marketing and advertising is constantly evolving. In David McRaney’s You Are Not So Smart he describes the ways that people are deluded in to thinking that they are rationale individuals, yet become victims to psychological marketing. Here are a few things that he discussed.
Utilizing Social Proof. Social proof is a psychological occurrence where people are more influenced to work with a business when they have noticed that others have participated and gotten positive results from it. Within the context of marketing psychology, businesses wants customers to participate in behaviors that will lead to a sale or will generate a new lead. An example of utilizing social proof is using real testimonies someplace on the website that shows happy customers. This experience …show more content…
In a study about choice conducted by Sheena Lyengar, shoppers were offered a free sample of jam. One day there was 24 flavors to choose from and 6 on a different day. With more flavors, 20% more people stopped to take a sample. However, only 3% made a purchase. When only 6 different jams were offered, 30% of people made a purchase after trying a sample. That’s a huge difference in conversion and a clear indication that less options helps conversions.
Create a Tribe and an Enemy. Are you a MAC or a PC person? Technically on a base level, both are just computers. And yet, people are fiercely loyal to the brand that they identify with. In psychological terms, this is called social identity theory where a person’s sense of self is based on their group memberships. This same theory can be applied to brand loyalty.
Hurry, hurry, hurry! McRaney discussed that one of the persuasion techniques is to invoke scarcity and a sense of urgency through time-based scarcity. In marketing terms, this means having a limited time offer, or only having a limited amount of tickets. One of the biggest examples? Black