The Illusion of Choice

1. Habits shape 43% of our behavior - harness them for marketing success

Thinking is to humans as swimming is to cats. We can do it but we'd rather not.

Habits dominate behavior. According to research by Wendy Wood, 43% of our daily actions are habitual. This presents a significant opportunity for marketers to influence consumer behavior by creating and shaping habits. To effectively form habits, consider these key principles:

• Choose the right moment to break existing habits, such as during "fresh starts" (e.g., new year, new job)
• Create a cue or trigger for the desired behavior
• Make the behavior as easy as possible to perform
• Provide a reward, ideally with an element of uncertainty
• Ensure repetition to embed the habit

Practical applications:

• For product launches, target moments of change in consumers' lives
• Design packaging or advertising that serves as a clear cue for use
• Simplify the customer journey to reduce friction
• Implement loyalty programs with variable rewards
• Focus on consistent messaging and touchpoints to reinforce habits

2. Make desired behaviors easy and undesired ones difficult

Anything that reduces customer effort will have surprisingly large effects.

Ease drives action. Research consistently shows that removing barriers to desired behaviors and adding friction to undesired ones can significantly impact outcomes. This principle applies across various contexts, from increasing sales to improving public health.

• Remove physical and psychological barriers to desired actions
• Add friction to discourage unwanted behaviors
• Consider the "IKEA effect" - people value things more when they've put effort into them

Examples:

• Amazon's one-click ordering
• Subscription services that reduce decision-making
• Limiting paracetamol pack sizes to reduce overdoses
• IKEA's self-assembly model increasing perceived value

3. Boost memorability through audience engagement and concrete language

The cognitive effort involved in generating the answer makes the information stickier.

Engage for retention. Studies show that information becomes more memorable when audiences are actively involved in processing it. This can be achieved through techniques like the "generation effect" and the use of concrete, vivid language.

• Use fill-in-the-blank or question-based messaging
• Replace abstract terms with specific, tangible examples
• Harness the power of rhyme and alliteration
• Tell stories rather than relying solely on statistics

Practical tips:

• Create ads that require mild mental effort to decode
• Use precise numbers instead of round figures
• Craft slogans that rhyme or use alliteration
• Illustrate your points with relatable anecdotes

4. Frame messages carefully - losses loom larger than gains

A simple twist in language can radically alter the impact of a situation.

Framing influences decisions. How information is presented can dramatically affect how it's perceived and acted upon. Loss aversion, in particular, is a powerful motivator - people are more driven to avoid losses than to acquire equivalent gains.

• Emphasize what people stand to lose by not taking action
• Use nouns instead of verbs to encourage identity-based behavior
• Consider cultural differences in framing effectiveness

Examples:

• "Don't miss out on saving $100" vs. "Save $100"
• "Be a voter" vs. "Vote"
• Tailoring messages for individualistic vs. collectivistic cultures

5. Fairness matters - explain price changes and avoid exploitation

People are prepared to punish someone who transgresses the concept of fairness, even at a cost to themselves.

Prioritize perceived fairness. Consumers are highly attuned to fairness in commercial transactions and will often act against their economic interests to punish perceived unfairness. This has significant implications for pricing strategies and customer communications.

• Provide clear justifications for price increases
• Avoid exploitative pricing during times of scarcity or crisis
• Use the word "because" when explaining decisions, even if the reason is weak

Strategies:

• Communicate cost increases transparently when raising prices
• Implement surge pricing carefully and with clear explanations
• Frame price differences in terms of added value rather than exploitation

6. Breaking conventions can signal high status and competence

If you think your brand doesn't have the status to apply the red sneakers effect, you're probably right.

Strategic nonconformity. The "red sneakers effect" shows that breaking conventions can sometimes increase perceived status and competence. However, this effect is nuanced and depends on several factors.

• Only works for brands or individuals already perceived as high-status
• The nonconformity must be seen as deliberate, not accidental
• Most effective when the audience is familiar with the norm being broken

Considerations:

• Assess your brand's current status before attempting nonconformity
• Ensure unconventional choices are clearly intentional
• Target knowledgeable audiences who will recognize the deviation

7. The halo effect: excelling in one area influences perceptions in others

Consumers use tangible factors that are easy to spot to make predictions about unrelated, but harder to ascertain, factors.

Leverage spillover effects. The halo effect describes how positive perceptions in one area can influence judgments in unrelated areas. This principle can be particularly powerful for new or lesser-known brands.

• Focus on easily observable attributes to influence perceptions of intangible qualities
• Prioritize likeability and attractiveness as key drivers of the halo effect
• Use the halo effect to indirectly address challenging brand attributes

Applications:

• Invest in product design to boost perceptions of quality or effectiveness
• Cultivate a likeable brand personality to enhance trust
• For new brands, focus on tangible strengths to build overall positive associations

8. Humor boosts memorability, likeability, and purchase intent

The primary goal of any advertiser is memorability.

Laughter leaves a mark. Despite a decline in humorous advertising, research consistently shows that humor can significantly enhance ad effectiveness across multiple dimensions.

• Increases attention, positive emotions, and purchase intent
• Particularly effective for communicating uncomfortable topics
• Works best when the brand is already viewed positively

Best practices:

• Use humor to disarm resistance to challenging messages
• Ensure jokes align with core brand messaging
• Target audiences when they're in a good mood for maximum impact
• Be cautious with humor if your brand has a negative reputation

Last updated: October 1, 2024