psychology in advertising

PSYCHOLOGY IN ADVERTISING & ECONOMICS

PATRICK OBERSTADT

FORWORD

THE STANDARD ECONOMIC MODEL IS THAT EVERYBODY IS RATIONAL, SELF-INTERESTED, CALCULATING; HOWEVER IT SEEMS THAT HUMANS ARE NOT THE RATIONAL, OBJECTIVE DECISION MAKERS THEY ONCE WERE BELIEVED TO BE..

FORWORD

OVERVIEW

KAHNEMAN CIALDINI BEHAVIORAL ECONOMICS

DANIEL KAHNEMAN

NOBELPRIZE WINNER

DANIEL KAHNEMAN

COGNITIVE BIAS / HEURISTICS ANCHORING FRAMING

A SYSTEMATIC PATTERN OF DEVIATION FROM RATIONALITY IN JUDGMENT

COGNITIVE BIAS

SHORTCUTS IN THE BRAIN TO MAKE DECISIONS EASIER

HEURISTICS

COGNITIVE BIAS

HUMAN TENDENCY TO RELY TOO MUCH ON THE FIRST PIECE OF INFORMATION OFFERED

ANCHORING

ANCHORING

ANCHORING

67

50

PEOPLE REACT TO A PARTICULAR CHOICE IN DIFFERENT WAYS DEPENDING ON HOW IT IS PRESENTED

FRAMING

FRAMING

600 people are in need of treatment

FRAMING

72%

FRAMING

72%

22%

FRAMING

ROBERT CIALDINI

PHD PSYCHOLOGY & BEST SELLING BOOK IN MARKETING

ROBERT CIALDINI

RECIPROCITY LIKING SOCIAL PROOF AUTHORITY COMMITMENT SCARCITY

PEOPLE USE OTHERS AS A GUIDE ON HOW TO BEHAVE IN A SITUATION

SOCIAL PROOF

SOCIAL PROOF

SOCIAL PROOF

‘The sign that showed the negative social proof, tripled the amount of thefts’

SOCIAL PROOF

“Only a tiny portion of our readers give” That's the equivalent of saying giving to us is a deviant behavior

PEOPLE TEND TO OBEY AUTHORITY FIGURES

AUTHORITY

AUTHORITY

ONCE PEOPLE COMMIT, THEY WANT TO HONOR THAT COMMITMENT

COMMITMENT & CONSISTENCY

COMMITMENT & CONSISTENCY

THE HARDER TO ACQUIRE, THE MORE WE DESIRE

SCARCITY

SCARCITY

BEHAVIORAL ECONOMICS

BEHAVIORAL ECONOMICS

DECOY EFFECT NUDGING CHOICE OVERLOAD EASE ARGUMENT OF GENERATION

CONSUMERS HAVING A SPECIFIC CHANGE OF PREFERENCE BECAUSE OF A THIRD OPTION BEING ADDED

DECOY EFFECT

DECOY EFFECT

POSITIVE REINFORCEMENT AND INDIRECT SUGGESTIONS TO TRY TO ACHIEVE NON-FORCED COMPLIANCE

NUDGING

https://en.wikipedia.org/wiki/Positive_reinforcement

https://en.wikipedia.org/wiki/Compliance_(psychology)

NUDGING

TOO MUCH CHOICE CAN DEMOTIVATE AND PARALYZE

CHOICE OVERLOAD

CHOICE OVERLOAD

CHOICE OVERLOAD

3% bought jam30% bought jam

ASKING SOMEONE TO NAME BAD THINGS ABOUT YOU CAN BE BENEFICIAL

EASE OF ARGUMENT GENERATION

EASE OF ARGUMENT GENERATION

RECAP

Being aware of the psychological biases and heuristics will help you make use of them.

When thinking of effective strategies and methods to persuade your audience, keep things as framing, social proof, overchoice and nudges in mind.

Not only for copy in print, but for also activation campaigns and even negotiations with clients a combination of these theories can make your plan more effective

THANK YOU!

psychology in advertising

Marketing