[[CWB]] The Mind Games of Marketing (Episode 150)

Discover little-known principles of behavioral economics to craft irresistible marketing messages. This issue will open your eyes...  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ​ By Mike Giannulis Hey ! Have you ever wondered why some ads seem to cast a spell over us, influencing what we buy in mysterious ways? I've been fascinated by this too. The secret sauce lies in behavioral economics - let's pull back the curtain on some captivating yet little-known insights from this field and see how we can apply them to our marketing. The Anchoring Effect This is one of my favorite biases. Anchoring involves subtly influencing decisions by introducing numbers that become a reference point, anchoring people’s perceptions. For example, say you’re selling a sofa that you plan to price at $800. You could first display a fancy $2,000 Italian leather couch. When your $800 sofa is then shown, it seems super reasonable in comparison! The arbitrary $2k anchor shapes perceptions. You can use anchoring in marketing by showcasing a high-end offering first before revealing your actual product. The inflated initial price casts an “anchor” in people’s minds that makes your real asking price seem like a steal. Pretty crafty, right? Loss Aversion Loss aversion means people tend to despise losses even more than they love equivalent gains. Losses pack an extra psychological punch. Leverage this in your marketing by focusing less on how much customers stand to gain, and more on the pains and hassles they’ll avoid by using your product. Frame the messaging around their problems and how you make them disappear. Remove roadblocks to purchase! Say you have a stylist app. Rather than primarily highlighting the convenience they’ll gain, emphasize how much time they’ll save not having to browse confusing clothing sites for the latest fashions. Preventing losses is more compelling than hypothetical gains. The Endowment Effect We assign higher value to stuff that we feel ownership over, even if we don’t technically own it yet. For example, if you let someone test drive a car and get attached to it, they’re more likely to buy because of this perceived “ownership” effect, even if brief. Free trials leverage this bias. Let folks sample your software, test your video game, or taste your food. After using your product—even briefly—they’ll be more likely to perceive value and want “their” product back, driving more conversions. The Scarcity Principle​ We yearn for what’s rare and hard to obtain. Limited-time or limited-inventory offers build urgent demand by signaling exclusivity and scarcity. You can make offers feel more scarce in a few ways: - Countdown timer on website - Limited time offers - Announce limited remaining stock ​ - Discontinue older product lines For example, you could offer a 30% storewide Cyber Monday sale for 24 hours only. The time pressure compels action. But use this principle judiciously - false scarcity backfires if discovered. The IKEA Effect When we participate in building a product, we value it more. DIY furniture giant IKEA leverages this “IKEA effect” masterfully. By getting us to partly construct that table or shelf ourselves, we feel greater ownership and become irrationally attached to the final output. Apply this bias by boosting customer participation where possible. User-generated content and personalized offerings also tap into our affection for that which we create. We value our own “creations” higher irrationally. Choice Overload Too much choice overwhelms and paralyzes decision-making. Avoid choice overload by limiting options. Studies reveal we make poorer decisions when confronted with dozens of near-identical choices. Our brains effectively short-circuit! Resist the temptation to provide endless variant offerings or set the filters too broad on your product search page. Simplify by spotlighting your most popular sellers instead or offering curated starter bundles to guide your choice. Help navigate an overwhelming buffet of choice and customers will thank you for it! Framing Effects Our minds are incredibly malleable depending on how options are presented, or “framed.” Framing the same info differently sways decisions. For example, meat labeled 90% fat-free seems more appealing than 10% fat, though it’s identical. Positive framing for the win! Clever marketers frame identically priced bulk options to steer us towards higher-margin ones. A “buy 3, get 20% off each” makes buying 3 feel like a good deal, even if buying 2 was same per item cost. Framing drives perception. Social Proof When uncertain, we look to others to guide behavior, assuming consensus equals correctness. Reviews, testimonials, bestseller labels, and user images wield tremendous influence. Flaunt your social proof across your marketing to tap into this herd mentality. Feature recognizable logos of past happy customers to imply elite social status by association. After all, if others buy you, why shouldn’t I? ….. Well, we’ve zipped through a bounty of behavioral econ biases together! Let me know if you have any other perspectives or if you’d like me to elaborate on any part. I’m always geeking out over human psychology and what prompts our “predictably irrational” brains, so would love to unpack more. Until next time! Mike Giannulis PS - More great stuff like this inside of [Copywriter Brain]()​ Thanks for reading! If you loved it, tell your friends to subscribe. If you didn’t enjoy the email you can [unsubscribe here](. To change your email or preferences [manage your profile](. 7853 Gunn Hwy #360, Tampa, Fl 33626