Irrational behavior patterns are human nature, these quirks or thinking bias, is a direct impact on consumer decision-making stealth hands, but also marketing people should understand the secret weapon. Economics argues that consumer markets and consumers tend to think rationally, and people often choose to make the most appropriate decisions in the most advantageous conditions. Behavioral economics tells us: Wrong! People are not as rational as they think!
What is behavioral economics (behavioral Economics)? Behavioral economics is based on psychology and economics to study the psychological factors that influence the decision-making process, and to uncover the consumers ' irrational economy and influence the behavior.
Economics argues that consumer markets and consumers tend to think rationally, and people often choose to make the most appropriate decisions in the most advantageous conditions; instead, behavioral economics tells us: "Wrong!" People are not as rational as they think! 」? Let's take a look at:
Promoting effect (priming multiplying)-perceptual staging affects behavior
The information that people hear and see in the "last second" will promote the cognitive process of "next second" and even apply to situations that may not be relevant. Suppose you are about to make a choice question, the author said at this time: "I heard that Asians are very good math!" ", whether it's actually necessary or not, then you automatically think about the problem with the logic of the mathematical calculus."
Loss aversion (Loss aversion)-the negative effect is much too positive
The study points out that when people face the same level of profit and loss, the negative feeling of loss is twice times the positive feeling that profits bring; that is, pain is more intense than happiness; so, when making decisions, people tend to be too biased to value the extent of loss?
Frame effect (Framing multiplying)-packing method
When the contents, facts, or expectations of two options are the same, they affect the perception of choice because they are given a different "framework" (description, packaging).
When an election is presented in a profitable manner, people tend to avoid risk, and when presented in a loss manner, people tend to seek risk. In addition, reflecting the loss aversion mentioned above (Loss aversion), a loss framework (Loss Framing) can produce more significant effects than the set of profit frames (Gain Framing).
Body markers (somatic Marker)-the body will help consumers remember
Body Markers Link Past "experiences or emotions" and "necessary responses", and in the future, when faced with similar situations, brain body markers will remind people to think and make decisions in the same direction.
For example, when you go to an Indian restaurant where the food is dirty and the service is poor, the unpleasant dining experience is marked in your mind and then when a friend proposes to go to any Indian restaurant, will you consciously or unconsciously reject it?
Emotional decision-making (emotional Decision making)
In our brains, the "amygdala" of dominant emotions is more immediate and amygdala than the "ventral medial prefrontal cortex" (ventromedial), which dominates rational thinking.
So when consumers first see the product, easily because of their "emotional perception" and affect the purchase decision? However, the best product marketing to be able to take into account the emotional and rational needs of consumers, to meet their emotional feelings and preferences, but also to provide product advantages, roles and data to help them enhance the rationality of the purchase?
Trusting hormones (oxytocin:the trust hormone)
Oxytocin, also known as the Trust hormone, is a physiological hormone released in the human brain that promotes emotional bonding to target audiences and builds trust, security, and satisfaction, which in turn can affect decision-making behavior.
Trust hormones often play a role in daily life; For example, when you view a friend's Po on Facebook, your brain's trust hormones are also ascending. In the marketing and public relations operation, also often through the consumer "trust" or "like" people to strengthen the message.
Homogeneity and social identity (homophily and Social Proof)
As the saying goes, people tend to be attracted to people of similar nature, seeking a sense of belonging, familiarity, and because of fear of being isolated or excluded from the group, people will be based on the "group" approach to determine how they should act? Whether the daily should not save electricity, stay in the hotel should not cooperate with the continued use of Bath towel environmental protection measures Or how to use cutlery at banquets, and if we see people around to do something on a certain occasion, we will conclude that it makes sense. Is such a phenomenon more common in society?
Confirm error (Confirmation Bias)
People often stubbornly adhere to their positions, and constantly adopt and collect evidence to support their own views, and ignore or deny with the views of the same information, all the new information to explain to their own point of view. Instead of trying to "reason" to use facts and evidence to change the minds of others and to tell others where they are wrong, use the aforementioned oxytocin and social identity (Social Proof) to create a community that can provide a sense of belonging, or to shape a trusted human model, Further change the minds of others?
This "behavioral economics" mentality is rife among consumers, social networks and the media, and as a marketing/community person, it should be flexible to use a variety of human innate "irrational". In the case that the objects have not been discovered, they can change their cognition and decision-making behavior, and achieve the desired final effect intelligently, beautifully and without any trace.