In the world of marketing, a deep understanding of consumer psychology and behavior is the key to success.

The first installment of the seriesThe Importance of Understanding Cognitive Bias in Marketing: Consumer Insights Beyond Data" explains basic knowledge about cognitive biases and their practical applications. In the second part, we will focus on cognitive biases that marketers should be particularly aware of.Loss/Risk/Regret Aversion and Self-Centered Bias” was introduced.

In this final article in the series, we will focus on "thinking shortcuts and biases caused by social norms" and introduce their impact on marketing and how to utilize them with concrete examples.

List of cognitive biases every marketer should know

Psychology and human behavior are very deep fields, and research into them is still active today. As a result, there are many types of cognitive biases, and the following explanations and classifications may vary slightly depending on the source and interpretation, but here are some cognitive biases that marketers should be aware of.

Bias caused by mental shortcuts

Mental shortcut bias refers to the tendency of humans to rely on simple rules or heuristics when processing complex information.

Parkinson's law (Bikeshedding)

Parkinson's Law is the tendency to waste more time on trivial issues than on important issues. The term comes from the fact that when discussing a hugely budgeted construction project, people were more enthusiastic about the color of the bike shed than the design. In other words, it refers to the phenomenon in which attention is paid to trivial issues that are incidental to the essential problem.

For example, it is important to emphasize the core value of the product, rather than the detailed features, such as "This smartwatch is the easiest way to manage your health." Marketers should use messaging that emphasizes the main benefits of the product in a simple and clear way, so as not to draw attention to the product's additional features.

Availability heuristic

The availability heuristic is a cognitive bias that makes decisions based on memories or information that are easy to recall. Humans tend to overestimate the frequency and probability of something that comes to mind easily. This tendency stems from the fact that we tend to judge information that is easy to remember as more important.

Marketers can take advantage of this effect by developing memorable advertisements and promotions. For example, by exposing a product in a popular drama, it will be strongly remembered by the audience and they will be more likely to recall the product. Impressive commercials, the use of celebrities, and topical campaigns are also effective in making products memorable.

Salience effect - Salience bias

The salience effect is a cognitive bias in which salient information or events are more likely to draw attention, while inconspicuous information is more likely to be ignored. Humans naturally pay attention to things that have salient features or emotional impressions, and tend to overlook other information. This effect is due to the mechanisms of human attention and memory, and is thought to be an evolutionary adaptation to quickly detect danger.

For example, eye-catching package designs and commercials featuring memorable celebrities can attract consumer attention and ultimately increase purchasing motivation. On the other hand, be aware that excessive design and direction can overwhelm the image and absorb the recognition and value of the product or service itself.

Stereotyping (representativeness heuristic / category size bias)

Stereotyping is a cognitive bias that leads people to generalize and judge people or things that belong to a certain group as having typical characteristics or qualities. There is a tendency to classify objects into categories and judge people or things based on typical examples of that category, and such excessive generalizations and simplifications can sometimes lead to unfair discrimination and prejudice.

Marketers need to be aware of stereotyping and be careful not to alienate potential customers. On the other hand, by making good use of the characteristics of the target demographic, they can more effectively promote the appeal of their products and services. For example, a strategy that links the image of the target demographic with the characteristics of the product, such as "an energy drink for active young people," is effective.

Anchoring effect

The anchoring effect is a cognitive bias in which we rely too heavily on the first piece of information (anchor) presented to us, distorting our subsequent judgments. Humans tend to be drawn to this anchor and distort their subsequent judgments. This effect is particularly evident when the anchor information is a number.

Marketers can use this effect to manipulate consumers' perception of price. For example, showing a higher-priced product first can make the next product seem cheaper. By emphasizing the original price before discounts or showing a similar product that is more expensive than the product in question, the price of the product in question can be made to seem more affordable.

Priming effect – Conceptual priming

The priming effect is a phenomenon in which the presentation of a certain stimulus (primer) unconsciously activates related concepts, influencing subsequent judgments and behavior.

For example, evoking the concept of "warmth" can create a favorable impression of a coat. Using other positive concepts related to the product, such as "wealth," "romance," or "freedom," can help associate the product or brand with positive concepts and experiences, increasing favorability.

Habit

A habit is a pattern of behavior that an individual or group performs on a regular basis. A habit refers to a habit or custom that has been acquired through repeated use over many years. Humans tend to prefer habitual behavior, and habits are an important factor in shaping the rhythm of life.

Marketers can create continuous demand by making products and services part of consumers' daily habits. For example, if health foods and supplements are incorporated into breakfast and exercise habits, it will lead to regular purchases. It takes a certain amount of time to form a habit, so marketers need to work steadily. However, once it becomes a habit, consumers will become more attached to the product, making it easier to acquire loyal customers.

Decision fatigue

Decision fatigue refers to the decline in the quality of decisions that result from making decisions repeatedly. It is well known that Steve Jobs used to wear the same clothes every day to prevent decision fatigue.

Marketers need to make an effort to simplify options and reduce effort in order to avoid decision fatigue. For example, reducing or simplifying product lineups and providing comparison tables can reduce the stress consumers feel when making a choice. In addition, it is also recommended to create an environment that makes it easier for consumers to make decisions by suggesting "recommended products/popular products" first.

Framing effect

The framing effect is a psychological tendency that causes people to make different judgments and choices when the same information is presented in a different way (framing). In other words, the way information is presented affects how people interpret it and influence their decision-making. This effect occurs because people tend to be influenced by the way information is presented, rather than making rational decisions.

Marketers can take advantage of this effect and increase consumer willingness to purchase by framing their products in a positive light. For example, they can emphasize the value of their products by framing them as "95% of customers are satisfied," or, for subscription services, they can reduce the burden of payment by displaying "3,000 yen per day" rather than "1 yen per month." Framing your own products to highlight their superiority by comparing them with competing products is also effective.

Ratio bias

Ratio bias is a cognitive bias in which we judge a ratio with a larger numerator to be a higher probability, even if the probabilities are the same. For example, 2/10 and 20/100 are both 20% probabilities, but humans tend to overestimate 20/100 as a higher probability. This tendency is caused by humans' tendency to focus on the absolute value of the numerator and fail to fully consider the denominator.

For example, "90% of customers are satisfied" appears to be a higher satisfaction rate than "9/10 customers are satisfied." When probability is expressed as a percentage rather than a fraction, the numerator becomes larger, making it easier to perceive as a higher probability. Marketers should be aware of this ratio bias and make effective use of statistical information for products and services.

Halo Effect (Authority Bias)

The halo effect is a cognitive bias in which a positive impression of a certain aspect of a person or product also has a positive effect on the overall evaluation. This effect occurs as a result of simplification when humans judge the whole from partial information.

Marketers can take advantage of this effect by highlighting endorsements and approvals from authority figures and organizations. For example, using celebrities, expert recommendations, and industry awards and certifications can increase a product's credibility and appeal. Consumers tend to rate a product highly if it has received positive reviews from authority figures.

Satisficing

Satisfying refers to the tendency to settle for an option that meets a minimum standard rather than pursuing the optimal choice. This stems from the fact that humans have limited cognitive resources for making rational decisions, and so tend to make decisions that satisfy a certain level rather than pursuing complete optimization.

For example, rather than a description packed with the product's appeal, it is possible to give the impression to consumers that the product is a good choice by simply emphasizing the product's good cost performance, such as by having an appropriate balance between the product's price and performance.

Bandwagon effect (herd behavior / social proof)

The bandwagon effect is the psychological tendency to follow a certain behavior or belief simply because many people support it. In other words, it is a herd mentality at work: "I do it because everyone else is doing it." This effect is due to humans' desire to belong to a group and their psychological tendency to feel secure by following the majority.

For example, products that are running low on stock in stores are likely to be deemed popular because other consumers have already purchased them. In this way, by showing that many people are choosing a product, it is possible to encourage consumers to follow the crowd. Marketers can easily appeal to the popularity of their products and services by taking advantage of a large number of users, highly satisfied word-of-mouth reviews, and celebrity endorsements.

Social norm bias

Social norm bias refers to the human tendency to conform to societal expectations and norms.

Just world hypothesis

The just world hypothesis is a cognitive bias that assumes that human actions will be met with fair outcomes, and there is a tendency to believe that "good deeds will bring good outcomes, and bad deeds will bring bad outcomes." This hypothesis provides a sense of security that the world is fundamentally fair and orderly, and plays an important role in how people go about their daily lives.

Marketers should follow this hypothesis and promote their brands by associating them with fairness and ethical attitudes. For example, by promoting that the production process of a product is fair and environmentally friendly, and that the working conditions of employees are fair, consumers will choose the brand as a fair and ethical brand and feel that this action will bring about the right results.

Undermining effect (over-justification effect)

The undermining effect is a psychological phenomenon in which intrinsic motivations, such as a sense of accomplishment or satisfying curiosity, are diminished when extrinsic motivations, such as external rewards or incentives, are given. When people perceive their own behavior as being motivated by external factors, their intrinsic motivation and interest in that behavior tends to wane.

For example, excessive extrinsic motivation (discounts, point rewards, campaigns, etc.) may reduce consumers' intrinsic motivation, but by not only emphasizing the appeal and value of the product itself but also by appropriately utilizing discounts and point rewards, it is possible to maintain consumers' intrinsic motivation and build long-term relationships. Marketers should be aware of this effect and be mindful of striking a good balance between the inherent value of the product and extrinsic motivation.

Reciprocity – Reciprocity

Reciprocity is the tendency in human relationships to reciprocate with an equivalent act in response to an act of the other person. In other words, it is the behavior of "if someone does something nice for you, you also do something nice for them." This principle plays an important role in maintaining cooperative and trusting relationships in society.

For example, by providing value up front, such as by offering free samples or special offers, you can encourage consumers to reciprocate. Consumers may respond to the value provided by purchasing products or spreading word of mouth. In this way, by offering something of value to consumers up front, you can expect future loyalty and purchasing behavior.

In conclusion

This article provides an in-depth look at mental shortcuts and biases caused by social norms. These biases are likely to occur when consumers are trying to make quick and efficient decisions, and are important points to consider in marketing activities.

Marketers can conduct more effective and ethical marketing activities by correctly understanding and utilizing these biases.The Importance of Understanding Cognitive Bias in Marketing: Consumer Insights Beyond Data"Or"List of cognitive biases that marketers should know and examples (part 1): Loss/risk/regret aversion and self-centeredness biasWe hope that you will also refer to articles such as "What are cognitive biases in marketing?" to gain a comprehensive understanding of cognitive biases in marketing.

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