Marketing is always linked with Psychology, From the time of traditional marketing, the marketers always tried to figure out the connection of this duo to get the best results. Psychology is applied in marketing when establishing an effective connection with customers by understanding their purchasing behavior and their motivations behind the purchasing decisions. So let’s break down some marketing tricks!
Anchoring bias happens when a person makes a decision based on the first information offered than the rest of them. Anchoring effect is useful in marketing, for example when a person sees a T shirt which cost AED 500 then see the second one that cost AED 300. That person is prone to see the second shirt as cheap.
According to several reports and researches the online reviews dramatically influence the purchasing behaviour. A person who wants to buy a product from a website will definitely go through the reviews. There are even customers who only check -ve reviews before buying a product. Infact displaying +ve conversion in the website will increase the conversion by 270%.
The goal gradient simply means when a person gets closer to a reward he will accelerate the behavioral progress towards the goal. People are more motivated when they realize how much is left rather than how far they have come. In marketing it is applicable when a company shows the progressive bar of purchase to a potential customer. Once you allow customers to see the finishing line. They are likely to race across it to achieve their goal.