Psychology
Psychology in marketing
10/31/2021 · 1 min read
- Contrast effect
- Adding a special new option (a “decoy”) can make the original option more attractive.
- Compromise effect
- With 3+ price tiers, users tend to pick the middle one.
- Mental accounting
- People treat different income and spending as separate mental accounts.
- Mental accounting rules (
>means the perceived experience is better)- Multiple gains: split — 100+100 > 200
- Multiple losses: merge — (-100)+(-100) > -200
- Large gain + small loss: merge — 100-10 < 90
- Small gain + large loss: split — -100+5 > -95
- Endowment effect
- People overvalue what they already own.
- Anchoring effect
- The first price quote sets expectations; later prices rarely move far from that anchor.