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Buyer Science: Who are They… and What Do They Want? | semrush

Marketing psychology focuses on human behavior and how it affects marketing decisions. Marketers can use psychology to create a more effective marketing strategy. Behavioral economics is the study of psychological, social, emotional and cognitive factors that influence economic decisions, and how those decisions affect returns on investment, market prices and resource allocation. Together, these two areas provide insight into the mind of consumers and new ways to increase profits.

There are several psychological principles to choose from to drive sales and influence consumer behavior. These heuristics, or shortcuts to help us make decisions faster, help marketers develop content and campaigns specifically designed to make us want to buy.

Anchoring
This technique is used everywhere – frequently seen with major retailers like Amazon®. It’s nothing more than suggesting a price, marking through it, and offering a lower price. Why does it work? People often base buying decisions on the first piece of information they get. If the retail price is usually $100 and you see it on sale for $75, you’re more likely to buy.

Decoy Effect
The Decoy Effect, also known as Asymmetric Dominance, is widely seen in pricing. One study compared two paper shredders at two price points. Shredder A, priced at $56.95 could shred seven sheets at a time. Shredder B, priced at $74.54, could shred 10 sheets at a time. Only 21% chose shredder B.

Adding in a third shredder, priced at $84.95, that was more efficient and more expensive than A, but less efficient and more expensive than B, changed the dynamic, and 36% chose shredder B – a 74% increase over the first round. If you wanted to sell shredder B, that’s a perfect example of how to get the job done.

Frame what you want to sell next to something that makes it look like a better deal – and the Decoy Effect works, as long as customers can clearly see the dominance.

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Buyer Science: Who are They… and What Do They Want?.