Find out how to apply three psychology principles to increase your brand's visibility, optimize your content, and drive sales.

1. Consumer Marketing
Psychology
BY SITE HUB’S DEVON NOLL - INTERNAL MARKETING

2. WHAT IS CONSUMER MARKETING PSYCHOLOGY AND
WHY IS IT IMPORTANT?
THE REASONS WHY PEOPLE BUY THINGS:
Why people buy the things they do
What external motivations influence
them (if any)
How people respond to marketing

3. LOSS AVERSION DEFINITION
The concept that people feel loss
more intensely than they feel gain.

4. LOSS AVERSION EXAMPLE
You overhear your boss talking to
HR. She says she would like to
increase your salary by $300/month.
How would this make you feel?
Pleasantly surprised?
Happy?
Excited?
Now you hear exactly the opposite.
She needs to decrease your salary
by $300/month.
How would this make you feel?
Angry?
Depressed?
Furious?

5. LOSS
AVERSION
Photo courtesy of: www.ethos3.com

6. HARNESSING LOSS AVERSION AS
MARKETERS ...
Emphasize the consequences of inaction.
Motivate people to buy your products or services in order to avoid
negative outcomes.
People value what they have more than what they want.
Marketing examples:
“Avoid losing web traffic and sales by increasing your SEO efforts
with our monthly SEO package.”
“You could be wasting $x.xx/month on channels you don’t even watch.
Switch to 123 Digital Cable and only pay for the channels you want.”

7. THE FRAMING EFFECT DEFINITION
The concept that people will react
to the same situation or
information in different ways
depending on how it is presented to
them.
Photo courtesy of: http://uxodesign.com

8. LOSS
AVERSION
EXAMPLE
Kahneman & Tversky split
participants into 2 groups
and asked them to make a
difficult decision:
Choosing between two
treatments for a group of
600 people infected with a
fatal disease.
Kahneman & Tversky - the
founders of cognitive
biases

9. KAHNEMAN & TVERSKY
Group 1 was told:
Treatment A “would save 200 lives”
Treatment B had a “one-third
probability of saving all 600
lives, and a two-thirds probability
of saving no one.”
Group 1 results: most participants
chose Treatment A because it was
certain that people would be saved.
Group 2 was told:
Treatment A: “400 people will die.”
Treatment B had a “one-third
probability that no one will die
and a two-thirds probability that
600 people will die.”
Group 2 results: most participants
chose Treatment B.

10. KAHNEMAN & TVERSKY INSIGHTS
Treatments A and B were exactly the same in both groups - all
that was changed was the wording.
Photo and experiment example courtesy of :
www.poweredbysearch.com/

11. WHAT DOES THE FRAMING EFFECT TELL US
ABOUT MARKETING?
CONTEXT IS EVERYTHING.
Marketing Example:
Which frozen yogurt would you
choose?
A/B testing is critical in all
marketing strategies to determine
the most effective way to convey
your message to your audience.

12. MERE EXPOSURE EFFECT DEFINITION
Zajonc’s Mere Exposure principle
states that people tend to favor
things that they are familiar with.
Therefore, repeated exposure to
something leads to more positive
feelings about it.
Photo courtesy of: https://www.quora.com/What-
is-the-mere-exposure-effect

13. MERE EXPOSURE AND MARKETING
Expose people to your brand,
product and/or service often to
give yourself more power.
Increase your exposure through:
Blogging
Social media
PPC
Email marketing campaigns
Video
The more active you are in your
community - online and offline
- the more presence you
acquire.
This leads to more people thinking
positively of your brand and an
increase in business

14. TO SUM IT ALL UP...
Loss aversion, the framing effect
and the mere exposure principle are
great starting points when creating
a marketing plan and strategy.
But
Remember that YOUR brand is unique
with unique circumstances, so
testing and optimizing these
theories continually to fit YOUR
specific needs is crucial.

15. QUESTIONS?
VISIT YOURSITEHUB.COM FOR MORE INFORMATION ON CONSUMER MARKETING PSYCHOLOGY AND
SOURCES CITED.