Why you buy: The psychology behind advertising
Do you ever wonder what makes you want to buy certain things? The answer lies in the psychological tools used by advertisers. Businesses often use clever strategies to boost their chances of winning over customers.
An example is the reciprocity principle. Many companies offer “free trials” or a gift card worth a certain amount if you shop during a certain time. These incentives make you feel like you are taking advantage of the offer, when in reality, it is the other way around.
Marketing strategies have changed rapidly in recent years, and continue to change constantly. Thanks to the rise of social media, influencer marketing has replaced many traditional ads. Instead of using physical billboards or digital advertisements, companies sponsor up-and-coming online personas to sell their products.
Today, influencer marketing has proven more effective than traditional marketing. Viewers trust the creators they follow and see them as credible. This makes them more likely to purchase a product the influencer recommends.
How does consumer behaviour work?
Consumer behaviour can be influenced by many factors, including age, income, gender, lifestyle and personality, depending on the target demographic of the seller.
With neuropsychology, it is possible to see how various brain processes influence consumer behaviour. For example, electroencephalography (EEG) and functional magnetic resonance imaging (fMRI) allow researchers to study the subconscious mind’s responses to different advertising and marketing strategies, which are in these cases the stimuli.
This research helps inform neuromarketing, which combines neural science and marketing techniques to look at the mechanisms that underlie decision making, emotion and cognition. It includes elements such as eye gaze tracking, colour psychology, memorable headlines, effective packaging, website layout and so on.
By understanding these factors, marketers and companies can create more effective advertisements that appeal to consumers and influence their purchases.
Individuals with higher incomes are more likely to purchase high-quality products, but for a variety of reasons. For example, some genuinely seek better quality, while others desire to display their wealth.
Experts in behavioural economics and psychology believe that a major reason behind extravagant purchases is so that people can showcase their social status, a phenomenon known as conspicuous consumption.
How do companies attract customers?
Marketing strategies are designed to lure customers towards a product. A key goal is to target a specific audience and cater ads to their interests. Advertisers look for shared interests among a certain group and incorporate those into their messaging.
Another tool is psychographics. This technique segments consumers based on values, beliefs and lifestyles. It helps marketers tailor messages that align with those beliefs, convincing their audience to buy their products.
The bandwagon effect is another aspect of behavioural psychology that comes into play influencing consumer decisions. It describes how people adopt behaviours simply because others do, often suppressing their own opinions. Consumers often buy products because they see others using them. This urge to fit in is very powerful.
How has advertising changed with the rise of social media?
The first examples of advertising date back to ancient Egypt, but advertising today is nothing like how it was back then, with the starkest change being the rise of personalised marketing.
Using platforms such as Instagram and YouTube, many people document their daily lives for all to watch. Those who amass large audiences can become influencers. Companies often partner with them to promote their products in a way that seems more natural and subtle than traditional ads.
Influencers and content creators now dominate advertising. Using famous figures has always been common – Coca-Cola, for instance, started using Santa Claus to promote its brand back in the 1930s. However, influencer marketing has taken this concept to another level.
We tend to find people more persuasive if we feel they are similar to us. Since we feel that influencers are ‘average’ people who just happened to gain a platform, we identify with them more than other public figures. This makes us more likely to follow their advice on what purchases we should make, as it feels more like sincere, genuine advice than a paid promotion.
Why do brands target younger audiences?
Brands often target younger audiences because their developing brains are more susceptible to influence. Younger people also tend to be more open-minded to new products that could shake up existing industries. For many brands, gaining a customer young means they have gained a customer for life thanks to consumer loyalty and habitual behaviour.
When brands market effectively, they can deeply engage young consumers. However, this deliberate targeting can have extremely negative consequences. For example, the tobacco industry has historically lured young people into using their products, causing long-term health issues.
What are the pitfalls of modern advertising?
Modern advertising can create unrealistic desires and financial difficulties by promoting an unattainable consumerist lifestyle. Due to targeted marketing, younger people who do not have financial stability may choose to buy luxury products because those products are marketed so well towards them.
