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The Subtle Power of Psychological Biases

“Hurry, offer ends soon!”

“Oh, I’ve to pay just Rs. 50 more to upgrade my medium popcorn to large, I guess that’s more value for money for me”


Ever caught yourself in the midst of an irresistible offer, thinking it was your choice alone?


Brace yourself for a revelation: the hand guiding your decision might not be yours at all.


Enter the realm where marketing wizards weave their magic through the strings of human psychology and behavioural quirks.


Customer psychological biases are the intriguing quirks of human cognition that silently influence our preferences, choices, and behaviours as consumers. These hidden mental shortcuts, shaped by emotions and perceptions, often lead us down the path of brand loyalty, product preference, and purchase decisions.


Let’s deep dive into some of them:

  1. Sense of Belongingness

Brands seek to forge deep connections with customers, where positive experiences make them feel valued and part of a like-minded community. When products become intertwined with a customer's identity, brand loyalty thrives, leading to increased sales.


Take Harley Davidson, for instance. Harley riders proudly proclaim themselves as "Harley enthusiasts." This declaration reflects more than just an affinity for motorcycles; it signifies a profound emotional connection to the brand.

2. Perceived Value

Ever wondered why you're willing to pay a little extra for that sleek smartphone with the half-eaten apple logo? It's not just about the gadget; it's about the perceived value it carries.


Perceived value acts as the lens through which we assess a product, beyond its inherent qualities. It's shaped by our needs, preferences, and past experiences, representing the worth we perceive in exchange for our money. Whether it's the brand's prestige or the promise of a delightful experience, perceived value forms the narrative that convinces us a product is worth its price, blending both objective features and the personal stories we attach to it.

3. Social Proof

Ever picked a restaurant because of raving online reviews or joined a bustling queue? That's social proof in action.


Social proof is the psychological nudge that leads us to follow the crowd, assuming that if many others are on board, it must be the right choice. In the world of consumer behaviour, it shapes our decisions by signalling that a product or service enjoys trust and popularity within a larger community.


Brands grasp that when we encounter positive reviews, high ratings, or influencer endorsements, our confidence in their offerings soars. Social proof creates a sense of assurance and validation, motivating us to opt for their products or services over others.

4. Reciprocity Effect

Imagine this: You're at a fancy restaurant, and the chef surprises you with a free dessert. You're grateful and more likely to return, right? That's reciprocity, the key to customer loyalty.


It's like a friendly exchange with your favourite brands. They offer perks, and you're more engaged and likely to buy. AIR INDIA has a loyalty program where flying earns you points for Lounge access. Amazon offers a tempting Prime trial to keep you around.


This phenomenon illustrates the reciprocity effect—a powerful psychological principle where individuals feel compelled to give back when they receive something, fostering a sense of connection and obligation in the process.

5. Zeigarnik Effect

"Have you felt that lingering sense of incompleteness when a TV show ends on a cliffhanger or a task remains unfinished?" That's the Zeigarnik effect at play, a psychological phenomenon that keeps us hooked and invested.


Zeigarnik effect is the compelling force that drives us to stay engaged with a brand or product when there's an open loop—a sense of something left undone. Brands that understand this phenomenon create experiences that leave customers wanting more, be it through loyalty programs, personalized recommendations, or interactive content.

6. Novelty Effect

Imagine you're a shoe enthusiast with a closet full of your go-to brand. But then, you spot a dazzling new collection from a renowned shoe giant. These shoes boast a fresh design and promise supreme comfort. Intrigued, you dive in, swayed by the "novelty bias."


The novelty effect is like a magnet for our attention. It makes us curious about new and unusual things, often causing us to ignore what's familiar. This can sway how customers behave, what they buy, and how loyal they are to a brand, making a big impact on businesses.

7. Goal Gradient Effect

Imagine the excitement as you approach a race's finish line or the determination when a task is almost done. That's the Goal Gradient effect—it boosts our motivation as we get closer to our goals.


In customer loyalty, it's the powerful force that makes us engage more when we're close to earning rewards or achieving milestones. Brands that understand this use it to their advantage by creating loyalty programs and games that keep customers excited as they get closer to their goals.


In the end, understanding how our minds work can help us build lasting connections with our favourite brands, showing that loyalty is more than just a feeling – it's a product of our fascinating human psychology

Our Team.

Vasu Mittal (1)_edited.jpg
Vasu Mittal
President, 2023-24
Vasudha Narang
Chief Advisor, 2023-24
Sidharth Gulati
Consulting Director, 2023-24
Aashna Abrol
Consultant, 2023-24
Bhavya Arora
Consultant, 2023-24
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