Advertising Psychology: 7 Principles Used to Influence Consumer Behavior

Up to 95% of purchase decision-making takes place in the subconscious mind.

The human mind is a magical thing. Particularly cognitive functions – information processing, connections and correlations, and behavioral motivations. Psychology is truly fascinating!

The link between psychology and advertising is no secret. Great advertisers have a comprehensive understanding of how their audience operates – how they think, what motivates them, their preferences and desires, and what they respond to. In many cases, they are applying psychological principles to create ads that are reaching customers more efficiently and effectively.

Check out some commonly used psychological principles.

#1: Scarcity

EXPLANATION: Scarcity is based on the belief that the more rare an opportunity or item is, the more valuable it is. When an item is scarce, it creates urgency and motivates the consumer to act quickly to make a purchase.

EXAMPLES: Companies employ scarcity by releasing products in limited batches or by promoting a lower price point for a restricted amount of inventory.

#2: Verbatim Effect

EXPLANATION: This theory suggests that people are more likely to remember the exact wording of a statement or message than its general meaning or gist. People are more likely to recall verbatim what was said or written rather than the overall message that was conveyed.

EXAMPLES: Consumer attention spans are short! Use simple, memorable phrases, and repetition to create campaigns that stick in the minds of consumers long after they have seen or heard them. Examples include catchy headlines, repeated slogans or taglines, and branded jingles.

#3: Emotion

EXPLANATION: People are often more influenced by their emotions than by logical arguments. Connecting your brand to these emotions can be powerful in influencing consumer perception and behavior.

 EXAMPLES: Advertising often uses emotional appeals such as happiness, humor, fear, sadness, excitement, or nostalgia to create a connection with the audience. It may be conveyed through tear-jerking customer stories, compelling imagery or footage, moving music, or slapstick scenarios.

#4: Reciprocity

EXPLANATION: People feel obligated to return a favor or act of kindness that has been shown or given to them. This theory explains the simple give-and-take dynamic that exists in human relationships.   

EXAMPLES: Offer value to your customers through discount codes, exclusive content, free samples, or branded promo items and they will be more likely to return the favor through repeat purchases, referrals, etc.

#5: Social Proof

EXPLANATION: This theory supposes that people will look to others for guidance or influence when they’re unsure what to do. Essentially, consumers will be more trusting of products when they know other people believe they are valuable.

EXAMPLES: Marketers leverage this principle by using testimonials, ratings and reviews, celebrity endorsements, social sharing buttons, and user-generated content.

#6: Anchoring

EXPLANATION: A cognitive bias that refers to the tendency for people to rely heavily on the first piece of information they receive (the "anchor") when making subsequent decisions or judgments. The anchor can be any information, such as a number, a price, or a label, that serves as a reference point for subsequent judgments or decisions.

EXAMPLES: This theory is most used regarding product pricing. For example, brands may show consumers how much money they are saving by signing up for a subscription plan or by purchasing a product at the sale price.

#7: Loss Aversion

EXPLANATION: A principle that describes the desire not to lose something is much greater than the desire to gain something. People hate to lose what they already have!

EXAMPLES: Applications in marketing include offering features in a trial version that expires unless purchased, promoting limited-time offers, and creating customer loyalty programs where people earn rewards or points.

Ultimately, the human brain is designed to create shortcuts to aid in decision-making. By better understanding those shortcuts, marketers can enhance their ability to grow their audience and their influence. Advertising is a science!