2.02 – The Universal Influences of Consumer Behaviour
Understanding Consumer Behaviour
Traditional thinking posits that consumer choices are driven by factors like price, quality, reputation, brand awareness, and convenience. While these elements influence decisions, the most powerful driver is the unconscious mind. According to Gerald Zaltman, a former Harvard Business School professor and pioneer of neuromarketing, the unconscious mind drives 90 percent of our thoughts and behaviours.
Think about that: If 90 percent of all thoughts are unconscious, why do marketers target only the remaining 10 percent with messages like “limited time offer” or “best customer service”? This approach wastes significant marketing resources.
Triggers of the Unconscious Mind
Advertising often promotes price, convenience, brand reputation, and competitive advantage, targeting the conscious mind. However, people may not engage with advertisements if they do not appeal to the unconscious mind first. Research suggests that focusing only on the conscious mind wastes 90 percent of marketing budgets.
The unconscious mind makes rapid judgments about marketing materials and dictates behaviour. These judgments are guided by our schemas, or preconceived thoughts and beliefs, which determine what we consider true, real, and valuable.
The Influence of Schemas
Schemas are associated with our political, religious, social, and brand beliefs and choices. We often dismiss information that contradicts our schemas, even when faced with evidence. For example, Pew Research reports that while 88 percent of scientists believe GMOs are safe, only 37 percent of the public agrees.
Changing long-held attitudes and beliefs is challenging. Convincing customers to switch brands requires building a powerful case that appeals to psychological principles related to choice, rather than relying solely on marketing messages and automated CRM systems.
Schemas reflect not only our cultural and environmental influences but also how the brain processes patterns and rhythms. For instance, our brain has preset expectations for how music will harmonise and flow, and we prefer music that fits these schemas.
The Disconnect Between Conscious and Unconscious Minds
A study by Young & Rubicam (now VMLY&R) involving adults in the U.S., South America, and Asia revealed a significant disconnect between conscious and unconscious values. The report, titled “Secrets and Lies,” found that people’s unconscious priorities often differ from their conscious ones.
For example, the unconscious mind ranked “helpfulness” last among 16 variables, while the conscious mind placed it first. Similarly, “sexual fulfilment” ranked second in the unconscious mind but fourteenth in the conscious mind.
This discrepancy has significant implications for marketers, highlighting the need to emphasise different aspects in marketing content and experiences.
Emotional Connections in B2B and B2C Purchases
Research shows that personal values influence both consumer goods and business purchases. Google/Motista research indicates that B2B customers are more emotionally connected to their vendors and service providers than B2C consumers.
When personal values are considered in business choices, purchasers are nearly 50 percent more likely to buy a product and eight times more likely to pay a premium price. While B2C brands have emotional connections with 10-40 percent of consumers, B2B brands connect emotionally with over 50 percent of their customers.
Understanding and addressing the personal values that impact professional decisions is key to gaining a competitive advantage in the B2B space.
Psychological Triggers That Drive Sales
All human behaviour is based on two emotional premises:
- Avoidance of pain
- Pursuit of pleasure
Understanding the pain customers are trying to avoid and the pleasure they seek helps craft relevant motivational messaging and experiences. For example:
- Do customers fear feeling inferior without certain material possessions?
- Are they avoiding poor health by choosing healthier food options?
- Are they seeking peace of mind from a reliable insurance policy?
Pleasure encompasses more than indulgences; it includes peace of mind, confidence, comfort, and security, which are strong triggers of choice.
Neurotransmitters and Their Impact on Choice
Neurotransmitters are powerful forces that influence human actions related to finding joy or avoiding fear and pain. Understanding their impact enables marketers to create compelling messages and experiences.
- Dopamine: Released when anticipating a reward, creating euphoria and motivation.
- Oxytocin: Known as the love hormone, it fosters connections and loyalty.
- Cortisol: Triggers the fight-or-flight response during threats.
- Serotonin: Promotes calmness, optimism, and confidence.
Music, for example, can influence moods and behaviours, making customers feel calm and encouraging them to linger and shop more.
Moving from USPs to ESPs
Marketers must shift from unique selling propositions (USPs) to emotional selling propositions (ESPs). ESPs appeal to emotions and fulfil a given emotion associated with a product category. Understanding the emotional value you provide is key to success in all forms of marketing.
For example, insurance customers often distrust their carriers but buy insurance to avoid the consequences of being uninsured. Marketers must address emotions like distrust and fear in their ESPs.
Reward Versus Loss
Humans are more risk-averse than reward-seeking. Daniel Kahneman’s research shows that people prefer to avoid loss rather than pursue gain. Marketers should emphasise the avoidance of loss and the provision of security in their messaging.
Identifying Emotional Fulfilment
Consider the emotional fulfilment your product provides. For example, luxury apparel may evoke feelings of glamour, confidence, and superiority. These emotions drive purchasing decisions more than functional value.
Ask yourself:
- What potential losses can consumers experience by not buying your product?
- How can your brand prevent those losses in ways competitors cannot?
Differentiating your product emotionally is critical, as competitors can easily replicate features, functions, and prices but not the emotional experience and fulfilment.
Addressing Survival Instincts
Humans are wired to see threats first to prevent harm. We purchase items that give us a sense of survival, whether through practicality or perceived superiority.
Identify and address the fears driving your customers to put them at ease. Communicate solutions that appeal to both the unconscious and conscious minds.
Born to Survive or Chase Thrills?
Psychologists suggest humans are born with one of two affective systems: one driven by the need for security and survival, and the other by the thrill of the chase. Understanding these drivers helps marketers attract customers by addressing their core emotional motivations.
By recognising these universal influences, marketers can create more effective strategies that resonate with customers on a deeper emotional level, leading to stronger connections and increased loyalty.
