A Behavioral Game Theory Approach to Positioning

Startups are a chaotic, competitive, and relentless universe. You’ve likely heard the sobering statistics, 90% of startups fail within their first few years. And amidst this pressure, positioning, a vital part of standing out, often gets reduced to a list of features and benefits.

The result? Messaging that’s uninspired, fails to connect and struggles to make an impact.

What’s the way to cut through the noise? How to craft positioning so powerful it not only grabs attention but also influences decisions and builds enduring emotional connections?

Enter a behavioral game theory approach, one that blends psychology, strategy, and predictive insights for a unique edge.

What Makes This Approach Different?

We start by asking a better question. Instead of “Who is your audience?”, which leads to surface-level personas, we ask, “Why does the audience act the way they do?”?

This approach goes deeper, uncovering the beliefs, emotions, and subconscious motivators driving behavior.

Here’s why it works:

-Deep Roots in Behavioral Psychology

-Behavioral Hypothesis Development

-Game Theory Overlay

-Emotional-Rational Mapping

Over the last few years, I have implemented this structure in various forms with startups across Fintech, Deep-tech, Travel, and more. The framework almost always throws up new, improved, and emotionally resonant positioning.

Here is a simplified guide for you to synthesise positioning based on the Behavioral Game Theory Model.

Step 1: The Multi-Dimensional Audience Mapping

We often rely on one-dimensional personas: “Our target is a 35-year-old working professional.”?

This isn’t enough. Instead, let’s create a multi-dimensional audience map to capture the interplay of beliefs, emotions, and context.

Map Belief Systems

-Identify foundational beliefs influencing decisions.

-For example, eco-conscious consumers might believe, “Small actions lead to big change.”

-Group audiences by shared beliefs, enabling hyper-tailored positioning.

Understand Emotional Triggers

-What excites your audience? What builds trust or triggers fear?

-Unpack latent motivations—drivers your audience may not articulate but are deeply influential.

Plot the Emotional-Rational Map

-X-axis: Rational needs (e.g., cost, efficiency).

-Y-axis: Emotional needs (e.g., empowerment, belonging).

Place audience segments along these axes to visualize their priorities and craft strategies that address both.

Step 2: Behavioral Hypothesis Development

Predicting behavior isn’t magic—it’s about structuring hypotheses grounded in deep psychology. Instead of traditional A/B testing, which can be scattershot, use this approach to predict responses.

Template for Hypothesis Development:

If we position [product/brand] as [specific narrative], then [target audience segment] will [desired action] because it satisfies their [emotional/rational need].

Example:

Audience: Millennials managing finances.

Hypothesis: If we position our app as a tool for “taking control of your financial future,” then millennials will engage because it fulfills their need for empowerment and independence.

Step 3: The Strategic Positioning Model

This step merges behavioral insights with game theory principles to create a positioning strategy that is both compelling and sustainable.

Core Narrative

-Build a brand story aligned with audience belief systems and emotional triggers.

-Example: For an eco-conscious audience, focus on “leading a movement for a sustainable future.”

Game Theory Overlay

-Anticipate how stakeholders (audiences, competitors, partners) will respond to your positioning.

-Design win-win scenarios that minimize resistance and maximize alignment.

Value Proposition Matrix

-Link product benefits to both rational and emotional needs.

-Example: Emphasize control (emotional) alongside simplicity (rational).

Step 4: Behavioral Messaging

Great positioning is only as effective as your ability to communicate it.?

This structure ensures consistent, tailored messaging across all touchpoints.

Adaptive Messaging

-Personalize content for distinct belief systems.

-Example: For eco-conscious audiences, emphasize reducing waste. For budget-conscious users, highlight long-term savings.

In-Product Communication

-Integrate your positioning into the user experience.

-Example: Onboarding flows can reinforce empowerment by showcasing quick wins.

Consistency Across Channels

-From social media to in-app notifications, ensure the story remains cohesive.

Step 5: Behavioral Impact Metrics

Go beyond traditional KPIs by measuring the psychological impact of your positioning.

Belief System Shifts

-Are audiences adopting attitudes aligned with your positioning?

-Example: Increased trust, advocacy, or social sharing.

Engagement Patterns

-Are emotional drivers influencing user behavior?

-Look at deeper metrics, like session duration or referrals.

Decision-Behavior Link

-Is your positioning translating into concrete actions?

Emotional Resonance Design (ERD)

ERD is a proprietary approach that ensures every element of your positioning amplifies emotional engagement.

ERD Principles:

Emotion First: Prioritize emotional impact in every strategic decision.

Resonance Checkpoints: Use iterative feedback loops to test positioning alignment.

Cohesion Across Touchpoints: Ensure emotional consistency from discovery to conversion.

Sample Case Study

Let’s look at an example of a Startup in the legal tech domain.

Scenario: A legal tech startup targeting Gen Z and millennials.

Traditional Positioning: "We simplify legal documentation."

Behavioral Game Theory Approach

Belief System: Younger audiences fear legal complexity but value tools that empower independence.

Hypothesis: "If we position our app as a tool for 'legal empowerment,' then users will engage because it fulfills their need for control and simplicity".

Why This Framework Matters

Adopting this framework is about rethinking how we approach positioning altogether. Stand out by addressing belief systems and emotional triggers. Predict and influence behavior with better precision. And in the process build lasting connections with audiences.

Let’s make positioning your strategic advantage.