Unlock The Secret Science Behind Why We buy
Olympic Research and Strategy
Data with purpose. Strategy with impact.
Imagine you’re at a grocery store, deciding between two brands of cereal. One box is labeled “Low Sugar”, while the other reads “Now with 50% less sugar!”. You grab the second box, not realizing that the two are practically identical or worse yet, that they could mean totally different things. This tiny moment of decision making is what behavioral economic market research tries to study; understanding how people actually behave in the moment, not just how they think they should.
At its core, behavioral economic market research merges psychology with economic behavior to explore why people make the choices they do. The process takes into account that humans are not always rational calculators. Instead, we are influenced by a variety of overt and subtle factors such as emotions, biases, habits, and the way information is presented to us. Whether we are choosing cereal or deciding on a major life investment, behavioral economic studies uncover how those subtle factors affect our final decisions.
Why should you care about behavioral economics?
Let’s say you work in marketing, product development, or sales. Behavioral economics is like having a secret playbook or cheat codes for connecting with your audience. Understanding its overt principles and subtle nuances can help you and here are just a few examples of how:
What can Behavioral Economics teach us about selling more products?
Well, there are a few principles that might resonate with you, let's explore them together.
Anchoring
You know how when you’re shopping for a laptop and the first one you see costs $2,000? Suddenly, that $1,200 option feels like a steal, even if it’s still pricey. That’s what is called anchoring, the first price we encounter sets the tone for how we perceive value across the spectrum of offerings.
Social Proof
Imagine you’re deciding between two restaurants, and one has a line out the door while the other is empty. You’re more likely to believe the crowded one is better, right? That’s because we tend to trust what others have already chosen. This is also why the star rating system, whether for products, restaurants etc. works so well! Highlighting positive reviews or showing how many people have purchased your product taps into this same principle.
Loss Aversion
Think about Black Friday and Cyber Monday that we just experienced and statements like “Only 2 left in stock” or “Offer ends tonight”, flash sales and countdowns create a sense of urgency that makes us buy things we might not even need just to avoid missing out. That’s loss aversion at work. We’re wired to avoid missing out more than we are motivated by the thought of gaining something!
The Power of Defaults
Let’s say you are signing up for a subscription service, and the annual plan is already pre-selected. Most of us just go with it, even if we might have preferred a different option. Making the default choice the most beneficial one (for the customer and the business) is a subtle but effective strategy.
The Zero Price Effect
Do you ever shop online and add a few more items to your cart just to qualify for free shipping? Or how you will justify buying something because it comes with free shipping? That’s called the Zero Price Effect. We are disproportionately drawn to anything labeled “free” or “freebies” even if it means spending more overall.
Utilizing Behavioral Economics with ORS to Drive Success
In today’s competitive market, understanding these overt principles and their more subtle nuances are crucial for businesses in every industry. Consumer behavior is shaped by countless factors, from emotional triggers to subconscious biases, and leveraging these insights can make all the difference. At Olympic Research and Strategy (ORS), we provide companies with the behavioral economic market research they need to stay ahead. By employing tools like tailored surveys, conjoint analysis, and detailed behavioral evaluations, we uncover motivations driving consumer decisions. Whether you are in retail, technology, healthcare, or beyond, recognizing these patterns can help you craft strategies that build trust, drive engagement, and deliver meaning value to your customers.