Why Psychology is My Secret Weapon in Business

“You’re a psychology major? But you’re going into consulting and hospitality? How does that even connect?”

With psychology as one of my double majors, I hear this question at almost every networking event. Sometimes, it’s framed as polite curiosity. Other times, it comes with a skeptical eyebrow raise.

At first, I struggled to articulate a response beyond the classic “Well, business is about people, and psychology is the study of people.” But as I progressed in my studies and applied psychological principles in real-world business settings, I realized that psychology isn’t just relevant to business; it’s essential.

Over time, I’ve conducted studies in motivation and negotiations in the field of organizational behavior, and these have been some of the most eye-opening experiences in my academic journey. Seeing how motivation influences productivity, decision-making, and leadership styles has reinforced my belief that psychology should be at the heart of business strategy.

Let me share a few psychological concepts that have been especially impactful in my work:

1. Decision-Making & Cognitive Biases: Why We Don’t Always Think Rationally

Early in my consulting projects, I noticed something interesting: the best data-driven recommendations didn’t always win. Clients—no matter how analytical—sometimes resisted logical solutions. That’s when I revisited Daniel Kahneman’s Prospect Theory (Kahneman & Tversky, 1979), which explains how people tend to fear losses more than they value equivalent gains.

One of the most powerful applications of this theory comes in negotiations. My research in organizational behavior showed that executives often resist change, not because they don’t see the value, but because they focus more on what they might lose.

For example, a company I worked with was hesitant to adopt a new digital system despite overwhelming evidence that it would improve efficiency. Rather than pushing more data, we framed the change differently—not as an abandonment of their current processes, but as an enhancement that would protect them from future risks. This simple shift in messaging led to a much smoother transition.

The key takeaway? Decisions are rarely just about logic. They’re about perception.

2. Employee Motivation: The Science of Getting People to Care

Psychology isn’t just about understanding clients—it’s also about understanding teams. In both consulting and hospitality, teamwork is everything, yet burnout, disengagement, and turnover are persistent challenges in many organizations.

That’s where Self-Determination Theory (Deci & Ryan, 1985) becomes incredibly useful. Their research highlights three psychological needs that drive motivation:

• Autonomy (feeling in control of one’s work)
• Competence (feeling skilled and capable)
• Relatedness (feeling connected to others)

In my studies on motivation in organizational behavior, I found that when these three needs are fulfilled, employees don’t just work harder—they work smarter. They take initiative, innovate, and stay engaged.

In one of my research projects, we looked at why certain high-performing teams thrived while others struggled despite similar workloads. The difference? Psychological safety and autonomy. Teams that had leaders who trusted them to take ownership of their work—and who encouraged collaboration—performed significantly better than those operating in rigid, top-down structures.

So, a lesson for leadership: If you want employees to excel, give them room to own their work and ensure they feel valued.

3. Negotiation & Persuasion: The Psychology of Influence

In business, negotiation is everywhere—whether it's convincing a client to accept a proposal, leading a team through change, or securing a new partnership. One of the most fascinating studies I explored in organizational behavior was on the psychology of negotiation, and the findings completely changed the way I approach persuasion.

People negotiate based on emotions, not just facts.

This is where Robert Cialdini’s Principles of Influence (Cialdini, 1984) come in. He identifies six principles that make people more likely to say “yes,” but the two that I’ve seen work best in negotiations are:

• Reciprocity: People feel obligated to return favors. A simple act of goodwill can shift the dynamics of a negotiation.
• Social Proof: People look to others to decide what’s right. When negotiating, showing how other companies or competitors have made similar moves reduces resistance.

For example, when negotiating with stakeholders on a policy change, rather than simply presenting numbers, I shared case studies of industry leaders who had already implemented similar changes successfully. This use of social proof significantly increased buy-in.

Negotiation isn’t just about who has the better offer—it’s about who understands psychology better.

4. Consumer Behavior & Marketing: Why We Buy What We Buy

Have you ever wondered why certain ads stick with you while others fade instantly? The Elaboration Likelihood Model (Petty & Cacioppo, 1986) explains how people process persuasive messages. Some prefer logic-driven arguments (central route), while others respond to emotional, visual, or reputation-based cues (peripheral route).

In hospitality, this is key. Luxury brands, for example, don’t sell products—they sell aspirations. They use storytelling, imagery, and emotions rather than just listing product features.

Understanding this has been critical when advising businesses on branding and customer experience. If you know how your audience thinks, you can shape their perception of value.

Psychology is Business

Psychology isn’t just a soft skill—it’s a business strategy.

From understanding how executives make decisions, to crafting marketing campaigns that actually persuade, to creating workplaces where employees thrive, psychology drives better leadership, smarter decision-making, and stronger relationships.

So the next time someone asks, “How does psychology fit into business?”—I’ll tell them it’s not just relevant. It’s everywhere.

On my account, I’ll be sharing the psychology studies I’ve done that can help anyone in the business field—whether you’re in consulting, hospitality, marketing, or leadership. So stay tuned!

References

Cialdini, R. B. (1984). Influence: The psychology of persuasion. Harper Business.

Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. Springer.

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291. https://doi.org/10.2307/1914185

Koenig-Workman I. (2024). Business Psychology. The Decision Lab. https://thedecisionlab.com/reference-guide/management/business-psychology

Petty, R. E., & Cacioppo, J. T. (1986). Communication and persuasion: Central and peripheral routes to attitude change. Springer-Verlag.