Do all Entrepreneurs Utilize Human Psychology to their advantage? Business and marketing leaders are well-read about psychology and the human thought process. Most of our choices are influenced by them. This does not mean that they are selling the wrong products. The question ‘How We Think’, therefore, catches the interest of two sets of people. One, the common man who is curious to know how he thinks (which is a subject of study for the businessmen). Two, the entrepreneurs who would like to know what big businesses already know.
The Social Proof
Did you ever applaud a movie because everyone around you did the same? Did you ever start enjoying rock music, even though you were never connected to it before, just because your friends kept praising it? Have you voted for a politician because most people approve of him, even though you never actually read the news or gathered facts about his work? Or, did you run to a store watching a huge gathered crowd thinking you might miss an exclusive offer?
If your answer to these or similar situations is yes then you are a victim of groupism. In fact, nearly everyone on some level depends on socially approved choices. A rational decision quite differs from this behavior. Before analyzing your thoughts about something, we accept people’s preferences as our own.
This behavior leads to biased choices. The same is reflected in advertisements showcasing movie stars endorsing a product. Since celebrities are public figures widely followed, it is assumed that the products they endorse might have mass popularity.
Of course, the leaders/celebrities also affect us positively in many ways as mentioned in Bhagavat Gita chapter 3 verse 21 says:
“yad yad ācarati śreṣṭhas
tat tad evetaro janaḥ
sa yat pramāṇaṁ kurute
lokas tad anuvartate “
Whatever action a great man performs, common men follow. And whatever standards he sets by exemplary acts, all the world pursues.
The Forever Effect
We often talk about the right and wrong. On a close watch, we find that right and wrong is our perception. Human nature is designed in a fashion that favors and gets further inclined to what we already like and believe. In an open discussion, we would like the argument that supports our likes. A nationalist would raise the question of brain drain, while an ambitious scientist would aim to work in a foreign land full of opportunities. Our thinking and decision making, therefore, reflects our likes and dislikes.
This is the reason why identifying the target audience is the top priority for big businesses. Since women are the major purchasing entities, all household stuff is designed as per their liking. Most racers are men, and therefore race cars would be advertised by men. Some shopkeepers, who observed that their major customers were women, changed the look of their store to match the girly taste. Their sales increased immensely with more buyers walking in every day.
The Contrast Effect
As opposed to the ideal form of judgement, which is absolute judgement, people often make comparative judgements. Our thoughts are heavily influenced by comparisons. But, are these judgements, always right? Consider the example involving only two buckets of water: one filled with lukewarm and the other with ice water. If you first place one hand in the cold water and then place both hands in the lukewarm water, then your hand that was in the iced water will feel hot in the lukewarm water. The cold hand was obviously lying to you. The same water felt just warmer to your other hand.
This is where the discounted pricing strategy comes into play. Unless made aware, people tend to purchase products with discounts ignoring the quantity, quality or requirement. People actually buy movie tickets on slashed prices, for a movie they never would have watched otherwise.
The Sensation Factor
Exotically made intricate stories with high-end detailing exuberate our senses. This provokes us to be more engrossed and convinced. Real-life videos picturizing people experiencing pain before they trying a medicine, force a convincing effect on us. Maybe you are reading this article, after reading the exotic words like Profit, Billion Dollars etc, used in the title of the article.
Mundane stories catch the least attention, even though they might deliver content in its entirety. Businesses place their creative angle here to compete with their peers.
The Eye Tonic
Attraction is one characteristic we all bow to. Sparkling jewels, pink flowers, garnished meal for the girls and jet-black Lamborghini, macho sports gears, classy gadgets for the boys have had an undeniable influence on them. We like better-looking things over other less attractive yet equally useful things. If we do reverse engineering, consider an attractive woman taking a highly influential role in your office. Nearly half of the staff would consider her looks being the reason for her promotion even before knowing her qualifications and past performances. If we have thought like this, we already know the possibility of the appraiser getting inclined towards the attractive.
In fact, we all in our everyday lives, pick what serves the eye as a tonic. High-Definition photography, colorful posters in the town, glittery lights at a party, decorative for festivals, all make space in our mind as we watch them. This is the reason why you find the most attractive employee sitting in the reception or doing the sales role.
The Emotional Touch
We can have no reason to deny that we are very much emotion-driven. For years movies on relationships, sadness around the world, tragic situations projecting similar stories, have performed excellently on Box Office. Our feelings pose a drastic influence on our choices. Radical assessments fail when we have a preconceived feeling about something. Take, for example, our feelings about a hospital. We know it is a place full of patients with different kinds of diseases. Medicines float around the entire campus. People are in pain and look distorted. When people usually visit a hospital, in spite of good hygiene, quality or taste of the food the hospital canteen offers, many avoid eating there.
Sometimes feelings might corrupt rational decision making. Areas, where careful assessments must be made, are left on feelings to decide. Foolish people have actually placed their life savings on gambling, even after knowing that, mathematically, their winning probability is minimal.
Smart people know that psychology has the capability to reason out everything going on around them. It is not just a remedial science, but a step that brings us closer to ourselves, and the reality.
Powerful insights, a different outlook, and healing power are the essence of the sessions at Winners-nest. The idea of winnersnest emerged with the intention to unleash the truth of nature so that people can use its benefits in their life. Move ahead with a positive outlook, and if you need the direction, simply ask me on Whatsapp.
