Humans are so irrational.
Yes we are.
But how irrational and how can we determine and use the cognitive biases as eCommerce marketers?
See in this presentation:
2. > 5 years old Romanian Startup
> Part of a bigger family
> helping 17870 websites convert more
> backed by European Investment Fund
> handling >500M visits/month
> a team of 35 digital experts
4. How to use this in eCommerce?
> Start with a higher price - that’s made at any new collection / product launch - with
the purpose of selling it in the discount period
> First mover’s advantage
>
5. Humans are born
irrational, and that
has made us better
decision-makers
Humans are born
irrational, and that
has made us better
decision-makers
Humans are born
irrational, and that
has made us better
decision-makers
6. 84% of People Hold Onto an Irrational Fear
1 in 10 fear using the photocopier, 1 in 12 believes it's "out to get them"
8. 1. Anchoring
The tendency to rely too heavily, or “anchor”, on one trait or piece of information when making decisions
(usually the first piece of information that we acquire on that subject).
How to use this in eCommerce?
> Start with a higher price - that’s made at any new collection / product launch - with
the purpose of selling it in the discount period
> First mover’s advantage matters
>
9.
10. 2. Attentional Bias
The Attentional Bias is our tendency to pay more attention to emotionally dominant stimuli, and to
neglect other relevant data when making decisions. So the more something touches us, the more
attention we pay to it.
Use cases in eCommerce:
> Remarketing ads - familiarity sells
> Repeat the call2actions
>
11.
12. 3. Framing Effect
Drawing different conclusions from the same information, depending on how that information is
presented.
13.
14. Participants were asked to choose between two treatments for 600 people infected with a deadly
disease. Treatment A would result in 400 deaths. Treatment B had a 33% chance that no one would
die, but a 66% chance that everyone would die.
Each treatment was presented in a positive and negative frame. For example, for treatment A:
● Positive: Save 200 lives.
● Negative: 400 people will die.
Treatment A was chosen by 72% of participants when framed positively, dropping to only 22% when
framed negatively.
15. Treatment A was chosen by 72% of participants when framed
positively, dropping to only 22% when framed negatively.
Framed positively Framed negatively
Treatment A 72% have chosen it 22% have chosen it
16.
17. 4. Hyperbolic discounting
Discounting is the tendency for people to have a stronger preference for more immediate payoffs
relative to later payoffs.
18. 4. Backfire Effect
When people react to disconfirming evidence by strengthening their beliefs.
19.
20. 5. Loss aversion
Loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent
gains: it is better to not lose $5 than to find $5
27. 7. Decoy effect
Preferences for either option A or B change in favor of option B when option C is
presented, which is similar to option B but in no way better.
28.
29.
30. 8. Humor Effect
That humorous items are more easily remembered than non-humorous ones,
which might be explained by the distinctiveness of humor, the increased
cognitive processing time to understand the humor, or the emotional arousal
caused by the humor
32. 9. Authority Bias
Authority bias is the tendency to attribute greater accuracy to the opinion of an authority
figure (unrelated to its content) and be more influenced by that opinion
33. Avon is the world's largest direct seller in the beauty industry, with over $10 billion in
annual revenue.
47. 10. Availability Heuristic
The tendency to overestimate the likelihood of events with greater "availability" in memory,
which can be influenced by how recent the memories are or how unusual or emotionally charged
they may be
48. Summary of results
An additional 26% increase of revenue
2% of those that saw the creative made a purchase within 2 weeks
The creative had a 7.6% click through rate (CTR)
60% of visitors further stayed on the website instead of leaving