April 18, 2024

Alternative overload is partially why customers select acquainted choices, and for this reason leveraging familiarity is usually a superpower to make your model stand out in a sea of comparable selections.

2. It modulates the way in which we understand experiences

Familiarity bias just isn’t solely a useful resource optimization course of but in addition an actual instrument that has been proven to modulate attention, memory, brand preferences, donation behavior, and even perceived taste on the subject of meals.

Let’s take an instance that hits near residence for me: As an Italian, my childhood afternoon snack was Nutella on bread, so at any time when I see some other chocolate unfold, I don’t even contemplate it, as all of them appear to style bizarre to me; nevertheless, my Spanish buddy Isabel grew up with Nocilla and swears by it, saying that Nutella tastes unhealthy compared.

However why does that occur? It’s as a result of familiarity may even modulate the way in which we perceptually expertise one thing, producing an affect-biased choice conduct, as proven by the Wageningen College & Analysis within the Netherlands. The research group tested brand recognition and taste preference in soy sauce and concluded that if the model of the sauce was recognized and acquainted, it was reportedly preferred extra. This style choice utilized even when contributors thought they acknowledged the acquainted model however had been incorrect. Recognition, both appropriate or incorrect, of their very own acquainted model considerably elevated liking scores.

Whereas theories of decision-making and feelings are extra advanced and nonetheless below investigation, the ability of familiarity on model notion and choice has been demonstrated by a number of different research all through the previous few many years (Monroe, 1976; Park & Lessig, 1981; Maria Sääksjärvi, Saeed Samiee, 2007; Ma, Wang & Da, 2021 to call only a few). For instance, an iconic one by McClure and colleagues investigated the behavioral choice displayed for acquainted manufacturers by exposing contributors to a blind style check of Pepsi vs. Coca-Cola. When contributors didn’t know the model of the drink they had been tasting, the choice for one or the opposite was break up equally within the group; nevertheless, when the drinks had been labeled, model information for one of many drinks had a dramatic affect on expressed behavioral preferences and on the measured mind responses.’ In brief, each model information and cultural influences bias choice primarily based on have an effect on.

3. It makes us really feel secure

As we’ve seen, the familiarity bias permits us to skim down choices and free cognitive sources to allocate to different necessary duties, however what makes it so highly effective in behavioral and monetary selections is one thing extra profound – the notion of security it might probably convey.

Whereas it’s undoubtedly a resource-effective mechanism, familiarity additionally modulates how we really feel about manufacturers, especially the perceived trust we can put in them. And it’s exactly the perception of safety that can lead a casual visitor to a trusted customer.

The familiarity heuristic has been widely known in behavioral economics, with investors choosing local or domestic companies as they associate it with less risk. The identical appears to occur for on-line companies, too. In the event you dig into the Google Search Console (GSC) queries of some world corporations, you can find that branded, location-based key phrases are bringing in a number of searches – and typically minimal click-through charges (CTRs), which is the place they may lose potential prospects who’re evaluating their provides.