Selection overload is partially why customers select acquainted choices, and for this reason leveraging familiarity could be a superpower to make your model stand out in a sea of comparable selections.
2. It modulates the best way we understand experiences
Familiarity bias shouldn’t be solely a useful resource optimization course of but in addition an actual instrument that has been proven to modulate consideration, reminiscence, model preferences, donation habits, and even perceived style in the case 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 each time I see every other chocolate unfold, I don’t even take into account it, as all of them appear to style bizarre to me; nonetheless, my Spanish pal Isabel grew up with Nocilla and swears by it, saying that Nutella tastes dangerous compared.
However why does that occur? It’s as a result of familiarity may even modulate the best way we perceptually expertise one thing, producing an affect-biased choice habits, as proven by the Wageningen College & Analysis within the Netherlands. The analysis group examined model recognition and style choice 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 have been incorrect. Recognition, both right or incorrect, of their very own acquainted model considerably elevated liking scores.
Whereas theories of decision-making and feelings are extra complicated and nonetheless beneath 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 just some). 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 have been tasting, the choice for one or the opposite was cut up equally within the group; nonetheless, when the drinks have been labeled, ‘model data for one of many drinks had a dramatic affect on expressed behavioral preferences and on the measured mind responses.’ Briefly, each model data and cultural influences bias choice primarily based on have an effect on.
3. It makes us really feel protected
As we have now seen, the familiarity bias permits us to skim down choices and free cognitive assets to allocate to different vital duties, however what makes it so highly effective in behavioral and monetary selections is one thing extra profound – the notion of security it might convey.
Whereas it’s undoubtedly a resource-effective mechanism, familiarity additionally modulates how we really feel about manufacturers, particularly the perceived belief we are able to put in them. And it’s exactly the notion of security that may lead an informal customer to a trusted buyer.
The familiarity heuristic has been broadly recognized in behavioral economics, with buyers selecting native or home firms as they affiliate it with much less threat. 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 firms, you’ll find that branded, location-based key phrases are bringing in numerous searches – and generally minimal click-through charges (CTRs), which is the place they could lose potential prospects who’re evaluating their presents.
