Hundreds of behavioural biases have been discovered, highlighting the many ways in which people act irrationally. Here are a few that marketers can harness to maximise the chances of their brand being chosen.
Power of free. When Amazon launched a 'free shipping' promotion with the purchase of a second book, sales boomed in every country except France. The French team decided to charge a nominal amount for shipping (20 cents) instead of zero. See 'Predictably Irrational' by Dan Ariely for more examples of people responding disproportionately to the prospect of a freebie.
Rule of 100. This effect is thought to occur because people can't help but be influenced by the absolute numbers involved. '200' is bigger than '20' so the dollar discount in the first example seems more impressive. For items less than $100, the percentage discount will be the higher number and hence more compelling.
Framing effects. Would you chose a surgical operation with a 90% survival rate or one with a 1 in 10 chance of dying? How you present information can have a profound impact on how positively it is received.
See also: Examples of Behavioural Biases (1), Examples of Behavioural Biases (2) & Cognitive Biases Marketers Need to Know About