Jul 31, 2023
Understanding cognitive biases can inform marketing and advertising strategies in businesses. Availability bias causes individuals to rely on immediate information, which is easily accessible, instead of thorough research. If it comes to mind easily, we think it is more true or likely than if it doesn't come to mind as easily. Of course, that isn't always the case. Availability bias can deeply influence decision-making processes both within a company and for its customers. For businesses, understanding this bias can provide pivotal insights about consumer behavior--one great way to use this, which host Melina Palmer discusses in detail throughout the episode, is in pitching your business and getting PR.
During the podcast, Melina vividly illustrates the concept through examples, such as the typically contrasting associations with the words "shark" and "cow." She points out that these associations are borne out of the easily available information about these animals, rather than a comprehensive understanding of their respective behaviors. (Which do you think is more deadly? If you said a shark...you're in for a surprise!) Understanding availability bias and how it can be leveraged is essential for business owners and marketers to craft strategies that share the right message at the right time.
In this episode:
00:00:00 - Introduction,
Melina Palmer introduces the episode and explains that availability
bias is one of her favorite concepts from behavioral economics. She
mentions that availability bias is the tendency to judge the
likelihood of something happening based on how easily examples come
to mind.
00:01:10 - Importance of Availability Bias,
Melina explains that availability bias is important because it
affects our perception of risk and influences our decision-making.
She gives examples of how availability bias can impact our view of
certain events or situations.
00:09:06 - Swapping Out Questions,
Melina discusses how our brains often swap out difficult or
unfamiliar questions with easier ones (known as satisficing). She
uses the example of solving a complex math problem and how our
brains substitute it with a range of possible numbers instead. This
swapping out can lead to / go hand-in-hand with availability
bias.
00:11:21 - Impact of Stories and Personal Experiences,
Melina explains that stories and personal experiences have a
significant impact on availability bias. Our brains are more likely
to remember and be influenced by vivid examples and stories rather
than statistics or abstract information.
00:14:01 - Applying Availability Bias in Business,
Melina advises businesses to be mindful of availability bias when
developing their strategies. She emphasizes the importance of using
social media as a tool to support other business objectives rather
than relying solely on it for monetary gain. (Will 1 million
YouTube downloads a month make you rich?)
00:18:00 - How Our Brains Associate Information,
Our brains associate information in very literal ways. Melina
shares examples of travel to Norway increasing dramatically because
of a cartoon, and skyrocketing sales in Mars bars when the Mars
rover was in the news. Aligning your business with popular topics
can help boost your visibility and engagement.
00:19:07 - Being Aware of Trends,
Stay aware of what's trending in social media, news, and pop
culture. Find ways to connect your business to these trends and get
associated with what people are talking about and searching for.
Especially in areas that may seem unrelated (more on that as we
go).
00:20:46 - The Power of Rose Gold,
Rose gold has become a popular trend, and businesses that offer
products in this shade can attract customers who are actively
seeking it. By using scarcity and availability, you can create a
buzz and fuel interest in your offerings. If rose gold isn’t cool
anymore by the time you are listening to this – or not aligned with
your brand – what is the new “it” color? What is the Pantone color
of the year, for example?
00:23:50 - Making Your Own Luck,
Instead of waiting for opportunities to come your way, actively
seek ways to connect your business to current conversations and
trends. Look for unique and unexpected angles that can make you
stand out from the crowd.
00:26:19 - Combinatorial Thinking,
Combining seemingly unrelated ideas or concepts can lead to
innovative and novel solutions. Don't limit yourself to obvious
connections; think outside the box and explore new possibilities
for your business.
00:37:36 - The Success of the Diamond Advertising Campaign,
The advertising agency reported impressive results in its campaign,
with diamond sales increasing by 55% in the United States from 1938
to 1941. The campaign focused on the emotional value of diamonds
and created a new form of advertising that has been widely
imitated.
00:38:48 - The Impact of De Beers' Advertising,
De Beers continued to innovate its advertising approach, creating
the "Diamonds are Forever" line in 1947 and utilizing television
and a diamond information center. They even changed marriage
traditions in Japan to incorporate diamond engagement rings. De
Beers' advertising efforts led to a significant increase in diamond
sales and a 100-fold increase in sales value by 1979.
00:42:12 - Importance of Research and Timing,
De Beers understood the importance of solid research and finding
new ways to reach consumers. They leveraged the popularity of
influential figures, such as the royal family, to increase interest
in their products.
00:44:04 - Conclusion,
Melina's top insights from the conversation. What stuck with you
while listening to the episode? What are you going to try? Come
share it with Melina on social media -- you'll find her as
@thebrainybiz everywhere and as Melina Palmer on LinkedIn.
Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.
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