Alternative overload is partially why customers select acquainted choices, and because of this leveraging familiarity is usually a superpower to make your model stand out in a sea of comparable decisions.
2. It modulates the way in which we understand experiences
Familiarity bias is just not solely a useful resource optimization course of but in addition an actual device that has been proven to modulate consideration, reminiscence, model preferences, donation conduct, and even perceived style with regards to meals.
Let’s take an instance that hits near dwelling for me: As an Italian, my childhood afternoon snack was Nutella on bread, so every time I see another chocolate unfold, I don’t even take into account it, as all of them appear to style bizarre to me; nonetheless, my Spanish buddy Isabel grew up with Nocilla and swears by it, saying that Nutella tastes unhealthy as 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 analysis group examined model recognition and style choice in soy sauce and concluded that if the model of the sauce was identified 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 appropriate 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 facility 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 take a look at 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 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 now have seen, the familiarity bias permits us to skim down choices and free cognitive assets 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 may possibly convey.
Whereas it’s undoubtedly a resource-effective mechanism, familiarity additionally modulates how we really feel about manufacturers, particularly the perceived belief we will put in them. And it’s exactly the notion of security that may lead an off-the-cuff customer to a trusted buyer.
The familiarity heuristic has been broadly identified in behavioral economics, with buyers selecting native or home corporations as they affiliate it with much less threat. The identical appears to occur for on-line companies, too. If you happen to dig into the Google Search Console (GSC) queries of some world corporations, one can find that branded, location-based key phrases are bringing in loads of searches – and generally minimal click-through charges (CTRs), which is the place they may lose potential prospects who’re evaluating their presents.
