Have you ever wondered how companies can use cognitive bias to their advantage? Then this article is for you.
We don’t always make decisions rationally. Instead, we often rely on so-called cognitive biases—mental shortcuts that help us process information more quickly and easily. These shortcuts make everyday life easier, but they can also lead to flawed conclusions and irrational behaviour.
That’s where the opportunity for brands lies. By understanding how cognitive biases work, you can create brand communication that’s not only more effective, but also more meaningful.
Here are ten cognitive biases you can use as a brand to influence decisions, build trust and deliver real value to your customers—always with the intention of remaining authentic and fair, never to manipulative.
1. Social Proof
We often look to others for guidance – especially when we’re uncertain. This tendency is called social proof.
Brands can tap into this cognitive bias by highlighting that their product or service is trusted, reviewed and recommended by others.
Customer reviews, testimonials or even showing the number of active shoppers on your website can build trust and reassure potential buyers: “If so many people are happy, it must be a good choice.”
When used deliberately and authentically, social proof adds credibility to your brand and signals your offering is tried, tested and worth trusting.
Examples
- Airbnb relies on social proof by showing reviews from previous guests. This gives users a sense of security before booking their accommodation.
- Uber builds trust by displaying driver ratings and the number of rides they have completed. This gives new users confidence in the quality and reliability of the service.
- Spotify uses curated playlists and user statistics to make it easier to discover new music and encourage users to try new things.
2. Scarcity
Brands can create a sense of urgency by limiting the availability of their products. Many companies use limited-time offers, exclusive releases or low stock alerts to encourage shoppers to make quick decisions.
This strategy is based on the cognitive bias of scarcity, the idea that we value things more when they seem limited or rare. It motivates potential customers to act fast to avoid missing out.
As a brand, however, you need to use this tactic with caution. It can easily come across as manipulative. Be honest and transparent about the availability of your products, and don’t pressure people into making decisions they may regret.
Examples
- Adidas launched a limited edition shoe collection in collaboration with a popular anime series. The shoes were only available for a short time, creating high demand among collectors and fans.
- An Ogilvy campaign for KFC in Australia increased fries sales by 56% by using text to create a sense of urgency.
- Supreme capitalises on scarcity by launching limited edition collections. This creates a cult following and the products sell out quickly and are sometimes even resold at a higher price.
3. Halo Effect
We often assume that if something or someone excels in one area, it must be great in others too. This mental shortcut is known as the halo effect.
There’s also a flip side: the horn effect, where a single negative trait colours our perception of everything else. But let’s stick with the halo effect for now.
Brands can tap into this cognitive bias by drawing attention to one standout feature. A high-quality design, a striking colour palette, or a sophisticated font choice can make the entire product feel more valuable and professional—regardless of its actual functionality.
A great example comes from a study where researchers looked at how the presence of an Eco Score label affected people’s perception of a product. Although the label only assesses how environmentally friendly a product is, items with a top score (A) were also perceived as healthier and tastier—even though the ingredients hadn’t changed.
Curious how you can use this bias in your own brand? In this article, I’ve put together five practical ways you can apply the halo effect to your branding.
Examples
- Apple: Its minimalist product design and high-end packaging suggest premium quality. This perception spills over into other areas, too—like user experience, customer service, and even brand trust.
- Nike: With its strong association with elite athletes and iconic slogans such as Just Do It, Nike builds a strong association with performance and determination. As a result, even casual products feel like professional gear.
- Aesop: Elegant packaging and beautifully designed stores create an ambience of sophistication. Even though the ingredients are often simple and natural, the brand is perceived as luxurious and highly effective.
4. Anchoring Bias
When making decisions, we tend to rely heavily on the first piece of information we receive. This mental shortcut is known as anchoring bias.
Brands can leverage this effect by, for example, showing a particularly expensive product first. This makes everything that follows seem like a better deal in comparison. Or they can lead with the biggest benefit of their offer to set a positive anchor from the start.
A common example is how companies often display multiple price tiers, putting the highest or lowest option first. This strategy makes the middle options seem more reasonable—and they’re often the ones customers end up choosing.
Examples
- Car dealers often display the most expensive model first. This makes the cheaper models that follow seem more affordable by comparison.
- Airlines use high prices for first-class tickets to make economy or economy plus appear more attractive and reasonably priced.
- Software companies like Dropbox also use the anchoring effect: by offering a free basic plan and an expensive “Advanced” package, the mid-range “Essentials” option feels like the most reasonable choice—and is chosen most often.
5. Reciprocity
People have a natural tendency to return favours or acts of generosity. This is known as the principle of reciprocity.
Brands can use this to their advantage by offering something valuable upfront—like free resources, product samples, or trial versions.
Even small gestures can create a sense of goodwill, making people more likely to respond with a purchase, a recommendation, or a future collaboration.
Examples
- Adobe offers free trial versions of its software, allowing potential customers to test the product before committing. This often creates a subtle sense of obligation to “give back” by purchasing the full version.
- Sephora hands out free samples of cosmetic products. Many customers then feel encouraged—or even compelled—to buy something in return.
- Red Bull gives away free drinks at events like sports competitions and festivals. This generosity builds goodwill and strengthens the brand’s connection with its target audience.
6. Authority Bias
When we judge a person to be credible or authoritative, we tend to trust their opinionsmore—regardless of whether they are objectively correct. This phenomenon is termed authority bias.
Brands can take advantage of this tendency by including recognised experts, thought leaders or celebrities in their communications. By doing so, they increase their own authority and credibility and gain the trust of potential customers.
Examples
- Colgate features dentists in its advertising and marketing efforts to enhance the perceived authority and credibility of the brand.
- Garnier uses dermatologists to promote their skincare products, leveraging their medical authority.
- GoPro showcases athletes using their cameras in extreme conditions, leveraging the authority of real-world experts to show the product’s durability and performance.
7. Bandwagon Effect
We often adopt opinions or behaviours simply because they are popular with others. This tendency is known as the bandwagon effect where we’re naturally drawn to follow the crowd, especially when something is perceived as cool.
Brands can take advantage of this cognitive bias by highlighting the popularity of their products or services. If a product is widely used by many people or a respected group, social pressure may encourage others to join in.
Brands that effectively communicate this sense of popularity can increase the likelihood that people will make a purchase—simply because everyone else is doing it.
Examples
- Sephora’s Beauty Insider programme rewards loyal customers with exclusive benefits, including early access to new products and gifts. This makes customers feel special and part of an exclusive group.
- Soho House is an exclusive, members-only club for creative professionals. And not everyone is allowed in. Special events and high-quality facilities create a sense of belonging and exclusivity.
- Patagonia emphasises its environmental activism and makes its customers proud to be part of a movement that supports sustainable products.
8. Confirmation Bias
Confirmation bias is the tendency to perceive and interpret information in a way that confirms our existing beliefs. We often ignore—consciously or unconsciously—anything that doesn’t fit into our worldview.
This is where brands can step in. When they tailor their messages to the values and beliefs of their audience, people feel understood and validated in their point of view.
For example, if someone values sustainability, messages about environmentally friendly materials, fair production or carbon neutral supply chains will be particularly persuasive. The brand is validating what is important to the customer, and thus, creates an emotional connection.
But it’s important that the communication is authentic and credible. If you only pretend to represent certain values, you will lose the trust of your customers in the long term.
Examples
- Innocent Drinks emphasises pure fruit content with no additives, reinforcing the beliefs of health-conscious shoppers.
- Tom’s Chocolatey highlights that every purchase supports fair wages, which is affirming the values of ethical consumers.
- Volvo highlights its world-class safety features, reinforcing the trust of safety-conscious drivers.
9. Framing
How information is presented—or framed—can significantly influence our perception.
Brands often frame their products or services as solutions to specific problems, which triggers an emotional response from customers.
By presenting their offerings in a particular light, brands reinforce their position in the market, making it easier for customers to see them as the ideal choice for their needs.
Examples
- Dollar Shave Club positioned itself as the answer to the problem of overpriced razor blades, offering quality blades at a fair price.
- In the 1960s, Volkswagen presented its small cars as a smart, efficient alternative to large gas guzzlers. The tagline Think Small lent a new, positive image to owning a small car.
- At the same time, Avis used the famous tagline “We Try Harder” to present itself as the committed maverick behind market leader Hertz. This appealed to customers who value personal commitment and good service.
10. Loss Aversion
People tend to feel the pain of a loss more intensely than the joy of an equivalent gain. This is known as loss aversion.
Brands can take advantage of this by offering things like a money-back guarantee or a risk-free trial period. This helps reduce the fear of making a bad purchase and lowers the mental barrier to making a decision.
Example
I still remember when I bought my first Ecosa mattress. It was the 180-day money-back guarantee that convinced me. Of course, most people don’t take up such an offer, especially if they’re happy with the product. But knowing that I could try the mattress without any risk made the decision easier.
Now, six years on, I still love it. I’ve even bought a second Ecosa mattress and set of bedding, and persuaded friends to buy one too. Honestly, I probably wouldn’t have bought one without the free trial.
Conclusion
When brands tap into these cognitive cognitive biases, they can build trust and foster long-term relationships with their consumers.
By understanding how people think and feel, brands can create experiences that resonate with them deeply and provide genuine value.
But, the key to leveraging cognitive biases is to be transparent and candid about your brand’s marketing tactics. Brands should never deliberately manipulate consumers.
This honesty, in turn, can improve your brand’s reputation and credibility.
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Title image by Photo by Cup of Couple
