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Advertising Psychology

10 Psychological Effects in Marketing and How to Use Them in Ads

Social proof, the IKEA effect, the Carpenter effect, loss aversion, anchoring and more: 10 psychological effects in marketing, briefly explained, with examples.

People rarely decide as rationally as they think. Whether someone clicks an ad, sends an enquiry or abandons their basket also depends on psychological effects that have been researched for decades. On our old website, they were called "10 psychological tricks". Here you will find all 10 explained briefly, with an example and how to bring them into your advertising. The five most important have their own articles.

The 10 effects at a glance

No.EffectIn one sentenceTypical in ads
1Social proofWe do what others doUGC, reviews, seals
2IKEA effectSelf-made is worth moreConfigurator, quiz
3Carpenter effectMovement we see wants to be copiedProduct in use, POV
4Mental accountingMoney sits in different accounts in our headsBundles, framing
5Loss aversionLosing hurts more than winning pleasesReal deadlines, retargeting
6Endowment effectWhat is mine is worth moreTry-on, 3D view
7ReciprocityThose who give get something backFree content, lead magnet
8Mere exposure effectWhat we see often, we likeRetargeting, consistency
9Multisensory perceptionSeveral senses work more stronglyOriginal sound, close-up
10Anchoring effectThe first value shapes the judgementOrder, strikethrough price

Social proof

Our decision-making is often an echo of other people's judgement. We rely on the group to lower the risk of a bad choice. The best-known example: the queue outside a club. It signals popularity, while an empty entrance makes us doubt. The term was popularised by the psychologist Robert Cialdini.

How to use it: show what others like. Creators and brand ambassadors build trust, user-generated content (UGC) delivers real opinions from real people. Reviews, bestseller labels and seals from experts show that your offer has been tested and found to be good. Important: only real reviews and real customers, invented voices are misleading advertising.

IKEA effect

We value what we have built or helped shape ourselves more highly. Our own effort creates a relationship with the product. How to use it: configurators, quizzes, personalisation and a say in new products. In detail in the article IKEA effect.

Carpenter effect

The Carpenter effect (ideomotor effect) describes how we want to perform a movement we see or imagine, at least in part. How to use it: show the product in use, with UGC, unboxing and POV, plus calls to action with clear verbs. In detail in the article Carpenter effect.

Mental accounting

Mental accounting describes how people divide their money into different accounts in their heads: everyday spending, holidays, comfort, image. The term was coined by the economist Richard Thaler. An example: the same person who compares every euro when buying a plane ticket treats themselves to the upgrade without hesitation, because it comes out of the "comfort account".

How to use it:

  • Upselling and cross-selling: someone who is already in a buying mood is more willing to spend a little more on a higher-quality product or an add-on.
  • Bundling: bundling products reduces the felt pain of paying, because you only pay once.
  • Framing: a bag is not just a bag but a "timeless statement of personal style". That way you appeal to the account for image and style, not the one for everyday spending.

Loss aversion

Loss aversion means that a loss hurts us more than a gain of the same size pleases us. Daniel Kahneman and Amos Tversky described this in their prospect theory. An example: someone who loses a beloved watch grieves. If they are given a new one, they are pleased, but rarely as much as the loss hurt.

How to use it: put what someone is missing out on in the foreground, not just what they gain. Real deadlines, limited editions and early access create FOMO, the fear of missing out. Retargeting reminds people what is still in their basket. Important: scarcity has to be real. A countdown that restarts once it runs out destroys trust and is unfair practice.

Endowment effect

The endowment effect describes how we value things more highly as soon as they belong to us. It was studied by, among others, Daniel Kahneman, Jack Knetsch and Richard Thaler. An example: the old favourite jumper. It is out of fashion and worn out, but priceless to its owner.

How to use it: awaken the feeling of ownership before the purchase. Point-of-view shots show the product from the perspective of the person who has it. Unboxing videos show how others bring it into their lives. Virtual try-ons and 3D views convey a feeling of "almost mine". Trial periods use the effect too: once someone has used something for a while, they do not like giving it back.

Reciprocity

Reciprocity is the principle of give and take. When someone does something for us, we want to show our gratitude, after an invitation, a favour or some help. Robert Cialdini also described this principle as one of the pillars of persuasion.

How to use it: give first. Free content such as guides, checklists or expert articles helps potential customers before they buy anything. Small gestures or perks reward loyalty. And interaction counts: replying to comments shows appreciation. For it to work, the gift has to be meant as a real gift, without hidden conditions.

Mere exposure effect

The mere exposure effect says: the more often we see something, the more we like it. How to use it: repeated contact with changing creatives, retargeting and regular content on social media. In detail in the article Mere exposure effect.

Multisensory perception

Multisensory perception is the interplay of the senses. When image, sound, smell and feel fit together, we experience more intensely and remember better. How to use it: original sound, close-ups that evoke smell and taste, and packaging as an experience. In detail in the article Multisensory marketing.

Anchoring effect

The anchoring effect describes how the first value we see shapes all subsequent judgements. How to use it: a deliberate order in carousel ads and in your range, genuine strikethrough prices and proven benefits as a reference point. In detail in the article Anchoring effect.

How we use the effects in ads

At ad.boutique, psychological effects are not tricks but tools for creative planning. Every concept in a test batch gets a clear lever: social proof for the UGC creative, the Carpenter effect for the product in use, the anchoring effect for the order in the carousel. That way we test different ideas instead of five variations of the same one. What such a batch looks like and how we evaluate it is described in Ad creatives for Meta. More on production under Content Production.

Limits: psychology does not replace an offer

Psychological effects amplify what is already there. A weak product does not get better through social proof, and invented scarcity, bought reviews or inflated reference prices damage the brand and are often unlawful. The effects work best when they make an honest, good offer understandable and tangible.

Frequently asked questions

What psychological effects are there in marketing?

The most important psychological effects in marketing include social proof, the IKEA effect, the Carpenter effect, mental accounting, loss aversion, the endowment effect, reciprocity, the mere exposure effect, multisensory perception and the anchoring effect. They describe how people make decisions, often without consciously noticing.

Are psychological tricks in marketing manipulation?

Not as long as what you show is true. Psychological effects help to make a good offer understandable and tangible. Manipulation starts where fake reviews, invented scarcity or inflated reference prices are used, and in many cases that is also unlawful.

Which psychological effect works best in social ads?

That depends on the product and the audience. In social ads, we often work with social proof (UGC, reviews), the Carpenter effect (the product in use) and the mere exposure effect (retargeting). Which combination wins is shown by the creative test.

What is the difference between loss aversion and the endowment effect?

Loss aversion means that a loss hurts more than a gain of the same size pleases. The endowment effect is a consequence of it: we value what we own more highly because giving it up feels like losing.

Where do these effects come from?

Most come from behavioural economics and social psychology, for example from Daniel Kahneman, Amos Tversky, Richard Thaler, Robert Cialdini and Robert Zajonc. They have been researched for decades and are well documented, but their strength always depends on the situation.

Sources

  1. Kahneman, D., Tversky, A. (1979): Prospect Theory: An Analysis of Decision under Risk, Econometrica
  2. Kahneman, D., Knetsch, J. L., Thaler, R. H. (1990): Experimental Tests of the Endowment Effect and the Coase Theorem, Journal of Political Economy
  3. Thaler, R. H. (1985): Mental Accounting and Consumer Choice, Marketing Science
  4. Tversky, A., Kahneman, D. (1974): Judgment under Uncertainty: Heuristics and Biases, Science
  5. Zajonc, R. B. (1968): Attitudinal effects of mere exposure, Journal of Personality and Social Psychology
  6. Norton, M. I., Mochon, D., Ariely, D. (2012): The IKEA effect: When labor leads to love, Journal of Consumer Psychology

About the author

Portrait of Daniel Hayden

Daniel Hayden

Managing Director, Creative and Web

Leads creative and web at ad.boutique: ad creatives, video, landing pages and websites that sell.

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