Psychological Effects in Marketing (And How to Use Them)

A few weeks ago, I found myself staring at a bag I did not need—but suddenly, I couldn’t stop thinking about it. I saw it once, then twice, and by the third time, it felt like the universe itself was whispering, “You deserve this.”

Spoiler: I bought it. And I don’t regret it.

But here’s the thing—was it really me making that decision? Or had I been subtly nudged, guided, and primed to buy without even realizing it?

In 2025, consumer behavior isn’t just about logic. It’s about psychology. The brands that win aren’t necessarily the ones with the best products; they’re the ones that understand how people think, what makes them hesitate, and what ultimately pushes them to buy.

So let’s break down what’s really happening inside the minds of consumers this year—and how you can use these insights to create stronger, more profitable connections with your audience.

The Power of Familiarity: Why Repetition Sells

Ever learned a new word and suddenly started hearing it everywhere? Or Googled a product once and then boom—it’s all over your Instagram feed?

That’s the Baader-Meinhof Effect, also called the Frequency Illusion. Once our brain recognizes something as important, we start noticing it more—and associating it with value.

• A study in the Journal of Consumer Research found that repeated exposure to a product increases its perceived value—even when people don’t consciously realize they’re seeing it more often.

• Nielsen reports that consumers need 6-8 touchpoints before they make a purchase decision.

What This Means for You:

✔ Don’t be afraid to repeat yourself. People need to see your offer multiple times before they pay attention.

✔ Use retargeting ads to reappear where your audience already spends time.

✔ Work with multiple creators and platforms so your product feels everywhere without feeling pushy.

Think about this: You scroll past a handbag on Instagram. The next day, you see someone styling it in a video. A week later, you pass it in a store, and suddenly… it’s calling your name. That’s not a coincidence. That’s marketing done right.

The Urgency Effect: How Scarcity Makes Us Buy Faster

You’ve seen it before:

“Only 2 left in stock.” ,“Sale ends in 3 hours!” ,“Once it’s gone, it’s gone.”

Every time you see a message like this, your brain does a little panic dance. That’s Loss Aversion—the idea that people are twice as motivated to avoid missing out than they are to gain something new.

• A Harvard Business Review study found that when urgency is added to a purchase decision, conversions increase by 332%.

• Booking.com uses scarcity tactics like “Only 1 room left at this price” to drive immediate bookings—and it works.

How to Make This Work for You:

✔ Use limited-time offers to encourage quicker decisions.

✔ Show low-stock alerts—if people think they might lose the chance, they’ll move faster.

✔ Launch exclusive drops that disappear after a certain time. (FOMO is real.)

Think about this: Nike’s limited-edition sneaker drops sell out in minutes—not because people need new shoes, but because they don’t want to miss out.

The “I Made This” Bias: Why Customization Creates Loyalty

Why do people love DIY projects—even when they’re frustrating? Why do we feel more attached to things we’ve personalized?

That’s the IKEA Effect—the psychological principle that says we place higher value on things we’ve had a hand in creating.

• A 2011 Harvard study found that people were willing to pay 63% more for products they helped customize.

• Brands like Build-A-Bear and Starbucks’ custom drinks have built entire business models around personalization.

How You Can Use It:

✔ Offer product customization (names, colors, engraving—it all works).

✔ Let customers “build” their perfect product through interactive tools.

✔ Create a community-driven experience where people feel involved in your brand’s story.

Think about this: Coca-Cola’s “Share a Coke” campaign let people buy bottles with their own names on them. Sales shot up by 7% in the U.S. alone. Why? Because it wasn’t just a soda anymore—it was personal.

The Decoy Effect: How Smart Pricing Influences Choice

Imagine you’re choosing between two subscription plans:

Plan A: KSh 1,500/month, Plan B: KSh 4,500/month (extra features)

It’s a tough choice. But what if there was a third option?

Plan A: KSh 1,500/month, Plan B: KSh 4,500/month,Psychological Effects in Marketing (And How to Use Them) Plan C: KSh 4,400/month (with the same features as Plan B)

Suddenly, the KSh 4,500 plan feels way too expensive and the KSh 4,400 plan feels like a steal. That’s the Decoy Effect—when an extra (seemingly unnecessary) option makes the choice we want people to pick feel like the smartest one.

• A study from the Journal of Marketing Research found that adding a “decoy” option increased conversions by up to 39%.

How to Make This Work for You:

✔ Add a third pricing tier to make your ideal offer feel like the best value.

✔ Use side-by-side comparisons to highlight why one choice is the “smart” choice.

✔ Label plans as “Best Value” or “Most Popular”—people trust social proof.

Think about this: Apple’s iPhone pricing is a masterclass in this. Ever noticed how the mid-tier iPhone always seems like the best choice? That’s not by accident.

What This Means for Marketing in 2025

Consumers aren’t just making logical buying decisions—they’re making emotional, subconscious ones.

The brands that win in 2025 will be the ones that:

• Make themselves impossible to ignore (by using repetition and familiarity).

• Create urgency without feeling pushy.

• Give customers a sense of ownership before they even buy.

• Use smart pricing strategies to make the decision a no-brainer.

The question isn’t if these principles work. It’s how you’ll use them to build marketing that feels less like selling—and more like an experience people actually want to be part of.

So tell me—have you ever fallen for one of these psychological tricks? Or better yet, which one are you using in your business? Drop a comment below—I want to hear your thoughts