marketing-psychology

Mental models are thinking tools that help you make better decisions, understand customer behavior, and create more effective marketing. When helping users:

1. Identify which mental models apply to their situation
2. Explain the psychology behind the model
3. Provide specific marketing applications
4. Suggest how to implement ethically

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First Principles

Break problems down to basic truths and build solutions from there.

Jobs to Be Done

People don't buy products—they "hire" them to get a job done. Focus on the outcome customers want, not features.

Pareto Principle (80/20 Rule)

Roughly 80% of results come from 20% of efforts. Identify and focus on the vital few.

Theory of Constraints

Every system has one bottleneck limiting throughput. Find and fix that constraint before optimizing elsewhere.

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Fundamental Attribution Error

People attribute others' behavior to character, not circumstances. When customers don't convert, examine your process before blaming them.

Mere Exposure Effect

People prefer things they've seen before. Consistent brand presence builds preference over time.

Confirmation Bias

People seek information confirming existing beliefs. Understand what your audience already believes and align messaging accordingly.

Endowment Effect

People value things more once they own them. Free trials let customers "own" the product.

IKEA Effect

People value things more when they've put effort into creating them. Let customers customize and configure.

Zero-Price Effect

Free isn't just a low price—it's psychologically different. Free tiers have disproportionate appeal.

Hyperbolic Discounting

People strongly prefer immediate rewards over future ones. Emphasize immediate benefits.

Status-Quo Bias

People prefer the current state. Make the transition feel safe and easy.

Paradox of Choice

Too many options overwhelm and paralyze. Fewer choices often lead to more decisions.

Goal-Gradient Effect

People accelerate effort as they approach a goal. Show progress bars and completion percentages.

Peak-End Rule

People judge experiences by the peak and the end. Design memorable peaks and strong endings.

Zeigarnik Effect

Unfinished tasks occupy the mind. "You're 80% done" creates pull to finish.

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Reciprocity Principle

People feel obligated to return favors. Give value before asking for anything.

Commitment & Consistency

Once people commit to something, they want to stay consistent. Get small commitments first.

Authority Bias

People defer to experts. Feature expert endorsements and credentials.

Scarcity / Urgency Heuristic

Limited availability increases perceived value. Only use when genuine.

Loss Aversion

Losses feel twice as painful as equivalent gains. Frame in terms of what they'll lose by not acting.

Anchoring Effect

The first number heavily influences subsequent judgments. Show higher prices first.

Decoy Effect

Adding an inferior option makes one of the originals look better.

Framing Effect

How something is presented changes perception. "90% success rate" vs. "10% failure rate."

Social Proof / Bandwagon Effect

People follow what others are doing. Show customer counts, testimonials, reviews.

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Charm Pricing

$99 feels much cheaper than $100. The left digit dominates perception.

Rounded-Price Effect

Round numbers feel premium. $100 signals quality; $99 signals value.

Rule of 100

For prices under $100, percentage discounts seem larger. For over $100, absolute discounts seem larger.

Mental Accounting

"$1/day" feels cheaper than "$30/month."

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Hick's Law

Decision time increases with options. Simplify choices.

AIDA Funnel

Attention → Interest → Desire → Action.

BJ Fogg Behavior Model

Behavior = Motivation × Ability × Prompt. All three must be present.

EAST Framework

Make desired behaviors: Easy, Attractive, Social, Timely.

Activation Energy

Reduce starting friction. Make the first step trivially easy.

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Feedback Loops

Output becomes input, creating cycles. Build virtuous cycles.

Compounding

Small, consistent gains accumulate. Benefits accumulate exponentially.

Network Effects

A product becomes more valuable as more people use it.

Flywheel Effect

Sustained effort creates momentum that eventually maintains itself.

Switching Costs

The price of changing to a competitor. Increase switching costs ethically.

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| Challenge | Relevant Models |

|-----------|-----------------|

| Low conversions | Hick's Law, Activation Energy, BJ Fogg |

| Price objections | Anchoring, Framing, Mental Accounting, Loss Aversion |

| Building trust | Authority, Social Proof, Reciprocity |

| Increasing urgency | Scarcity, Loss Aversion, Zeigarnik Effect |

| Retention/churn | Endowment Effect, Switching Costs, Status-Quo Bias |

| Growth stalling | Theory of Constraints, Compounding |

| Decision paralysis | Paradox of Choice, Default Effect |

| Onboarding | Goal-Gradient, IKEA Effect, Commitment & Consistency |

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• lp-optimizer: Apply psychology to page optimization
• copywriting: Write copy using psychological principles
• pricing-strategy: For pricing psychology in practice
• ab-test-setup: Test psychological hypotheses