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Product Psychology from A-Z

Cognitive Biases and Principles you can use to build products.

How psychology intersects with product design, featuring an alphabetical guide from Anchor Effect to Unit Bias, showcasing real-world applications like Amazon's strategic placement of products and Spotify's subscription plans. Subscribe to stay updated on new additions and deepen your understanding of building successful products.

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Anchor Effect - On an online shopping platform like Amazon, the strategic placement of the first product displayed on the homepage significantly influences user decisions. A high-quality, moderately priced item featured prominently serves as an anchor, shaping users' perceptions of value and influencing subsequent purchase choices.


Bizarreness Effect - In a safety app like Life360, presenting unusual yet memorable information, such as quirky mnemonic devices for emergency preparedness, ensures that users are more likely to retain and recall the information during stressful situations.


Confirmation Bias - On a news aggregation platform like Flipboard, providing users with personalized content that aligns with their existing beliefs and preferences caters to confirmation bias. This approach shapes users' perceptions of the app's reliability and relevance based on their individual perspectives.


Decoy Effect - When Spotify introduces a third subscription plan with additional features at a higher price point, users are influenced to choose the middle option. The decoy effect guides users toward the subscription plan that Spotify wants to emphasize.


Endowment Effect - On an e-commerce site like Etsy, users tend to overvalue items once they add them to their shopping carts. Leveraging the endowment effect, Etsy emphasizes the possession aspect, encouraging users to proceed to checkout by highlighting the items as "theirs."


FOMO (Fear of Missing Out) - Social media platforms like Instagram leverage FOMO by notifying users about ongoing conversations or trending topics among their friends. The fear of missing out on social interactions motivates users to stay engaged with the platform, ensuring continued interaction and content consumption.


Gamification - Fitness apps like Strava incorporate game elements such as achievements, badges, and leaderboards to encourage users to engage in physical activities regularly. Gamification enhances motivation by turning exercise into an enjoyable and rewarding experience.


Hyperbolic Discounting - Financial apps like Robinhood leverage hyperbolic discounting by offering immediate, small rewards or discounts for users who make timely financial decisions. This design strategy aligns with users' preference for immediate benefits, encouraging positive financial behavior.Illusory Superiority - Productivity apps like Todoist encourage users to set personal goals by emphasizing the benefits of achieving them. Through positive reinforcement and acknowledgment, users tend to overestimate their abilities and become more committed to reaching their goals.


Jamming Effect - An e-commerce giant like Alibaba streamlines its product categories to avoid an excessive number of choices on a single page. By preventing choice overload, the jamming effect ensures that users can make decisions more easily, leading to higher satisfaction with their shopping experience. These real-life examples illustrate how psychological principles are applied by well-known companies to shape user experiences and decision-making processes in various digital platforms and services.


Kano Model - In the context of a smartphone, the Kano Model is evident in user satisfaction varying with feature perception. For example, users may find a high-resolution camera as a basic expectation, but innovative features like augmented reality filters could elevate satisfaction based on their perception of added value.


Labor Illusion - When using a service like Blue Apron, the labor illusion is at play. Users value the meal kit more when they actively participate in the cooking process, seeing the underlying work involved in preparing a meal, even though the convenience of pre-portioned ingredients is a key selling point.


Mere Exposure Effect - On platforms like Netflix, the mere exposure effect influences user preferences. Users tend to develop preferences for repeatedly exposed genres or shows, leading to personalized recommendations based on their viewing history.


Nudge - In a financial app like Acorns, subtle nudges encourage users to save more by providing notifications or prompts that gently guide them towards making additional contributions to their savings account.


Occam's Razor - On a website like Google, Occam's Razor is evident in the simplicity of the search interface. Users tend to favor simpler explanations and solutions, and Google's minimalist design aligns with this principle, providing a straightforward and efficient search experience.


Peak-End Rule - For a travel booking website like Expedia, users judge their overall experience based on the peak and end moments. Positive peaks, such as finding a great deal, and a smooth booking process contribute to favorable perceptions, regardless of any minor issues during the journey.


Questionnaire Effect - Platforms like Spotify utilize the questionnaire effect by asking users about their music preferences. By gathering this data, the platform tailors recommendations, playlists, and personalized content, influencing future listening behavior.


Reciprocity - In social media platforms like LinkedIn, the reciprocity principle comes into play. Users feel obligated to reciprocate connections, endorsements, or recommendations, contributing to a network effect and a sense of professional reciprocity.


Scarcity - E-commerce platforms like Amazon use scarcity to boost demand through limited-time offers or indicating low stock availability. This scarcity principle encourages users to make quicker purchase decisions, fearing they might miss out on a good deal.


Tiny Habits - Fitness apps like MyFitnessPal encourage the formation of healthy habits by breaking down fitness goals into smaller steps. Users can easily achieve these tiny habits, contributing to a sense of accomplishment and increased motivation.


Unit Bias - On a food delivery app like DoorDash, unit bias influences users to view one unit, such as a single meal, as the optimal amount. This perception guides users in making food choices based on portion sizes and perceived value.

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