Question

The bandwagon effect in marketing

Answer 1

How does the bandwagon effect work?
In practice: examples of the carry-over effect
What role does the carry-over effect play in marketing?

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The bandwagon effect in marketing

The bandwagon effect or drag effect, known in English as the bandwagon effect , is a cognitive bias that affects people's behavior: when we make decisions, we tend to opt for the option that others have already chosen. This effect was first described by various electoral researchers in 1944. However, the carry-over effect works in sales psychology as well, and is therefore equally relevant to marketing and sales..

Index

1. How does the bandwagon effect work?
2. In practice: examples of the carry-over effect
3. What role does the carry-over effect play in marketing?

How does the bandwagon effect work?

The bandwagon effect was not discovered during any market or marketing study, but rather thanks to a research study of the US elections . The three electoral researchers PF Lazarsfeld, B. Berelson and H. Gaudet drew the following interesting conclusions from their data: in a vote, people tend to follow the behavior of a presumed majority if the polls have already predicted a winner. This information about the potential winner can come from the electoral polls that are published shortly before the polls open.

Definition: bandwagon effect

Phenomenon that describes the tendency that people have to follow the example of others without taking into account our own opinions. This circumstance is not only observed in political elections, but also in market analysis. The so-called carry-over effect is responsible for the most popular option receiving greater support..

The English term bandwagon is the equivalent of the expression jump on the bandwagon . It is the process in which someone adheres to a promising cause , that is, becomes a follower. The concept describes it graphically, something that also happens with the term of carry-over effect. The psychological theory of action offers us a good explanation for this bias : a perceived success (for example, owning an attractive item that improves social status) increases the predisposition of other consumers to replicate that action that is perceived as successful. So, do you get on the bandwagon? and they buy the product that they know others have already bought.

The contradictory reasons behind that purchase are very interesting. While the? leaders ? acquire the products to differentiate themselves and stand out from the rest, to get out of the trend , the? followers ? they are made with them precisely to belong to a particular group. The general desire of the human being to always be right also explains this effect, since if you opt for the most popular option, it is likely that this is also the correct option..

Of course, with the rapid development of social media , the principles of leader and follower have made the carry-over effect even more critical to marketing than it already was. The follower principle is intrinsic to social media. This also explains the success of influencer marketing.

In practice: examples of the carry-over effect

People are affected by biases such as the bandwagon effect practically every day: when shopping, voting or going on vacation. However, we rarely realize that we are moving under the influence of a cognitive bias. This also has its logic, since, in our cognitive processes, we make many decisions unconsciously. Both the terms, drag effect and bandwagon effect , clearly describe the principle known as consumption by imitation . Imitation consumption occurs when the demand for a certain product increases because the demanders join with other consumers who had previously bought that product.

For example, the recording and publishing industries benefit greatly from the carry-over effect: they use hit rankings and sales numbers to further increase sales of the most popular products. The use of this effect is notable in labeling, which emphasizes the popularity of a product. Consumers are more likely to opt for a book or CD that many others have previously purchased.

This is why the bandwagon effect is so interesting for ad agencies. After all, the carry-over effect plays a huge role in marketing planning and strategy.

What role does the carry-over effect play in marketing?

Given the relevance of the bandwagon effect , we must take it into account, both when creating a brand, and in subsequent campaigns. In online marketing, the ratings of products, services and web pages are key. Used correctly, the bandwagon effect can help reduce bounce rate and increase conversion rate.

This effect is based on the fact that people are often guided by success and status . This is because both the attempt to improve social status and hierarchical escalation are evolutionary systems that we have been following since ancient times. Therefore, most consumers are always guided by the level of consumption of "another group", which belongs to the same social class or to a higher social class.

What positive side effect does it have for marketing? This greater importance of the preference policy can make the price lose weight as a sales argument, since with the correct discourse it is possible even to increase it. Therefore, with regard to products suitable for applying the carry-over effect, we must first appeal to a certain status in the marketing messages to drive both demand and sales. Other important biases that can and should be used to boost sales are the endowment effect and loss aversion. For example, it is possible to orient yourself towards factors such as pride of ownership (offering a test drive of a vehicle) or loss prevention (which avoids the loss of face by not purchasing a product).

The bandwagon effect not only has positive effects for companies, as B2B buyers and sellers can also succumb to it. In those cases, the marketing strategy is primarily focused on the market leader or the purchase of the goods that are supposedly most successful. However, those who are familiar with the bandwagon effect may question or assess their decisions taking into account market analysis for a specific purpose. In the right circumstances, this enables the consumer to more quickly identify profitable and innovative niche markets so as not to be dragged? Blindly? for the car.

advice

Take advantage of other cognitive biases in marketing. There are different effects that they unconsciously include in the purchase decision of consumers, such as the IKEA effect, the anchor effect, the confirmation bias, the survivor bias, the carry-over effect, the lure effect, the halo effect, hindsight bias or selection bias.

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