Psychology and Marketing are interrelated

Just so you know, you were made to like beer, especially if you didn’t like it at first. It’s called an acquired taste. This is how psychology and marketing work together. At first, you may not like what is being presented to you, but over time, you warm up to it and eventually buy it. That’s the goal. Marketing and psychology are interrelated with each other to manipulate consumer behaviour. 

What is psychology in marketing? 

Marketing psychology begins where cognitive psychology ends. While cognitive psychology deals with a person’s behavior, marketing psychology talks not about why the person likes a product but what can make a person like a product. 

Studies show that people make their assumptions about a product within 90 seconds of seeing it. Just seeing it for the first time decides the fate of your products and services. This is where years of research have brought psychology and marketing together to guide audience opinions.

Psychological principles in marketing

1. The Social Proof 

Whenever we come across a product or service, one of the first things we rush to check is what other people have said about it. This is because our minds are looking for social proof. This is a psychological phenomenon that convinces people of a product or service when they see other people buying it. 

This is why most new brands stress customer testimonials to build their case. The psychology plays out in the following ways: 

• You gain insight through someone else’ experience 
• People love to follow the herd 
• It creates a FOMO 

Even a poor website generates sales just because of their customer reviews. Combining psychology and marketing, Shein has spread in the hearts and minds of people despite having an amateur website. 

If you stumble upon Shein on the internet, the simplest answer would be that it is a scamming site or a low-budget company website. But Shein was able to shine amongst the audience without investing in websites. And they did it through influencers. 

Big names like Hailey Beiber and Rita Ora and influencers like Komal Panday and Ashna Shroff also took part in the promotion drive. The Chinese company even took a step further and flew all influencers to a trip to promote the brand. 

2. The Mere-Exposure Effect 

You know how you don’t like something at first, but eventually, with time, you come around to it? Most relationships work like that as well. You see something enough times, and your curiosity will do the rest. Eventually you either end up liking the product or adjusting your mind into liking it. 

Of course, in marketing, one cannot make the audience like what they have made their mind about. But one can always change it. The purpose of The Mere Exposure Effect in marketing is to embed the brand in the minds of people. The biggest example of this is Coca-Cola. 

The iconic bottle shape has become a part of a culture. This is the result of years of consistent marketing. This is why the mere-exposure effect works: 

 

• Survival mechanism – from an evolutionary perspective, we find safety in what is familiar 
• Easy to process – the same thing, when repeated over and over again, allows our brains to read it faster, creating a sense of familiarity with the product. 
• Emotional connection – Coke has always created a comforting vibe in their advertisements, giving their audience a sense of security – like every sip feels like home.
• Anytime you see a logo or something familiar with a logo, you subconsciously process it, causing brand recollection without even knowing. 

3. The Pygmalion Effect 

This psychological effect originated from the Greek Mythology of Pygmalion. The myth says that Pygmalion was a sculptor who made a statue and fell in love with the statue that he created to life. 

From a psychological point of view– the Pygmalion effect talks about the phenomenon of achieving high results upon having high expectations vs getting bad results when expectations are low. It’s a self-fulfilling prophecy – to have a certain expectation and do everything to make it happen. And this plays out very subtly in the marketing world. 

Apple is a very good example of the Pygmalion Effect – along with more luxury brands. Apple has convinced its audience that tech is high-end and only a handful of people can use it to its full potential. And then told them, You can be the tech-savvy audience we are looking for. When they started in 2007 versus 2025, we now have an estimated 1.382 billion active iPhone users globally. This is why it worked:

• It sets expectations in the mind. When one does that, behavior changes to align with the idea. For example, Loreal’s ‘You’re worth it’, now who knows the tangible definition of ‘worth’ but Loreal has established a powerful attitude with this tagline.
• Positive reinforcement – you know the saying ‘believe in people’ – well turns out that when you do, people come through. When the audience is told that yes, you can do this, the audience becomes hellbent on doing in. 
• Psychology and marketing play into self-image. Therefore, when the audience is told that you deserve a Harley, they make sure them and everyone else around them know it.

4. Paradox of Choice 

If you are letting someone choose between two things, you’re not giving them a choice. It doesn’t always have to be a bad thing, though. Imagine you go shopping and you step into the pants section only to discover that there is a plethora of pant types, designs colours.

So cotton pants are available in tights, bell bottoms, parallels, chinos in red, blue, yellow, black, green and and more. It’s exhausting; sometimes, having fewer choices is a good thing. No one is a better example of this than Henry Ford. 

When applied to business and marketing, you can save millions and make people happy at the same time. Ford was known for its efficiency and standardisation, and they played a master move. In 1922, they launched a model with a tagline: “Any customer can have a car painted any colour he wants, so long as it is black”. This was not only unconventional for Ford to offer customisation but also a brilliant business move. They only launched the car in black – as advertised, thereby saving millions in production. Why did this work? 

• • Choice overload – believe it or not, your brain is tired of making decisions all the time. Especially when presented with endless options and choices, the brain says – nope. 
  • When limited options are presented, the mind looks for ways to determine the best. But the catch is that there is never a right answer. 
• Psychology and marketing play a very sneaky role in tricking the brain into seeing something familiar and developing a bias towards it. 

5. The Anchoring Bias 

Think of walking into Zara and checking out the prices to be out of your budget. But then you walk into a more expensive store, and suddenly Zara seems affordable. That’s the Anchoring Bias—a psychological quirk where our brains latch onto the first piece of information presented – the “anchor” and use it as a reference point for all subsequent decisions. Even if the anchor isn’t relevant, it still holds powerful sway. This is how most salespeople make their deals and why bargaining happens in the first place. 

In marketing, brands cleverly play on this bias. High-priced options are often displayed first, making the following options look like a value deal. The best example for this is Starbucks. 

Starbucks is a pro at anchoring bias. When you order a coffee, the choices are Tall, Grande, and Venti. You walk in thinking of ordering a Tall, but when you see the size and price of a Grande, you think, Grande is a better deal for only a couple of extra bucks. And if you’re already leaning towards the Grande, the Venti suddenly feels like a true upgrade. Here’s why it works: 

• When you see the first number, your brain has already created a context which even you cannot change. It becomes an anchor for the following products that are to come. For example – theatre popcorn is expensive in itself, but if you’re not taking the jumbo deal, it’s a waste of money. 
• There is always a middle ground between expensive and cheap, and that is the best value. However, it usually inclines towards expensive 
• Our minds love comparing; therefore, when presented with two or more choices, we do not think of what is the best value individually, rather what is the best value in comparison to both – quick tip: it’s always the second one. 

Conclusion 

Psychology and marketing are a match made in heaven—or perhaps in a lab somewhere, where experts constantly test the quirks of the human mind. The relationship between the two is all about subtle nudges, hidden cues, and the art of influence. Understanding consumer behavior isn’t just about getting people to buy—it’s about shaping perceptions, driving actions, and ultimately building loyalty.