25/03/23
Endowment effect
Users value something they own more than something they don't own.
E.g. Airbnb uses the endowment effect by encouraging users to complete their profiles and add photos to their listings, which can make them feel more invested in their listings and more likely to continue using the platform.
E.g. Online marketplace Letgo's "Make an Offer" feature, which allows users to set their own prices for items they want to sell, encourages users to assign personal value to their possessions.
E.g. Uber's rewards program allows customers to earn points for every dollar spent on rides or Uber Eats, which can be redeemed for rewards and encourages continued use.
Exposure effect
Users develop a preference for something simply because they are familiar with it.
E.g. Instagram shows users content from accounts they have engaged with before, which can increase their preference for those accounts.
Framing effect
Users' choices are influenced by the way options are presented to them.
E.g. Netflix uses the framing effect by presenting users with categories like "Trending Now" or "Recommended for You," which can influence their viewing choices.
E.g. Twitter's use of hashtags helps users organise and categorise their tweets and make them more discoverable to others.
E.g. Spotify's "Discover Weekly" playlist presents personalised music recommendations in a way that makes them more appealing.
E.g. Pinterest's uses boards to help users organise and categorise their saved content and make it more discoverable.
Halo effect
Users make generalisations about a person or thing based on one positive trait or characteristic.
E.g. Apple's brand is associated with high-quality design, and this positive association can influence users' opinions of other aspects of Apple products.
Herd Mentality
Users follow the behaviours or choices of others in a group, even if it goes against their own beliefs or preferences.
E.g., TikTok uses the herd mentality by highlighting popular videos and trends, which can encourage users to follow along with the crowd.
Hyperbolic discounting
Users prefer immediate rewards over larger rewards that are delayed in time.
E.g. Duolingo uses the hyperbolic discounting bias by rewarding users with "streaks" for completing daily language lessons, which can encourage them to use the app consistently.
E.g. Peloton's subscription-based fitness app provides immediate access to a variety of live and on-demand classes and tracking features in exchange for a monthly fee, leveraging hyperbolic discounting to encourage sign-ups and engagement. This strategy leverages hyperbolic discounting by providing users with an immediate benefit (access to all of the app's classes) in exchange for a monthly subscription fee.
Loss aversion
Users feel more pain from losing something than pleasure from gaining something.
E.g. YouTube uses loss aversion by sending notifications when a user's favourite channels upload a new video, which can create a fear of missing out and encourage users to return to the platform.
Mere exposure effect
Users develop a preference for something simply because they are familiar with it.
E.g. Snapchat uses the mere exposure effect by repeating its branding elements, such as the yellow color and ghost logo, throughout the app and in its marketing.
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