Why are we loyal to certain brands? Are we more likely to prefer the brand with the best features, or the lowest price, or the brand that a trusted friend recommended to us? Why is it that we may gladly pay thousands of dollars in premium to get a luxury car brand like a BMW, while we are eager to save pennies by choosing the store brand for butter? This type of behavior is not rational.
We all like to believe we have solid logic behind our decision-making, but is this true? From a sheer processing standpoint, our rational mind represents less than 10% of our brainpower while the intuitive mind makes up more than 90%. In his book, Thinking Fast & Slow, Nobel Prize winning behavioral economist Daniel Khaneman explains how it is the automatic operations of the intuitive and sub-conscious mind that provide the â€œimpressions and feelings that are the main sources of the explicit beliefs and deliberate choicesâ€ that make up the rational mind. Khaneman calls the Intuitive Mind â€œSystem 1â€ and the rational mind â€œSystem 2.â€
Brand loyalty is a learned unconscious behavior. Buying brands we know simplifies our lives by putting hundreds of daily decisions on auto-pilot and relieving us of the time and effort required to process each and every decision. As a marketer we â€œwinâ€ when we get customers to buy our brand by habit, without thinking about it.
The human mind is excellent at recognizing patterns and likes to follow and repeat patterns. If we want customers to get into the habit of buying our brand we must understand the how consumer behavior is driven in large part by the force of habit. The is a 5-step process for switching someone from another brand to our brand.